Chapter 79 — Taxation

Unofficial online text published by the Kansas Office of Revisor of Statutes; the printed volumes of the Kansas Statutes Annotated are the authoritative version. Current through the 2025 session laws.

Article 1 Property Subject to Taxation

§ 79-101 Property taxable

All property in this state, real and personal, not expressly exempt therefrom, shall be subject to taxation in the manner prescribed by this act.

History: L. 1876, ch. 34, § 1; March 11; R.S. 1923, 79-101.

§ 79-102 Words and phrases

That the terms "real property," "real estate," and "land," when used in this act, except as otherwise specifically provided, shall include not only the land itself, but all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs and wells, rights and privileges appertaining thereto.

The term "personal property" shall include every tangible thing which is the subject of ownership, not forming part or parcel of real property; also the capital stock, undivided profits and all other assets of every company, incorporated or unincorporated, and every share or interest in such stock, profit, or assets, by whatever name the same may be designated, provided the same is not included in other personal property subject to taxation or listed as the property of individuals; and also every share or interest in any vessel or boat used in navigating any of the waters within or bordering on this state, whether such vessel or boat shall be within the jurisdiction of the state or elsewhere; and also all "property" owned, leased, used, occupied or employed by any railway or telegraph company or corporation within this state, situate on the right-of-way of any railway.

That the term "property," when used alone in this act, shall mean and include every kind of property subject to ownership.

The term "money" or "moneys" shall mean and include gold and silver coin, United States treasury notes, and bank notes.

The words "personal property," when used in this act in their general sense, shall include all taxable property other than real property, as hereinbefore defined.

The words "town" or "village," when used in this act, shall include every place laid out in lots and blocks other than incorporated cities.

The word "cities" shall include only such places as are incorporated cities.

The words "he," "his," or "him," when so used as to refer to a female, shall be held to mean "she," "her," or "hers"; and when so used as to refer to more than one person, "they," "their," or "them," as the sense may require.

History: L. 1907, ch. 408, § 1; July 1; R.S. 1923, 79-102.

Article 2 Property Exempt from Taxation

§ 79-201 Property exempt from taxation; religious, educational, literary, scientific, benevolent, alumni association, veterans' organization or charitable purposes; parsonages; community service organizations providing humanitarian services; electric generating property using renewable technology; landfill gas and production property

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

All buildings used exclusively as places of public worship and all buildings used exclusively by school districts and school district interlocal cooperatives organized under the laws of this state, with the furniture and books therein contained and used exclusively for the accommodation of religious meetings or for school district or school district interlocal cooperative purposes, whichever is applicable, together with the grounds owned thereby if not leased or otherwise used for the realization of profit, except that: (a) (1) Any school building, or portion thereof, together with the grounds upon which the building is located, shall be considered to be used exclusively by the school district for the purposes of this section when leased by the school district to any political or taxing subdivision of the state, including a school district interlocal cooperative, or to any association, organization or nonprofit corporation entitled to tax exemption with respect to such property; and (2) any school building, together with the grounds upon which the building is located, shall be considered to be used exclusively by a school district interlocal cooperative for the purposes of this section when being acquired pursuant to a lease-purchase agreement; and (b) any building, or portion thereof, used as a place of worship, together with the grounds upon which the building is located, shall be considered to be used exclusively for the religious purposes of this section when used as a not-for-profit day care center for children which is licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto, or when used to house an area where the congregation of a church society and others may purchase tracts, books and other items relating to the promulgation of the church society's religious doctrines.

Second.

All real property, and all tangible personal property, actually and regularly used exclusively for literary, educational, scientific, religious, benevolent or charitable purposes, including property used exclusively for such purposes by more than one agency or organization for one or more of such exempt purposes. Except with regard to real property which is owned by a religious organization, is to be used exclusively for religious purposes and is not used for a nonexempt purpose prior to its exclusive use for religious purposes which property shall be deemed to be actually and regularly used exclusively for religious purposes for the purposes of this paragraph, this exemption shall not apply to such property, not actually used or occupied for the purposes set forth herein, nor to such property held or used as an investment even though the income or rentals received therefrom is used wholly for such literary, educational, scientific, religious, benevolent or charitable purposes. In the event any such property which has been exempted pursuant to the preceding sentence is not used for religious purposes prior to its conveyance which results in its use for nonreligious purposes, there shall be a recoupment of property taxes in an amount equal to the tax which would have been levied upon such property except for such exemption for all taxable years for which such exemption was in effect. Such recoupment tax shall become due and payable in such year as provided by K.S.A. 79-2004, and amendments thereto. A lien for such taxes shall attach to the real property subject to the same on November 1 in the year such taxes become due and all such taxes remaining due and unpaid after the date prescribed for the payment thereof shall be collected in the manner provided by law for the collection of delinquent taxes. Moneys collected from the recoupment tax hereunder shall be credited by the county treasurer to the several taxing subdivisions within which such real property is located in the proportion that the total tangible property tax levies made in the preceding year for each such taxing subdivision bear to the total of all such levies made in that year by all such taxing subdivisions. Such moneys shall be credited to the general fund of the taxing subdivision or if such taxing subdivision is making no property tax levy for the support of a general fund such moneys may be credited to any other tangible property tax fund of general application of such subdivision. This exemption shall not be deemed inapplicable to property which would otherwise be exempt pursuant to this paragraph because an agency or organization: (a) Is reimbursed for the provision of services accomplishing the purposes enumerated in this paragraph based upon the ability to pay by the recipient of such services; or (b) is reimbursed for the actual expense of using such property for purposes enumerated in this paragraph; or (c) uses such property for a nonexempt purpose which is minimal in scope and insubstantial in nature if such use is incidental to the exempt purposes of this paragraph; or (d) charges a reasonable fee for admission to cultural or educational activities or permits the use of its property for such activities by a related agency or organization, if any such activity is in furtherance of the purposes of this paragraph; or (e) is applying for an exemption pursuant to this paragraph for a motor vehicle that is being leased for a period of at least one year.

Third.

All moneys and credits belonging exclusively to universities, colleges, academies or other public schools of any kind, or to religious, literary, scientific or benevolent and charitable institutions or associations, appropriated solely to sustain such institutions or associations, not exceeding in amount or in income arising therefrom the limit prescribed by the charter of such institution or association.

Fourth.

The reserve or emergency funds of fraternal benefit societies authorized to do business under the laws of the state of Kansas.

Fifth.

All buildings of private nonprofit universities or colleges which are owned and operated by such universities and colleges as student union buildings, presidents' homes and student dormitories.

Sixth.

All real and tangible personal property actually and regularly used exclusively by the alumni association associated by its articles of incorporation with any public or nonprofit Kansas college or university approved by the Kansas board of regents to confer academic degrees or with any community college approved by its board of trustees to grant certificates of completion of courses or curriculum, to provide accommodations and services to such college or university or to the alumni, staff or faculty thereof.

Seventh.

All parsonages owned by a church society and actually and regularly occupied and used predominantly as a residence by a minister or other clergyman of such church society who is actually and regularly engaged in conducting the services and religious ministrations of such society, and the land upon which such parsonage is located to the extent necessary for the accommodation of such parsonage.

Eighth.

All real property, all buildings located on such property and all personal property contained therein, actually and regularly used exclusively by any individually chartered organization of honorably discharged military veterans of the United States armed forces or auxiliary of any such organization, which is exempt from federal income taxation pursuant to section 501(c)(19) of the federal internal revenue code of 1986, for clubhouse, place of meeting or memorial hall purposes, and real property to the extent of not more than two acres, and all buildings located on such property, actually and regularly used exclusively by any such veterans' organization or its auxiliary as a memorial park.

Ninth.

All real property and tangible personal property actually and regularly used by a community service organization for the predominant purpose of providing humanitarian services, which is owned and operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign not-for-profit corporation if: (a) The directors of such corporation serve without pay for such services; (b) the corporation is operated in a manner which does not result in the accrual of distributable profits, realization of private gain resulting from the payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered or the realization of any other form of private gain; (c) no officer, director or member of such corporation has any pecuniary interest in the property for which exemption is claimed; (d) the corporation is organized for the purpose of providing humanitarian services; (e) the actual use of property for which an exemption is claimed must be substantially and predominantly related to the purpose of providing humanitarian services, except that, the use of such property for a nonexempt purpose which is minimal in scope and insubstantial in nature shall not result in the loss of exemption if such use is incidental to the purpose of providing humanitarian services by the corporation; (f) the corporation is exempt from federal income taxation pursuant to section 501(c)(3) of the internal revenue code of 1986; and (g) contributions to the corporation are deductible under the Kansas income tax act. As used in this clause, "humanitarian services" means the conduct of activities which substantially and predominantly meet a demonstrated community need and which improve the physical, mental, social, cultural or spiritual welfare of others or the relief, comfort or assistance of persons in distress or any combination thereof including, but not limited to, health and recreation services, child care, individual and family counseling, employment and training programs for handicapped persons and meals or feeding programs. Notwithstanding any other provision of this clause, motor vehicles shall not be exempt hereunder unless such vehicles are exclusively used for the purposes described therein, except that the use of any such vehicle for the purpose of participating in a coordinated transit district in accordance with the provisions of K.S.A. 75-5032 through 75-5037, and amendments thereto, or K.S.A. 75-5051 through 75-5058, and amendments thereto, shall be deemed as exclusive use.

Tenth.

For all taxable years commencing after December 31, 1986, any building, and the land upon which such building is located to the extent necessary for the accommodation of such building, owned by a church or nonprofit religious society or order which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and actually and regularly occupied and used exclusively for residential and religious purposes by a community of persons who are bound by vows to a religious life and who conduct or assist in the conduct of religious services and actually and regularly engage in religious, benevolent, charitable or educational ministrations or the performance of health care services.

Eleventh.

For all taxable years commencing after December 31, 1998, all property actually and regularly used predominantly to produce and generate electricity utilizing renewable energy resources or technologies when the applicant for such property, on or before December 31, 2016, has filed an application for exemption pursuant to this subsection or has received a conditional use permit to produce and generate electricity on the property from the county in which the property is located. Any exemption granted under the provisions of this subsection for such property when the applicant, after December 31, 2016, has filed such application or filed such application and received a conditional use permit, shall be in effect for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed. For purposes of this section, "renewable energy resources or technologies" shall include wind, solar, photovoltaic, biomass, hydropower, geothermal and landfill gas resources or technologies.

Twelfth.

For all taxable years commencing after December 31, 2001, all personal property actually and regularly used predominantly to collect, refine or treat landfill gas or to transport landfill gas from a landfill to a transmission pipeline, and the landfill gas produced therefrom.

The provisions of this section, except as otherwise more specifically provided, shall apply to all taxable years commencing after December 31, 2009.

History: L. 1907, ch. 408, § 2; R.S. 1923, 79-201; L. 1929, ch. 283, § 1; L. 1963, ch. 456, § 1; L. 1965, ch. 509, § 1; L. 1967, ch. 486, § 1; L. 1969, ch. 429, § 1; L. 1974, ch. 427, § 1; L. 1975, ch. 495, § 1; L. 1980, ch. 306, § 1; L. 1984, ch. 349, § 1; L. 1985, ch. 311, § 1; L. 1986, ch. 368, § 1; L. 1986, ch. 369, § 1; L. 1988, ch. 372, § 1; L. 1988, ch. 373, § 1; L. 1989, ch. 288, § 1; L. 1992, ch. 84, § 1; L. 1997, ch. 122, § 2; L. 1999, ch. 154, § 3; L. 2000, ch. 139, § 3; L. 2005, ch. 98, § 1; L. 2007, ch. 4, § 3; L. 2009, ch. 69, § 1; L. 2015, ch. 75, § 4; July 1.

§ 79-201a Property exempt from property and ad valorem taxes

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 governmental 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 amendments 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 sciences regulatory board pursuant to K.S.A. 74-5301 et seq., and amendments 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 property by a museum or historical society, if no portion of the lease payments include compensation for return on the investment in such leased property shall be deemed to be used exclusively for the purposes of this paragraph. All property leased, other than motor vehicles leased for a period of at least one year and 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 proceeds of industrial revenue bonds issued prior to July 1, 1963, as authorized by K.S.A. 12-1740 through 12-1749, and amendments thereto, or purchased with proceeds of improvement district bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-2776, and amendments thereto, or with proceeds of bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-3815a and 19-3815b, and amendments thereto, or any property improved, purchased, constructed, reconstructed or repaired with the proceeds of revenue bonds issued prior to July 1, 1963, as authorized by K.S.A. 13-1238 through 13-1245, and amendments thereto, or any property improved, reimproved, reconstructed or repaired with the proceeds of revenue bonds issued after July 1, 1963, under the authority of K.S.A. 13-1238 through 13-1245, and amendments thereto, 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 through 13-1245, and amendments thereto, 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 through 12-1749, 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 hereinafter 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 through 12-1749, 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 through 12-1749, 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 through 12-1749, and amendments thereto, and used in any retail enterprise identified under NAICS sectors 44 and 45, except facilities used exclusively 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 "NAICS" means the North American industry classification system, as developed under the authority 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 direction, 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, that is located in a redevelopment project area established under the authority of K.S.A. 12-1770 et seq., and amendments thereto, shall not be exempt from taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the proceeds of revenue bonds issued under authority of K.S.A. 12-1740 through 12-1749a, and amendments thereto, for any poultry confinement facility on agricultural land that is owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A. 17-5903, and amendments thereto, shall not be exempt from such taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, 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 through 12-1749a, 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 amendments 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 extinguishment 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 municipal 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 that 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. Property that is part of a state park listed in K.S.A. 32-837(a)(25) or (a)(26), and amendments thereto, and that is contained within or encumbered by any railroad rights-of-way that have been transferred or conveyed to the Kansas department of wildlife and parks for interim use, pursuant to 16 U.S.C. § 1247(d), shall be deemed to be acquired and used for state park purposes by the Kansas department of wildlife and parks for the purposes of this subsection.

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 mentioned in K.S.A. 76-6a01, and amendments thereto, by any other nonprofit corporation.

Thirteenth.

All buildings, as the same is defined in K.S.A. 76-6a13(c), and amendments thereto, that are erected, constructed or acquired under the authority of K.S.A. 76-6a13 et seq., and amendments 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 K.S.A. 79-205, and amendments thereto.

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 that 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. 74-32,407, 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-technical school, a technical college or a community college, as defined by K.S.A. 74-32,407, and amendments thereto, that 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 that is contained within a dormitory that is exempt from property taxation and which is necessary for the accommodation of the students residing therein.

Twenty-First.

All real property from and after the date of its transfer by the city of Olathe, Kansas, to the Kansas state university foundation, all buildings and improvements thereafter erected and located on such property, and all tangible personal property, that is held, used or operated for educational and research purposes at the Kansas state university Olathe innovation campus located in the city of Olathe, Kansas.

Twenty-Second.

All real property, and all tangible personal property, owned by postsecondary educational institutions, as defined in K.S.A. 74-3201b, and amendments thereto, or by the board of regents on behalf of the postsecondary educational institutions, that is leased by a for profit company and is actually and regularly used exclusively for research and development purposes so long as any rental income received by such postsecondary educational institution or the board of regents from such a company is used exclusively for educational or scientific purposes. Any such lease or occupancy described in this section shall be for a term of no more than five years.

Twenty-Third.

For all taxable years commencing after December 31, 2005, any and all housing developments and related improvements located on United States department of defense military installations in the state of Kansas, that are developed pursuant to the military housing privatization initiative, 10 U.S.C. § 2871 et seq., or any successor thereto, and are provided exclusively or primarily for use by military personnel of the United States and their families.

Twenty-Fourth.

For all taxable years commencing after December 31, 2012, except as hereinafter provided, any property constructed or purchased in part with the proceeds of revenue bonds issued on or after July 1, 2013, under the authority of K.S.A. 12-1740 through 12-1749a, 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 that 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 through 12-1749a, and amendments thereto, and used in any retail enterprise identified under NAICS sectors 44 and 45, except facilities used exclusively 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 "NAICS" means the North American industry classification system, as developed under the authority 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 direction, 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, that is located in a redevelopment project area established under the authority of K.S.A. 12-1770 et seq., and amendments thereto, shall not be exempt from taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the proceeds of revenue bonds issued under authority of K.S.A. 12-1740 through 12-1749a, and amendments thereto, for any poultry confinement facility on agricultural land that is owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A. 17-5903, and amendments thereto, shall not be exempt from such taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, 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 through 12-1749a, and amendments thereto, for a rabbit confinement facility on agricultural land that is owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A. 17-5903, and amendments thereto, shall not be exempt from such taxation.

Twenty-Fifth.

For all taxable years commencing after December 31, 2013, any and all utility systems and appurtenances located on United States department of defense military installations in the state of Kansas, that have been acquired after December 31, 2013, pursuant to the military utilities privatization initiative, 10 U.S.C. § 2688 et seq., or any successor thereto, or that have been installed after December 31, 2013, and that are provided exclusively or primarily for use by the military of the United States.

Twenty-Sixth.

All land owned by a municipality that is a part of a public levee that is leased pursuant to K.S.A. 13-1243, and amendments thereto.

Except as otherwise specifically provided, the provisions of this section shall apply to all taxable years commencing after December 31, 2010.

History: L. 1975, ch. 495, § 2; L. 1977, ch. 323, § 1; L. 1978, ch. 390, § 1; L. 1979, ch. 307, § 1; L. 1980, ch. 68, § 5; L. 1981, ch. 370, § 1; L. 1982, ch. 389, § 1; L. 1987, ch. 395, § 1; L. 1987, ch. 368, § 4; L. 1989, ch. 118, § 190; L. 1989, ch. 288, § 2; L. 1989, ch. 274, § 6; L. 1992, ch. 287, § 1; L. 1994, ch. 193, § 1; L. 1994, ch. 357, § 1; L. 1995, ch. 254, § 3; L. 1997, ch. 126, § 36; L. 1997, ch. 187, § 2; L. 1998, ch. 146, § 1; L. 1999, ch. 154, § 73; L. 2001, ch. 214, § 1; L. 2005, ch. 152, § 42; L. 2005, ch. 199, § 5; L. 2007, ch. 152, § 6; L. 2008, ch. 182, § 14; L. 2009, ch. 69, § 2; L. 2010, ch. 97, § 3; L. 2012, ch. 82, § 1; L. 2012, ch. 166, § 22; L. 2013, ch. 56, § 1; L. 2013, ch. 135, § 10; L. 2014, ch. 38, § 1; L. 2014, ch. 119, § 4; L. 2018, ch. 74, § 3; L. 2023, ch. 7, § 138; July 1.

§ 79-201b Property exempt from taxation; hospitals, public hospital authority, adult care homes, children's homes, group housing of certain handicapped persons, housing for elderly persons and single-parent families

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

All real property, and tangible personal property, actually and regularly used exclusively for hospital purposes by a hospital as the same is defined by K.S.A. 65-425, and amendments thereto, or a psychiatric hospital as the same was defined by K.S.A. 59-2902, and amendments thereto, as in effect on January 1, 1976, which hospital or psychiatric hospital is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation, or a public hospital authority; and all intangible property including moneys, notes and other evidences of debt, and the income therefrom, belonging exclusively to such a corporation and used exclusively for hospital, psychiatric hospital or public hospital authority purposes. This exemption shall not be deemed inapplicable to property which would otherwise be exempt pursuant to this paragraph because any such hospital, psychiatric hospital or public hospital authority: (a) Uses such property for a nonexempt purpose that is minimal in scope and insubstantial in nature if such use is incidental to the exempt purpose enumerated in this paragraph; or (b) is reimbursed for the actual expense of using such property for the exempt purposes enumerated in this paragraph or paragraph second of K.S.A. 79-201, and amendments thereto; or (c) permits the use of such property for the exempt purposes enumerated in this paragraph or paragraph second of K.S.A. 79-201, and amendments thereto, by more than one agency or organization for one or more of such purposes.

Second.

All real property, and tangible personal property, actually and regularly used exclusively for adult care home purposes by an adult care home as the same is defined by K.S.A. 39-923, and amendments thereto, that is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation, charges to residents for services of which produce an amount which in the aggregate is less than the actual cost of operation of the home or the services of which are provided to residents at the lowest feasible cost, taking into consideration such items as reasonable depreciation, interest on indebtedness, acquisition costs, interest and other expenses of financing acquisition costs, lease expenses and costs of services provided by a parent corporation at its costs and contributions to which are deductible under the Kansas income tax act; and all intangible property including moneys, notes and other evidences of debt, and the income therefrom, belonging exclusively to such corporation and used exclusively for adult care home purposes. For purposes of this paragraph and for all taxable years commencing after December 31, 1976, an adult care home which uses its property in a manner which is consistent with the federal internal revenue service ruling 72-124 issued pursuant to section 501(c)(3) of the federal internal revenue code, shall be deemed to be operating at the lowest feasible cost. The fact that real property or real or tangible personal property may be leased from a not-for-profit corporation, which is exempt from federal income taxation pursuant to section 501(c)(3) of the internal revenue code of 1986, and amendments thereto, and which is the parent corporation to the not-for-profit operator of an adult care home, shall not be grounds to deny exemption or deny that such property is actually and regularly used exclusively for adult care home purposes by an adult care home, nor shall the terms of any such lease be grounds for any such denial. For all taxable years commencing after December 31, 1995, such property shall be deemed to be used exclusively for adult care home purposes when used as a not-for-profit day care center for children which is licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto.

Third.

All real property, and tangible personal property, actually and regularly used exclusively for private children's home purposes by a private children's home as the same is defined by K.S.A. 75-3329, and amendments thereto, that is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation, charges to residents for services of which produce an amount that in the aggregate is less than the actual cost of operation of the home or the services of which are provided to residents at the lowest feasible cost, taking into consideration such items as reasonable depreciation and interest on indebtedness, and contributions to which are deductible under the Kansas income tax act; and all intangible property including moneys, notes and other evidences of debt, and the income therefrom, belonging exclusively to such a corporation and used exclusively for children's home purposes.

Fourth.

All real property and tangible personal property, actually and regularly used exclusively for: (a) Housing for elderly and handicapped persons having a limited or lower income, or used exclusively for cooperative housing for persons having a limited or low income, assistance for the financing of which was received under 12 U.S.C.A. § 1701 et seq., or under 42 U.S.C.A. § 1437 et seq., that is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation; and (b) for all taxable years commencing after December 31, 2006, temporary housing of 24 months or less for limited or low income, single-parent families in need of financial assistance who are enrolled in a program to receive life training skills, that is operated by a charitable or religious organization; and all intangible property including moneys, notes and other evidences of debt, and the income therefrom, belonging exclusively to such a corporation and used exclusively for the purposes of such housing. For the purposes of this subsection, cooperative housing means those not-for-profit cooperative housing projects operating or established pursuant to sections 236 or 221(d)(3), or both, of the national housing act and which have been approved as a cooperative housing project pursuant to applicable federal housing administration and U.S. department of housing and urban development statutes, and rules and regulations, during such time as the use of such properties are: (1) Restricted pursuant to such act, or rules and regulations thereof; or (2) subject to affordability financing standards established pursuant to the national housing act during such time that such not-for-profit corporation has adopted articles of incorporation or by-laws, or both, requiring such corporation to continue to operate in compliance with the United States department of housing and urban development affordability income guidelines established pursuant to sections 236 or 221(d)(3) of the national housing act or rules and regulations thereof.

Fifth.

All real property and tangible personal property, actually and regularly used exclusively for housing for elderly persons, that is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation, in which charges to residents produce an amount that in the aggregate is less than the actual cost of operation of the housing facility or the services of which are provided to residents at the lowest feasible cost, taking into consideration such items as reasonable depreciation and interest on indebtedness and contributions to which are deductible under the Kansas income tax act; and all intangible property including moneys, notes and other evidences of debt, and the income therefrom, belonging exclusively to such corporation and used exclusively for the purpose of such housing. For purposes of this paragraph and for all taxable years commencing after December 31, 1976, an adult care home which uses its property in a manner which is consistent with the federal internal revenue service ruling 72-124 issued pursuant to section 501(c)(3) of the federal internal revenue code, shall be deemed to be operating at the lowest feasible cost. For all taxable years commencing after December 31, 1995, such property shall be deemed to be used exclusively for housing for elderly persons purposes when used as a not-for-profit day care center for children that is licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto.

Sixth.

All real property and tangible personal property actually and regularly used exclusively for the purpose of group housing of mentally ill persons or individuals with intellectual or other disabilities that is operated by a corporation organized not for profit under the laws of the state of Kansas or by a corporation organized not for profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation, in which charges to residents produce an amount that in the aggregate is less than the actual cost of operation of the housing facility or the services of which are provided to residents at the lowest feasible cost, taking into consideration such items as reasonable depreciation and interest on indebtedness and contributions to which are deductible under the Kansas income tax act, and that is licensed as a facility for the housing of mentally ill persons or individuals with intellectual or other disabilities under the provisions of K.S.A. 39-2001 et seq., and amendments thereto, or as a rooming or boarding house used as a facility for the housing of individuals with intellectual or other disabilities that is licensed as a lodging establishment under the provisions of K.S.A. 36-501 et seq., and amendments thereto.

The provisions of this section, except as otherwise specifically provided, shall apply to all taxable years commencing after December 31, 1998.

History: L. 1975, ch. 495, § 3; L. 1976, ch. 421, § 1; L. 1977, ch. 324, § 1; L. 1985, ch. 311, § 2; L. 1986, ch. 369, § 2; L. 1988, ch. 372, § 2; L. 1988, ch. 373, § 2; L. 1996, ch. 264, § 6; L. 1998, ch. 12, § 26; L. 1999, ch. 154, § 74; L. 2004, ch. 173, § 6; L. 2008, ch. 182, § 15; L. 2018, ch. 71, § 29; July 1.

§ 79-201c Same; wearing apparel; household goods and personal effects; graveyards

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

The wearing apparel of every person.

Second.

All household goods and personal effects not used for the production of income. The terms household goods and personal effects when used in this act, except as otherwise specifically provided, shall include all items of furniture, cooking utensils, refrigerators, deep freezers, washing and drying machines, dishwashers, stoves, ranges, ironers, vacuum cleaners, sewing machines, radios, record players, television sets, shop and hobby equipment used in or about the home, fishing equipment (not including boats), bicycles, yard and garden equipment, firearms, golf clubs, photographic equipment, jewelry, luggage, musical instruments, air conditioners if not a part of the central heating and air conditioning system, sailboards and pick-up truck shells. For the purposes of this paragraph, household goods and personal effects shall not be deemed to be used for the production of income when used in the home 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, or when used in the home for bed and breakfast home purposes as defined in K.S.A. 79-1439, and amendments thereto.

Third.

All lands used exclusively as graveyards.

The provisions of this section shall apply to all taxable years commencing after December 31, 2003.

History: L. 1975, ch. 495, § 4; L. 1977, ch. 325, § 1; L. 1988, ch. 374, § 4; L. 1999, ch. 123, § 1; L. 2004, ch. 173, § 7; July 1.

§ 79-201d Property exempt from taxation; hay and silage; farm storage and drying equipment; hay storage structures; structures for storing materials for producing cellulosic alcohol and by products

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

All hay and silage. The term "hay" shall include alfalfa, brome, clover, and prairie hays and all other grasses and plants which are harvested for forage. The term "silage" shall include corn, milo, sorghum and all other plants, cut, compressed and preserved by its own fermentation for fodder.

Second.

All farm storage and drying equipment meeting eligibility requirements, as provided in Title 7, Chapter XIV, Subchapter B, Part 1474 of the Code of Federal Regulations and as in effect on December 31, 1977, for loans under the federal farm storage and drying equipment loan program, whether financed or not, and all used farm storage and drying equipment meeting such eligibility requirements but for the fact that the same was not purchased from the commodity credit corporation, which equipment is used for the storage or drying of haylage, silage, corn, oats, barley, grain sorghum, wheat, rye, soybeans, flaxseed, rice, dry edible beans or sunflower seed, for any eight of the 10 calendar years next following the calendar year in which such equipment is acquired or construction thereof is completed. The exemption provided for in this paragraph shall be limited to a total of eight years for each individual farm storage and drying equipment. The provisions of this subsection shall apply to equipment acquired or the construction of which was completed during the calendar year 1977, or any year thereafter.

Third.

All farm storage structures designed and predominantly used for the storage of hay, for any eight of the 10 calendar years next following the calendar year in which such farm storage structure was newly constructed or first assembled. The exemption provided for in this paragraph shall be limited to a total of eight years for each individual farm storage structure. The provisions of this paragraph shall apply to farm storage structures newly constructed or first assembled after December 31, 2004.

Fourth.

All storage structures designed and predominantly used for the storage of cellulose matter or other related agriculturally derived material to be used in the production of cellulosic alcohol and coproducts, for any eight of the 10 calendar years next following the calendar year in which such storage structure was newly constructed or first assembled. The exemption provided for in this paragraph shall be limited to a total of eight years for each such individual storage structure. The provisions of this paragraph shall apply to such storage structures newly constructed or first assembled after December 31, 2006.

The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

History: L. 1975, ch. 495, § 5; L. 1978, ch. 391, § 1; L. 1978, ch. 392, § 3; L. 1982, ch. 390, § 1; L. 1985, ch. 311, § 3; L. 1988, ch. 375, § 1; L. 2001, ch. 192, § 1; L. 2005, ch. 73, § 1; L. 2007, ch. 152, § 7; April 26.

§ 79-201e Same; mined land; reclaimed surface mining operations

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

All real property upon which surface mining operations were conducted prior to January 1, 1969, but which has been reclaimed and returned to productive use, to the extent of the increase in the valuation of such property resulting from reclamation and conservation practices performed upon such property by the owner thereof, for a period of five (5) years from and after the calendar year in which such property is reclaimed and returned to productive use shall be exempt from taxation. Before such exemption may be granted, the taxpayer shall file a claim for such exemption with the county clerk or county assessor, as the case may be, and no exemption shall be allowed if the reclamation work commenced is discontinued before completion of the work.

The provisions of this section shall apply to all taxable years commencing after December 31, 1974.

History: L. 1975, ch. 495, § 6; July 1.

§ 79-201f Property exempt from taxation; personal property moving in interstate commerce or stored in warehouses or storage areas prior to shipment out of state

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) Personal property which is moving in interstate commerce through or over the territory of the state of Kansas, except public utility inventories subject to taxation pursuant to K.S.A. 79-5a01 et seq., and amendments thereto;

(b) Personal property which has been shipped into the state of Kansas from outside the state which is stored in a warehouse or storage area operated by a warehouseman if such warehouseman keeps records of such property showing point of origin, date of receipt, type and quantity, date of withdrawal and ultimate destination notwithstanding (1) that the final destination of such personal property is unknown at the time of storage in Kansas or (2) that the interstate movement of such personal property has been interrupted for not more than five years by such storage in Kansas for reasons relating to the convenience, pleasure or business of the shipper or owner of the property unless the ultimate destination of the property is within the state of Kansas; and

(c) goods, wares and merchandise which are manufactured, assembled, joined, processed, packaged or labeled within this state, during the period of time in which they are stored in a warehouse or storage area operated by a warehouseman if such warehouseman keeps records of such property showing point of origin, date of receipt, type and quantity, date of withdrawal and ultimate destination. In order to qualify goods, wares and merchandise in any such warehouse or storage area for the exemption from taxation under this subsection, the owner of such goods, wares and merchandise must show by verified statement that the final destination of at least 30% of the sale or shipments from such warehouse or storage area during the previous calendar year were shipped in interstate commerce to a point outside the state of Kansas, and the amount of exempt property shall be computed as follows: The owner shall furnish the county appraiser with a report of the monthly average inventory for the preceding calendar year and a report of the value of shipments for final destination outside the state for each month of the previous calendar year. The owner shall be entitled to exemption of a percent of the average monthly inventory equivalent to the percent of value of total shipments to the value of shipments that were made in interstate commerce to points outside the state.

(d) For the purposes of this section, "warehouseman" means any person, except a public utility as defined in K.S.A. 79-5a01, and amendments thereto, who is engaged in the business of storing goods for hire or who stores such person's own goods.

The provisions of this section shall apply to all taxable years commencing after December 31, 1983.

History: L. 1975, ch. 495, § 7; L. 1979, ch. 308, § 1; L. 1984, ch. 350, § 1; L. 1987, ch. 369, § 1; L. 2004, ch. 171, § 3; July 1.

§ 79-201g Same; lands contiguous to or donated in connection with erection or maintenance of dam or reservoir

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) All real property which is contiguous to and a part of the same tract of land upon which a dam or reservoir has been constructed and certified by the chief engineer of the division of water resources in compliance with requirements and specifications prescribed by K.S.A. 82a-405 et seq., and amendments thereto, in an amount equal to the increase in the value of such real estate resulting from the construction of such dam or reservoir and in addition thereto an amount computed according to the following schedule:

• First ten acre-feet of storage capacity $100 per acre-foot
• Next five acre-feet of storage capacity 300 per acre-foot
• Next five acre-feet of storage capacity 200 per acre-foot
• Next five acre-feet of storage capacity 100 per acre-foot
• Remaining acre-feet of storage capacity 50 per acre-foot

The total amount of the exemption for any single tract of land shall not exceed five thousand dollars ($5,000) or forty percent (40%) of the assessed value thereof whichever is the lesser. No exemption shall be granted hereunder unless the landowner shall apply to the chief engineer of the division of water resources for certification of any dam or reservoir within one year after actual completion thereof. Such exemption shall be applicable to such property for a period of ten (10) years after the original certification of the dam or reservoir; and

(b) All real property which is contiguous to and a part of the same tract of land upon which a dam or reservoir has been constructed and certified by the chief engineer of the division of water resources in compliance with requirements and specifications prescribed by K.S.A. 82a-405 et seq., and amendments thereto, the owner of which at the time of such certification donated to the state or to any of its agencies or subdivisions land or easements or right-of-way for such erection or maintenance of such dam or reservoir in an amount equal to twice the assessed value of the land or easements or right-of-way donated. Such exemption shall be based upon a specific description of the land donated, excluding any land the elevation of which is higher than the top of the dam, as prepared and provided by the chief engineer and the assessed value thereof, as determined by the county assessor, for the year in which the exemption is first granted. No exemption shall be granted hereunder unless the landowner shall apply to the chief engineer of the division of water resources for certification of such dam or reservoir and a description of the land donated within five (5) years after actual completion of the dam or reservoir or within two (2) years after such land is listed for taxation if such land was exempt from taxation under the laws of the state of Kansas at the time of the completion of the dam or reservoir whichever is later. Such exemption shall be applicable to such property for a period of twenty (20) years after the original certification of such dam or reservoir by the chief engineer except that if the landowner shall apply for such exemption more than two (2) years after the actual completion of the dam or reservoir such exemption shall be applicable to such property for a period of twenty (20) years after the date of the actual completion of the dam or reservoir.

The provisions of this section shall apply to all taxable years commencing after December 31, 1974.

History: L. 1975, ch. 495, § 8; July 1.

§ 79-201h Same; solar energy systems

Any solar energy system shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas. For the purposes of this section, the term "solar energy system" shall have the meaning ascribed thereto by K.S.A. 79-32,169 as in effect on June 30, 1980. The provisions of this section shall be applicable to all taxable years commencing after December 31, 1979, through December 31, 1985.

History: L. 1980, ch. 310, § 11; July 1.

§ 79-201i Purpose for farm machinery and equipment property tax exemption

It is the purpose of K.S.A. 79-201j of this act to promote, stimulate and develop the general welfare, economic development and prosperity of the state of Kansas by fostering the growth and development of agricultural endeavors within the state. Agriculture, as conducted in farming and ranching operations throughout the state, is the primary basis of the Kansas economy. Communities, regions, and the state as a whole are materially dependent upon agricultural endeavors and derive substantial financial benefit from the success of Kansas agriculture. Farming and ranching operations require the investment of large sums of capital for the purpose of providing the land on which the operations are conducted, and the farm machinery and equipment necessary to satisfactorily carry out such endeavors. Because of agriculture's unique requirements of substantial capital investment, the property tax burden becomes a deterrent to such investment and, in some instances, an encouragement to farm and ranch abandonment. Kansas, and all its citizens, will benefit from any improvement in the economic environment of Kansas agriculture. The exemption from the ad valorem property tax of farm machinery and equipment actually and regularly used in farming and ranching operations will constitute an incentive to agriculture and will improve the general economy of the state. Considering this state's heavy reliance on agriculture, the enhancement of agricultural endeavors is deemed to be a public purpose which will promote the general welfare of the state and be for the benefit of the people of the state.

History: L. 1982, ch. 390, § 2; May 20.

§ 79-201j Property exempt from taxation; farm machinery and equipment; aquaculture machinery and equipment; Christmas tree machinery and equipment

The following described property, to the extent specified by this section, shall be exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) All farm machinery and equipment. The term "farm machinery and equipment" means that personal property actually and regularly used in any farming or ranching operation. The term "farm machinery and equipment" shall include: (1) Machinery and equipment comprising a natural gas distribution system which is owned and operated by a nonprofit public utility described by K.S.A. 66-104c, and amendments thereto, and which is operated predominantly for the purpose of providing fuel for the irrigation of land devoted to agricultural use; (2) any bed, body or box that is attached to a motor vehicle and is actually and regularly used in any farming or ranching operation, except for a bed, body or box that is attached to the motor vehicle by the motor vehicle manufacturer; and (3) any greenhouse which is not permanently affixed to real estate and which is used for a farming or ranching operation. The term "farming or ranching operation" shall include the operation of a feedlot, the performing of farm or ranch work for hire and the planting, cultivating and harvesting of nursery or greenhouse products, or both, for sale or resale. The term "farm machinery and equipment" shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as the terms are defined by K.S.A. 8-126, and amendments thereto.

The provisions of this subsection shall apply to all taxable years commencing after December 31, 2007.

(b) (1) All aquaculture machinery and equipment. The term "aquaculture machinery and equipment" means that personal property actually and regularly used in any aquaculture operation. The term "aquaculture operation" shall include the feeding out of aquatic plants and animals; breeding, growing or rearing aquatic plants and animals; and selling or transporting aquatic plants and animals. The term "aquaculture machinery and equipment" shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer.

(2) All Christmas tree machinery and equipment. The term "Christmas tree machinery and equipment" means that personal property actually and regularly used in any Christmas tree operation. The term "Christmas tree operation" shall include the planting, cultivating and harvesting of Christmas trees; and selling or transporting Christmas trees. The term "Christmas tree machinery and equipment" shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer.

The provisions of this subsection shall apply to all taxable years commencing after December 31, 1992.

History: L. 1982, ch. 390, § 3; L. 1985, ch. 311, § 4; L. 1992, ch. 102, § 4; L. 1997, ch. 122, § 1; L. 1999, ch. 126, § 2; L. 2000, ch. 139, § 4; L. 2008, ch. 182, § 16; July 1.

§ 79-201k Property exempt from taxation; purpose; business aircraft

(a) It is the purpose of this section to promote, stimulate and develop the general welfare, economic development and prosperity of the state of Kansas by fostering the growth of commerce within the state; to encourage the location of new business and industry in this state and the expansion, relocation or retention of existing business and industry when so doing will help maintain or increase the level of commerce within the state; and to promote the economic stability of the state by maintaining and providing employment opportunities, thus promoting the general welfare of the citizens of this state, by exempting aircraft used in business and industry, from imposition of the property tax or other ad valorem tax imposed by this state or its taxing subdivisions. Kansas has long been a leader in the manufacture and use of aircraft and the use of aircraft in business and industry is vital to the continued economic growth of the state.

(b) The following described property, to the extent herein specified, is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

For all taxable years commencing after December 31, 2002, all aircraft used predominantly to earn income for the owner in the conduct of the owner's business or industry. If the owner's business or industry is the leasing of aircraft, the lessee's use of the aircraft shall not be considered in determining this exemption. The term "predominantly" means: (1) At least 80% of the total use of the aircraft; or (2) utilization of the aircraft such that all of the aircraft costs are deductible for federal income tax purposes. The term "aircraft" shall not include lightweight roadable vehicles, as defined by K.S.A. 8-126, and amendments thereto.

History: L. 1982, ch. 390, § 4; L. 1988, ch. 374, § 3; L. 2004, ch. 171, § 2; L. 2011, ch. 66, § 4; July 1.

§ 79-201l Severability clause

If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

History: L. 1982, ch. 390, § 5; May 20.

§ 79-201m Property exempt from taxation; merchants' and manufacturers' inventory

To the extent herein specified, merchants' and manufacturers' inventory shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas.

(a) As used in this section:

(1) "Merchant" means and includes every person, company or corporation who shall own or hold, subject to their control, any tangible personal property within this state which shall have been purchased primarily for resale in the ordinary course of business without modification or change in form or substance, and without any intervening use, except that, an incidental use, including but not limited to the rental or lease of any such property, shall not be deemed to be an intervening use;

(2) "manufacturer" means and includes every person, company or corporation who is engaged in the business of transforming, refining or combining materials and labor to convert tangible personal property from one form to another including packaging; and

(3) "inventory" means and includes those items of tangible personal property that: (1) Are primarily held for sale in the ordinary course of business (finished goods); (2) are in process of production for such sale (work in process); or (3) are to be consumed either directly or indirectly in the production of finished goods (raw materials and supplies). A capital asset subject to depreciation or cost recovery accounting for federal income tax purposes that is retired from regular use by its owner and held for sale or as standby or surplus equipment by such owner shall not be classified as inventory.

(b) The provisions of this section shall not apply to any tangible personal property of a public utility as defined by K.S.A. 79-5a01, and amendments thereto.

The provisions of this section shall apply to all taxable years commencing after December 31, 1988.

History: L. 1988, ch. 375, § 2; L. 1989, ch. 289, § 1; L. 1989, ch. 1, § 1 (Special Session); December 14.

§ 79-201n Property exempt from taxation; grain

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

All grain. As used in this section: "Grain" includes soybeans, cowpeas, wheat, corn, oats, barley, kafir, rye, flax and all other grains, but shall not include any such grain after it has been milled or processed.

The provisions of this section shall be applicable to all taxable years commencing after December 31, 1988.

History: L. 1988, ch. 391, § 1; July 1.

§ 79-201o Property exempt from taxation; construction hand tools

(a) It is the purpose of this section to promote, stimulate and develop the general welfare, economic development and prosperity of the state of Kansas by fostering the growth and development of the construction industry within the state. The exemption from the ad valorem property tax of hand tools used in the construction industry will constitute an incentive to economic development within the state and will improve the general economy of the state. Such an exemption will also further fairness in the state's current taxing structure.

(b) The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

For all taxable years commencing after December 31, 1987, all hand tools and hand tool boxes actually and regularly used exclusively by a mechanic or tradesperson in the construction industry in the course of such business.

History: L. 1988, ch. 374, § 1; July 1.

§ 79-201p Property exempt from taxation; motor vehicle inventories

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:

All motor vehicles held as inventory for sale by any motor vehicle dealer. As used in this section, "motor vehicle" means and includes all motor vehicles required to be registered under the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, and "motor vehicle dealer" means and includes a new vehicle dealer and a used vehicle dealer as the same are defined by K.S.A. 8-126, and amendments thereto.

The provisions of this section shall apply to all taxable years commencing after December 31, 1988.

History: L. 1988, ch. 374, § 5; July 1.

§ 79-201q Property exempt from taxation; municipal airports, airport authorities; valuation of land and improvements

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) (1) All property owned and primarily operated as an airport by a political subdivision, including property leased by the political subdivision for purposes not essential to the operation of an airport, for all taxable years commencing before January 1, 1993.

(2) For all taxable years commencing after December 31, 1992, all property owned and primarily operated as an airport by a political subdivision, including property leased by the political subdivision for purposes essential to the operation of an airport. Payments in lieu of property taxes may be required for any or all of such years for such leased property, and such payments shall be apportioned and distributed in the same manner as general property taxes.

(b) If the term of any lease existing on April 15, 1991, of any such property for purposes not essential to the operation of an airport extends beyond tax year 1992, the expiration date of the exemption provided by subsection (a) shall be the tax year next following the tax year during which such lease expires. Payments in lieu of taxes may be required for taxable years commencing after December 31, 1992, for any such property for the duration of any such lease, and all such payments shall be apportioned and distributed in the same manner as general property taxes.

(c) Nothing in this section shall be deemed to apply to or limit the operation of K.S.A. 27-319, 27-330 or 79-201a Second, and amendments thereto.

(d) All property taxes, including any penalties and interest accrued thereon, imposed upon any property described in subsection (a) and (b) for all taxable years to which such subsections apply are hereby declared to be canceled but any such amounts paid in any such year shall not be refunded except that with respect to Liberal municipal airport such amounts shall be refunded.

(e) The county or district appraiser shall value the land and improvements, and the value of the land and improvements may be entered on the assessment rolls in separate entries and descriptions. The provisions of this subsection shall be applicable to all taxable years commencing after December 31, 1992.

History: L. 1991, ch. 7, § 2; L. 1992, ch. 171, § 1; L. 2003, ch. 156, § 1; July 1.

§ 79-201r Property exempt from taxation; Strother Field airport

For all taxable years commencing after December 31, 1991, the Strother field airport commission and the political subdivisions comprising the Strother field airport commission shall be exempt from the payment of ad valorem taxes levied by the state and any other political or taxing subdivision of the state on property owned by the Strother field airport commission or the political subdivisions comprising the Strother field airport commission and depicted on the airport's federally approved airport layout plan whether used for aviation-related purposes, to promote aviation commerce or to provide revenue to operate all Strother field components and activities. Such property shall be, and is hereby, exempt from all property or ad valorem taxes levied under the laws of the state of Kansas. All property taxes, including any penalties and interest accrued thereon, imposed upon any property herein described for all taxable years commencing prior to January 1, 1992, are hereby declared to be cancelled but any such amounts paid in any such year shall not be refunded.

History: L. 1992, ch. 171, § 3; L. 2025, ch. 44, § 1; July 1.

§ 79-201s Property exempt from taxation; certain municipal airports; valuation of land and improvements

(a) For all taxable years commencing after December 31, 1991, all property owned and primarily operated as an airport by an airport authority established under K.S.A. 3-162 et seq., and amendments thereto, including property leased by the airport authority for aviation related purposes, shall be exempt from all property or ad valorem taxes levied under the laws of this state. If the term of any lease existing on April 15, 1991, of any property for purposes not aviation related extends beyond tax year 1991, such property shall be exempt from all property or ad valorem taxes levied under the laws of this state until the tax year next following the tax year during which such lease expires.

(b) All property or ad valorem taxes, including any penalties and interest accrued thereon, imposed upon any property described by subsection (a) for all taxable years commencing prior to January 1, 1992, are hereby declared to be canceled.

(c) The county or district appraiser shall value the land and improvements, and the value of the land and improvements may be entered on the assessment rolls in separate entries and descriptions. The provisions of this subsection shall be applicable to all taxable years commencing after December 31, 1991.

History: L. 1992, ch. 171, § 4; L. 2003, ch. 156, § 2; July 1.

§ 79-201t Property exempt from taxation; oil leases

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) All oil leases, other than royalty interests therein, the average daily production from which is three barrels or less per producing well, or five barrels or less per producing well which has a completion depth of 2,000 feet or more.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 1997.

History: L. 1992, ch. 282, § 20; L. 1998, ch. 130, § 27; July 1.

§ 79-201u Property exempt from taxation; motor vehicles donated for charitable auctions

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas: (a) All motor vehicles donated to any charitable organization, which is exempt from federal income taxation pursuant to section 501(c)(3) and is an eligible recipient of a charitable contribution pursuant to section 170(c)(2) of the federal internal revenue code, for the purpose of selling such motor vehicles at a charitable auction, the proceeds of which are to be used for the benefit of such charitable organization.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 1993.

History: L. 1994, ch. 299, § 2; July 1.

§ 79-201v Repealed

History: L. 1975, ch. 495, § 2; L. 1977, ch. 323, § 1; L. 1978, ch. 390, § 1; L. 1979, ch. 307, § 1; L. 1980, ch. 68, § 5; L. 1981, ch. 370, § 1; L. 1982, ch. 389, § 1; L. 1987, ch. 395, § 1; L. 1987, ch. 368, § 4; L. 1989, ch. 118, § 190; L. 1989, ch. 288, § 2; L. 1989, ch. 274, § 6; L. 1992, ch. 287, § 1; L. 1994, ch. 187, § 1; Repealed, L. 1995, ch. 254, § 10; July 1.

§ 79-201w Property exempt from taxation; machinery, equipment, materials and supplies

The following described property, to the extent specified by this section, shall be exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

Any item of machinery, equipment, materials and supplies which, except for the operation of the provisions of this section, would be required to be listed for the purpose of taxation pursuant to K.S.A. 79-306, and amendments thereto, and which is used or to be used in the conduct of the owner's business, or in the conduct of activities by an entity not subject to Kansas income taxation pursuant to K.S.A. 79-32,113, and amendments thereto, whose original retail cost when new is $400 or less for tax years 2005 and 2006, and $1,500 or less for tax year 2007, and all tax years thereafter.

History: L. 1995, ch. 254, § 1; L. 1998, ch. 130, § 24; L. 2002, ch. 185, § 19; L. 2006, ch. 205, § 8; July 1.

§ 79-201x Property exempt from taxation; residential property exempt from statewide school levy

For taxable year 2024, and all taxable years thereafter, the following described property, to the extent herein specified, shall be and is hereby exempt from the property tax levied pursuant to the provisions of K.S.A. 72-5142, and amendments thereto: Property used for residential purposes to the extent of $75,000 of its appraised valuation.

History: L. 1997, ch. 42, § 1; L. 1998, ch. 130, § 26; L. 1999, ch. 165, § 9; L. 2001, ch. 215, § 9; L. 2003, ch. 147, § 36; L. 2005, ch. 152, § 43; L. 2007, ch. 152, § 8; L. 2009, ch. 97, § 2; L. 2011, ch. 110, § 3; L. 2013, ch. 99, § 9; L. 2015, ch. 4, § 73; L. 2017, ch. 95, § 103; L. 2019, ch. 19, § 19; L. 2021, ch. 115, § 5; L. 2022, ch. 63, § 32; L. 2024, ch. 1, § 9 (Special Session); June 27.

§ 79-201y Repealed

History: L. 1997, ch. 42, § 1; L. 1998, ch. 130, § 26; L. 1999, ch. 165, § 9; L. 2001, ch. 215, § 9; L. 2003, ch. 139, § 7; Repealed, L. 2004, ch. 180, § 18; July 1.

§ 79-201z Property exempt from taxation; housing for the elderly, persons with disabilities or persons with limited or low income owned solely and operated by community housing development organization

The following described property, to the extent herein specified, shall be and is exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(a) All real property and tangible personal property actually and primarily used for housing for the elderly, persons with disabilities or persons with limited or low income, which is owned solely and operated by an organization recognized as a community housing development organization by the Kansas housing resource corporation and organized not-for-profit under the laws of the state of Kansas or by a corporation organized not-for-profit under the laws of another state and duly admitted to engage in business in this state as a foreign, not-for-profit corporation. For purposes of this subsection, such property shall meet housing quality standards as defined by the United States department of housing and urban development and shall be low cost housing at or below fair market rent.

(b) The provisions of subsection (a) shall apply to all taxable years commencing after December 31, 2004.

History: L. 2005, ch. 103, § 1; July 1.

§ 79-202 Repealed

History: L. 1921, ch. 258, § 1; R.S. 1923, 79-202; L. 1937, ch. 355, § 1; L. 1947, ch. 441, § 1; Repealed, L. 1969, ch. 429, § 3; January 1, 1970.

§ 79-203 Repealed

History: L. 1905, ch. 501, § 1; R.S. 1923, 79-203; Repealed, L. 1935, ch. 298, § 1; March 19.

§ 79-204 Repealed

History: L. 1909, ch. 253, § 1; R.S. 1923, 79-204; L. 1929, ch. 284, § 1; L. 1953, ch. 419, § 1; Repealed, L. 1969, ch. 429, § 3; January 1, 1970.

§ 79-205 Waterworks plants at Kansas City exempted from taxation

Laws 1921, chapter 304, included by reference. [Exempts from taxation of any kind the portion of the waterworks plant of the municipality of Kansas City, Missouri, located in this state; also grants the right of eminent domain to the state of Missouri and this state for the purpose of acquiring property rights for waterworks plants. This is a mutual arrangement between the two states and the two cities.]

History: R.S. 1923, 79-205.

§ 79-206 Repealed

History: L. 1931, ch. 315, § 1; Repealed, L. 1969, ch. 429, § 3; January 1, 1970.

§ 79-207 Cemeteries and mausoleums; funeral homes and mortuaries prohibited unless listed for taxation; injunction

No person, firm, association, partnership or corporation engaged in the ownership, operation or management of a cemetery or mausoleum in this state which is exempt from payment of general property taxes shall, either directly or indirectly, own, manage, conduct or operate a funeral home or mortuary in such cemetery or mausoleum or adjacent thereto and in connection therewith, unless said cemetery or mausoleum and funeral home or mortuary is listed for assessment purposes. The attorney general, county attorney or any interested party may maintain injunction proceedings to prevent any violation of this act.

History: L. 1945, ch. 157, § 1; June 28.

§ 79-208 Repealed

History: L. 1945, ch. 374, § 1; L. 1959, ch. 364, § 1; Repealed, L. 1969, ch. 429, § 3; January 1, 1970.

§ 79-209 Repealed

History: L. 1959, ch. 404, § 1; L. 1965, ch. 510, § 1; Repealed, L. 1975, ch. 495, § 28; July 1.

§ 79-210 Property exempt from taxation; claim to be filed each year; forms, content and filing of claims; rules and regulations

The owner or owners of all property which is exempt from the payment of property taxes under the laws of the state of Kansas for a specified period of years, other than property exempt under K.S.A. 79-201d and 79-201g, and amendments thereto, shall in each year after approval thereof by the state board of tax appeals claim such exemption on or before March 1 of each year in which such exemption is claimed in the manner hereinafter provided. All claims for exemption from the payment of property taxes shall be made upon forms prescribed by the director of property valuation and shall identify the property sought to be exempt, state the basis for the exemption claimed and shall be filed in the office of the assessing officer of the county in which such property is located. The assessing officers of the several counties shall list and value for assessment, all property located within the county for which no claim for exemption has been filed in the manner hereinbefore provided. The secretary of revenue shall adopt rules and regulations necessary to administer the provisions of this section. The provisions of this section shall apply to property exempted pursuant to the provisions of section 13 of article 11 of the constitution of the state of Kansas. The claim for exemption annually filed by the owner of such property with the assessing officer shall include a written statement, signed by the clerk of the city or county granting the exemption, that the property continues to meet all the terms and conditions established as a condition of granting the exemption.

History: L. 1969, ch. 429, § 2; L. 1970, ch. 380, § 1; L. 1972, ch. 342, § 85; L. 1978, ch. 391, § 2; L. 1980, ch. 307, § 2; L. 1984, ch. 349, § 2; L. 1990, ch. 344, § 1; L. 1994, ch. 187, § 2; L. 2006, ch. 205, § 9; L. 2008, ch. 109, § 73; L. 2014, ch. 141, § 81; July 1.

§ 79-210a Repealed

History: L. 1969, ch. 429, § 2; L. 1970, ch. 380, § 1; L. 1972, ch. 342, § 85; L. 1978, ch. 391, § 2; L. 1980, ch. 307, § 2; L. 1984, ch. 349, § 2; L. 1990, ch. 345, § 3; Repealed, L. 1994, ch. 187, § 7; January 1, 1995.

§ 79-211 Repealed

History: L. 1969, ch. 430, § 1; L. 1970, ch. 380, § 3; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-212 Repealed

History: L. 1972, ch. 356, § 3; Repealed, L. 1975, ch. 495, § 28; July 1.

§ 79-213 Property exempt from taxation; initial request for exemption; forms, content and filing of request for exemption; recommendations by county appraiser; determination and order by state board of tax appeals; tax not required to be paid during pendency of application; abatement or refund of taxes by court; nonapplicability of provisions to certain exempt property

(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, 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 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.

(h) Except as otherwise provided by subsection (g), in the event of a hearing, the same 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 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 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.

(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 June 30, 2017.

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288, § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 287, § 2; L. 1994, ch. 23, § 1; L. 1995, ch. 254, § 4; L. 1997, ch. 126, § 35; L. 1997, ch. 187, § 3; L. 1998, ch. 130, § 36; L. 1998, ch. 146, § 5; L. 1999, ch. 126, § 13; L. 2003, ch. 156, § 3; L. 2004, ch. 180, § 13; L. 2006, ch. 205, § 10; L. 2008, ch. 182, § 17; L. 2009, ch. 143, § 32; L. 2014, ch. 132, § 4; L. 2015, ch. 4, § 74; L. 2017, ch. 99, § 5; L. 2018, ch. 102, § 5; L. 2025, ch. 123, § 3; July 1.

§ 79-213a Property exempt from taxation; alternative procedure for claiming exemption for property described by K.S.A. 79-201 Second

Any group, association, corporation or individual who has not been assessed or levied a tax on its personal or real property prior to July 1, 1985, and who has applied for exemption from ad valorem taxation on such property premised upon use for purposes described in K.S.A. 79-201

Second,

and amendments thereto, between July 1, 1986, and January 1, 1990, shall not be liable for any taxes prior to January 1, 1987, if such group, association, corporation or individual had a reasonable basis to believe that it would not be assessed or taxed under the laws of the state of Kansas, and did not deceive or otherwise mislead, by affirmative misrepresentation, the county appraiser or other taxing authority in relationship to the use or ownership of such property. The burden of proof shall rest with the party claiming exemption. Relief may be granted under this section by a court in any pending tax appeal, by remand to the state board of tax appeals or upon the filing of an initial application pursuant to K.S.A. 79-213, and amendments thereto.

History: L. 1988, ch. 371, § 1; L. 2008, ch. 109, § 75; L. 2014, ch. 141, § 83; July 1.

§ 79-213b Repealed

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288, § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 102, § 8; Repealed, L. 1994, ch. 23, § 2; July 1.

§ 79-213c Repealed

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288. § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 287, § 2; L. 1994, ch. 23, § 1; L. 1995, ch. 254, § 4; L. 1997, ch. 126, § 35; L. 1997, ch. 187, § 3; L. 1998, ch. 130, § 36; L. 1998, ch. 146, § 5; L. 1999, ch. 126, § 13; L. 2003, ch. 154, § 91; Repealed, L. 2004, ch. 180, § 18; July 1.

§ 79-213d Same; procedure; inclusion of assessed valuation of certain property in taxing districts during exemption determination

When any taxpayer has filed an application requesting an exemption from the payment of all or a portion of the ad valorem property taxes assessed, or to be assessed, against such taxpayer's property, the county appraiser shall notify the county clerk that the exemption application has been filed and the county clerk shall not be required to include the assessed valuation of such property in the applicable taxing districts until such time as the application is denied by the state board of tax appeals or, if judicial review of the board's order is sought, until such time as judicial review is finalized. The provisions of this section shall be effective on and after July 1, 2008.

History: L. 2008, ch. 182, § 3; L. 2014, ch. 141, § 84; July 1.

§ 79-213e Repealed

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288, § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 287, § 2; L. 1994, ch. 23, § 1; L. 1995, ch. 254, § 4; L. 1997, ch. 126, § 35; L. 1997, ch. 187, § 3; L. 1998, ch. 130, § 36; L. 1998, ch. 146, § 5; L. 1999, ch. 126, § 13; L. 2003, ch. 156, § 3; L. 2004, ch. 180, § 13; L. 2006, ch. 205, § 10; L. 2008, ch. 109, § 74; Repealed, L. 2009, ch. 143, § 37; July 1.

§ 79-213f Repealed

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288, § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 287, § 2; L. 1994, ch. 23, § 1; L. 1995, ch. 254, § 4; L. 1997, ch. 126, § 35; L. 1997, ch. 187, § 3; L. 1998, ch. 130, § 36; L. 1998, ch. 146, § 5; L. 1999, ch. 126, § 13; L. 2003, ch. 156, § 3; L. 2004, ch. 180, § 13; L. 2006, ch. 205, § 10; L. 2008, ch. 182, § 17; L. 2009, ch. 143, § 32; L. 2014, ch. 141, § 82; Repealed, L. 2015, ch. 4, § 81; July 1.

§ 79-213g Repealed

History: L. 1980, ch. 307, § 1; L. 1984, ch. 349, § 3; L. 1986, ch. 370, § 2; L. 1988, ch. 375, § 3; L. 1988, ch. 356, § 313; L. 1989, ch. 288, § 3; L. 1990, ch. 345, § 4; L. 1992, ch. 287, § 2; L. 1994, ch. 23, § 1; L. 1995, ch. 254, § 4; L. 1997, ch. 126, § 35; L. 1997, ch. 187, § 3; L. 1998, ch. 130, § 36; L. 1998, ch. 146, § 5; L. 1999, ch. 126, § 13; L. 2003, ch. 156, § 3; L. 2004, ch. 180, § 13; L. 2006, ch. 205, § 10; L. 2008, ch. 182, § 17; L. 2009, ch. 143, § 32; L. 2014, ch. 132, § 4; L. 2015, ch. 4, § 74; L. 2017, ch. 95, § 104; Repealed, L. 2018, ch. 102, § 7; July 1.

§ 79-214 Property exempt from taxation; statement required upon cessation of exempt use; failure to file, penalty

Within 30 days after any property exempted from property taxation ceases to be used exclusively for an exempt purpose, the owner thereof shall file with the county appraiser of the county where such property is located a statement that the property has ceased to be used for an exempt purpose. Any person required to file a statement pursuant to this section who fails to timely file such statement shall be subject to the same penalties prescribed by K.S.A. 79-1422, and amendments thereto, for the late filing of statements listing property for taxation purposes.

History: L. 1984, ch. 349, § 4; July 1.

§ 79-215 Property exempt from taxation; personal property held for sale or display at certain functions

(a) The following personal property is exempt from all property or ad valorem taxes levied under the laws of this state: Personal property held for sale or display at, and in connection with, a fair, exposition, trade show, auction, bazaar, flea market or convention.

(b) The provisions of K.S.A. 79-213, and amendments thereto, shall not be applicable to property exempted under this section.

(c) Any dispute or grievance arising under this section shall be heard and determined by the board of county commissioners of the county wherein the property subject to the dispute or grievance is located.

(d) The provisions of this section shall apply to all taxable years commencing after December 31, 1986.

History: L. 1986, ch. 370, § 1; L. 1987, ch. 370, § 1; March 26.

§§ 79-216 through 79-218 Repealed

History: L. 1986, ch. 364, §§ 1, 2, 4; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-219 Property exempt from taxation; mechanic's hand tools

The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

All hand tools and hand tool boxes actually and regularly used exclusively by a mechanic in the construction or repair of machinery and equipment, including motor vehicles.

The provisions of this section shall apply to all taxable years commencing after December 31, 1985.

History: L. 1986, ch. 364, § 3; L. 1988, ch. 374, § 2; July 1.

§ 79-220 Property exempt from taxation; antique and amateur-built aircraft

The following described property, to the extent herein specified, is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

Any antique aircraft and amateur-built aircraft used exclusively for recreational or display purposes, or any combination thereof. The term "antique aircraft" means all aircraft 30 years or older as determined by the date of manufacture. The term "amateur-built aircraft" means an aircraft, manned or unmanned, the major portion of which has been fabricated and assembled by a person or persons who undertook the construction project solely for their own education or recreation.

The provisions of this section shall apply to all taxable years commencing after December 31, 2013.

History: L. 1987, ch. 363, § 1; L. 1987, ch. 367, § 1; L. 2014, ch. 132, § 5; July 1.

§ 79-221 Property exempt from taxation; leased real and personal property of certain economic development corporations

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 buildings, together with the land upon which such buildings are located, and all tangible personal property rented or leased from a lessor having a 51% or more ownership interest in the lessee, from a lessor in which the lessee has a 51% or more ownership interest or from a lessor which is a community based not-for-profit economic development corporation organized under the laws of this state which is exempt from federal income taxation pursuant to paragraphs (4) and (6) of subsection (c) of section 501 of the federal internal revenue code of 1986 as in effect on January 1, 1990, if: (1) Such rented or leased property is integrally associated with other property which has been exempted pursuant to section 13 of article 11 of the Kansas constitution, and (2) such leased property is otherwise used exclusively for the same exempt purpose for which the exemption was granted pursuant to section 13 of article 11 of the Kansas constitution.

(b) For the purposes of this section, a community based not-for-profit economic development corporation shall mean a corporation organized and existing solely for the purpose of engaging in economic development activities and improving the economic climate of the county wherein lies the principal office of the corporation.

(c) The exemption granted pursuant to this section shall expire at the expiration of the same period of years for which the exemption was granted by the county or city for property owned by such lessee.

(d) The provisions of this section shall apply to all taxable years commencing after December 31, 1993.

History: L. 1990, ch. 345, § 5; L. 1994, ch. 268, § 5; May 5.

§ 79-222 Property exempt from taxation; certain buildings constructed on property of state educational institutions and operated by Kansas not-for-profit entity

(a) The following described property, to the extent specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of Kansas:

Any building constructed on property of a state educational institution under the supervision of the state board of regents, owned by a municipality and operated by a Kansas not-for-profit entity comprised of one or more state universities and municipalities for the purpose of strategic technology acquisition and commercialization, and any personal property located therein.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 2004.

History: L. 2005, ch. 161, § 3; July 1.

§ 79-223 Same; certain commercial and industrial machinery and equipment

(a) It is the purpose of this section to promote, stimulate, foster and encourage new investments in commercial and industrial machinery and equipment in the state of Kansas, to contribute to the economic recovery of the state, to enhance business opportunities in the state, to encourage the location of new businesses and industries in the state as well as the retention and expansion of existing businesses and industries and to promote the economic stability of the state by maintaining and providing employment opportunities, thereby contributing to the general welfare of the citizens of the state, by exempting from property taxation all newly purchased or leased commercial and industrial machinery and equipment, including machinery and equipment transferred into this state for the purpose of expanding an existing business or for the creation of a new business.

(b) The following described property, to the extent specified by this section, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

Commercial and industrial machinery and equipment acquired by qualified purchase or lease made or entered into after June 30, 2006, as the result of a bona fide transaction not consummated for the purpose of avoiding taxation.

Second.

Commercial and industrial machinery and equipment transported into this state after June 30, 2006, for the purpose of expanding an existing business or creation of a new business.

(c) Any purchase, lease or transportation of commercial and industrial machinery and equipment consummated for the purpose of avoiding taxation shall subject the property to the penalty provisions of K.S.A. 79-1422 and 79-1427a, and amendments thereto. The county appraiser shall not reclassify any property that is properly classified for property tax purposes within subclass (5) of class 2 of section 1 of article 11 of the constitution of the state of Kansas.

(d) As used in this section:

(1) "Acquired" shall not include the transfer of property pursuant to an exchange for stock securities, or the transfer of assets from one going concern to another due to a merger, reorganization or other consolidation;

(2) "commercial and industrial machinery and equipment" means property classified for property tax purposes within subclass (5) of class 2 of section 1 of article 11 of the constitution of the state of Kansas, but shall not include any electric generation facility or addition to an electric generation facility that is used predominately to produce and generate electricity utilizing renewable energy resources or technologies as defined in K.S.A. 79-201, and amendments thereto;

(3) "qualified lease" means a lease of commercial and industrial machinery and equipment for not less than 30 days for fair and valuable consideration where such machinery and equipment is physically transferred to the lessee to be used in the lessee's business or trade; and

(4) "qualified purchase" means a purchase of commercial and industrial machinery and equipment for fair and valuable consideration where such machinery and equipment is physically transferred to the purchaser to be used in the purchaser's business or trade.

(e) The secretary of revenue is hereby authorized to adopt rules and regulations to administer the provisions of this section.

History: L. 2006, ch. 205, § 1; L. 2008, ch. 182, § 18; L. 2015, ch. 75, § 5; July 1.

§ 79-224 Property exempt from taxation; certain telecommunications machinery and equipment and railroad machinery and equipment

(a) It is the purpose of this section to promote, stimulate, foster and encourage new investments in telecommunications machinery and equipment and railroad machinery and equipment in the state of Kansas, to recognize the dramatic changes within the telecommunications industry, to contribute to the economic recovery of the state, to enhance business opportunities in the state, to encourage the location of new businesses and industries in the state as well as the retention and expansion of existing businesses and industries and to promote the economic stability of the state by maintaining and providing employment opportunities, thereby contributing to the general welfare of the citizens of the state, by exempting from property taxation certain newly purchased or leased telecommunications machinery and equipment and railroad machinery and equipment, including all such machinery and equipment transferred into this state for the purpose of expanding an existing business or for the creation of a new business.

(b) The following described property, to the extent specified by this section, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

Telecommunications machinery and equipment and railroad machinery and equipment acquired by qualified purchase or lease made or entered into after June 30, 2006, as the result of a bona fide transaction not consummated for the purpose of avoiding taxation.

Second.

Telecommunications machinery and equipment and railroad machinery and equipment transported into this state after June 30, 2006, for the purpose of expanding an existing business or creation of a new business.

(c) As used in this section:

(1) "Acquired" shall not include the transfer of property pursuant to an exchange for stock securities, or the transfer of assets from one going concern to another due to a merger, reorganization or other consolidation;

(2) "qualified lease" means a lease of telecommunications machinery and equipment or railroad machinery and equipment for not less than 30 days for fair and valuable consideration where such machinery and equipment is physically transferred to the lessee to be used in the lessee's business or trade;

(3) "qualified purchase" means a purchase of telecommunications machinery and equipment or railroad machinery and equipment for fair and valuable consideration where such machinery and equipment is physically transferred to the purchaser to be used in the purchaser's business or trade;

(4) "railroad machinery and equipment" means railroad machinery and equipment classified for property tax purposes within subclass (3) of class 2 of section 1 of article 11 of the constitution of the state of Kansas; and

(5) "telecommunications machinery and equipment" means network administrative assets; central office equipment; information, station and customer equipment; and outside plant equipment of a telecommunication company. "Telecommunications machinery and equipment" includes machinery and equipment placed in inventory or work-in-progress.

(d) The secretary of revenue is hereby authorized to adopt rules and regulations to administer the provisions of this section.

History: L. 2006, ch. 205, § 3; L. 2022, ch. 63, § 33; July 1.

§ 79-225 Property exempt from taxation; certain integrated coal gasification power plant property

(a) 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:

(1) Any new integrated coal gasification power plant property or any expanded integrated coal gasification power plant property.

(2) All property purchased for or constructed or installed at an integrated coal gasification power plant to comply with air emission standards imposed by state or federal law.

(b) The provisions of subsection (a) shall apply from and after purchase or commencement of construction or installation of such property and for the 12 taxable years immediately following the taxable year in which construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) As used in this section:

(1) "Expanded integrated coal gasification power plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an expansion of an existing integrated coal gasification power plant, construction of which expansion begins after December 31, 2005.

(2) "Expansion of an existing integrated coal gasification power plant" means expansion of the capacity of an existing integrated coal gasification power plant by at least 10% of such capacity.

(3) "Integrated coal gasification power plant" has the meaning provided by K.S.A. 79-32,238, and amendments thereto.

(4) "New integrated coal gasification power plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an integrated coal gasification power plant, construction of which begins after December 31, 2005.

History: L. 2006, ch. 209, § 26; July 1.

§ 79-226 Property exempt from taxation; certain refinery property

(a) 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: Any new refinery property, any expanded refinery property or any restored refinery property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) As used in this section:

(1) "Expanded refinery property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an expansion of an existing refinery, construction of which expansion begins after December 31, 2005.

(2) "Expansion of an existing refinery" means expansion of the capacity of an existing refinery by at least 10% of such capacity.

(3) "New refinery property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of a refinery, construction of which begins after December 31, 2005.

(4) "Refinery" has the meaning provided by K.S.A. 79-32,217, and amendments thereto.

(5) "Restored refinery property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of restoration of production of a refinery which has been out of production for five or more years.

History: L. 2006, ch. 209, § 31; July 1.

§ 79-227 Property exempt from taxation; certain crude oil or natural gas pipeline property

(a) 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: Any new qualifying pipeline property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) As used in this section:

(1) "New qualifying pipeline property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of a new qualifying pipeline, construction of which begins after December 31, 2005.

(2) "Qualifying pipeline" has the meaning provided by K.S.A. 79-32,223, and amendments thereto.

History: L. 2006, ch. 209, § 34; July 1.

§ 79-228 Property exempt from taxation; certain integrated coal or coke gasification nitrogen fertilizer plant property

(a) 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: Any new integrated coal or coke gasification nitrogen fertilizer plant property or any expanded integrated coal or coke gasification nitrogen fertilizer plant property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) As used in this section:

(1) "Expanded integrated coal or coke gasification nitrogen fertilizer plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant, construction of which expansion begins after December 31, 2005.

(2) "Expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant" means expansion of the capacity of an existing integrated coal or coke gasification nitrogen fertilizer plant by at least 20% of such capacity.

(3) "Integrated coal or coke gasification nitrogen fertilizer plant" has the meaning provided by K.S.A. 79-32,228, and amendments thereto.

(4) "New integrated coal or coke gasification nitrogen fertilizer plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an integrated coal or coke gasification nitrogen fertilizer plant, construction of which begins after December 31, 2005.

History: L. 2006, ch. 209, § 36; July 1.

§ 79-229 Property exempt from taxation; certain biomass-to-energy plant property

(a) 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: Any new biomass-to-energy plant property or any expanded biomass-to-energy plant property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) As used in this section:

(1) "Biomass-to-energy plant" has the meaning provided by K.S.A. 79-32,233, and amendments thereto.

(2) "Expanded biomass-to-energy plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of an expansion of an existing biomass-to-energy plant, construction of which expansion begins after December 31, 2005.

(3) "Expansion of an existing biomass-to-energy plant" means expansion of the capacity of an existing biomass-to-energy plant by at least 10% of such capacity.

(4) "New biomass-to-energy plant property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of a biomass-to-energy plant, construction of which begins after December 31, 2005.

History: L. 2006, ch. 209, § 38; L. 2007, ch. 113, § 20; July 1.

§ 79-230 Property exempt from taxation; nuclear generation facility property

(a) 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:

Any new nuclear generation facility property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) The owner or owners of any new nuclear generation facility property shall pay to the appropriate taxing subdivisions of the state a payment in lieu of taxes in an amount equal to the amount which would have been levied upon the real property portion of such property if such real property were subject to ad valorem taxes as long as any exemption granted pursuant to this section is still in effect, and such taxing subdivision is authorized to receive and expend revenue resulting therefrom in the manner as otherwise provided by law.

(e) As used in this section:

(1) "Existing nuclear generation facility" means a nuclear generation facility which is in existence on January 1, 2007.

(2) "New nuclear generation facility property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of a nuclear generation facility, of which construction begins after December 31, 2006, and which is within three miles of the reactor of an existing nuclear generation facility.

(3) "Nuclear generation facility" means any physical plant utilizing nuclear energy as the primary fuel for the production or generation of electricity or electric power.

History: L. 2007, ch. 113, § 1; July 1.

§ 79-231 Property exempt from taxation; waste heat utilization system property at electric generation facility

(a) 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: Any waste heat utilization system property.

(b) The provisions of subsection (a) shall apply 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 construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) As used in this section:

(1) "Waste heat utilization system" has the meaning provided in K.S.A. 74-8949d, and amendments thereto.

(2) "Waste heat utilization system property" means any real or tangible personal property purchased, constructed or installed for incorporation in and use as part of a waste heat utilization system.

History: L. 2007, ch. 113, § 17; July 1.

§ 79-232 Property exempt from taxation; biofuel storage and blending equipment

(a) 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: Any storage and blending equipment.

(b) The provisions of subsection (a) shall apply from and after installation of such equipment and for the 10 taxable years immediately following the taxable year in which installation of such equipment is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) As used in this section, "storage and blending equipment" has the meaning provided in K.S.A. 79-32,251, and amendments thereto.

History: L. 2007, ch. 113, § 37; July 1.

§ 79-233 Property exempt from taxation; carbon dioxide capture, sequestration or utilization property

(a) 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: Any carbon dioxide capture, sequestration or utilization property; and any electric generation unit which captures and sequesters all carbon dioxide and other emissions.

(b) The provisions of subsection (a) shall apply from and after purchase or commencement of construction or installation of such property and for the five taxable years immediately following the taxable year in which construction or installation of such property is completed.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2007.

(d) As used in this section, "carbon dioxide capture, sequestration or utilization property" means: (1) Any machinery and equipment used to capture carbon dioxide from industrial and other anthropogenic sources or to convert such carbon dioxide into one or more products; (2) any carbon dioxide injection well, as defined in K.S.A. 55-1637, and amendments thereto; and (3) any machinery and equipment used to recover carbon dioxide from sequestration.

History: L. 2007, ch. 73, § 6; July 1.

§ 79-234 Same; certain tangible personal property

(a) The following described property, to the extent specified by this section, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First. Any property classified for property tax purposes pursuant to section 1 of article 11 of the constitution of the state of Kansas in subclass (6) of class 2 which, except for the operation of the provisions of this section, would be required to be listed for the purpose of taxation pursuant to K.S.A. 79-306, and amendments thereto, whose purchase price is $750 or less.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 2008.

History: L. 2008, ch. 182, § 6; June 5.

§ 79-235 Same; certain buildings constructed on property of university of Kansas or related endowment association owned or operated by Kansas not-for-profit entity for strategic technology acquisition and commercialization incubator purposes

(a) The following described property, to the extent specified by this section, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First.

Any building constructed on property of the university of Kansas or a related endowment association, or both, owned or operated, or both, by a Kansas not-for-profit entity, for the purpose of a strategic technology acquisition and commercialization incubator, and any personal property located therein.

(b) The provisions of this section shall apply to all tax years commencing after December 31, 2008.

History: L. 2008, ch. 182, § 7; June 5.

§§ 79-236 through 79-249 Reserved

§ 79-250 Poultry and rabbit confinement facilities and swine production facilities not allowed to be exempt from ad valorem taxation

No city or county may grant any exemption from ad valorem taxation under section 13 of article 11 of the Constitution of the state of Kansas for all or any portion of the appraised valuation of all or any part of the buildings, improvements, tangible personal property and land of any poultry confinement facility, rabbit confinement facility or swine production facility which is on agricultural land and which is owned or operated by a corporation or limited liability company. As used in this section, "corporation," "limited liability company," "agricultural land," "poultry confinement facility," "rabbit confinement facility" and "swine production facility" have the meanings respectively ascribed thereto by K.S.A. 17-5903, and amendments thereto.

History: L. 1987, ch. 368, § 3; L. 1988, ch. 99, § 57; L. 1994, ch. 130, § 5; April 14.

§ 79-251 Procedure governing grant of property tax exemptions pursuant to section 13 of article 11 of constitution

Prior to the granting of an exemption for any property from ad valorem taxation pursuant to the provisions of section 13 of article 11 of the constitution of the state of Kansas, the board of county commissioners of any county or the governing body of any city, as the case requires, shall be required to do the following:

(a) Develop and adopt official policies and procedures for the granting of such exemptions including:

(1) The required preparation of an analysis of the costs and benefits of each exemption, including the effect of the exemption on state revenues, prior to the granting of such exemption;

(2) a procedure for monitoring the compliance of a business receiving an exemption with any terms or conditions established by the governing body for the granting of the exemption;

(b) conduct a public hearing on the granting of such exemption. Notice of the public hearing shall be published at least once seven days prior to the hearing in the official city or county newspaper, as the case requires, and shall indicate the purpose, time and place thereof. In addition to such publication notice, the city or county clerk, as the case requires, shall notify in writing the governing body of the city or county and unified school district within which the property proposed for exemption is located; and

(c) adopt a resolution containing the following findings of fact:

(1) That the property for which the exemption is to be granted will be used exclusively for the purposes specified in section 13 of article 11 of the constitution of the state of Kansas; and

(2) if the business using the property is relocating from one city or county to another within this state, that the business has received approval of the secretary of commerce prior to qualifying for the exemption upon a finding by the secretary that such relocation is necessary to prevent the business from relocating outside this state.

(d) Any listing of property submitted by the business as part of the exemption process shall not constitute a classification of the property. Classification of any property acquired during the tax exemption shall be determined at the end of the exemption period in accordance with K.S.A. 79-262, and amendments thereto.

History: L. 1990, ch. 345, § 1; L. 1994, ch. 187, § 3; L. 1998, ch. 146, § 6; L. 2003, ch. 154, § 92; L. 2014, ch. 140, § 10; July 1.

§ 79-252 Repealed

History: L. 1990, ch. 345, § 2; Repealed, L. 1998, ch. 146, § 12; July 1.

§ 79-252a Exemption of certain property pursuant to section 13 of article 11 of constitution not applicable to school district taxation

No ad valorem tax exemption for real or personal property, located within a redevelopment district established pursuant to K.S.A. 74-8921, and amendments thereto, granted after the effective date of this act by the governing body of any city or the board of county commissioners of any county pursuant to the provisions of section 13 of article 11 of the Kansas constitution shall be deemed to exempt any such property from the ad valorem property tax levied by or on behalf of a school district.

History: L. 1999, ch. 158, § 14; July 1.

§ 79-253 Applicability of amendments to K.S.A. 79-201, 79-251 and 12-1749d

Provisions added by amendments of this act to K.S.A. 79-201a and K.S.A. 79-251 and amendments thereto, and K.S.A. 1997 Supp. 12-1749d, and amendments thereto, shall not be applicable with respect to the exemption of property constructed or purchased by revenue bonds for which a city or county has issued a letter of intent, resolution of intent or inducement resolution prior to the effective date of this act or with respect to property exempted pursuant to section 13 of article 11 of the Kansas constitution by resolution or ordinance of a board of county commissioners of any county or a governing body of any city enacted prior to the effective date of this act.

History: L. 1994, ch. 187, § 6; January 1, 1995.

§ 79-254 Exempt property deemed used exclusively, when

(a) Any real property, or portion thereof, which is otherwise exempt from property taxation pursuant to the provisions of K.S.A. 79-201, 79-201a, 79-201b, 79-201g and amendments thereto, and which is leased or otherwise used for the location of a wireless communications tower, antenna or relay site, shall be deemed to be used exclusively for the purposes of such sections.

(b) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1995.

History: L. 1997, ch. 126, § 38; July 1.

§ 79-255 Property tax refund for oil lease property; claim procedures

(a) For all taxable years commencing after December 31, 1999, and subject to the provisions of this section, there shall be allowed as a property tax refund to the operator of an oil lease an amount equal to 50% of the total amount of property tax levied and actually and timely paid by the operator for a property tax year which is attributable to the working interest of an oil lease the average daily production per well from which is 15 barrels or less when the price per barrel of oil is $16 or less, as prescribed in the oil and gas appraisal guide by the director of property valuation for the applicable tax year. No refund shall be allowed for property tax paid upon machinery and equipment for which a credit is claimed pursuant to K.S.A. 79-32,206, and amendments thereto.

(b) No claim for a refund allowable pursuant to subsection (a) shall be paid unless filed with and in possession of the department of revenue on or before April 15 of the year next succeeding the year in which such taxes were paid, except that the director of taxation may extend the time for filing any claim or accept a claim filed after the deadline for filing when good cause exists therefor if the claim has been filed within three years of the deadline.

(c) The allowable amount of such claim shall be paid to the operator from the income tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director of taxation or by any person designated by the claimant, but no warrant issued hereunder shall be drawn in an amount of less than $5. No interest shall be allowed on any payment made to an operator pursuant to this section.

(d) Insofar as the same may be made applicable, the provisions of K.S.A. 79-3226, and amendments thereto, shall apply to claims for refunds allowable pursuant to this section which may become in dispute.

(e) The department of revenue shall devise and provide forms and instructions necessary to administer this section, and the secretary of revenue may adopt rules and regulations for such purpose.

History: L. 2000, ch. 184, § 29; L. 2001, ch. 57, § 5; April 12.

§ 79-256 Independent power producer property and pollution control devices; definitions

As used in K.S.A. 79-256 and 79-257, and amendments thereto:

(a) "Independent power producer property" means all or any portion of property used solely in the generation, marketing and sale of electricity generated by an electric generation facility described in subsection (e) of K.S.A. 66-104, and amendments thereto. Independent power producer property shall not include property used in generating electricity by nuclear resources or technologies or by renewable energy resources or technologies, as defined in K.S.A. 79-201, and amendments thereto;

(b) "peak load plant" means an independent power plant used during maximum load periods.

History: L. 2001, ch. 206, § 2; July 1.

§ 79-257 Property exempt from taxation; certain electric generation property and pollution control devices

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 generation facilities described in K.S.A. 66-104(e), and amendments thereto.

(b) The provisions of subsection (a) shall apply:

(1) Except as provided in paragraph (2), from and after commencement of construction of such property and for the 12 taxable years immediately following the taxable year in which construction of such property is completed; or

(2) for peak load plants, from and after commencement of construction of such property and for the six 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 installed at electric generation facilities described in K.S.A. 66-104(e), and amendments thereto.

(d) The provisions of subsection (c) shall apply:

(1) Except as provided in paragraph (2), from and after purchase or commencement of construction or installation of such property and for the 12 taxable years immediately following the taxable year in which such property is purchased 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 six taxable years immediately following the taxable year in which such property is purchased or construction or installation of such property is completed.

(e) The provisions of this section shall apply to all taxable years commencing after December 31, 2000, but only to property for which the applicant filed an application for exemption pursuant to this section on or before December 31, 2024. No application for exemption pursuant to this section shall be filed after December 31, 2024.

History: L. 2001, ch. 206, § 3; L. 2024, ch. 81, § 7; July 1.

§ 79-258 Property exempt from taxation; certain electric public utility property and pollution control devices

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 generation facilities described in K.S.A. 66-128(b)(2)(C), and amendments thereto.

(b) The provisions of subsection (a) shall apply: (1) Except as provided 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 installed at electric generation facilities described in K.S.A. 66-128(b)(2)(C), and amendments thereto.

(d) The provisions of subsection (c) shall apply:

(1) Except as provided 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 purchased 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 purchased or construction or installation of such property is completed.

(e) As used in this section, "peak load plant" means an electric generation facility used during maximum load periods.

(f) The provisions of this section shall apply to all taxable years commencing after December 31, 2000, but only to property for which the applicant filed an application for exemption pursuant to this section on or before December 31, 2024. No application for exemption pursuant to this section shall be filed after December 31, 2024.

History: L. 2001, ch. 207, § 2; L. 2008, ch. 174, § 6; L. 2024, ch. 81, § 8; July 1.

§ 79-259 Property exempt from taxation; certain electric transmission lines and appurtenances

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 subsection (b)(2)(D) 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 construction 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 commencing after December 31, 2000.

History: L. 2001, ch. 207, § 4; L. 2008, ch. 174, § 7; July 1.

§ 79-260 Property exempt from taxation; new automobile manufacturing property

(a) The following described property, to the extent herein specified, shall be exempt from all property taxes levied under the laws of Kansas:

Any new automobile manufacturing property.

(b) The provisions of subsection (a) shall apply from and after the later of the purchase or commencement of construction of such property and continue only for a period thereafter until 10 calendar years following the calendar year in which construction of such property is completed.

(c) The provisions of this section shall apply to all taxable years beginning after December 31, 2011.

(d) The owner of any new automobile manufacturing property shall pay in lieu of taxes in an amount mutually agreed to by the governing body of the appropriate taxing subdivisions and the owners as long as this exemption is in effect. The in lieu of taxes shall be paid at the same time taxes are required to be paid pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto. The county treasurer shall apportion such in lieu of tax payments among the taxing subdivisions of this state in the territory in which the facility is located. Any payment in lieu of taxes shall be divided by the county treasurer among such taxing subdivisions in the same proportion that the amount of the total mill levy of each individual taxing subdivision bears to the aggregate of such levies of all the taxing subdivisions among which the division is to be made. The county treasurer shall pay such amounts to the taxing subdivisions at the same time or times as their regular operating tax rate mill levy is paid to them. Based upon the assessed valuation which such facility would have if it were upon the tax rolls of the county, the county clerk shall compute the total of the property taxes which would be levied upon such facility by all taxing subdivisions within which the facility is located if such property were taxable.

(e) As used in this section:

(1) "Appropriate taxing subdivisions" means the county, city or unified government jurisdiction in which the new automobile property is located; and

(2) "new automobile manufacturing property" means any real property purchased or constructed after December 31, 2011, owned by a business with an NAICS code of 336111, provided such property:

(A) Includes a building or addition to a building constructed after December 31, 2011, having not less than 50,000 square feet of floorspace; and

(B) was purchased or constructed after December 31, 2011, for a total cost of not less than $10,000,000 including the cost of both the land and buildings.

History: L. 2013, ch. 87, § 8; April 25.

§ 79-261 Procedure governing classification of property for purposes of exemption under K.S.A. 79-223

(a) (1) The provisions of this section are intended to codify the original legislative intent of the 2006 law exempting from ad valorem taxation commercial and industrial machinery and equipment purchased, leased or transported into the state after June 30, 2006, pursuant to K.S.A. 79-223, and amendments thereto.

(2) As used in this section, "commercial and industrial machinery and equipment" means property classified within subclass (5) of class 2 of section 1 of article 11 of the constitution of the state of Kansas.

(b) (1) In determining the classification of property for ad valorem tax purposes, the county appraiser shall conform to the definitions of real and personal property in Kansas law and to the factors set forth in the personal property guide devised or prescribed by the director of property valuation pursuant to K.S.A. 75-5105a(b), and amendments thereto.

(2) Where the proper classification of commercial and industrial machinery and equipment is not clearly determined from the definitions of real and personal property provided in Kansas law, the appraiser shall use the three part fixture law test as set forth in the personal property guide prescribed by the director of property valuation pursuant to K.S.A. 75-5105a(b), and amendments thereto, and shall consider the following:

(A) The annexation of the machinery and equipment to the real estate;

(B) the adaptation to the use of the realty to which it is attached and determination whether the property at issue serves the real estate; and

(C) the intention of the party making the annexation, based on the nature of the item affixed; the relation and situation of the party making the annexation; the structure and mode of annexation; and the purpose or use for which the annexation was made.

(3) The basic factors for clarifying items as real or personal property are their designated use and purpose. The determination of whether property is real or personal must be made on a case-by-case basis. All three parts of the three-part fixture test must be satisfied for the item to be classified as real property.

History: L. 2014, ch. 140, § 1; July 1.

§ 79-262 Classification of property constructed with proceeds of industrial revenue bonds; notification to county appraiser; appeals; reclassification

(a) After July 1, 2014, the owner of any project being constructed with the proceeds of industrial revenue bonds which has been exempted from ad valorem taxation pursuant to K.S.A. 79-201a Second, and amendments thereto, or the owner of any property exempted from ad valorem taxation pursuant to section 13 of article 11 of the constitution of the state of Kansas, shall within 30 days of the completion of any improvement on the project, notify the county appraiser of such completion and the county appraiser upon receipt of such notification shall classify such improvement as real property, personal property or a combination of both real and personal property within 180 days of receipt of the notice, and shall notify the owner of such classification. The owner, if aggrieved by the county appraiser's classification, may appeal such classification to the court of tax appeals pursuant to K.S.A. 79-1409, and amendments thereto. For property described in K.S.A. 79-5b01, and amendments thereto, the county appraiser appraising such property or the taxpayer may request that the director of property valuation contract with an independent appraiser pursuant to the provisions of K.S.A. 79-5b01 through 79-5b03, and amendments thereto, to determine classification of such property.

(b) Any property classified in accordance with subsection (a) shall not be reclassified within two years after the expiration of the tax exemption period absent the approval of the court of tax appeals upon a hearing in a decision upheld upon appeal, if any, and:

(1) A material physical change to such property has occurred;

(2) a material change in the use of such property has occurred; or

(3) a substantial change in directly applicable law has occurred.

(c) After the expiration of the two years, the appraiser shall classify such property as required by K.S.A. 79-1459, and amendments thereto.

History: L. 2014, ch. 140, § 2; July 1.

§ 79-263 Expired

History: L. 2016, ch. 112, § 1; Expired, January 1, 2021.

§ 79-264 Property exempt from taxation; certain property owned by a redevelopment authority

(a) 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: All buildings, together with the land upon which the buildings are located, and all tangible personal property associated therewith, owned by a redevelopment authority established as a body corporate and politic pursuant to K.S.A. 19-4901 et seq., and amendments thereto, that is located in a redevelopment district within a former federal enclave and is leased to a business and thereafter used exclusively for the purpose of: (1) Manufacturing articles of commerce; (2) conducting research and development; or (3) processing and storing goods or commodities that are sold or traded in interstate commerce.

(b) In accordance with K.S.A. 19-4904, and amendments thereto, a redevelopment authority may file a request for exemption under the provisions of this section pursuant to K.S.A. 79-213, and amendments thereto, only with approval of the board of county commissioners by resolution.

(c) An exemption from ad valorem taxes granted pursuant to subsection (a) shall be in effect for not more than 10 calendar years after the calendar year in which the business commences its operations or the calendar year in which the expansion of an existing business is completed, as the case may be.

(d) This section is adopted pursuant to section 13(d) of article 11 of the constitution of the state of Kansas, and shall be part of and supplemental to article 2 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto.

History: L. 2017, ch. 99, § 1; July 1.

§ 79-265 Property exempt from taxation; certain antique utility trailers

(a) (1) The following described property, to the extent herein specified, is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas: Any antique utility trailer registered pursuant to K.S.A. 8-1,119, and amendments thereto, used exclusively for personal use and not for the production of income.

(2) The term "antique utility trailer" includes only those trailers:

(A) 35 years or older as determined by the date of manufacture; and

(B) having an empty weight of 2,000 pounds or less and a gross weight of not more than 8,000 pounds.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 2022.

History: L. 2022, ch. 63, § 8; July 1.

§ 79-266 Property exempt from taxation; certain new electric generation property and pollution control devices

(a) 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:

(1) Any new electric generation facility.

(2) Any new addition to a new or existing electric generation facility.

(3) Any new pollution control device constructed or installed on or after January 1, 2025, at a new or existing electric generation facility.

(b) The provisions of this section shall apply from and after commencement of construction or installation of such property and for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed.

(c) As used in this section:

(1) "Existing electric generation facility" means an electric generation facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C), and amendments thereto, that is in existence on December 31, 2024. "Existing electric generation facility" does not include an electric generation facility that converts wind, solar, biomass, landfill gas or any other renewable source of energy to electricity.

(2) "New addition" means any real or tangible personal property constructed or installed on or after January 1, 2025, for incorporation in and use as part of a new or existing electric generation facility.

(3) "New electric generation facility" means an electric generation facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C), and amendments thereto, and the commencement of construction of such facility began on or after January 1, 2025. "New electric generation facility" includes any electric generation facility that utilizes nuclear energy for the generation of electricity. "New electric generation facility" does not include any electric generation facility that converts wind, solar, biomass, landfill gas or any other renewable source of energy to electricity.

(d) The provisions of this section shall apply to all taxable years commencing after December 31, 2024.

History: L. 2024, ch. 81, § 2; July 1.

§ 79-267 Property exempt from taxation; certain off-road vehicles, motorized bicycles, trailers and marine equipment

(a) The following described property, to the extent herein specified, is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

(1) Any off-road vehicle that is not operated upon any highway;

(2) any motorized bicycle, electric-assisted bicycle, electric-assisted scooter, electric personal assistive mobility device and motorized wheelchair as such terms are defined in K.S.A. 8-126, and amendments thereto;

(3) any trailer having a gross weight of 15,000 pounds or less that is used exclusively for personal use and not for the production of income; and

(4) any marine equipment.

(b) For purposes of this section:

(1) "Marine equipment" means any watercraft trailer designed to launch, retrieve, transport and store watercraft and any watercraft motor designed to operate watercraft on the water;

(2) "off-road motorcycle" means any motorcycle as defined in K.S.A. 8-126, and amendments thereto, that has been manufactured for off-road use only and is used exclusively off roads and highways; and

(3) "off-road vehicle" means:

(A) Any all-terrain vehicle, recreational off-highway vehicle and golf cart as such terms are defined in K.S.A. 8-126, and amendments thereto; and

(B) any off-road motorcycle and snowmobile.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2025.

History: L. 2025, ch. 123, § 2; July 1.

Article 3 Listing Property for Taxation

§ 79-301 Personal property to be listed and assessed

All tangible personal property subject to taxation shall be listed and assessed as of the first day of January each year in the name of the owner thereof. Such listing and assessment shall be made as hereinafter provided.

History: L. 1876, ch. 34, § 4; L. 1909, ch. 251, § 1; R.S. 1923, 79-301; L. 1965, ch. 511, § 1; June 30.

§ 79-302 Repealed

History: L. 1876, ch. 34, § 5; R.S. 1923, 79-302; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-303 Who to list property

Every person, association, company or corporation who shall own or hold, subject to his or her control, any tangible personal property shall list said property for assessment. The property of every ward shall be listed by his or her guardian; of every minor by his or her father, if living and of sound mind; but if his or her father be not living, or be of unsound mind, by his or her mother; and if neither father nor mother is living, by the person having such property in charge. Any property held in trust for the benefit of another shall be listed by the trustee. The property of the estate of every deceased person shall be listed by the executor or administrator.

The property of persons, associations, companies or corporations whose assets are in the hands of receivers shall be listed by such receivers, and the property of every other corporation subject to taxation under this act shall be listed by some person designated by said corporation; and the property of any company or firm shall be listed by an agent or partner thereof.

If any person, association, company or corporation shall have in their possession or custody any tangible personal property belonging to others not specifically included in the foregoing, it shall be their duty to list such property with the assessor in the name of the owner thereof.

History: L. 1876, ch. 34, § 6; R.S. 1923, 79-303; L. 1965, ch. 511, § 2; June 30.

§ 79-304 Place of listing of certain property for taxation purposes

Every person required to list property on behalf of others shall list such property in the taxing districts in which the property is located and such person shall list such property separate and apart from such person's own property, specifying the name of the person, estate, company or corporation to which the same may belong.

All tangible personal property stationed, located, or stored on any municipal airport or airfield shall be listed and taxed in the township, school district, city or taxing district in which the owner resides, but if the owner is a nonresident of this state or of the county in which such tangible personal property is located, then such property shall be listed and taxed in the same township, school district, city, or taxing district in which the property is located. All personal property shall be listed and taxed each year in the taxing district in which the property was located on the first day of January, but all moneys and credits not pertaining to a business located shall be listed in township or city and school district in which the owner resided on the first day of January, except that, a motor vehicle which is being used by and is in the possession of a student who is attending a university or college and which is owned by such student or by another person shall be listed and taxed in the township, school district, city or taxing district in which the owner of the motor vehicle resided on the first day of January. Whenever any person, association or corporation removes tangible personal property from this state between November 1 and the next succeeding January 1 and returns such property to this state prior to the next succeeding March 1, such person, association or corporation shall list such property for taxation with the county appraiser of the county to which such property is returned as required by K.S.A. 79-306, and amendments thereto unless the owner of such property submits proof to the county appraiser under oath that such property was removed from the state for legitimate business purposes, and has been listed for taxation for the appropriate tax year in some other state or territory.

The property of banks, bankers, brokers, merchants, and of insurance or other companies, except of mutual fire insurance companies, shall be listed and taxed in the taxing district where their business is usually done, and manufactories and mines in the taxing district where the manufactories or mines are located.

Personal property in transit shall be listed in the taxing district where the owner resides except that, if such property is intended for a particular business, it shall be listed at the place where the business is to be transacted.

History: L. 1881, ch. 34, § 1; L. 1919, ch. 302, § 1; R.S. 1923, 79-304; L. 1927, ch. 322, § 1; L. 1935, ch. 299, § 1; L. 1947, ch. 442, § 1; L. 1955, ch. 397, § 1; L. 1959, ch. 365, § 1; L. 1963, ch. 456, § 7; L. 1965, ch. 512, § 1; L. 1975, ch. 495, § 22; L. 1988, ch. 375, § 4; L. 1989, ch. 290, § 1; July 1.

§ 79-305 Repealed

History: L. 1876, ch. 34, § 8; R.S. 1923, 79-305; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-305a Rendition preparers; definitions

As used in this act:

(a) "Person" means any individual, firm, partnership, joint adventure, association or corporation.

(b) "Personal property tax rendition form" means any list, schedule or statement required to be furnished pursuant to article 3 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, disclosing personal property of a taxpayer.

(c) "Personal property tax rendition form preparer" means any person who prepares or assists in preparation for compensation, or who employs one or more persons to prepare or assist in preparation for compensation, any personal property tax rendition form. A person shall not be a personal property tax rendition form preparer merely because such person: (1) Furnishes typing, reproducing or other mechanical assistance, or (2) prepares a rendition of the employer by whom such person is regularly and continuously employed.

(d) "Taxpayer" means any person contracting with a personal property tax rendition form preparer to prepare a personal property tax rendition form on[such person's behalf or to assist in the preparation of such form.]*

History: L. 1992, ch. 165, § 1; July 1.

§ 79-306 Listing of tangible personal property for taxation; time of filing; certification by preparer; limitations on required filing of annual statements, exception

On or before March 15 of each year, or the next following business day if such date falls on a day other than a regular business day, every person, association, company or corporation required by this act to list property shall make and personally sign a statement listing all tangible personal property which by this act such person is required to list, either as the owner thereof, or as parent, guardian, trustee, executor, administrator, receiver, accounting officer, partner or agent, as the case may be, and deliver the same to the county appraiser of the county where such property has its situs for the purpose of taxation. In addition to the foregoing requirements, any such statement prepared by a personal property tax rendition form preparer shall be certified as true and correct by such preparer's signature. If a person has filed an initial statement listing property with the county appraiser pursuant to this section, no subsequent annual statement shall be required to be filed with the county appraiser regarding such property unless there is a change to report relating to the property previously listed or the statement.

History: L. 1876, ch. 34, § 9; L. 1909, ch. 243, § 1; R.S. 1923, 79-306; L. 1957, ch. 488, § 1; L. 1965, ch. 511, § 3; L. 1968, ch. 95, § 1; L. 1972, ch. 355, § 1; L. 1988, ch. 375, § 5; L. 1992, ch. 165, § 2; L. 2024, ch. 81, § 9; July 1.

§ 79-306a Repealed

History: L. 1965, ch. 511, § 4; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-306b Repealed

History: L. 1965, ch. 511, § 5; L. 1968, ch. 95, § 2; L. 1969, ch. 433, § 8; L. 1979, ch. 309, § 15; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-306c Repealed

History: L. 1965, ch. 511, § 6; L. 1969, ch. 431, § 1; L. 1970, ch. 381, § 1; L. 1971, ch. 292, § 1; Repealed, L. 1979, ch. 309, § 18; January 1, 1980.

§ 79-306d Valuation and listing of certain motor vehicles; motor vehicles excluded; determination of value of motor vehicles; replacement vehicle, defined; duties of county appraiser, county treasurer and director of property valuation

(a) This section shall not apply: (1) To motor vehicles which are assessed and taxed by the director of property valuation under the provisions of chapter 79, article 6a, of the Kansas Statutes Annotated, and amendments thereto; (2) to motor vehicles of a public utility whose property is assessed by the director of property valuation under the provisions of chapter 79, article 5a, of the Kansas Statutes Annotated; (3) to motor vehicles valued and taxed under the provisions of article 51 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto; and (4) commercial vehicles required to be annually registered pursuant to K.S.A. 8-143m, and amendments thereto.

(b) It shall be the duty of the county appraiser to value each vehicle and place it on the tax roll for taxation purposes. In making such valuation the county appraiser shall use the valuation schedules furnished by the director of property valuation except that said appraiser may deviate from such valuation schedules if the vehicle being valued should be assessed at a lower amount than that shown in the schedule because it has been damaged.

(c) Motor vehicles acquired, purchased, traded or sold after January 1 and prior to September 1 of any year shall be valued in the following manner: In each case the tentative value shall be determined pursuant to the provisions of subsection (b) hereof, and such tentative value divided by twelve to arrive at the monthly value. The value of the motor vehicle shall then be determined as follows: (1) In the case where the vehicle acquired is not a replacement vehicle, the monthly value as defined above shall be multiplied by the number of months or fractions thereof remaining in the calendar year. The value thus determined shall constitute the value of the motor vehicle for said calendar year. (2) In the case where the vehicle acquired is a replacement vehicle, the newly acquired vehicle shall be valued as in subsection (c)(1) above and the vehicle replaced shall be valued by multiplying the monthly value as defined above times the number of full calendar months in the calendar year that the vehicle was owned and for which assessment is being made. The values of the vehicles thus ascertained shall be added together and the sum of the values shall constitute the valuation of the motor vehicles for said calendar year. Motor vehicles acquired, or purchased, after September 1 of any year shall not be subject to assessment and taxation for the year in which they are acquired. As used in this subsection, the term "replacement vehicle" means the vehicle which replaces a motor vehicle previously listed for assessment and taxation for the calendar year in which such vehicle is acquired.

(d) The county treasurer, upon accepting an application for title of a vehicle, shall forthwith furnish the county appraiser with such information as is shown on the title application.

(e) The director of property valuation shall prescribe such forms as are necessary to administer this section.

(f) Whenever any motor vehicle assessed and taxed under the provisions of this section is sold or becomes subject to taxation under the provisions of article 51 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, prior to the end of the tax year, such vehicle shall be valued by multiplying the monthly value as determined in the manner provided by subsection (c) by the number of months or fractions thereof in the calendar year that such vehicle is owned and not subject to taxation under article 51 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto.

History: L. 1980, ch. 325, § 6; L. 2012, ch. 87, § 4; July 1.

§ 79-306e Valuation of watercraft, proration

(a) The value for property tax purposes of any watercraft, as defined by K.S.A. 79-5501, and amendments thereto, which is acquired or sold after January 1 and prior to September 1 of any taxable year shall be equal to the value determined therefor pursuant to K.S.A. 79-5501, and amendments thereto, multiplied by: (1) In the case of a sale, a fraction the numerator of which is the number of months, or major portion thereof, such watercraft was owned by the record owner thereof during the taxable year in which such watercraft was sold, and the denominator of which is 12; and (2) in the case of an acquisition, a fraction the numerator of which is the number of months, or major portion thereof, remaining in the taxable year after the date of acquisition by the record owner thereof, and the denominator of which is 12.

(b) On or after July 1, 2007, notice of the acquisition or sale of any such watercraft shall be provided by the record owner thereof to the appropriate county appraiser on or before December 20 of the year of such acquisition or sale. Upon receipt of such notice, and after computation of the value of any such watercraft in accordance with the provision of subsection (a), a notification or revised notification of value shall be mailed to the taxpayer.

(c) Watercraft acquired after September 1 of a taxable year shall not be subject to assessment and taxation for such year, except as provided by paragraph (1) of subsection (a).

(d) The provisions of this section shall apply to all taxable years commencing after December 31, 2013.

History: L. 2002, ch. 185, § 33; L. 2007, ch. 152, § 9; L. 2013, ch. 87, § 12; July 1.

§ 79-307 Repealed

History: L. 1876, ch. 34, § 10; R.S. 1923, 79-307; Repealed, L. 1959, ch. 366, § 1; June 30.

§ 79-307a Repealed

History: L. 1959, ch. 365, § 31; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§§ 79-307b, 79-307c Repealed

History: L. 1974, ch. 423, §§ 1, 2; L. 1982, ch. 392, §§ 1, 2; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-307d Repealed

History: L. 1974, ch. 423, § 3; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-308 Statements to include tax situs information

The personal property statements required by this act shall set forth the name of the township, city and school district in which such property is located, the residence address of the owner and such other information as required to establish the proper tax situs of all property.

History: L. 1885, ch. 198, § 1; R.S. 1923, 79-308; L. 1965, ch. 511, § 7; June 30.

§ 79-309 Time of listing and valuation; sale or transfer after January 1 and tax-exempt investment prior thereto

All property shall be listed and valued on the first day of January in the year in which the same is assessed, and the transfer and sale of any taxable personal property subsequently to the first day of January shall not authorize any person to omit the same from the list, although such list be not made until after the sale or transfer of such property; but all such property shall be listed for taxation in the same manner as if no sale or transfer thereof had been made. In case moneys or property shall come into the hands of any person, which he or she would be required to list for taxation, and which moneys or property was not taxed in this state for the year immediately preceding the first day of January in any year, and the said moneys or property shall have been prior to any such January first invested in tax-exempt bonds or securities, then any such moneys or property shall be listed for taxation on January first by dividing the value of any such moneys or property by three hundred sixty-five (365), and multiplying the quotient by the number of days which any such taxable moneys or property remained in the hands of such a person prior to the time of its investment in any such tax-exempt bonds or securities.

History: L. 1876, ch. 34, 11; R.S. 1923, 79-309; L. 1925, ch. 275, § 1; L. 1959, ch. 365, § 2; June 30.

§ 79-310 Repealed

History: L. 1876, ch. 34, § 12; L. 1877, ch. 37, § 2; L. 1885, ch. 197, § 1; L. 1908, ch. 80, § 1; R.S. 1923, 79-310; L. 1958, ch. 61, § 1 (Budget Session); Repealed, L. 1970, ch. 390, § 9; July 1.

§ 79-310a Assessment and taxation of shares of stock of corporations classified as regulated investment companies; corporations not subject to certain acts

Shares of stock issued by a corporation classified as a regulated investment company under the provisions of the federal internal revenue code of 1954, as amended, shall be assessed and taxed to each shareholder. The total gross earnings received by each shareholder from such shares shall be the ordinary income dividend paid by the corporation on such shares. The actual value of such shares shall be obtained by dividing the net asset value of the corporation by the number of outstanding shares of stock of the corporation. Such corporation shall not be subject to the provisions of K.S.A. 79-3108 through 79-3120 and acts amendatory thereof and supplemental thereto.

History: L. 1968, ch. 172, § 1; December 31.

§ 79-311 Repealed

History: L. 1876, ch. 34, § 13; R.S. 1923, 79-311; L. 1963, ch. 457, § 1; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-312 Repealed

History: L. 1876, ch. 34, § 14; R.S. 1923, 79-312; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-313 Repealed

History: L. 1901, ch. 188, § 1; R.S. 1923, 79-313; L. 1951, ch. 475, § 1; L. 1959, ch. 365, § 3; Repealed, L. 1963, ch. 458, § 1; June 30.

§ 79-314 Repealed

History: L. 1899, ch. 248, § 1; R.S. 1923, 79-314; L. 1959, ch. 365, § 4; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-315 Repealed

History: L. 1899, ch. 248, § 2; R.S. 1923, 79-315; Repealed, L. 1987, ch. 371, § 1; July 1.

§ 79-316 Repealed

History: L. 1899, ch. 248, § 3; L. 1901, ch. 364, § 1; R.S. 1923, 79-316; L. 1930, ch. 14, § 1; L. 1959, ch. 365, § 5; L. 1982, ch. 391, § 23; Repealed, L. 1987, ch. 371, § 1; July 1.

§ 79-316a Repealed

Revisor's Note: Later act, see 21-3711.

History: L. 1930, ch. 14, § 2; Repealed, L. 1969, ch. 180, 21-4701; July 1, 1970.

§§ 79-316b, 79-316c Repealed

History: L. 1943, ch. 313, §§ 1, 2; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-317 Transferred

Revisor's Note: Section transferred to 79-2110.

§ 79-318 Repealed

Revisor's Note: Later act, see 79-2111.

History: L. 1899, ch. 248, § 5; R.S. 1923, 79-318; Repealed, L. 1943, ch. 301, § 13; June 28.

§ 79-319 Collection of tax; removal of personalty from county before taxes paid

When any person is about to remove his or her property from the county, after the same has been assessed and before the taxes thereon have been paid, without leaving sufficient remaining for the payment of the taxes thereon, the tax shall at once become due and payable, and the county treasurer shall forthwith issue a tax warrant for the collection of the same, and it shall be enforced as in other cases.

History: L. 1899, ch. 248, § 6; L. 1919, ch. 303, § 1; March 17; R.S. 1923, 79-319.

§ 79-319a Same; removal of buildings from delinquent real estate; penalty

If the owner of any real property shall remove, or suffer or permit to be removed by others, any residence or mercantile building from said real estate without first having paid any taxes thereon, due and delinquent at the time of such removal, he or she shall upon conviction be adjudged guilty of a misdemeanor, and punished by fine not exceeding five hundred dollars ($500).

History: L. 1929, ch. 292, § 1; May 28.

§ 79-320 Same; duty of public officers

It shall be the duty of all township trustees, assessors, sheriffs and city councilmen to at once inform the county or district attorney of the making or attempted making of sales, levy of attachments or removals provided for in this act, and it shall be the duty of the county or district attorney to forthwith proceed with the collection of the tax as in this act [*] provided, when such facts become known to him or her in any manner.

History: L. 1899, ch. 248, § 7; R.S. 1923, 79-320; L. 1974, ch. 446, § 25; July 1.

§ 79-321 Repealed

Revisor's Note: Later act, see 79-2112.

History: L. 1899, ch. 248, § 8; R.S. 1923, 79-321; Repealed, L. 1943, ch. 301, § 13; June 28.

§ 79-322 Highway or railway bridge on state line; listing and valuing

All persons, companies or corporations owning, controlling or operating any highway or railroad bridge over any stream or river forming the boundary line between this and any other state shall be required to list the same for taxation, and the same shall be assessed and taxed at its true value in money, as personal property; and in arriving at such value, if such bridge is constructed over a navigable stream, the value of the same to the center of the channel of such stream, together with all rights, privileges and franchises connected therewith or belonging thereto, shall be taken into consideration in ascertaining the true value of such bridge property for taxation; and it shall be the duty of the president, vice-president or superintendent of such bridge to make return to the proper assessor, giving the dimensions of said bridge in the county where it is located and its earning capacity, together with a full statement of all of its rights, privileges, and franchises, and the same shall be returned by the assessor, as by law in such cases made and provided.

History: L. 1898, ch. 37, § 1; January 11, 1899; R.S. 1923, 79-322.

§ 79-323 Repealed

Revisor's Note: Later act, see 79-2009.

History: L. 1898, ch. 37, § 2; R.S. 1923, 79-323; Repealed, L. 1943, ch. 301, § 13; June 28.

§ 79-324 Repealed

Revisor's Note: Later act, see chapter 40, article 28.

History: L. 1909, ch. 250, § 1; R.S. 1923, 79-324; Repealed, L. 1970, ch. 184, § 12; January 1, 1971.

§ 79-325 Repealed

History: L. 1909, ch. 242, § 1; R.S. 1923, 79-325; Repealed, L. 1931, ch. 302, § 13; February 25.

§ 79-325a Repealed

Revisor's Note: Later act, see 79-1106 et seq.

History: L. 1931, ch. 302, § 1; L. 1959, ch. 365, § 6; Repealed, L. 1963, ch. 463, § 10; January 1, 1964.

§ 79-326 Repealed

History: L. 1909, ch. 242, § 2; R.S. 1923, 79-326; Repealed, L. 1931, ch. 302, § 3; February 25.

§ 79-327 Repealed

History: L. 1909, ch. 242, § 3; R.S. 1923, 79-327; Repealed, L. 1931, ch. 302, § 3; February 25.

§ 79-328 Repealed

History: G.S. 1868, ch. 55, § 31; R.S. 1923, 79-328; Repealed, L. 1981, ch. 371, § 1; April 25.

§ 79-329 Oil and gas property as personalty

For the purpose of valuation and taxation, all oil and gas leases and all oil and gas wells, producing or capable of producing oil or gas in paying quantities, together with all casing, tubing or other material therein, and all other equipment and material used in operating the oil or gas wells are hereby declared to be personal property and shall be assessed and taxed as such.

History: L. 1917, ch. 323, § 1; March 13; R.S. 1923, 79-329.

§ 79-330 Oil and gas properties; valuation and assessment; cancellation of taxes of less than $5

In valuing for taxation, oil or gas properties consisting of one or more leases and oil or gas wells, there shall, in addition to the value of all oil- or gas-well material in or upon the leasehold properties, be made such valuation of the oil or gas wells as would make a reasonable and fair value of the whole property. Such portion of the valuation of the oil or gas wells as represents the lessor's interest, or royalty interest, therein shall be assessed to the owner thereof and the remaining portion or working interest therein shall be assessed to the owner of the lease, together with the other property assessed in connection therewith. When the aggregate amount of tax owed by any taxpayer on any such royalty interest or royalty interests having a tax situs in the same taxing district is less than $5, such tax shall be cancelled and the amount shall not be included on the personal property list. Upon the written request or consent submitted annually prior to April 1 by the owner of a gas lease where the gas is being delivered into interstate commerce, the entire valuation may be assessed to such owner.

History: L. 1917, ch. 323, § 2; R.S. 1923, 79-330; L. 1977, ch. 326, § 1; L. 1977, ch. 327, § 1; L. 1992, ch. 282, § 17; May 28.

§ 79-331 Same; determination of value; changes in determination of value of production; limitations on information used to establish fair market value

(a) Except as otherwise provided in subsection (b), in determining the value of oil and gas leases or properties the appraiser shall take into consideration the age of the wells, the quality of oil or gas being produced therefrom, the nearness of the wells to market, the cost of operation, the character, extent and permanency of the market, the probable life of the wells, the quantity of oil or gas produced from the lease or property, the number of wells being operated, and such other facts as may be known by the appraiser to affect the value of the lease or property.

Whenever a change in any of the factors or figures used in determining the

8/8ths valuation of the production for any oil or gas lease or property is made pursuant to the tax equalization, tax protest or tax grievance proceedings, such change shall apply to the working interest, royalty interest, overriding royalty interest and production payments and, if applicable, a refund of taxes shall be made in the manner prescribed by K.S.A.

79-2005(l)(1), and amendments thereto.

(b) The valuation of the working interest and royalty interest, except valuation of equipment, of any original base lease or property producing oil or gas for the first time in economic quantities on and after July 1 of the calendar year preceding the year in which such property is first assessed shall be determined for the year in which such property is first assessed by determining the quantity of oil or gas such property would have produced during the entire year preceding the year in which such property is first assessed upon the basis of the actual production in such year and by multiplying the income and expenses that would have been attributable to such property at such production level, excluding equipment valuation thereof, if it had actually produced said entire year preceding the year in which such property is first assessed by 60%.

(c) The provisions of subsection (b) shall not apply in the case of any production from any direct offset well or any subsequent well on the same lease.

(d) (1) In order to clarify and express the intent of the legislature regarding the methodology utilized in the determination of fair market value of producing oil and gas leases for property tax purposes, it is hereby declared that the primary and predominant consideration in such determination is, has been and shall be the actual value of oil and gas production severed from the earth.

(2) Information used to establish the fair market value of producing oil and gas leases which commence production during the preceding calendar year shall be limited to any information regarding production prior to April 1 of the calendar year in which such property is assessed. Information used to establish the fair market value of any base lease or property producing oil and gas for the first time in economic quantities on and after October 1 of the calendar year preceding the year in which such property is first assessed shall be limited to any information regarding production prior to July 1 of the calendar year in which such property is assessed.

(e) The provisions of this act shall apply to all tax years commencing on and after December 31, 2016.

History: L. 1917, ch. 323, § 3; R.S. 1923, 79-331; L. 1969, ch. 432, § 1; L. 1979, ch. 310, § 1; L. 2000, ch. 47, § 1; L. 2005, ch. 204, § 1; L. 2016, ch. 112, § 7; July 1.

§ 79-332 Repealed

History: L. 1917, ch. 323, § 4; R.S. 1923, 79-332; L. 1965, ch. 513, § 1; L. 1967, ch. 487, § 1; L. 1969, ch. 433, § 9; L. 1981, ch. 372, § 1; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-332a Listing of oil and gas property; penalty for late filing or failure to file; extension of time; distribution of taxes paid under protest; abatement of penalty

(a) Any person, corporation or association owning oil and gas leases or engaged in operating for oil or gas who fails to make and file a statement of assessment on or before April 1 shall be subject to a penalty as follows:

(1) The appraiser shall, after having ascertained the assessed value of the property of such taxpayer, add 2% thereto as a penalty for late filing if the failure is not for more than one month, with an additional 2% for each additional month or fraction thereof during which such failure continues, not exceeding 10% in the aggregate.

(2) If the statement of assessment is filed more than one year from April 1, the appraiser shall, after having ascertained the assessed value of the property of such taxpayer, add 12.5% thereto as a penalty for late filing. The county treasurer may not distribute any taxes assessed under this section and paid under protest by the taxpayer pursuant to K.S.A. 79-2005, and amendments thereto, until such time as the appeal is final.

(b) For good cause shown the county appraiser may extend the time in which to make and file such statement. Such request for extension of time shall be in writing and shall be received by the county appraiser prior to the due date of the statement of assessment.

(c) Whenever any person, corporation or association owning oil and gas leases or engaged in operating for oil or gas shall fail to make and deliver to the county appraiser of every county wherein the property to be assessed is located, a full and complete statement of assessment relative to such property as required by blank forms prepared or approved for the purpose by the director of property valuation to elicit the information necessary to fix the valuation of the property, the appraiser shall ascertain the assessed value of the property of such taxpayer, and shall add 12.5% thereto as a penalty for failing to file such statement.

(d) The state board of tax appeals shall have the authority to abate any penalty imposed under the provisions of this section and order the refund of the abated penalty, whenever excusable neglect on the part of the person, corporation or association required to make and file the statement of assessment is shown, or whenever the property for which a statement of assessment was not filed as required by law is repossessed, judicially or otherwise, by a secured creditor and such secured creditor pays the taxes and interest due.

History: L. 1983, ch. 309, § 1; L. 1987, ch. 372, § 1; L. 1992, ch. 282, § 2; L. 1994, ch. 275, § 15; L. 1995, ch. 39, § 1; L. 2004, ch. 173, § 8; L. 2008, ch. 109, § 76; L. 2014, ch. 141, § 85; L. 2024, ch. 81, § 10; July 1.

§ 79-333 Listing of oil and gas property; false statement; fraudulent acts; misdemeanor; penalty

If any person, corporation or association owning oil and gas leases or engaged in operating for oil or gas knowingly gives a false or fraudulent list, schedule or statement required by this act, or shall temporarily convert any part of such property into property not taxable, for the fraudulent purpose of preventing such property from being listed, or of evading the payment of taxes thereon, or shall transfer or transmit any property to any person with such intent, such owner, upon conviction thereof, shall be guilty of a misdemeanor and shall be subject to a fine of not less than $50 nor more than $5,000. Prosecutions under this act shall be brought by the county or district attorney in the district court of the proper county, upon complaint made by the director of property valuation, or the county appraiser. A fee of $25 shall be assessed as costs in each case in which there is a conviction. Executions may be issued for the collection of all fines and costs imposed under the provisions of this act.

History: L. 1917, ch. 323, § 5; R.S. 1923, 79-333; L. 1965, ch. 513; § 2; L. 1982, ch. 391, § 24; July 1.

§ 79-334 Repealed

History: L. 1917, ch. 323, § 6; R.S. 1923, 79-334; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-335 Mobile and manufactured homes; listing for property taxation; forms; valuation and listing on rolls

The owner of each mobile home or manufactured home shall on forms prescribed or approved by the director of property valuation furnish a listing of each mobile home or manufactured home owned or possessed by such owner for property taxation and any other information required by the director of property valuation. Such listing shall be furnished to the county appraiser of the county in which the mobile home or manufactured home is situated.

History: L. 1970, ch. 47, § 2; L. 1982, ch. 391, § 25; L. 1991, ch. 33, § 38; July 1.

§ 79-336 Owner, lessee or operator of park or land to notify assessor of all mobile and manufactured homes located in park or on land; forms

The owner, lessee or operator of any mobile home park, and the owner of any land which is not used as a mobile home park but where any one or more mobile homes or manufactured homes are located, shall furnish the county clerk or assessor of the county wherein said mobile home park or land is located a list of all mobile homes or manufactured homes located thereon as of January 1 of each year, and shall notify the county clerk or assessor of any mobile home or manufactured home moved onto such premises from any location outside the boundaries of such county after January 1 and before July 1 of each year. Such information shall be furnished in the manner and on forms prescribed by the director of property valuation.

History: L. 1970, ch. 47, § 3; L. 1991, ch. 33, § 39; July 1.

§ 79-337 Same; failure of owner or operator of park or land to notify assessor; class C misdemeanor

The owner, lessee or operator of any mobile home park or the owner of any land which is not used as a mobile home park but where one or more mobile homes or manufactured homes are located who shall willfully and knowingly fail to submit a list of mobile homes or manufactured homes located or parked within such owner's, lessee's or operator's park or court in compliance with the provisions of K.S.A. 79-336, and amendments thereto, shall be guilty of a class C misdemeanor and upon conviction thereof shall be punished in the manner provided by law.

History: L. 1970, ch. 47, § 4; L. 1991, ch. 33, § 40; July 1.

§ 79-338 Owner, lessee or operator of dock to notify assessor of watercraft and owners; information and forms; definitions

The owner, lessee or operator of any watercraft dock where any one or more watercraft are docked shall furnish the county clerk or assessor of the county wherein such watercraft dock is located a list of all watercraft docked thereat and a list of the names and addresses of the owners of said watercraft as of January 1 of each year and shall notify the county clerk or assessor of any watercraft docked at such premises after January 1 and before July 1 of each year. Such information shall be furnished in the manner and on forms prescribed by the director of property valuation.

As used in this section the term "watercraft" shall mean "vessel" as defined by K.S.A. 82a-802, and the term "watercraft dock" shall include marina, wharf, pier, landing place, or boathouse.

History: L. 1971, ch. 333, § 1; July 1.

§ 79-339 Same; failure to notify, class C misdemeanor

The owner, lessee or operator of any watercraft dock where any one or more watercraft are docked who shall willfully and knowingly fail to submit a list of such watercraft and a list of the names and addresses of the owners of said watercraft in compliance with the provisions of K.S.A. 79-338 shall be guilty of a class C misdemeanor.

History: L. 1971, ch. 333, § 2; July 1.

§ 79-340 Mobile and manufactured homes as personal property; exception

Except as otherwise provided in this section, a mobile home or manufactured home, for purposes of taxation, shall be considered to be personal property, unless title to the mobile home or manufactured home is vested in the same person or the spouse of such person who holds title to the real property upon which such mobile home or manufactured home is located and such mobile home or manufactured home has a permanent foundation, such foundation being of a type not removable intact from such real property. Any mobile home or manufactured home used as a dwelling or residence shall be appraised for ad valorem tax purposes in the same manner as real property. For the purposes of this section and K.S.A. 79-335, 79-336 and 79-337, and amendments thereto, the terms "mobile home" and "manufactured home" shall have the meanings respectively ascribed to such terms by K.S.A. 58-4202.

History: L. 1975, ch. 493, § 1; L. 1976, ch. 422, § 1; L. 1982, ch. 393, § 1; L. 1991, ch. 33, § 41; July 1.

§ 79-341 Repealed

History: L. 1978, ch. 394, § 1; Repealed, L. 1981, ch. 373, § 2; January 1, 1982.

§ 79-342 Repealed

History: L. 1978, ch. 394, § 2; L. 1979, ch. 311, § 1; Repealed, L. 1981, ch. 373, § 2; January 1, 1982.

§ 79-343 Repealed

History: L. 1981, ch. 373, § 1; Repealed, L. 1982, ch. 394, § 1; July 1.

§ 79-344 Cancellation of personal property tax, when

(a) Whenever the aggregate amount of tax owed upon tangible personal property by any taxpayer is less than $5, such tax shall be cancelled and no personal property tax statement shall be issued.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 1991.

History: L. 1992, ch. 282, § 16; May 28.

§ 79-345 Listing of other tangible personal property; value; notification of value; certain property not subject taxation for tax year

(a) The value for property tax purposes of any tangible personal property classified for property tax purposes within subclass (6) of class 2 of section 1 of article 11 of the constitution of the state of Kansas that is acquired or sold after January 1 and prior to September 1 of any taxable year shall be equal to the value determined therefor pursuant to K.S.A. 79-1456, and amendments thereto, multiplied by: (1) In the case of a sale, a fraction, the numerator of which is the number of months, or major portion thereof, such property was owned by the record owner thereof during the taxable year in which such property was sold and the denominator of which is 12; and (2) in the case of an acquisition, a fraction, the numerator of which is the number of months, or major portion thereof, remaining in the taxable year after the date of acquisition by the record owner thereof and the denominator of which is 12.

(b) Notice of the acquisition or sale of any such property shall be provided by the record owner thereof to the appropriate county appraiser on or before December 20 of the year of such acquisition or sale. Upon receipt of such notice, and after computation of the value of any such property in accordance with the provision of subsection (a), a notification or revised notification of value shall be mailed to the taxpayer.

(c) Except as provided in subsection (a), tangible personal property classified for property tax purposes within subclass (6) of class 2 of section 1 of article 11 of the constitution of the state of Kansas acquired on or after September 1 of a taxable year shall not be subject to assessment and taxation for such year.

(d) The provisions of this section shall apply to all taxable years commencing after December 31, 2022.

History: L. 2022, ch. 63, § 9; July 1.

Article 4 Listing and Valuation of Real Estate

§ 79-401 How listed, valued and returned

The real property of this state shall be listed, valued, returned and equalized in the manner provided in this act and in other laws applicable.

History: L. 1911, ch. 316, § 1; May 22; R.S. 1923, 79-401.

§ 79-402 Repealed

Revisor's Note: Later act, see 79-1412a ¶ 2.

History: L. 1911, ch. 316, § 2; L. 1915, ch. 356, § 1; R.S. 1923, 79-402; L. 1927, ch. 323, § 1; L. 1953, ch. 420, § 1; Repealed, L. 1955, ch. 398, § 6; January 1, 1956.

§ 79-403 Repealed

History: L. 1911, ch. 316, § 3; R.S. 1923, 79-403; Repealed, L. 1963, ch. 460, § 10; June 30.

§ 79-404 Repealed

History: L. 1911, ch. 316, § 4; R.S. 1923, 79-404; L. 1959, ch. 365, § 7; Repealed, L. 1963, ch. 461, § 3; June 30.

§ 79-405 Plat of subdivisions

Whenever any subdivision of land of forty acres or less, or any lot or subdivision, is owned by two or more persons in severalty, and the description of one or more of the different parts or parcels thereof cannot be made sufficiently certain and accurate for the purpose of assessment and taxation without noting the metes and bounds of the same, the county clerk shall cause to be made and recorded, a plat of such tract or lot, with its several subdivisions, as hereinbefore provided.

History: L. 1911, ch. 316, § 5; May 22; R.S. 1923, 79-405.

§ 79-406 Same; notice to several owners upon failure to execute and record plat; duty of county clerk; assessment of cost

Whenever any subdivision of land, as specified in the preceding section, shall have been divided and is owned in severalty by two or more persons, and the owners thereof have failed and neglected to execute and file for record a plat thereof, the county clerk shall by mail notify all of such owners residing within this state and demand the execution and recording of a plat. If such owners, when so notified, fail and neglect for thirty days after the issuance of such notice to execute and file a plat for record, the county clerk shall cause one to be made, making any survey necessary therefor. Said plat shall be signed and acknowledged by the county clerk, who shall certify that he or she executed it by reason of the failure of the owners named to do so, and file it for record, and when so filed it shall have the same effect as if executed, acknowledged and recorded by the owners.

A correct statement of the cost and expense of such plat, survey and record, verified by oath, shall be by the county clerk laid before the board of county commissioners, who shall allow the same and order the same paid out of the current expense fund of the county, and the county clerk shall at the same time assess the amount pro rata upon the several subdivisions of said tracts, lots or parcels so subdivided, which amounts shall become a lien upon the several tracts and shall be collected in the same manner as general taxes, and when paid shall go to the current expense fund of the county.

History: L. 1911, ch. 316, § 6; May 22; R.S. 1923, 79-406.

§ 79-407 Same; appeal from action of county clerk; hearing by county commissioners

Any person aggrieved by the action of the county clerk in ordering a survey and plat of any subdivision of land, as hereinbefore provided, may within ten days appeal therefrom to the board of county commissioners, by giving notice thereof in writing to the board and thereupon no further proceedings shall be taken by the county clerk. At its next regular session after the filing of the notice aforesaid the county commissioners shall hear and determine said matter, and direct whether the plat shall be executed and filed.

If the county commissioners shall upon hearing find that such plat should be executed and filed, the owner or owners thereof shall within thirty days execute and file for record a plat thereof; and upon failure of the owner or owners to make and record such plat, the county clerk shall proceed to have said subdivision surveyed and platted as hereinbefore directed. Such plat made by the county clerk or by the owners of any such subdivision shall describe said tract, and any other subdivisions or the smallest subdivision of which the same is part, numbering them by progressive numbers, setting forth the courses and distances, the number of acres, and such other memoranda as are necessary, and the description of such lots or subdivisions according to the number and designation thereon, and said plat shall be deemed sufficient for all purposes of assessment and taxation.

History: L. 1911, ch. 316, § 7; May 22; R.S. 1923, 79-407.

§ 79-408 Real estate assessment rolls maintained by county clerk; contents

The county clerk shall maintain all real estate assessment rolls that may be required for the assessment districts of the county. Such assessment rolls shall contain a correct and pertinent description of each piece, parcel or lot of real property in numerical order as to lots and blocks, sections or subdivisions, in the respective townships or cities, as the case may be. In making up such assessment rolls, the county clerk shall consult the real estate transfer record in the office of the clerk and the records and plats in the office of the register of deeds.

All such rolls and descriptions may be maintained electronically, as the county may find necessary and proper.

History: L. 1911, ch. 316, § 8; R.S. 1923, 79-408; L. 1959, ch. 365, § 8; L. 1971, ch. 293, § 1; L. 1982, ch. 391, § 26; L. 2012, ch. 53, § 1; July 1.

§ 79-409 Same; survey of lot or tract, when

If the owner or occupant of any lot or tract of land shall neglect or refuse to furnish the description required by K.S.A. 79-408, and amendments thereto, when demanded by the county clerk, a land surveyor shall ascertain the boundaries and quantity of such property, and such description shall be held to be valid for all purposes of taxation; and the expense of such survey shall be returned to the county clerk of the county in which such property is located and, by such county clerk, shall be added to the tax upon such property and made a part thereof, and when collected the county treasurer shall be required upon warrants drawn by the county clerk on the orders of the board of county commissioners to pay the expenses of said survey.

History: L. 1911, ch. 316, § 9; R.S. 1923, 79-409; L. 2011, ch. 49, § 29; July 1.

§ 79-410 Repealed

History: L. 1911, ch. 316, § 10; R.S. 1923, 79-410; L. 1975, ch. 496, § 4; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-411 Determination of fair market value in money of real property; appraisal and assessment of real property

The appraiser from actual view and inspection or from statistical methods prescribed by the director of property valuation, from consultation with the owner or agent thereof if expedient and from such other sources of information as are within the appraiser's reach, shall determine as nearly as is practicable the fair market value in money of all taxable real property within the county and assess the same as required in K.S.A. 79-1439, and amendments thereto.

History: L. 1911, ch. 316, § 11; R.S. 1923, 79-411; L. 1951, ch. 476, § 1; L. 1963, ch. 460, § 2; L. 1969, ch. 433, § 1; L. 1994, ch. 275, § 6; July 1.

§ 79-412 Valuation of buildings and improvements; recording or filing lease agreement, requirements

It shall be the duty of the county or district appraiser to value the land and improvements. The value of the land and improvements shall be entered on the assessment roll in a single aggregate, except as hereinafter provided. Improvements owned by entities other than the owner of the land shall be assessed to the owners of such improvements, if the lease agreement has been recorded or filed in the office of the register of deeds. The words "building on leased ground" shall appear on the first page of the lease agreement. It shall be the responsibility of the person recording or filing the lease agreement to include such words as provided in this section. Failure to include such words as provided in this section may result in such improvements being assessed to the owner of the land. As used in this section, the term "person" means any individual, business, domestic or foreign corporation, partnership or association. Delinquent taxes imposed on such improvements may be collected by levy and sale of the interests of such owners the same as in cases of the collection of taxes on personal property.

History: L. 1911, ch. 316, § 12; R.S. 1923, 79-412; L. 1994, ch. 275, § 7; L. 1997, ch. 126, § 31; L. 1999, ch. 126, § 5; L. 2004, ch. 173, § 9; July 1.

§ 79-413 Repealed

History: L. 1911, ch. 316, § 13; R.S. 1923, 79-413; Repealed, L. 1959, ch. 365, § 32; June 30.

§ 79-414 Lands entered after January 1

It shall be the duty of the county clerk to procure from the land office of the proper district, or districts, an abstract of the lands entered subsequently to the first day of January of the previous year, and all such lands as shown by said abstract not appearing on the tax rolls shall be entered upon said roll by the county clerk as soon as the abstracts shall be received.

History: L. 1911, ch. 316, § 14; R.S. 1923, 79-414; L. 1959, ch. 365, § 9; June 30.

§ 79-415 Repealed

History: L. 1911, ch. 316, § 15; R.S. 1923, 79-415; Repealed, L. 1963, ch. 460, § 10; June 30.

§ 79-416 Repealed

History: L. 1911, ch. 316, § 16; R.S. 1923, 79-416; Repealed, L. 1975, ch. 496, § 5; July 1.

§ 79-417 Repealed

History: L. 1911, ch. 316, § 17; R.S. 1923, 79-417; L. 1953, ch. 421, § 1; L. 1982, ch. 391, § 27; Repealed, L. 1990, ch. 346, § 4; July 1.

§ 79-418 Repealed

History: L. 1911, ch. 316, § 18; R.S. 1923, 79-418; Repealed, L. 1990, ch. 346, § 4; July 1.

§ 79-419 Partitioned lands; certification by district court; entry upon tax roll by county clerk; valuation by county appraiser; apportionment of tax

It shall be the duty of the clerk of the district court of each county of this state, when any lots or land have been partitioned by order of any such court, to certify to the county clerk a description of the lots or land partitioned, and also a description of each piece or parcel into which the same has been divided, together with the name of the owner. The county clerk shall enter on the tax roll the description of the several pieces of land into which any such lots or land have been partitioned, and such description shall be held to be valid for all purposes. The county clerk shall cause the county appraiser to value each piece or parcel of such lots or lands as divided. The county clerk shall apportion the tax originally charged to such lots or lands that have been divided in the proportion represented by the percent that the value of each piece or parcel shall represent of the total value of all pieces or parcels as appraised individually by the county appraiser. Whenever any lands held by tenants in common shall be sold upon proceedings in partition, or shall be taken by the election of any of the parties to such proceedings, or where any real estate shall be sold at judicial sale, or by administrators, executors, conservators, or trustees, the court shall order all taxes and penalties thereon against such lands to be discharged out of the proceeds of such sale.

History: L. 1911, ch. 316, § 19; R.S. 1923, 79-419; L. 1965, ch. 514, § 1; L. 1982, ch. 391, § 28; July 1.

§ 79-420 Surface and mineral rights taxed separately, when; duties of register of deeds, county clerk and county appraiser

Whenever the fee to the surface of any tract, parcel or lot of land is in any person or persons, natural or artificial, and the right or title to any minerals therein is in another or in others, such mineral interest shall be listed and the market value, if any, determined separately from the fee of such land, in separate entries and descriptions. Such land and such mineral interest shall be separately taxed to the owners thereof respectively. In determining the market value, if any, of any such mineral interest, the appraiser shall consider every proper factor, including but not limited to, the size of the particular mineral interest, the fractional share of such interest and the number of fractional shares in existence for such interest. The register of deeds shall furnish to the county clerk where such mineral interest exists and are a matter of record, a certified description of all such interest. When such reserves or leases are not recorded within 90 days after execution, they shall become void if not listed for taxation.

History: L. 1911, ch. 316, § 20; R.S. 1923, 79-420; L. 1959, ch. 365, § 10; L. 1982, ch. 391, § 29; July 1.

§ 79-421 Same; forfeiture of office upon failure

Any register of deeds or county clerk knowingly or willfully failing to perform the duty as prescribed in above section shall forfeit his or her office, and upon petition of the county attorney or the attorney general shall upon summary proceedings be removed therefrom.

History: L. 1911, ch. 316, § 21; May 22; R.S. 1923, 79-421.

§ 79-422 Public utility property listed as real estate

All fixed mains, flumes, aqueducts, reservoirs, receptacles, standpipes, purifiers, regulators, lamps, lampposts, meters, shackle-rods, plugs, tanks, wires and all other property, whether herein enumerated or not, used as part of a system and employed in leading, conducting or distributing heat, light, power, oil, gas, water or other commodity between the place of generation, production or supply and the place of distribution, consumption, use, manufacture, market, or further shipment shall be listed and taxed by the city, town, school district, township or county in which said property or any part thereof is located, and in the same manner returned as is provided by law for real estate.

History: L. 1911, ch. 316, § 22; May 22; R.S. 1923, 79-422.

§§ 79-423, 79-424 Repealed

History: L. 1915, ch. 359, §§ 1, 2; R.S. 1923, 79-423, 79-424; Repealed, L. 1963, ch. 460, § 10; Repealed, L. 1963, ch. 461, § 3; June 30.

§ 79-425 Repealed

History: L. 1915, ch. 359, § 3; R.S. 1923, 79-425; L. 1959, ch. 367, § 1; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-425a Tracts of land divided after regular assessment; apportionment and levying of taxes; appeals

(a) Whenever a tract of land which has been assessed shall thereafter be divided into tracts owned by different persons, any one or more of such persons, after giving 10 days' written notice to the other persons at their respective mailing addresses, may make application to the county appraiser for an apportionment of the assessed valuation of such tract among the several tracts, and the county appraiser shall apportion such valuation among the owners of such tracts according to the value of their respective interests as shown by evidence available at a time designated by the county appraiser. Upon the apportionment of the assessed valuation among the several tracts and the levying of tax against each such tract, the county treasurer, upon payment of such tax on any such tract, shall issue a receipt therefor and, in any case where such tax is not paid on any of such tracts, it shall be sold for delinquent taxes in the same manner prescribed by law for sale of real estate for delinquent taxes. If taxes levied on a tract of land prior to its division are delinquent, the owner of any divided portion of such tract may have that portion released from the tax lien by paying to the county treasurer the share of the delinquent tax attributable to such divided portion as shown by the apportionment made of the whole tract's assessed valuation among the divided portions by the county appraiser.

(b) Any person aggrieved by the application of the provisions of subsection (a) may, within 10 days after the apportionment decision of the county appraiser, appeal to the state board of tax appeals, and the board shall have the power, upon a showing that such decision was erroneous, to substitute an apportionment of the assessed valuation of a tract of land for that of the county appraiser.

History: L. 1983, ch. 308, § 1; L. 2008, ch. 109, § 77; L. 2014, ch. 141, § 86; L. 2016, ch. 112, § 8; July 1.

§ 79-426 Joint ownership; payment of taxes by one owner; lien

When land owned by two or more persons shall be assessed jointly, and any one or more of them shall not pay the proper portion of the tax due in such cases, any such owner paying the whole tax or who has redeemed the whole tract after it has been sold for delinquent taxes shall have a lien on the interest of the owner who was delinquent to the extent of the tax justly owing by such delinquent, and may sue and recover the amount advanced with interest and costs.

History: L. 1915, ch. 359, § 4; April 10; R.S. 1923, 79-426.

§ 79-427 Apportionment of special tax or assessment on lot or tract in cities

On demand of the county clerk or of any owner of any part of a lot or tract, as herein stated, or any obligee of a bond or other contract to convey any part of a lot or tract within any city of the first, second and third class, it shall be the duty of the city clerk to divide any special tax or assessment on said lot or tract in such proportion as the value of each part, exclusive of buildings or improvements, shall bear to the value of the entire lot or tract, exclusive of buildings or improvements, and thereupon and thereafter such special tax or assessment shall be carried upon the books of the city clerk as apportioned, and be so certified to the county clerk for listing upon the tax rolls of the county.

History: L. 1911, ch. 114, § 1; R.S. 1923, 79-427; L. 1927, ch. 325, § 1; June 1.

§§ 79-428, 79-429 Repealed

History: L. 1947, ch. 474, §§ 1, 2; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-430 Listing and taxation of certain leased portions of real property

For all purposes associated with property taxation, the provisions of K.S.A. 79-412 notwithstanding, that portion of the fair market value of real property attributable to the leasing of real property, or the creation of any other interest of less than fee simple in real property, for the purpose of the placement of a wireless communication tower, antenna or relay site upon the real property, shall be entered on the assessment roll separate from the remaining fair market value. Such portion of the fair market value shall be separately taxed to the owner of such wireless communication tower, antenna or relay site as real property at the same classification and same tax rate as the real property upon which the wireless communications tower, antenna or relay site is located except that, in the event the real property upon which the wireless communications tower, antenna or relay site is located is exempt from property taxation, such real property shall continue to be exempt from property taxation, except that portion of the fair market value of such tax-exempt real property attributable to the leasing of such tax-exempt real property, or the creation of any other interest of less than fee simple in such tax-exempt real property, for the purpose of the placement of a wireless communications tower, antenna or relay site upon such tax-exempt real property, shall be taxable and shall be assessed to the owner of such wireless communications tower, antenna or relay site as real property at 25% of value. Such tax shall be a lien on the interest in the real property of such owner of the wireless communications tower, antenna or relay site and shall be collected in the same manner as the collection of other taxes on real property.

History: L. 1997, ch. 126, § 37; July 1.

Article 5 Rules for Valuing Property

§ 79-501 Appraisal of real and tangible personal property at fair market value in money; exceptions; rate of assessment

Each parcel of real property shall be appraised at its fair market value in money, the value thereof to be determined by the appraiser from actual view and inspection of the property. The price at which such real property would sell at forced sale may be taken as a criterion of such fair market value in money in the market place of such sale if the appraiser believes such price to be a reasonable factor in arriving at fair market value. The price at which real property would sell at auction may be taken as the criterion of fair market value in money if the appraiser determines such sale to be an arms-length transaction between a willing buyer and seller. In addition, land devoted to agricultural use shall be valued as provided by K.S.A. 79-1476, and amendments thereto. Tangible personal property shall be appraised at its fair market value in money except as provided by K.S.A. 79-1439, and amendments thereto. All such real and tangible personal property shall be assessed at the rate prescribed by K.S.A. 79-1439, and amendments thereto.

History: L. 1876, ch. 34, § 15; R.S. 1923, 79-501; L. 1963, ch. 460, § 3; L. 1969, ch. 433, § 2; L. 1988, ch. 375, § 6; L. 1989, ch. 2, § 9 (Special Session); December 14.

§ 79-502 Repealed

History: L. 1951, ch. 213, § 1; Repealed, L. 1959, ch. 368, § 1; March 27.

§ 79-503 Repealed

History: L. 1963, ch. 460, § 4; L. 1965, ch. 515, § 1; L. 1969, ch. 433, § 10; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-503a Fair market value defined; allowable variance; factors to be considered in determining fair market value; generally accepted appraisal procedures and standards to be utilized; exclusion of federal internal revenue code section 1031 exchange transactions

"Fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. In the determination of fair market value of any real property which is subject to any special assessment, such value shall not be determined by adding the present value of the special assessment to the sales price. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1.

Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion:

(a) The proper classification of lands and improvements;

(b) the size thereof;

(c) the effect of location on value;

(d) depreciation, including physical deterioration or functional, economic or social obsolescence;

(e) cost of reproduction of improvements;

(f) productivity taking into account all restrictions imposed by the state or federal government and local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families as authorized by section 42 of the federal internal revenue code of 1986, as amended;

(g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period;

(h) rental or reasonable rental values or rental values restricted by the state or federal government or local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended;

(i) sale value on open market with due allowance to abnormal inflationary factors influencing such values;

(j) restrictions or requirements imposed upon the use of real estate by the state or federal government or local governing bodies, including zoning and planning boards or commissions, and including, but not limited to, restrictions or requirements imposed upon the use of real estate rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; and

(k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes.

The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures and standards which are consistent with the definition of fair market value unless otherwise specified by law.

The sale price or value at which a property sells or transfers ownership in a federal internal revenue code section 1031 exchange shall not be considered an indicator of fair market value nor as a factor in arriving at fair market value. Federal internal revenue code section 1031 exchange transactions shall not be used as comparable sales for valuation purposes nor as valid sales for purposes of sales ratio studies conducted pursuant to K.S.A. 79-1485 et seq., and amendments thereto.

History: L. 1982, ch. 391, § 2; L. 1990, ch. 346, § 3; L. 1995, ch. 254, § 5; L. 1997, ch. 126, § 42; L. 2003, ch. 156, § 4; L. 2009, ch. 97, § 3; L. 2016, ch. 112, § 9; L. 2024, ch. 1, § 10 (Special Session); June 27.

§ 79-504 Appraisal standards; definitions

For the purposes of this act:

(a) "Appraisal foundation" and "foundation" mean the appraisal foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois.

(b) "Written appraisal" means a written statement used in connection with the activities of the division of property valuation or a county appraiser that is independently and impartially prepared by a county appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by presentation and analysis of relevant market information.

History: L. 1992, ch. 249, § 3; L. 2016, ch. 112, § 10; July 1.

§ 79-505 Appraisal standards; adoption by director of property valuation; additional standards, when

(a) The director of property valuation shall adopt appraiser directives prescribing appropriate standards for the performance of appraisals in connection with ad valorem taxation in this state. Such appraiser directives shall require, at a minimum:

(1) That all appraisals be performed in compliance with the uniform standards of professional appraisal practice, commonly referred to as "USPAP," promulgated by the appraisal standards board of the appraisal foundation; and

(2) that such appraisals shall be written appraisals.

(b) The director of property valuation may require compliance with additional standards if a determination is made in writing that such additional standards are required in order to properly carry out statutory responsibilities and such additional standards do not conflict with the uniform standards of professional appraisal practice, commonly referred to as "USPAP," promulgated by the appraisal standards board of the appraisal foundation.

History: L. 1992, ch. 249, § 1; L. 2014, ch. 141, § 9; L. 2021, ch. 58, § 7; July 1.

§ 79-506 Same; interim standards; time for adoption of final standards

(a) The uniform standards of professional appraisal practice as promulgated by the appraisal standards board of the appraisal foundation in effect on March 1, 1992, for all dates of valuation on or after January 1, 1993, are hereby adopted upon the effective date of this act as interim standards.

(b) Rules and regulations or appraiser directives promulgating appraisal standards adopted by the director of property valuation shall be proposed not later than six months and shall be adopted in final form and become effective not later than 12 months following the effective date of this act.

History: L. 1992, ch. 249, § 2; July 1.

§ 79-507 Commercial and industrial machinery and equipment; definition; classification and valuation

(a) In accordance with the provisions of section 1 of article 11 of the constitution of the state of Kansas, all commercial and industrial machinery used directly in the manufacture of cement, lime or similar products including: Kilns, pumps, lifts, process fans, bucket elevators, compressors, raw mills, hammer mills, grinders, conveyors, ball mills, mixers, storage tanks, scales, crushers, reclaimers, processing vessels, filters, electric motors, cement and clinker coolers, finish mills, separators, electric hoists, stackers, roller mills, clinker breakers, hydraulic and lubricating systems used directly in manufacturing and processing activities, analyzers, aeration systems, air pollution control equipment, bulk loading systems, material and gas flow distribution gates and handling and transport systems, except public utility property valued and assessed pursuant to K.S.A. 79-5a01 et seq., and amendments thereto, are hereby defined as commercial and industrial machinery and equipment, and shall be classified for property tax purposes as tangible personal property within subclass 5 of class 2 of section 1 of article 11 of the constitution of the state of Kansas. All such property shall be valued in accordance with the provisions of subsection (b)(2)(E) of K.S.A. 79-1439, and amendments thereto.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 2013.

History: L. 2014, ch. 140, § 11; July 1.

Article 5a Public Utilities

§ 79-5a01 Public utility or public utilities; defined

(a) As used in this act, the terms "public utility" or "public utilities" means every individual, company, corporation, association of persons, brokers, marketers, lessees or receivers that now or hereafter own, broker or market natural gas inventories stored for resale in an underground formation in this state, or now or hereafter are in control, manage or operate a business of:

(1) A railroad or railroad corporation if such railroad or railroad corporation owns or holds, by deed or other instrument, an interest in right-of-way, track, franchise, roadbed or trackage in this state;

(2) transmitting to, from, through or in this state telegraphic messages;

(3) transmitting to, from, through or in this state telephonic messages;

(4) transporting or distributing to, from, through or in this state natural gas, oil or other commodities in pipes or pipelines, or engaging primarily in the business of storing natural gas in an underground formation;

(5) generating, conducting or distributing to, from, through or in this state electric power;

(6) transmitting to, from, through or in this state water if for profit or subject to regulation of the state corporation commission; and

(7) transporting to, from, through or in this state cargo or passengers by means of any vessel or boat used in navigating any of the navigable watercourses within or bordering upon this state.

(b) The terms "public utility" or "public utilities" shall not include: (1) Rural water districts established under the laws of the state of Kansas; or (2) any individual, company, corporation, association of persons, lessee or receiver owning or operating an oil or natural gas production gathering line which is situated within one county in this state and does not cross any state boundary line; (3) any individual, company, corporation, association of persons, lessee or receiver owning any vessel or boat operated upon the surface of any manmade waterway located entirely within one county in the state; (4) for all taxable years commencing after December 31, 1998, any natural gas distribution system which is owned and operated by a nonprofit public utility described by K.S.A. 66-104c, and amendments thereto, and which is operated predominantly for the purpose of providing fuel for the irrigation of land devoted to agricultural use; or (5) any individual, company, corporation, association of persons, lessees or receivers to the extent any activity or facility of such entity generates, markets or sells electricity at wholesale only, has no retail customers and is generated by an electric generation facility or addition to an electric generation facility that is actually and regularly used predominantly to produce and generate electricity utilizing renewable energy resources or technologies as defined in K.S.A. 79-201, and amendments thereto.

(c) The provisions of subsection (a) as amended by this act shall be applicable to all taxable years commencing after December 31, 2008.

History: L. 1969, ch. 434, § 1; L. 1971, ch. 294, § 1; L. 1981, ch. 375, § 1; L. 1982, ch. 395, § 1; L. 1983, ch. 314, § 1; L. 1986, ch. 371, § 1; L. 1999, ch. 126, § 3; L. 2004, ch. 171, § 4; L. 2009, ch. 97, § 5; L. 2015, ch. 75, § 6; July 1.

§ 79-5a01a Repealed

History: L. 1969, ch. 434, § 1; L. 1971, ch. 294, § 1; L. 1981, ch. 374, § 1; Repealed, L. 1982, ch. 395, § 3; July 1.

§ 79-5a01b Repealed

History: L. 1969, ch. 434, § 1; L. 1971, ch. 294, § 1; L. 1981, ch. 375, § 1; L. 1982, ch. 395, § 1; L. 1983, ch. 314, § 1; L. 1986, ch. 371, § 1; L. 1999, ch. 154, § 4; Repealed, L. 2000, ch. 139, § 8; July 1.

§ 79-5a01c Purpose of 2009 amendments to K.S.A. 79-5a01 related to underground storage of natural gas

It is the purpose of the amendments enacted in this legislation to K.S.A. 79-5a01 to carry out the mandate of the electorate of the state of Kansas who in 1992 amended section 1 of article 11 of the constitution of the state of Kansas to effectuate the taxation of public utility inventories, in response to an appellate decision holding that natural gas owned by public utilities and stored for resale comes within the exemption from ad valorem taxation afforded to merchants' and manufacturers' inventories. The legislature recognizes that the state has a number of underground formations that are ideal for the storage of natural gas and that the storage of natural gas in these formations by and on behalf of the owners, brokers and marketers of natural gas assures them a plentiful supply of natural gas during periods of peak demand and thereby contributes to their economic viability. The legislature further recognizes that the state and its political subdivisions provide valuable governmental services that protects the natural gas and its free flow to and from these formations for which such owners, brokers and marketers of natural gas should contribute through the property tax imposed by the amendments enacted in this legislation to K.S.A. 79-5a01.

History: L. 2009, ch. 97, § 4; July 1.

§ 79-5a02 Same; report to director of property valuation of information necessary for appraisal and apportionment of value of property; enforcement by attorney general

Every public utility with property in this state shall through its owner, officer or agent having control of its affairs, before March 20 each year, make a return in writing to the director of property valuation on forms prescribed by the director showing all the information that the director shall require and deem necessary for the appraisal and apportionment of values of said property. If any public utility shall fail to provide the information as required, the director of property valuation shall advise the attorney general of such noncompliance and the attorney general shall proceed against such utility to enforce compliance herewith.

History: L. 1969, ch. 434, § 2; January 1, 1970.

§ 79-5a03 Same; contract by director for appraisal of property; annual determination of fair market value; records; investigations; unlawful acts

The director of property valuation shall contract with a qualified appraiser or appraisal company or companies to appraise the property of public utilities as defined in this act for the purpose of taxation for the year 1970. The contract for said appraisal shall include the training of property valuation utility appraisal personnel.

The director of property valuation shall annually determine the fair market value of the property of all public utilities and shall keep a complete record of how such valuations were determined. The director is authorized to make any investigations and findings to properly arrive at the fair market value of the property of each of the public utilities to be appraised. Any public utility or representative shall upon request of the director furnish any records or files of said utility material to such investigation. Any utility or representative who shall furnish false information shall be guilty of perjury.

History: L. 1969, ch. 434, § 3; January 1, 1970.

§ 79-5a04 Same; valuation of real and personal property

The director of property valuation shall annually determine the fair market value of public utility property, both real and personal, tangible and intangible, of every public utility as defined in subsection (a) of K.S.A. 79-5a01 and amendments thereto.

As used in this section, "fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. For the purposes of this definition, it shall be assumed that consummation of a sale occurs as of January 1.

The division of property valuation in determining the fair market value of public utility property shall, where practicable, determine the unit valuation, allocated to Kansas, and in doing so shall use generally accepted appraisal procedures developed through the appraisal process and may consider, including but not by way of exclusion, the following factors:

(a) Original cost.

(b) Original cost less depreciation or reproduction cost less depreciation, or both, or replacement cost new less depreciation, except that where either method is used proper allowance and deduction shall be made for functional or economic obsolescence and for operation of nonprofitable facilities which necessitate regulatory body approval to eliminate.

(c) The market or actual value of all outstanding capital stock and debt.

(d) The utility operating income, capitalized in the manner and at such rate or rates as shall be just and reasonable.

(e) Such other information or evidence as to value as may be obtained that will enable the property valuation department to determine the fair market value of the property of such public utility.

The fair market value of affiliated properties separately assessed, or the nonoperating properties of such companies, or both, shall be ascertained and determined as nearly as possible and deducted from the total unit value of the properties of such companies if such properties are included in the unit value. Except for the property of any entity enumerated in subsection (b) of K.S.A. 79-5a01 and amendments thereto, and insofar as it is practicable to do so, the same method of evaluating the properties of the companies separately assessed or nonoperating properties, or both, shall be used as was used in determining the unit value of such companies. All property of any entity enumerated in subsection (b) of K.S.A. 79-5a01 and amendments thereto, shall be valued by the county or district appraiser in the same manner as provided by law for the valuation of the same type or class of property in the county.

History: L. 1969, ch. 434, § 4; L. 1971, ch. 295, § 1; L. 1973, ch. 390, § 1; L. 1981, ch. 375, § 2; L. 1982, ch. 395, § 2; L. 1983, ch. 314, § 2; July 1.

§ 79-5a04a Repealed

History: L. 1969, ch. 434, § 4; L. 1971, ch. 295, § 1; L. 1973, ch. 390, § 1; L. 1981, ch. 374, § 2; Repealed, L. 1982, ch. 395, § 3; July 1.

§ 79-5a05 Same; statement of appraised valuation; objection by utility, notice and informal conference; correction of valuation

Before the assessed valuation of public utility property is finally determined, the director of property valuation shall cause to be sent to each public utility a statement of the appraised valuation of the utility's property. The determination contained in such statement shall not require an adjudicative proceeding under the Kansas administrative procedure act. The statement shall inform the public utility of the right to an informal conference as provided in this section. The failure to request an informal conference shall not preclude any appeal under K.S.A. 74-2438 and amendments thereto. If a public utility has any objection to the statement as issued, the public utility shall, within 15 days of the date of mailing of such statement, notify the director in writing of such objection. Within 30 days of the date of receipt by the director of such written objection, the director shall hold an informal conference with the public utility and shall issue a written finding, ruling, order, decision or other final action thereon, which finding, ruling, order, decision or other final action shall become effective for purposes of the appeal as provided by K.S.A. 74-2438 and amendments thereto, three days following the mailing of a copy thereof to the public utility. Informal conferences held pursuant to this section may be conducted by the director or the director's designee. The rules of evidence shall not apply to an informal conference and no record shall be made except at the request and expense of the director or the public utility.

At any time before certification of the assessed valuation to the counties, the director may correct any valuation that will make it more just and equal.

History: L. 1969, ch. 434, § 5; L. 1988, ch. 356, § 314; July 1, 1989.

§ 79-5a06 Repealed

History: L. 1969, ch. 434, § 6; Repealed, L. 1973, ch. 390, § 5; April 19.

§ 79-5a06a Repealed

History: L. 1973, ch. 390, § 2; Repealed, L. 1987, ch. 373, § 7; January 1, 1989.

§ 79-5a07 Repealed

History: L. 1969, ch. 434, § 7; L. 1972, ch. 356, § 1; Repealed, L. 1987, ch. 373, § 7; January 1, 1989.

§ 79-5a08 Public utility or public utilities; acquisition of property of utility by another; public utility sales validation questionnaire required

Any individual, partnership, corporation or public utility, which acquires by deed or other instrument all or any portion of another utility's property, shall forward a public utility sales validation questionnaire to the director of property valuation. The forms for the public utility sales validation questionnaire shall be prescribed and furnished by the director of property valuation. For the purposes of this section, the phrase "acquires by deed or other instrument" includes, without limitation, sales, mergers, acquisitions, take-overs, consolidations and liquidations of all or any portion of a public utility operating in this state and, whenever such sales, mergers, acquisitions, take-overs, consolidations and liquidations concern property located both within and without this state, the entire transaction shall be reported.

History: L. 1969, ch. 434, § 8; L. 1983, ch. 314, § 3; L. 1993, ch. 8, § 1; July 1.

§ 79-5a09 Same; failure to comply with act; penalties

Every public utility which shall fail or refuse to comply with any of the provisions of this act shall forfeit not less than one thousand dollars ($1,000) for each such offense, such penalty to be recovered in an action in the name of the state of Kansas and paid into the state treasury.

History: L. 1969, ch. 434, § 9; January 1, 1970.

§ 79-5a10 Application of K.S.A. 79-5a04

The provisions of this act shall apply to all taxable years commencing after December 31, 1970.

History: L. 1971, ch. 295, § 2; April 19.

§ 79-5a11 Administration and enforcement by secretary of revenue; rules and regulations

The secretary of revenue is hereby authorized and empowered to administer and enforce the provisions of this act and the act of which this act is amendatory and to adopt such rules and regulations in pursuance thereof as he or her deems necessary to administer and enforce the same.

History: L. 1973, ch. 390, § 3; April 19.

§ 79-5a12 Application of K.S.A. 79-5a01, 79-5a06a and 79-5a11

The provisions of this act shall apply to all taxable years commencing after December 31, 1972.

History: L. 1973, ch. 390, § 4; April 19.

§ 79-5a13 Application of K.S.A. 79-5a01

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1985.

History: L. 1986, ch. 371, § 2; April 24.

§ 79-5a14 Penalty for late filing of or failure to file statement listing property by public utility; abatement of penalty

(a) Any public utility required to make a return in writing to the director of property valuation on forms prescribed by the director showing all the information that the director requires and deems necessary for the appraisal and apportionment of values of such public utility's property that fails to make such return on or before the date prescribed by K.S.A. 79-5a02, and amendments thereto, shall be subject to a penalty as follows:

The director, after having ascertained the assessed value of the property of such public utility, shall add 5%, or $100,000 of the assessed value, whichever is less, thereto as a penalty for late filing if the failure is not for more than one month, with an additional 5%, or $100,000 of the assessed value, whichever is less, for each additional month or fraction thereof during which such failure continues, not exceeding 25%, or $500,000 of the assessed value, whichever is less, in the aggregate.

For good cause shown the director may grant one or more extensions in time, not to exceed 30 days in aggregate, in which to make and file such return. Such request for extension of time must be in writing and shall state just and adequate reasons on which the request may be granted. The request must be received by the director on or prior to the due date of the return. In the event the extension is granted, no penalty shall accrue until the due date of such return. In the event the extension is denied, the public utility shall be notified in writing of such denial and shall file the return within ten days following receipt of such notice of denial. Penalties for late filing of such return shall accrue at the end of such ten-day period.

(b) If, within one year following the date prescribed by K.S.A. 79-5a02, and amendments thereto, any public utility that fails to make a return in writing to the director of property valuation on forms prescribed by the director showing all the information that the director requires and deems necessary for the appraisal and apportionment of values of such public utility's property or fails to make and file a full and complete return for such purposes, the director shall proceed to ascertain the assessed value of the property of such public utility, and for this purpose the director may examine under oath any person or persons whom the director deems to have knowledge of such assessed value of such property. The director, after having ascertained the assessed value of such property, shall add 50%, or $1,000,000 of the assessed value, whichever is less, thereto as a penalty for failure to file such statement or for failure to file a full and complete statement.

(c) The director of property valuation shall have the authority to abate or reduce any penalty imposed under the provisions of this section for just cause shown. Any public utility may appeal any such decision to the court of tax appeals as provided by K.S.A. 74-2438, and amendments thereto. Notice of such appeal shall be filed with the secretary of the court within 30 days after the director of property valuation has notified the public utility in writing of the director's decision, or within 30 days after the mailing of the notification of the results of the informal conference prescribed by K.S.A. 79-5a05, and amendments thereto, when an informal conference has been requested. The court of tax appeals shall have the authority to abate or reduce any penalty imposed under the provisions of this section and order the refund of the abated penalty, whenever excusable neglect on the part of the public utility required to make and file the statement listing property for assessment and taxation purposes is shown, or whenever the property for which a statement of assessment was not filed as required by law is repossessed, judicially or otherwise, by a secured creditor and such secured creditor pays the taxes and interest due.

(d) The provisions of this section shall be effective on and after July 1, 2008.

History: L. 2008, ch. 182, § 1; June 5.

§ 79-5a15 Listing and appraisal of escaped public utility property; duties of director of property valuation; penalty; abatement or reduction

(a) If, the director of property valuation discovers, after the assessed valuation of any public utility's property has been certified to the county clerk, as provided by K.S.A. 79-5a27, and amendments thereto, that the assessed valuation of any real or personal, tangible or intangible property of a public utility subject to taxation was omitted from such certification, the director shall certify to the county clerk of each county the amount of assessed valuation apportioned to each taxing unit therein that was omitted from such certification, including any assessed valuation attributable to any penalties assessed pursuant to K.S.A. 79-5a14, and amendments thereto, and the county clerk shall place such property on the tax roll as an added tax, or if, after one year from the date prescribed by K.S.A. 79-5a02, and amendments thereto, the director discovers that any real or personal, tangible or intangible, property of a public utility which was subject to taxation in any year or years within two years next preceding January 1 of the calendar year in which it was discovered has not been listed or that any listing of such property is incomplete, such property shall be deemed to have escaped taxation. In the case of property which has not been listed, it shall be the duty of the director to list and appraise such property and, for an added tax, add penalties as prescribed in K.S.A. 79-5a14, and amendments thereto, and which shall be designated on the appraisal roll as an added appraisal for that year. In the case of property which has escaped taxation, it shall be the duty of the director to list and appraise such property and add 50%, or $1,000,000 of the assessed value, whichever is less, thereto as a penalty for escaping taxation for each such year during which such property was not listed, and it shall be designated on the appraisal roll as escaped appraisal for each such preceding year or years. In the case of property which has been listed but which such listing was incomplete, it shall be the duty of the director to list and appraise the property that was not listed and add 50%, or $1,000,000 of the assessed value, whichever is less, thereto as a penalty for escaping taxation for each such year during which such listing was incomplete, and it shall be designated on the appraisal roll as escaped appraisal for each such preceding year or years. The county clerk, upon receipt of the valuation for such property in either of the aforementioned cases, shall place such property on the tax rolls and compute the amount of tax due based upon the mill levy for the year or years in which such tax should have been levied, and shall certify such amount to the county treasurer as an added or escaped appraisal. The amount of such tax shall be due immediately and payable within 45 days after the issuance of an additional or escaped property tax bill by the county treasurer. Taxes levied pursuant to this section which remain unpaid after such 45-day period shall be deemed delinquent and the county treasurer shall collect and distribute such tax in the same manner as prescribed by law for the collection and distribution of other taxes levied upon property which are delinquent.

(b) The director of property valuation shall have the authority to abate or reduce any penalty imposed under the provisions of this section for just cause shown. Any public utility may appeal any such decision to the court of tax appeals as provided by K.S.A. 74-2438, and amendments thereto. Notice of such appeal shall be filed with the secretary of the court within 30 days after the director of property valuation has notified the public utility in writing of the director's decision, or within 30 days after the mailing of the notification of the results of the informal conference prescribed by K.S.A. 79-5a05, and amendments thereto, when an informal conference has been requested. The court of tax appeals shall have the authority to abate or reduce any penalty imposed under the provisions of this section and order the refund of the abated penalty, whenever excusable neglect on the part of the public utility required to make and file the statement listing property for assessment and taxation purposes is shown, or whenever the property for which a statement of assessment was not filed as required by law is repossessed, judicially or otherwise, by a secured creditor and such secured creditor pays the taxes and interest due.

(c) The provisions of this section shall be effective on and after July 1, 2008.

History: L. 2008, ch. 182, § 2; June 5.

§§ 79-5a16 through 79-5a24 Reserved

§ 79-5a25 Apportionment of assessed valuation of certain utilities to taxing districts

After the completion of the valuation of properties valued under K.S.A. 79-5a01 et seq., and amendments thereto, excepting railroad properties, the director of property valuation shall apportion the assessed valuation to the taxing units where property is located in the following manner:

First.

There shall be assigned an assessed value, in proportion to original cost thereof, to land, other than rights-of-way, improvements, and equipment affixed thereto; vehicles; power operated equipment; materials and supplies; and

Second.

All remaining assessed valuation shall be assigned in proportion to the length of lines according to the average original cost of the conjunctive properties and their appurtenances.

History: L. 1987, ch. 373, § 2; July 1.

§ 79-5a26 Apportionment of assessed valuation of railroads to taxing districts

After the completion of the valuation of railroad properties the director of property valuation shall apportion the assessed valuation to taxing units in the following manner:

First.

There shall be assigned an average assessed valuation per mile to first main track which shall include: Track, trackage rights, right-of-way, franchise, roadbed, rolling stock, telegraph lines and instruments connected therewith, materials, tools, supplies and all other property used in the operation of the road other than structures and improvements on the rights-of-way and real estate off the rights-of-way located therein.

Second.

There shall be assigned an average assessed valuation per mile in each taxing unit to all other track located therein.

Third.

There shall be assigned an assessed valuation to structures and improvements on the rights-of-way and to real estate off the rights-of-way located therein.

History: L. 1987, ch. 373, § 3; July 1.

§ 79-5a27 Certification of assessed valuations apportioned to taxing districts to county clerks; application for exemption, procedure

On or before June 1 each year, the director of property valuation shall certify to the county clerk of each county the amount of assessed valuation apportioned to each taxing unit therein for properties valued and assessed under K.S.A. 79-5a01 et seq., and amendments thereto. The county clerk shall include such assessed valuations in the applicable taxing districts with all other assessed valuations in those taxing districts and on or before June 15 notify the appropriate officials of each taxing district within the county of the assessed valuation estimates to be utilized in the preparation of budgets for ad valorem tax purposes, except that for tax year 2024, the deadline shall be extended to July 1, 2024. If in any year the county clerk has not received the applicable valuations from the director of property valuation, the county clerk shall use the applicable assessed valuations of the preceding year as an estimate for such notification. If the public utility has filed an application for exemption of all or a portion of its property, the director shall notify the county clerk that the exemption application has been filed and the county clerk shall not be required to include such assessed valuation in the applicable taxing districts until such time as the application is denied by the state board of tax appeals or, if judicial review of the board's order is sought, until such time as judicial review is finalized.

History: L. 1987, ch. 373, § 4; L. 2005, ch. 199, § 2; L. 2008, ch. 182, § 4; L. 2009, ch. 143, § 33; L. 2014, ch. 141, § 87; L. 2016, ch. 66, § 1; L. 2024, ch. 1, § 11 (Special Session); June 27.

§ 79-5a27a Repealed

History: L. 1987, ch. 373, § 4; L. 2005, ch. 199, § 2; L. 2008, ch. 109, § 78; Repealed, L. 2009, ch. 143, § 37; July 1.

§ 79-5a28 Application of K.S.A. 79-5a25 through 79-5a27

The provisions of K.S.A. 79-5a25 to 79-5a27, inclusive, shall be applicable to all tax years commencing after December 31, 1988.

History: L. 1987, ch. 373, § 5; July 1.

Article 5b Complex Industrial Property Classification and Appraisal

§ 79-5b01 Complex industrial property classification and appraisal; contract by director of property valuation; qualified appraisers; costs

(a) Except as provided in article 5a of chapter 79 of the Kansas statutes annotated, and amendments thereto, on or before October 15 of the year preceding the tax year for which the property is to be classified and appraised, the county appraiser or the taxpayer may request that the director of property valuation contract with an independent appraiser to classify and appraise natural gas and helium processing facilities, ethanol facilities, crude oil refineries, fertilizer manufacturing facilities, cement manufacturing facilities, and such other complex industrial properties as otherwise requested by the county appraiser or the taxpayer. Before making such request, the county appraiser and the taxpayer shall be required to meet to discuss the property at issue, including the suitability of the property to be classified and appraised by an independent appraiser, as provided in this section. After such meeting and upon request by the county or the taxpayer, the director shall contract with an independent appraiser from the list of appraisers as provided in subsection (b) to conduct such determination of the property. Prior to entering into any contract with an independent appraiser to classify and appraise the property at issue, the director shall meet with the county appraiser to discuss the costs of an independent appraisal. The county shall be responsible for all reasonable and prior approved costs of the independent classification and appraisal.

(b) The director shall maintain a list of qualified appraisers who are certified real property appraisers and who have at least three years of experience in the classification and appraisal of the types of property described in this section.

(c) The final determination made by the independent appraiser pursuant to this section shall be admissible before the courts of this state and the Kansas court of tax appeals in any subsequent classification and valuation proceedings.

History: L. 2014, ch. 140, § 4; July 1.

§ 79-5b02 Same; documentation; physical inspection of the property

The director of property valuation may require the county appraiser and the taxpayer to submit such documentation to the independent appraiser described in K.S.A. 79-5b01, and amendments thereto, as necessary in order to classify and appraise the property. The taxpayer shall permit one or more physical inspections of the property, scheduled at mutually agreeable times so as not to delay the timely completion of the classification and appraisal of the property.

History: L. 2014, ch. 140, § 5; July 1.

§ 79-5b03 Same; notification; objections; informal meeting

(a) The director of property valuation shall notify the taxpayer and the county appraiser on or before March 1 for real property and May 1 for personal property, of the classification and appraised valuation of the property described in K.S.A. 79-5b01, and amendments thereto. Such notification shall be mailed to the county appraiser and to the taxpayer at the taxpayer's last known address.

(b) Within 15 days of receipt of the notification required by subsection (a) of this section, if the taxpayer or the county appraiser has any objection to the notification as issued, the taxpayer or the county appraiser shall notify the director of property valuation in writing of such objection. Within 30 days of the receipt by the director of such objection, the director shall hold an informal meeting with the taxpayer and the county and shall issue a final determination, which shall become effective for purposes of appeal as provided in K.S.A. 79-1609, and amendments thereto. Informal meetings held pursuant to this section may be conducted by the director or the director's designee. An informal meeting with the director or the director's designee shall be a condition precedent to an appeal to the court of tax appeals.

History: L. 2014, ch. 140, § 6; July 1.

§ 79-5b04 Same; rules and regulations

Prior to January 1, 2015, the secretary of revenue shall adopt rules and regulations necessary to administer the provisions of K.S.A. 79-5b01 through 79-5b03, and amendments thereto.

History: L. 2014, ch. 140, § 7; July 1.

§ 79-5b05 Severability

If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

History: L. 2014, ch. 140, § 13; July 1.

Article 6 Railroads and Railroad Corporations (Not in active use)

§ 79-601 Repealed

History: R.S. 1923, 79-601; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-602 Repealed

History: L. 1876, ch. 34, § 29; L. 1909, ch. 243, § 2; R.S. 1923, 79-602; L. 1959, ch. 365, § 11; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-603 Repealed

History: L. 1876, ch. 34, § 31; L. 1909, ch. 243, § 4; R.S. 1923, 79-603; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-604 Repealed

History: L. 1876, ch. 34, § 32; R.S. 1923, 79-604; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-605 Repealed

History: L. 1907, ch. 408, § 34; L. 1909, ch. 243, § 5; R.S. 1923, 79-605; Repealed, L. 1987, ch. 373, § 7; January 1, 1989.

§ 79-606 Repealed

History: L. 1907, ch. 408, § 35; R.S. 1923, 79-606; Repealed, L. 1987, ch. 373, § 7; January 1, 1989.

§ 79-607 Repealed

History: L. 1907, ch. 408, § 36; R.S. 1923, 79-607; Repealed, L. 1987, ch. 373, § 7; January 1, 1989.

§ 79-608 Repealed

History: L. 1907, ch. 408, § 37; L. 1909, ch. 243, § 6; R.S. 1923, 79-608; L. 1959, ch. 365, § 12; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-609 Repealed

History: L. 1907, ch. 408, § 38; L. 1909, ch. 243, § 7; R.S. 1923, 79-609; L. 1933, ch. 306, § 1; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

Article 6a Motor Carriers

§ 79-6a01 Over-the-road motor vehicles and rolling equipment of motor carriers; valuation and assessment locally assessed property; definitions

Prior to January 1, 2014, the director of property valuation shall value and assess annually the over-the-road motor vehicles and rolling equipment of motor carriers described in this act. The local deputy assessor shall value and assess within the taxing district where located all other property, real and personal, belonging to such motor carriers.

As used in this act, "over-the-road motor vehicles and rolling equipment" shall include all motor-driven vehicles, trailers, semitrailers, buses and trucks owned, used or operated in the state of Kansas by such motor carriers in the transportation of persons or property other than motor vehicles and rolling equipment used solely or mainly for local transportation in a particular community or local area, or for local pickup and delivery, or passenger automobiles used for purposes other than transportation of persons or property for hire. "Motor carriers" as used in this act shall include every person, firm or corporation who or which holds a certificate of convenience and necessity, a certificate of public service, or an interstate license as a common or exempt carrier from the corporation commission of the state of Kansas or is required to register motor carrier equipment pursuant to 49 U.S.C. § 14504a.

History: L. 1929, ch. 288, § 1; L. 1955, ch. 399, § 1; L. 1959, ch. 369, § 1; L. 1993, ch. 263, § 10; L. 1995, ch. 98, § 21; L. 2003, ch. 124, § 33; L. 2012, ch. 87, § 5; July 1.

§ 79-6a02 Same; statement or schedule; contents; failure to file, penalty; extension, waiver or reduction of penalty; recomputation, when

On or before May 15, 2012 and 2013, every person, firm or corporation which was a motor carrier on January 1 of such year and who or which owned, used or operated any over-the-road motor vehicles or rolling equipment in the state of Kansas during the preceding year shall (if a firm or corporation by its president, secretary or principal acting officer or agent) return to the director of property valuation, upon forms furnished by the director, a sworn statement or schedule as follows:

1. A list of all certificates, licenses and permits which have been issued to the operator as a motor carrier by the Kansas state corporation commission.

2. The total number of miles for which all over-the-road motor vehicles used in the state of Kansas were operated in Kansas and everywhere during the calendar year prior to making such report.

3. The complete list of over-the-road vehicles and rolling equipment owned, used or operated in the state of Kansas by such motor carrier during the preceding calendar year and giving the name and number, model and value of the same, except that interchange equipment and trip-leased equipment shall be listed only by the owner.

4. In case any motor carrier holding a certificate of convenience and necessity, an interstate license as a common or exempt carrier from the corporation commission of the state of Kansas between January 1 and March 1 of 2012 and 2013 did not own, use or operate any over-the-road motor vehicle or rolling equipment in the state of Kansas during the preceding calendar year such motor carrier shall on or before March 20 of such year file with the director of property valuation a complete list and number of over-the-road motor vehicles and rolling equipment owned, used or operated by such motor carrier in the state of Kansas between January 1 and March 1 of 2012 and 2013, in which such list is filed together with a verified statement estimating the number of miles such motor carrier expects such equipment to be operated in the state of Kansas and everywhere during such year.

5. In case any motor carrier required to file a statement under the provisions of this act fails to make and file such statement on or before May 15, the director of property valuation shall, after the director has ascertained the value of the property, of such motor carrier from any other sources available to the director, add 50% additional value as a penalty for failure to file a report, but such assessment shall not relieve the motor carrier from the duty to file such report or statement, except that for good cause shown the director of property valuation may extend the time in which to make and file such statement, except that whenever, in the judgment of the director of property valuation the failure of any motor carrier to comply with this provision is due to a good and reasonable cause, the director of property valuation may at the director's discretion waive or reduce any of the penalty herein provided upon making a record of the director's reason therefor. In the event a motor carrier shall file a statement for any year within one year after such statement was due, the director of property valuation shall recompute the assessment, tax and penalty on the basis of such statement.

History: L. 1929, ch. 288, § 2; L. 1931, ch. 303, § 1; L. 1935, ch. 300, § 1; L. 1949, ch. 466, § 1; L. 1955, ch. 399, § 2; L. 1959, ch. 369, § 2; L. 2003, ch. 124, § 34; L. 2012, ch. 87, § 6; July 1.

§ 79-6a03 Same; assessed valuation; computation

Prior to January 1, 2014, the director of property valuation shall value and assess all over-the-road motor vehicles owned, used and operated in the state of Kansas during the preceding calendar year by every motor carrier for the purpose of taxation by the state of Kansas in an amount to be determined in the following manner and according to the following method:

(1) The true value of all over-the-road motor vehicles and rolling equipment operated in the state of Kansas shall be determined;

(2) the ratio which the total number of miles of the equipment listed operated in the state of Kansas bears to the total number of miles operated everywhere by such equipment shall be determined;

(3) the assessed value of all over-the-road motor vehicles and rolling equipment owned, used or operated in the state of Kansas by such motor carrier shall be determined by multiplying the true value by the mileage ratio;

(4) the amount so determined shall be the value and assessment of all over-the-road motor vehicles and rolling equipment owned, used or operated in the state of Kansas by such motor carrier in the state of Kansas, except that if any motor carrier who or which holds a certificate of convenience and necessity, or an interstate license as a common or exempt carrier from the corporation commission of the state of Kansas between January 1 and March 1 of 2012 and 2013, did not own, use or operate any over-the-road motor vehicles or rolling equipment in Kansas during the preceding calendar year, the director of property valuation shall determine the mileage ratio of miles operated in the state of Kansas to miles operated everywhere by use of the estimate of mileage furnished by such motor carrier, and apply the same to the assessed valuation of the equipment listed by such motor carrier to determine the assessed value of such equipment and the tax due thereon; and in any such case, when the carrier files such carrier's return the following year, showing the actual mileage of such vehicles in the state of Kansas and everywhere during such year, the director of property valuation shall recompute the tax and refund any excess tax paid by such carrier, or if an additional amount of tax is determined to be due from the taxpayer, such additional amount shall become due upon mailing of notice of such additional tax to the motor carrier by the director of property valuation, which additional tax may be collected as provided in K.S.A. 79-6a07 and 79-6a11, and amendments thereto.

History: L. 1929, ch. 288, § 3; L. 1931, ch. 303, § 2; L. 1935, ch. 300, § 2; L. 1955, ch. 399, § 3; L. 1959, ch. 369, § 3; L. 2003, ch. 124, § 35; L. 2012, ch. 87, § 7; July 1.

§ 79-6a04 Same; annual tax levy; rate; tax situs; statement, contents; informal conference; time for payment of tax; interest on delinquencies; disposition of proceeds

Prior to January 1, 2014, the director of property valuation each year, shall make a levy for purposes of taxation, against the value assessed and determined to exist in accordance with the manner and method set forth in article 6a of chapter 79 of Kansas Statutes Annotated, and amendments thereto, at a rate which shall equal the average rate of levy for all purposes in the several taxing districts of the state for the preceding year.

For the purposes of such valuation, assessment and taxation, the taxable situs of the over-the-road vehicles and other rolling equipment determined to be taxable under this act is hereby declared to be within this state whether owned, used or operated by a motor carrier who is a resident or nonresident of Kansas and irrespective of whether such motor carrier be domiciled in Kansas or otherwise.

The director of property valuation shall cause to be sent to each motor carrier on or before the first day of August a statement of the amount of the valuation or assessment, the rate of levy and the amount of the tax. The determination contained in such statement shall not require an adjudicative proceeding under the Kansas administrative procedure act. The statement shall inform the motor carrier of the right to an informal conference as provided in this section. The failure to request an informal conference shall not preclude any appeal under K.S.A. 74-2438, and amendments thereto. If a motor carrier has any objection to the statement as issued, the motor carrier must, within 15 days of the date of mailing of such notice, notify the director of property valuation in writing of such objection, setting forth the basis therefor and all facts relating thereto. Within 30 days of the date of receipt by the director of property valuation of such written objection, the director shall hold an informal conference with the motor carrier and shall issue a written finding, ruling, order, decision or other final action thereon, which finding, ruling, order, decision or other final action shall become effective for purposes of the appeal as provided by K.S.A. 74-2438, and amendments thereto, three days following the mailing of a copy thereof to the motor carrier. Informal conferences held pursuant to this section may be conducted by the director or the director's designee. The rules of evidence shall not apply to an informal conference and no record shall be made except at the request and expense of the director or the motor carrier.

The tax as finally determined shall be paid by the motor carrier to the director of property valuation. The motor carrier may, at its option, pay the full amount thereof on or before December 20 of each year, or ½ thereof on or before December 20 and the remaining ½ thereof on or before May 10 next ensuing, but in the event a motor carrier so charged with tax hereunder fails to pay the first ½ thereof, the full amount shall become immediately due and payable. If such motor carrier's taxes are less than $50, the amount thereof shall be paid on or before December 20 or be subject to the penalties herein provided. In case the first ½ of such taxes remains unpaid after December 20, the entire and full amount of taxes charged shall draw interest at the rate prescribed by K.S.A. 79-2004a, and amendments thereto, from December 20 to date of payment. All taxes levied hereunder of the preceding year and accrued interest thereon which shall remain due and unpaid on May 11 shall draw interest at the rate prescribed by K.S.A. 79-2004a, and amendments thereto, from May 10 until paid. All moneys collected under the provisions of this act, except as provided in K.S.A. 79-6a09, and amendments thereto, shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

History: L. 1929, ch. 288, § 4; L. 1931, ch. 303, § 3; L. 1935, ch. 300, § 3; L. 1947, ch. 443, § 1; L. 1955, ch. 399, § 4; L. 1959, ch. 369, § 4; L. 1974, ch. 295, § 13; L. 1976, ch. 311, § 14; L. 1979, ch. 312, § 3; L. 1980, ch. 308, § 4; L. 1988, ch. 356, § 315; L. 1992, ch. 319, § 3; L. 2001, ch. 5, § 441; L. 2003, ch. 146, § 3; L. 2012, ch. 87, § 8; July 1.

§ 79-6a05 Repealed

History: L. 1929, ch. 288, § 5; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-6a06 Repealed

History: L. 1955, ch. 399, § 5; Repealed, L. 1959, ch. 369, § 11; December 31.

§ 79-6a07 Same; civil actions, when

In lieu of, and in addition to, the method of collecting motor carrier taxes and interest as provided in K.S.A. 79-6a11, the director of property valuation may and is hereby empowered to bring a civil action against any motor carrier to recover judgment for the amount of such delinquent taxes and interest in any court of competent jurisdiction within or without the state of Kansas. Nothing in this act shall limit or restrict the jurisdiction of the state corporation commission under the provisions of K.S.A. 66-1,112c.

History: L. 1955, ch. 399, § 6; L. 1959, ch. 369, § 7; December 31.

§ 79-6a08 Same; records of carriers; inspections by director of property valuation

Every motor carrier to which this act applies shall keep and preserve records and books of all over-the-road motor vehicles owned, used or operated in the state of Kansas, together with a record of all miles traveled by such over-the-road motor vehicles in Kansas and everywhere, and other pertinent records and papers as may be required by the director of property valuation for the reasonable administration of this act. Such books and records and other papers and documents shall, at all reasonable times, be available for and subject to inspection by the director of property valuation, or his or her duly authorized agents and employees. The director of property valuation, or his or her duly authorized agents and employees are hereby authorized to inspect all motor vehicles owned, used or operated in the state of Kansas by any motor carrier to which this act applies, to verify the accuracy of any report, statement, or payment made under the provisions of this act, or to ascertain whether or not all reports and tax payments required by this act have been made.

History: L. 1955, ch. 399, § 7; L. 1959, ch. 369, § 8; December 31.

§ 79-6a09 Same; revolving fund for payment of refunds

A revolving fund designated as the motor carrier tax refund fund not to exceed five thousand dollars ($5,000) shall be set apart and maintained by the director of property valuation from the motor carrier tax collected under the provisions of the act, and held by the state treasurer for the payment of all refunds authorized by the director of property valuation to be made.

History: L. 1955, ch. 399, § 8; L. 1959, ch. 369, § 9; December 31.

§ 79-6a10 Same; payment of taxes under protest; requirements; disposition of tax moneys paid under protest; commencement of action; limitations

Any motor carrier shall be entitled to pay taxes levied pursuant to this act under protest and in protesting the payment of such taxes, shall be required, at the time of paying such taxes, to make and file a written statement with the director of property valuation clearly stating the grounds on which the whole or any part of the taxes is protested, and shall further cite any law, statute or facts on which such motor carrier relies in protesting the whole or any part of such taxes and:

(A) If the grounds of such protest shall be that any tax levy or any part thereof is illegal shall further state the exact portion of the taxes which is being protested: or

(B) If the grounds of such protest shall be that the valuation or assessment of the property upon which the taxes so protested are levied is illegal or void, shall further state the amount of valuation or assessment which the motor carrier admits to be valid and the exact portion of the taxes which is being protested.

The director of property valuation shall remit all moneys received under this section to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall credit that portion which is protested into a separate impounded fund and that part which is not protested shall be credited to the state general fund. Every motor carrier protesting the payment of the tax herein provided for, within 30 days after filing the protest, shall commence an action for the recovery thereof in the district court of the county of residence of the motor carrier, or, if a nonresident, in the district court of Shawnee county, Kansas, naming the director of property valuation and the state treasurer as defendants. If any motor carrier protesting the taxes shall fail to commence an action in some court of competent jurisdiction for the recovery of the taxes protested within the time herein prescribed, such protest shall become null and void and of no effect whatsoever and upon any such failure the director of accounts and reports shall transfer such protested tax money from the impounded fund to the state general fund.

No action shall be brought or maintainable in any court for the recovery of the taxes paid under protest unless the same is commenced within 30 days after the filing of such protest with the director of property valuation.

History: L. 1959, ch. 369, § 5; L. 1974, ch. 295, § 14; L. 1976, ch. 311, § 15; L. 2001, ch. 5, § 442; July 1.

§ 79-6a11 Same; collection of unpaid taxes; tax lien

All motor carrier taxes levied by the director of property valuation, including the penalties and interest provided in K.S.A. 79-6a04 and amendments thereto, which remain due and unpaid on the first day of the month following the date the taxes became due may be collected in the following manner:

The director of property valuation shall, between the 1st and 10th day of the month following the date the taxes became due, send a notice by mail to the motor carrier to whom such taxes were assessed at its post office address as shown by the records in the office of the director of property valuation, stating the amount of the motor carrier tax charged against the motor carrier and notifying such motor carrier that it must pay the said tax together with interest at the rate prescribed by K.S.A. 79-2004a, and amendments thereto, from the date the tax became due. Failure to receive such notice shall not relieve the motor carrier from payment of said tax and interest. If the tax and interest remain unpaid for a period of 30 days after the mailing of such notice, the director of property valuation shall forthwith issue a tax warrant, returnable in not to exceed 60 days, directed to the sheriff of any county in which the motor carrier has or may have any property, real or personal, tangible or intangible, commanding the sheriff to levy the amount of such unpaid tax and interest together with such sheriff's fees for collecting it, upon any personal property, tangible or intangible, of the motor carrier to whom such taxes were assessed.

Such warrant shall be delivered to the sheriff to whom it is directed. Upon receipt of such tax warrant, the sheriff shall proceed to collect the taxes as upon the sheriff's execution. As soon as the sheriff collects the tax warrant, the sheriff shall make a return thereof to the director of property valuation. If the warrant so returned shows that such tax and interest has been collected in whole or in part, the sheriff shall pay the amount so collected to the director of property valuation. If such return shows that all or any part of the tax and interest has not been collected, the director of property valuation shall file with the clerk of the district court of the county from which the warrant was returned a true copy of the warrant and the sheriff's return on it, showing the amount of the tax and interest and fees of the sheriff due and unpaid. The clerk shall enter the total amount due and unpaid on such clerk's appearance docket as a judgment in favor of the state of Kansas and against the motor carrier, and the total amount shall become a judgment in the same manner and to the same extent as any other judgment and shall become a lien on real estate from and after the filing thereof under the code of civil procedure.

History: L. 1959, ch. 369, § 6; L. 1980, ch. 308, § 9; L. 1984, ch. 147, § 17; L. 1992, ch. 319, § 4; July 1.

§ 79-6a12 Same; rules and regulations

The secretary of revenue shall adopt rules and regulations for the administration of this act.

History: L. 1959, ch. 369, § 10; L. 1972, ch. 342, § 86; July 1.

§ 79-6a13 Uncollectable motor carrier taxes; abatement and removal from accounts of division

Motor carrier ad valorem tax liabilities levied by the director of property valuation, including any penalty and interest thereon, which are determined to be uncollectable accounts under the provisions of K.S.A. 79-6a15, may be abated and removed from the accounts receivable file of the division of property valuation in the manner hereinafter provided.

History: L. 1974, ch. 422, § 1; July 1.

§ 79-6a14 Determination by director to abate account; petition to state board of tax appeals, contents; determination by board; order of abatement

(a) Whenever the director of property valuation shall determine that it is advisable to abate motor carrier ad valorem tax liabilities determined to be uncollectable accounts, the director shall file a petition with the state board of tax appeals setting forth:

(1) The name of the debtor;

(2) the year in which the tax is due;

(3) the amount of the obligation;

(4) a review or statement of actions taken to collect such taxes; and

(5) one or more of the grounds for abatement as prescribed by this section.

(b) The state board of tax appeals, within 60 days after the petition is filed by the director of property valuation, may approve or disapprove of the abatement of any motor carrier ad valorem tax liability submitted by the director. The director shall prepare an order abating any tax liability, as approved by the state board of tax appeals, upon receiving notice of such approval. The director shall prepare an order abating any tax liability submitted to and not specifically disapproved by the state board of tax appeals within 60 days of the filing of the petition to abate such tax liability. A list of all tax liabilities abated under this section shall be preserved as a public record.

History: L. 1974, ch. 422, § 2; L. 2008, ch. 109, § 79; L. 2014, ch. 141, § 88; L. 2025, ch. 29, § 8; July 1.

§ 79-6a15 Same; authorized reasons or basis for abatement

Any motor carrier ad valorem tax liability, including any penalty and interest thereon, levied by the director of property valuation which tax liability is determined by the director to be an uncollectable account after all reasonable efforts have been made to effect collection, may be abated in the manner aforesaid for any one or more of the following reasons:

(a) Death of the person owing the tax and leaving no estate or by the dissolution of a corporation having no net assets;

(b) Collection is barred by a statute of limitations;

(c) Lack of jurisdiction;

(d) Insolvency of the taxpayer;

(e) The taxpayer cannot be located;

(f) It is determined that the person is not liable for such tax; or

(g) The administration and collection costs involved would not warrant collection of the amount due, and it will be to the advantage of the state to grant abatement.

History: L. 1974, ch. 422, § 3; July 1.

§ 79-6a16 Same; notice and record of abatement; abatement of court costs

Within 60 days after the director of property valuation has issued an order abating any motor carrier ad valorem tax liability levied by the director, notice of the abatement shall be made by the director to the clerk of the district court of the various counties where a warrant for the tax liability has been filed. The clerk of the district court so notified shall mark the entry in the appearance docket as abated by order of the director of property valuation and the clerk in turn shall abate all court costs including sheriff's fees, if any.

History: L. 1974, ch. 422, § 4; L. 1984, ch. 147, § 18; July 1.

Article 7 Telegraph, Telephone, Pipeline and Electric Power Companies (Not in active use)

§ 79-701 Repealed

History: L. 1919, ch. 304, § 1; R.S. 1923, 79-701; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-702 Repealed

History: L. 1919, ch. 304, § 2; R.S. 1923, 79-702; L. 1959, ch. 365, § 13; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-703 Repealed

History: L. 1919, ch. 304, § 3; R.S. 1923, 79-703; Repealed, L. 1958, ch. 62, § 4 (Budget Session); February 19.

§ 79-704 Repealed

History: L. 1919, ch. 304, § 4; R.S. 1923, 79-704; L. 1958, ch. 61, § 2 (Budget Session); Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-705 Repealed

History: L. 1919, ch. 304, § 5; R.S. 1923, 79-705; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-706 Repealed

History: L. 1919, ch. 304, § 6; R.S. 1923, 79-706; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-707 Repealed

History: L. 1919, ch. 304, § 7; R.S. 1923, 79-707; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-708 Repealed

History: L. 1919, ch. 304, § 8; R.S. 1923, 79-708; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-709 Repealed

History: L. 1919, ch. 304, § 9; R.S. 1923, 79-709; L. 1959, ch. 365, § 14; Repealed, L. 1973, ch. 390, § 5; April 19.

§ 79-710 Repealed

History: L. 1919, ch. 304, § 10; R.S. 1923, 79-710; L. 1953, ch. 422, § 1; L. 1959, ch. 365, § 15; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-711 Repealed

History: L. 1919, ch. 304, § 11; R.S. 1923, 79-711; L. 1958, ch. 61, § 3 (Budget Session); Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

§ 79-712 Repealed

History: L. 1919, ch. 304, § 12; R.S. 1923, 79-712; Repealed, L. 1969, ch. 434, § 10; January 1, 1970.

Article 8 Express Companies (Not in active use)

§§ 79-801 through 79-805 Repealed

History: L. 1909, ch. 246, §§ 1 to 5; R.S. 1923, 79-801 to 79-805; L. 1972, ch. 357, §§ 1 to 5; Repealed, L. 1986, ch. 372, § 1; July 1.

§ 79-806 Repealed

History: L. 1909, ch. 246, § 6; R.S. 1923, 79-806; L. 1953, ch. 423, § 1; L. 1972, ch. 357, § 6; Repealed, L. 1986, ch. 372, § 1; July 1.

§§ 79-807, 79-808 Repealed

History: L. 1972, ch. 357, §§ 7, 8; Repealed, L. 1986, ch. 372, § 1; July 1.

Article 9 Car Companies and Owners

§ 79-901 Repealed

History: L. 1911, ch. 318, § 1; L. 1913, ch. 320, § 1; R.S. 1923, 79-901; Repealed, L. 1937, ch. 356, § 12; March 30.

§ 79-902 Repealed

History: L. 1913, ch. 320, § 2; R.S. 1923, 79-902; Repealed, L. 1937, ch. 356, § 12; March 30.

§§ 79-903 through 79-905 Repealed

History: L. 1911, ch. 318, §§ 2 to 4; R.S. 1923, 79-903 to 79-905; Repealed, L. 1937, ch. 356, § 12; March 30.

§ 79-906 Definitions

As used in this act: (1) The words "organization" or "organizations" shall mean: Every foreign or domestic car or car line company, every foreign or domestic joint-stock company, every foreign or domestic mercantile company, every foreign or domestic corporation of any other class, every foreign organization classed as a New England, Massachusetts, or business trust, every association for profit, every partnership, and every individual who shall own any passenger, sleeping, parlor, refrigerator, oil or gas tank, observation, dining or freight cars, other than a railroad company operating its own or leased lines.

(2) The word "director" means the director of taxation.

History: L. 1937, ch. 356, § 1; L. 1943, ch. 289, § 1; L. 1972, ch. 358, § 1; July 1.

§ 79-907 Rate of tax; situs; definition of gross earnings within state

Every organization as hereinbefore defined, shall pay annually for each calendar year a sum in the nature of a tax at two and one-half percentum upon the total gross earnings received from all sources by reason of the use or operation of such cars by such organization within this state, which shall be in lieu of all other taxes upon such property of any organization so paying the same: Provided, For the purpose of taxation all cars used exclusively within the state or used partially within and partially without the state, are hereby declared to have situs within the state, the value of such property for the purpose of such taxation to be determined as provided for in this act. The term "gross earnings received from all sources by such organization from the use or operation of such cars within this state," is hereby declared and shall be construed to mean, all earnings on business beginning and ending within this state and a proportion based upon the proportion of mileage within the state, to the entire mileage over which such business is done of all earnings on interstate business passing through, into, or out of the state.

History: L. 1937, ch. 356, § 2; March 30.

§ 79-908 Railroad companies to withhold tax, file statements annually and remit to state; receipts; investigations; ad valorem tax basis

Every railroad company using or leasing the cars of any organization, upon making payment to such organization for the use or lease of such cars, shall withhold from such payment two and one-half percent of as much thereof as shall constitute gross earnings of such organization within this state as defined in K.S.A. 79-907.

On or before March 1 of each year such railroad company shall make and file with the director, a consolidated statement, in quadruplicate, in a form to be prescribed by the director, showing the amount of such payments for the next preceding twelve-months period ending December 31, and the amounts so withheld. Such railroad company at the time of filing such statement shall remit the amounts so withheld and due the state of Kansas. Upon receipt of such payment, the director shall issue its receipt, in quadruplicate, one copy of which shall be mailed to such railroad company, one to the organization for which such tax is paid, one to the director of accounts and reports and one to the state treasurer which shall be accompanied by the remittance so made, together with a copy of the consolidated statement filed by such railroad company. The mailing of such receipt to such organization shall constitute notice of the filing of said statement and payment of said tax.

If any railroad company shall fail to make or file such report, or if the director be dissatisfied with any report filed, the director shall have the power to conduct a hearing and investigation for the purpose of ascertaining, from whatever sources to which it has access, the gross earnings of such organization from the use or operation of such cars within the borders of this state, and in conducting such hearing and investigation, the director may issue subpoenas duces tecum, directed to the officials of such railroad company, or the officials of the organization whose cars were used or leased by such railroad company. The director shall assess against such railroad company the actual expenses attended upon such hearing and investigation if such railroad company has failed to make or file such report or has filed a fraudulent report.

Every organization as hereinbefore defined shall be liable for the payment of the difference, if any, between two and one-half percent of all gross earnings in this state and the amounts withheld and remitted to the state of Kansas by railroads, and shall be liable for the payment of any additional taxes which the director may find due under its authority to raise or lower the rate to conform to the taxes which would be payable if the cars were taxed on the ad valorem basis.

History: L. 1937, ch. 356, § 3; L. 1943, ch. 289, § 2; February 23.

§ 79-909 Repealed

History: L. 1937, ch. 356, § 4; Repealed, L. 1943, ch. 289, § 10; February 23.

§ 79-910 Notice of incorrectness of insufficiency; procedure upon failure to file report

Upon the filing of the reports herein provided for, the director shall inspect and verify the same, and on or before May 1, notify such railroad company and organization if such report or payment of tax be incorrect or insufficient and such railroad company shall be liable for any additional tax found to be owing the state of Kansas. If no report be filed as herein required, the director shall, on or before May 1, ascertain from whatever sources to which it has access the gross earnings of such organization within this state from the use or operation of such cars by such railroad company; or if the gross earnings are not capable of being ascertained, the director may estimate the gross earnings of such organization within this state from such railroad company and the railroad company which failed to make the report or pay the tax shall be liable for the same together with penalties as hereinafter provided.

History: L. 1937, ch. 356, § 5; L. 1943, ch. 289, § 3; February 23.

§ 79-911 Hearings; review of findings; refunds

Any organization or railroad company affected by the provisions of this act, at any time on or before June 1 in any year after the payment of the tax by any railroad company may appear before the director at a hearing to be granted by the director. After evidence and argument shall have been heard on any matter concerning the correctness or validity of any tax or penalty paid or required by the director to be paid, the director shall review such director's findings as to such tax or penalty and shall make an order, confirming or modifying the same as the director shall deem just and equitable. If the director shall modify such findings as to the amount of tax or penalty due, the director shall refund the excess amount paid by issuing to the claimant a voucher to the director of accounts and reports for the refund of such illegally collected tax or penalty. Upon receipt of such voucher properly executed and endorsed, the director of accounts and reports shall issue a warrant to the state treasurer for the payment to the claimant out of the car company tax fund created by this act. Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.

History: L. 1937, ch. 356, § 6; L. 1943, ch. 289, § 4; L. 1988, ch. 356, § 316; July 1, 1989.

§ 79-911a Ad valorem tax basis; complaints as to rate; hearing; cost deposit; notice; testimony; refunds; valuation of cars as unit

It is hereby declared to be the intention of the legislature that the tax herein imposed to be not greater than the amount of tax such organizations would pay if their cars were taxed on an ad valorem basis, including any value inuring to such cars by reason of being a part of a going concern. No tax other than as provided in this act shall be assessed against the property of any such organization except in cases where any such organization shall make complaint in writing to the director on or before June 1 of the year in which the tax herein imposed is assessed, claiming that it is taxed at too great a rate hereunder. The organization filing such complaint shall at the time complaint is filed deposit with the director the sum of $25 to cover the estimated cost of the hearing, which deposit shall be refunded by the director if it shall be determined at such hearing that the taxes assessed against the complainant should be lowered.

Upon the filing of such complaint and the making of such cost deposit, the director shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act and shall give written notice of such hearing to the complainant at least 30 days before the date set for such hearing. Upon the hearing of any such complaint the director shall take testimony to determine whether the taxes herein imposed are greater than the general ad valorem tax for all purposes would be on the cars of such organization subject to taxation in Kansas, if taxed on an ad valorem basis. In such cases the director shall have the power, and it shall be the director's duty, to lower or raise the rates herein imposed to conform to the facts disclosed at said hearing.

If the director modifies a finding as to the amount of tax due, the director shall refund the excess amount paid by issuing to the claimant a voucher to the director of accounts and reports for the refund found to be due. Upon receipt of such voucher properly executed and endorsed, the director of accounts and reports shall issue a warrant to the state treasurer for the payment to the claimant out of the car company tax fund created by this act. In order to determine the amount of tax such organization would pay, the director may value all cars of any organization as a unit and allocate to Kansas that proportion of the total value which the Kansas car mileage bears to the total car mileage of the cars of any such company during the 12-month period ending December 31, of the preceding year and may then apply to such value, so ascertained, the average ad valorem tax rate applied to property throughout the state for that fiscal year.

History: L. 1943, ch. 289, § 5; L. 1988, ch. 356, § 317; July 1, 1989.

§§ 79-912, 79-913 Repealed

History: L. 1937, ch. 356, §§ 7, 8; Repealed, L. 1943, ch. 289, § 10; February 23.

§ 79-914 Penalty for nonpayment by railroad company

If any such railroad company shall fail to pay such tax within the time specified in K.S.A. 79-908, a penalty of ten percent of the amount of such tax shall be added thereto and charged against such railroad company by the director.

History: L. 1937, ch. 356, § 9; L. 1943, ch. 289, § 7; February 23.

§ 79-915 Actions to recover delinquent taxes and penalties; additional taxes

If the taxes and penalties provided for in this act to be paid by the railroad company on the property of such organization remain unpaid more than ninety days from the due date, the attorney for the director shall bring an action and to recover the amount of such delinquent taxes and penalties in the district court of any county within the state of Kansas in which service can be had on the railroad company which is liable for the payment of such taxes or penalties, or in which the property of such delinquent railroad company can be seized under attachment or garnishment proceedings in the manner prescribed by the code of civil procedure.

In the event the director under his or her authority to raise or lower the rate to the taxes which would be payable on the cars of such organization if taxes upon an ad valorem basis, shall, after a hearing as herein provided, find taxes due from any such organization in excess of the two and one-half percent of all gross revenue in this state which is required to be paid by the railroad companies, such additional tax as so determined shall be due and payable by the organization upon which the assessment is made and if such tax shall remain unpaid for more than ninety days after notification of such assessment by the director, the attorney for the director shall bring an action to recover the amount of such additional tax in the district court of any county within the state of Kansas in which service can be had on the organization liable for the tax or in which the property of such delinquent organization can be seized under attachment or garnishment proceedings in the manner prescribed by the code of civil procedure.

History: L. 1937, ch. 356, § 10; L. 1943, ch. 289, § 8; February 23.

§ 79-916 Invalidity of part

If any part, portion, clause, paragraph, sentence or section of this act shall be declared unconstitutional by any court of competent jurisdiction, it is hereby declared that this act would have been passed without such part, portion, clause, paragraph, sentence or section, and such judgment or decree shall not affect the validity of any other part, portion, clause, paragraph, sentence or section hereof.

History: L. 1937, ch. 356, § 11; March 30.

§ 79-917 Disposition of moneys; refund claims

All taxes collected under the provisions of this act shall be credited by the state treasurer to a fund which shall be known as the car company tax fund and shall be held therein for a period of four months. Thereupon, the same shall be transferred to the general revenue fund for the use of the state: Provided, That if any claim for refund be pending before the director under the provisions of K.S.A. 79-911 and 79-911a the amount claimed as a refund shall be held in said car company tax fund until the director has determined whether a refund should be made. If the director shall determine that a refund should not be made then the amount so withheld shall be transferred to the general revenue fund. The director shall notify the state treasurer:

(a) When any claim for refund is filed, which notification shall show the amount claimed as a refund;

(b) when any claim for refund has been denied.

The treasurer of state shall, immediately upon making any transfer of funds as provided herein, forthwith notify the director of accounts and reports of such transfer and the director of accounts and reports shall forthwith make proper entries upon the books and records in his or her office to correspond with such transfer in the state treasury.

History: L. 1943, ch. 289, § 6; February 23.

§ 79-918 Estoppel, when

If any railroad company or organization affected by this act shall refuse or neglect to make any report required by this act, or shall refuse or neglect to permit an examination of its books, records, accounts and papers upon demand of the director, or shall refuse or neglect to appear before the said director in obedience to his or her citation or summons, or shall fail to object to the tax imposed by this act within the time and in the manner prescribed by this act, it shall be estopped to question or impeach the action or determination of the said director or the validity of the tax imposed hereunder.

History: L. 1943, ch. 289, § 9; February 23.

§ 79-919 Transfer of administration to director of taxation

(a) All of the powers, duties and functions of the director of property valuation relating to the act of which K.S.A. 79-906 is a part are hereby transferred to and conferred and imposed upon the director of taxation. The director of taxation shall be the successor in every way to the powers, duties and functions of the director of property valuation relating to said act of which K.S.A. 79-906 is a part.

(b) All rules and regulations of the director of property valuation in existence on the effective date of this act relating to said act of which K.S.A. 79-906 is a part, shall continue to be effective and shall be deemed to be duly adopted rules and regulations of the secretary of revenue, until revised, amended, revoked or nullified pursuant to law. All orders and directives of the director of property valuation relating to said act of which K.S.A. 79-906 is a part, shall continue to be effective and shall be deemed to be orders and directives of the director of taxation and, until revised, amended or nullified pursuant to law.

(c) The director of taxation shall succeed to all property and records which were used for, or pertain to, the performance of the powers, duties and functions relating to the act of which K.S.A. 79-906 is a part. When any conflict as to the proper disposition of such property or records arises under this section, and results from the provisions of this act, the same shall be determined by the governor, whose decision shall be final.

(d) When any conflict arises as to the disposition of any power, function or duty or the unexpended balance of any appropriation as a result of the transfer made by this act, such conflict shall be resolved by the governor, and the decision of the governor shall be final.

History: L. 1972, ch. 358, § 2; July 1.

§ 79-920 Preservation of actions and proceeding upon transfer of administration

(a) No suit, action, or other proceeding, judicial or administrative, lawfully commenced, or which could have been commenced, by or against the director of property valuation in his or her official capacity or in relation to the discharge of his or her official duties, shall abate by reason of the taking effect of the provisions of this act.

(b) No criminal action commenced or which could have been commenced by the state shall abate by the taking effect of this act.

History: L. 1972, ch. 358, § 3; July 1.

Article 10 Merchants, Manufacturers, Motor Vehicle Dealers and Certain Contractors

§ 79-1001 Repealed

History: L. 1876, ch. 34, § 16; L. 1917, ch. 320, § 1; R.S. 1923, 79-1001; L. 1959, ch. 365, § 16; L. 1971, ch. 296, § 1; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1001a Repealed

History: L. 1971, ch. 296, § 2; L. 1986, ch. 373, § 1; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1001b Repealed

History: L. 1971, ch. 296, § 3; L. 1982, ch. 391, § 30; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§§ 79-1001c, 79-1001d Repealed

History: L. 1971, ch. 296, §§ 4, 5; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1002 Repealed

History: L. 1876, ch. 34, § 17; R.S. 1923, 79-1002; Repealed, L. 1971, ch. 396, § 11; July 1.

§ 79-1003 Repealed

History: L. 1876, ch. 34, § 18; R.S. 1923, 79-1003; L. 1959, ch. 365, § 17; L. 1971, ch. 296, § 6; L. 1982, ch. 391, § 31; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1004 Repealed

History: L. 1876, ch. 34, § 19; R.S. 1923, 79-1004; L. 1971, ch. 296, § 7; L. 1982, ch. 391, § 32; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1004a Repealed

History: L. 1971, ch. 296, § 9; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1004b Repealed

History: L. 1971, ch. 296, § 10; L. 1972, ch. 342, § 87; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1005 Repealed

History: L. 1876, ch. 34, § 20; L. 1881, ch. 33, § 1; L. 1917, ch. 320, § 2; R.S. 1923, 79-1005; L. 1959, ch. 365, § 18; L. 1971, ch. 296, § 8; Repealed, L. 1988, ch. 375, § 9; January 1, 1989.

§ 79-1006 Tax situs of property; nonresidents; elevators

The tax situs of the property of merchants and manufacturers shall be the taxing district where such business or manufacturing is carried on and in case any such merchant or manufacturer shall have more than one place of business in the state of Kansas each such place of business shall be so taxed in the taxing district in which it is situated. All merchants or manufacturers who are nonresidents, or foreign corporations, shall be assessed upon the same basis as residents of this state or domestic corporations, and the situs for taxation of all personal property of such merchants and manufacturers used in connection with or created by the business is hereby declared to be in the place where such business is carried on.

The business of an elevator, whether individually or separately owned, or by a parent company owning several elevators located at different points, shall be considered as a merchandising business and all grain or other commodities purchased or handled by the owner or management of an elevator shall have their tax situs in the taxing district where the elevator is located through which the business is transacted: Provided, That the taxing situs of grain, owned by a resident of this state, held in storage by warehouse, on which warehouse receipt has been issued, shall be taxed at the place of residence of the owner of such receipt.

History: L. 1917, ch. 320, § 3; L. 1921, ch. 289, § 1; L. 1971, ch. 297, § 5; July 1.

§ 79-1007 Manufacturer to list value of all engines, tools and machinery not forming part of real property used in manufacturing

Every manufacturer shall list the value of all engines, tools and machinery of every description, not forming part of any parcel of the real property used or designated to be used in any process of manufacturing as defined in this act.

History: L. 1876, ch. 34, § 21; March 11; R.S. 1923, 79-1007.

§ 79-1008 Collection of taxes from nonresident contractors; "contractor" defined

For the purpose of this act, "contractor" includes individuals, partnerships, firms or corporations, or other associations of persons engaged in the business of the construction, alteration, repairing, dismantling or demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks and towers, airports, dams, levees and canals, oil and gas wells, water wells, pipe lines, transmission and power lines, and every other type of structure, project, development or improvement coming within the definition of real property and personal property, including such construction, alteration, or repairing of such property to be held either for sale or rental, and further including all subcontractors.

History: L. 1957, ch. 515, § 1; L. 1959, ch. 370, § 1; June 30.

§ 79-1009 Collection of taxes from non-resident contractors; registration for certain contracts

To the end that the state of Kansas and the political subdivisions thereof may receive all taxes due in every instance, including contributions due under the employment security law, contractors, who are nonresidents of this state, desiring to engage in, prosecute, follow or carry on the business of contracting as defined in this act shall register with the secretary of revenue or the secretary's designee for each contract where the total contract price or compensation to be received amounts to more than $10,000, except that a foreign corporation authorized to do business in this state shall not be required to register under the provisions of this act.

History: L. 1957, ch. 515, § 2; L. 1968, ch. 289, § 1; L. 1989, ch. 291, § 12; L. 1992, ch. 53, § 1; L. 2000, ch. 184, § 22; July 1.

§ 79-1010 Same; surety bonds for certain contractors; conditions; amount; increase, when; release; withholding moneys by certain contractors to guarantee payment of taxes; enforcement of act

Every contractor required to register any contract or contracts, as defined in this act, shall, before entering into the performance of such contract or contracts, execute and file with the secretary or the secretary's designee a good and valid bond in a surety company authorized to do business in this state, or with sufficient sureties to be approved by the secretary or the secretary's designee, conditioned that all taxes, including contributions due under the employment security law, which may accrue to the state of Kansas and all taxes which may accrue to the political subdivisions thereof on account of the execution and performance of such contract or contracts, will be paid when due, and the execution and filing of such bond shall be a condition precedent to commencing work on any contract in the state of Kansas. Such bond shall be conditioned as hereinabove provided with respect to all contracts to be performed during the current calendar year and shall be in a sum of not less than $1,000. If at any time during the current calendar year the secretary or the secretary's designee shall determine the amount of the bond is not sufficient to cover the tax liabilities accruing to the state of Kansas or the political subdivisions thereof for the current calendar year, or, upon written request of the secretary of labor, the secretary or the secretary's designee shall require such bond to be increased in such sum as the secretary or the secretary's designee may determine to be proper. When any contractor shall have fully performed all contracts registered during the current calendar year, the bond may be released by the secretary or the secretary's designee.

Any contractor who is or becomes subject to the provisions of this act and every contractor required to register any contract or contracts, as defined in this act, who contracts with any subcontractor, who also is or becomes subject to the provisions of this act or is required to register any contract or contracts as defined in this act, shall withhold sufficient moneys on such contract to guarantee that all taxes, including contributions due under the employment security law, which may accrue to the state of Kansas and all taxes which may accrue to the political subdivisions thereof on account of the execution and performance of such contract or contracts, will be paid when due. Failure to comply with the provisions of this section shall render the contractor directly liable for such taxes, contribution, penalties and interest due from the subcontractor and the secretary or the secretary's designee shall have all of the remedies of collection against the contractor under the provisions of this act as though the services in question were performed directly for such contractor.

Every person failing to register as required by this act, or to execute the bond herein provided before beginning the performance of any contract, shall be denied the right to perform such contract until such person complies with such requirements, and the county attorney of any county in which the contract is to be performed, general counsel of the department of labor when requested by the secretary of labor, or the attorney for the secretary of revenue, when requested by the secretary or the secretary's designee is hereby authorized to proceed by injunction to prevent any activity in the performance of such contract until such registration is made and such bond is executed and filed, and any temporary injunction enjoining the execution of such contract shall be granted without notice by any judge now authorized by law to grant injunctions.

History: L. 1957, ch. 515, § 3; L. 1959, ch. 371, § 1; L. 1963, ch. 462, § 1; L. 1968, ch. 289, § 2; L. 1989, ch. 291, § 13; L. 2004, ch. 179, § 145; July 1.

§ 79-1011 Same; secretary of state as agent for service of process, appointment; effect

At the time such contractor registers with the secretary or the secretary's designee, the contractor shall make an appointment, in writing, of the secretary of state of the state of Kansas, or the secretary's successor in office, to be the true and lawful agent of the contractor, upon whom may be served all lawful process in any action or proceeding against the nonresident contractor for state and local taxes growing out of any contract executed, or being executed, in this state. Such appointment, in writing, shall be evidence of such contractor's agreement that any such process against the contractor which is so served on the secretary of state shall be of the same legal force and validity as if served upon the contractor personally within the state.

History: L. 1957, ch. 515, § 4; L. 1989, ch. 291, § 14; April 27.

§ 79-1012 Same; actions against contractors; procedure

An action against any contractor coming within the provisions of this act may be brought by the attorney for the secretary of revenue or the general counsel of the department of labor in Shawnee county or in any county in which any work under any such contract is performed. The summons shall be directed to the secretary of state, and shall require the defendant to answer by a certain day, not less than 40 days nor more than 60 days from such date. The summons shall be forthwith forwarded by the clerk of the court to the secretary of state, who shall immediately forward a copy thereof to the contractor at the address given by such contractor and thereupon the secretary of state shall make return of the summons to the court whence it issued, showing the date of its receipt by the secretary, the date of forwarding such copy and the name and address of the person to whom the secretary forwarded such copy. Such return shall be under the secretary's hand and seal of office, and shall have the same force and effect as a due and sufficient return made by the sheriff on process directed to the sheriff.

The secretary of state shall keep a suitable record book, in which the secretary shall docket every action commenced against any such contractor. This record shall show the court in which the suit is brought, the title of the case, the time when commenced, and the date and manner of service.

History: L. 1957, ch. 515, § 5; L. 1989, ch. 291, § 15; L. 2004, ch. 179, § 146; July 1.

§ 79-1013 Same; failure to comply with act; effect

Any contractor who fails to register with the secretary or the secretary's designee as required by this act, or who fails to comply with any of the provisions of this act, shall not be entitled to maintain an action to recover payment for performance in the courts of this state on such contract.

History: L. 1957, ch. 515, § 6; L. 1989, ch. 291, § 16; April 27.

§ 79-1014 Same; administration of act; rules and regulations; release of bond

The secretary of revenue or the secretary's designee shall administer this act. The secretary shall adopt rules and regulations for the administration of this act. No bonds required under this act shall be released until the contract for which any such bond is given shall be fully performed, nor until the secretary or the secretary's designee shall obtain a written release from the secretary of labor certifying that all contributions and interest due by the principal on such bond, under the employment security law, have been paid in full.

History: L. 1957, ch. 515, § 7; L. 1972, ch. 342, § 88; L. 1989, ch. 291, § 17; L. 2004, ch. 179, § 147; July 1.

§ 79-1015 Same; penalties for violations

Every person failing to register as required by this act, or to execute the bond herein provided, before beginning the performance of any contract, or who violates any other provision of this act, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be fined not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000).

History: L. 1957, ch. 515, § 8; July 1.

§ 79-1016 Repealed

History: L. 1978, ch. 420, § 1; L. 1981, ch. 376, § 1; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1017 Repealed

History: L. 1978, ch. 420, § 2; L. 1979, ch. 313, § 1; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1018 Repealed

History: L. 1978, ch. 420, § 3; L. 1981, ch. 376, § 2; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1019 Repealed

History: L. 1978, ch. 420, § 4; L. 1979, ch. 313, § 2; L. 1981, ch. 376, § 3; L. 1985, ch. 312, § 1; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1020 Repealed

History: L. 1978, ch. 420, § 5; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1021 Repealed

History: L. 1978, ch. 420, § 6; L. 1979, ch. 313, § 3; L. 1981, ch. 376, § 4; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1022 Repealed

History: L. 1978, ch. 420, § 7; L. 1982, ch. 298, § 22; L. 1985, ch. 61, § 3; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

§ 79-1023 Repealed

History: L. 1978, ch. 420, § 8; Repealed, L. 1988, ch. 374, § 6; January 1, 1989.

Article 11 Banks, Banking Businesses, Trust Companies and Savings and Loan Associations

§ 79-1101 Repealed

History: L. 1919, ch. 306, § 1; R.S. 1923, 79-1101; L. 1925, ch. 276, § 1; L. 1930, ch. 16, § 1; L. 1931, ch. 304, § 1; L. 1959, ch. 365, § 19; Repealed, L. 1963, ch. 463, § 10; January 1, 1964.

§ 79-1101a Transferred

Revisor's Note: Transferred to 79-1103, 79-1104.

§ 79-1101c Repealed

Revisor's Note: Later act, see 79-1106 et seq.

History: L. 1931, ch. 304, § 2; L. 1959, ch. 372, § 1; Repealed, L. 1963, ch. 463, § 10; January 1, 1964.

§ 79-1102 Repealed

Revisor's Note: Later act, see 79-1106 et seq.

History: L. 1931, ch. 304, § 4; Repealed, L. 1963, ch. 463, § 10; January 1, 1964.

§ 79-1103 Repealed

History: L. 1930, ch. 16, § 2; L. 1958, ch. 23, § 1 (Special Session); L. 1959, ch. 365, § 20; L. 1960, ch. 56, § 1; L. 1963, ch. 464, § 1; L. 1973, ch. 391, § 3; L. 1982, ch. 396, § 1; L. 1987, ch. 319, § 5; L. 1988, ch. 356, § 318; Repealed, L. 1995, ch. 130, § 3; April 20.

§§ 79-1104, 79-1105 Repealed

History: L. 1930, ch. 16, §§ 3, 4; Repealed, L. 1995, ch. 130, § 3; April 20.

§ 79-1105a Repealed

History: L. 1973, ch. 391, § 1; L. 1982, ch. 396, § 2; L. 1988, ch. 356, § 319; Repealed, L. 1995, ch. 130, § 3; April 20.

§ 79-1105b Repealed

History: L. 1973, ch. 391, § 4; Repealed, L. 1995, ch. 130, § 3; April 20.

§ 79-1105c Taxation of the business of banking; prohibiting certain taxes; right to protest payment of taxes

(a) No taxes shall be levied under the provisions of K.S.A. 79-1103 and 79-1105a, and amendments thereto, for taxable year 1995 and any year thereafter.

(b) No county appraiser shall initiate, open, reopen or continue any audit, investigation or examination of the assessment of any taxes under the provisions of K.S.A. 79-1103 or 79-1105a, and amendments thereto, for any taxable year prior to January 1, 1995.

(c) No county appraiser shall adjust, alter, modify or otherwise change the amount of taxes assessed under the provisions of K.S.A. 79-1103 or 79-1105a, and amendments thereto, against any person or entity for any taxable year prior to January 1, 1995.

(d) Nothing herein shall affect the rights of any taxpayer to protest the payment of taxes assessed pursuant to K.S.A. 79-1103 or 79-1105a, and amendments thereto, in accordance with K.S.A. 79-2005, and amendments thereto.

History: L. 1995, ch. 130, § 1; April 20.

§ 79-1106 Taxation of national banking associations, banks, trust companies and savings and loan associations; purpose of act

It is hereby declared to be the intention of the legislature to levy a tax on national banking associations, banks, trust companies, federally chartered savings banks and savings and loan associations, which tax shall be in lieu of ad valorem taxes which might otherwise be imposed upon the intangible assets of such national banking associations, banks, trust companies, federally chartered savings banks and savings and loan associations.

History: L. 1963, ch. 463, § 1; L. 1996, ch. 270, § 7; July 1.

§ 79-1107 National banking associations and state banks; computation of tax; rate of imposed

(a) Every national banking association and state bank located or doing business within the state shall pay to the state for the privilege of doing business within the state a tax according to or measured by its net income for the next preceding taxable year to be computed as provided in this act. Such tax shall consist of a normal tax and a surtax and shall be computed as follows unless otherwise modified pursuant to K.S.A. 2025 Supp. 79-32,110c, and amendments thereto:

(1) For tax year 2024, and all tax years thereafter, the normal tax shall be an amount equal to 1.94% of such net income; and

(2) the surtax shall be an amount equal to 2.125% of such net income in excess of $25,000.

(b) The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by the state or political subdivisions thereof upon shares of capital stock or the intangible assets of national banking associations and state banks.

History: L. 1963, ch. 463, § 2; L. 1968, ch. 142, § 1; L. 1970, ch. 382, § 1; L. 1972, ch. 359, § 1; L. 1979, ch. 314, § 1; L. 1987, ch. 374, § 1; L. 1996, ch. 270, § 9; L. 1998, ch. 194, § 2; L. 2024, ch. 1, § 12 (Special Session); L. 2025, ch. 116, § 2; July 1.

§ 79-1108 Trust companies and savings and loan associations; tax computation of; rate of imposed

(a) Every trust company and savings and loan association located or doing business within the state shall pay to the state for the privilege of doing business within the state a tax according to or measured by its net income for the next preceding taxable year to be computed as provided in this act. Such tax shall consist of a normal tax and a surtax and shall be computed as follows unless otherwise modified pursuant to K.S.A. 2025 Supp. 79-32,110c, and amendments thereto:

(1) For tax year 2024, and all tax years thereafter, the normal tax on every trust company and savings and loan association shall be an amount equal to 1.93% of such net income; and

(2) the surtax on every trust company and savings and loan association shall be an amount equal to 2.25% of such net income in excess of $25,000.

(b) The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by the state or political subdivision thereof upon shares of capital stock or other intangible assets of trust companies and savings and loan associations.

History: L. 1963, ch. 463, § 3; L. 1968, ch. 142, § 2; L. 1970, ch. 382, § 2; L. 1972, ch. 359, § 2; L. 1987, ch. 374, § 2; L. 1998, ch. 194, § 3; L. 2024, ch. 1, § 13 (Special Session); L. 2025, ch. 116, § 3; July 1.

§ 79-1108a Repealed

History: L. 1968, ch. 142, § 3; L. 1972, ch. 342, § 89; Repealed, L. 1987, ch. 374, § 4; July 1.

§ 79-1109 "Net income" defined; deductions

(a) As used in this act, "net income" means the Kansas taxable income of corporations as defined in K.S.A. 79-32,138, and amendments thereto, determined without regard to the provisions of K.S.A. 79-32,139, and amendments thereto, and the provisions of K.S.A. 79-32,117(c)(xiv), and amendments thereto, plus income received from obligations or securities of the United States or any authority, commission or instrumentality of the United States and its possessions to the extent not included in Kansas taxable income of a corporation and income received from obligations of this state or a political subdivision of this state that is exempt from income tax under the laws of this state, less dividends received from stock issued by Kansas venture capital, inc. to the extent such dividends are included in the Kansas taxable income of a corporation, interest paid on time deposits or borrowed money and dividends paid on withdrawable shares of savings and loan associations to the extent not deducted in arriving at Kansas taxable income of a corporation.

(b) Savings and loan associations shall be allowed as a deduction from net income, as defined in subsection (a), a reserve established for the sole purpose of meeting or absorbing losses, in the amount of 5% of such net income determined without benefit of such deduction, but no further deduction shall be allowed for losses when actually sustained and charged against such reserve, unless such reserve shall have been fully absorbed thereby; or, in the alternative, a reasonable addition to a reserve for losses based on past experience, under such rules and regulations as the secretary of revenue may prescribe.

(c) For all taxable years commencing after December 31, 2022, national banking associations, state banks, trust companies and savings and loan associations shall be allowed as a deduction from net income, as defined in subsection (a), the net interest income received from qualified agricultural real estate loans attributed to Kansas and the net interest income received from single family residence loans attributed to Kansas to the extent such interest is included in the Kansas taxable income of a corporation. As used in this subsection:

(1) "Interest" means interest on indebtedness attributed to Kansas and incurred in the ordinary course of the active conduct of any business and interest on indebtedness incurred that is secured by a single family residence;

(2) "qualified agricultural real estate loans" means loans made on real property that is substantially used for the production of one or more agricultural products and that:

(A) Have maturities of not less than five years and not more than 40 years;

(B) are secured by a first lien interest in real estate, except that the loans may be secured by a second lien interest if the institution also holds the first lien on the property; and

(C) have an outstanding loan balance when made that is less than 85% of the appraised value of the real estate, except that a loan for which private mortgage insurance is obtained may exceed 85% of the appraised value of the real estate to the extent the loan amount in excess of 85% is covered by such insurance;

(3) "single family residence" means a residence that:

(A) Is the principal residence of its occupant;

(B) is located in Kansas, in a rural area as defined by the United States department of agriculture that is not within a metropolitan statistical area and has a population of 2,500 or less as determined by the most recent census for which data is available; and

(C) is purchased or improved with the proceeds of the loan;

(4) "net interest income received from qualified agricultural real estate loans attributed to Kansas" means the product of the ratio of the interest income earned on qualified agricultural real estate loans over total interest income earned, in relation to the net income of the national banking association, state bank, trust company or savings and loan association without regard to this deduction; and

(5) "net interest income received from single family residence loans attributed to Kansas" means the product of the ratio of the interest income earned on single family residence loans over total interest income earned, in relation to the net income of the national banking association, state bank, trust company or savings and loan association without regard to this deduction.

History: L. 1963, ch. 463, § 4; L. 1967, ch. 488, § 1; L. 1972, ch. 359, § 3; L. 1979, ch. 314, § 2; L. 1986, ch. 332, § 7; L. 1987, ch. 374, § 3; L. 1997, ch. 120, § 1; L. 2021, ch. 2, § 10; July 1.

§ 79-1109a Application of K.S.A. 79-1107 and 79-1109

The provisions of K.S.A. 79-1107 and 79-1109 shall be applicable to all taxable years commencing after December 31, 1979.

History: L. 1979, ch. 314, § 10; July 1.

§ 79-1110 Taxation of national banking associations, banks, trust companies and savings and loan associations; procedure for returns; tax payment; laws applicable

Every national banking association, bank, trust company, and savings and loan association subject to taxation under this act shall make its return and pay the tax imposed to the director of taxation on or before the 15th day of the fourth month following the close of its federal taxable year, in the same manner, except for computing the net income subject to tax, as corporations are required to make their returns and pay their taxes under the Kansas income tax act. Every such national banking association, bank, trust company and savings and loan association shall be subject to other provisions of the Kansas income tax act applicable to other corporations and shall be subject to the penalties imposed on corporations by K.S.A. 79-3222, 79-3228 and 79-3234 insofar as the same can be made applicable.

History: L. 1963, ch. 463, § 5; L. 1980, ch. 309, § 1; L. 1981, ch. 377, § 1; April 16.

§ 79-1110a Application of K.S.A. 79-1110

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1979.

History: L. 1980, ch. 309, § 2; July 1.

§ 79-1111 Same; administration of act; rules and regulations

The director of taxation shall administer this act. The secretary of revenue shall adopt rules and regulations for the administration of this act.

History: L. 1963, ch. 463, § 6; L. 1972, ch. 342, § 90; July 1.

§ 79-1112 Disposition of tax moneys; privilege tax refund fund established; refunds

(a) The director of taxation shall remit all tax moneys collected under the provisions of this act to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto, less amounts set apart in the privilege tax refund fund in the manner provided in subsection (b). Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

(b) A fund designated as the privilege tax refund fund shall be set apart and maintained by the director from the tax moneys collected under the provisions of this act and held by the state treasurer for prompt payment of all "privilege tax" refunds. The fund shall be in such amount as the director determines is necessary to meet current refunding requirements under this act. In the event such fund is at any time insufficient to provide for the payment of refunds due claimants thereof, the director shall certify the amount of additional funds required to the director of accounts and reports, who shall promptly transfer the required amount from the state general fund to the privilege tax refund fund and notify the state treasurer, who shall make proper entry in the records.

(c) If the director discovers from the examination of the return, or upon claim duly filed by the taxpayer or upon final judgment of the court that the tax imposed by this act, or any penalty or interest paid by or credited to any taxpayer is in excess of the amount legally due, the director shall certify to the director of accounts and reports the name of the taxpayer, the amount of refund and such other information as the director may require. Upon receipt of such certification, the director of accounts and reports shall issue a warrant on the state treasurer for the payment to the taxpayer out of the fund provided in subsection (b), except that no refund shall be made for a sum less than $5, but such amount may be claimed by the taxpayer as a credit against the taxpayer's tax liability in the taxpayer's next succeeding year.

History: L. 1963, ch. 463, § 7; L. 1972, ch. 361, § 1; L. 1979, ch. 315, § 1; L. 1983, ch. 315, § 1; L. 1984, ch. 351, § 5; L. 2001, ch. 5, § 443; July 1.

§ 79-1113 National banking associations and banks and corporations holding stock therein; exemption from intangibles tax

Shares, shares of stock or other evidence of ownership of national banking associations and banks located or doing business within the state, and all income therefrom and the shares, shares of stock or other evidence of ownership of corporations holding stock of a national banking association or bank located or doing business in Kansas, to the extent the income of such corporation is attributable to dividends received on such stock, and all income therefrom, shall be exempt from the tax imposed on moneys, notes and other evidences of debt by K.S.A. 79-3109 and any amendments thereof.

History: L. 1963, ch. 463, § 8; L. 1970, ch. 390, § 2; July 1.

§ 79-1114 Repealed

History: L. 1963, ch. 463, § 9; Repealed, L. 1979, ch. 314, § 12; July 1.

§ 79-1115 Application of K.S.A. 79-1107 and 79-1108

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1970.

History: L. 1970, ch. 382, § 3; July 1.

§ 79-1116 Application of K.S.A. 79-1107, 79-1108 and 79-1109

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1972.

History: L. 1972, ch. 360, § 1; July 1.

§ 79-1117 Credit against tax for making certain property used in trade or business or held for production of income accessible to persons with a disability; amount; carryover to subsequent taxable years

Any taxpayer who makes expenditures for the purpose of making all or any portion of an existing building or facility accessible to persons with a disability, which building or facility is on real property located in this state and used in a trade or business or held for the production of income, shall be entitled to claim a tax credit in an amount equal to 50% of such expenditures or, the amount of $10,000, whichever is less, against the tax liability imposed against such taxpayer pursuant to K.S.A. 79-1106 to 79-1116, inclusive, and amendments thereto. Such tax credit shall be deducted from the taxpayer's tax liability for the taxable year following the year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the taxable year in which the expenditures are made.

History: L. 1978, ch. 409, § 5; L. 1994, ch. 173, § 2; July 1.

§ 79-1118 Repealed

History: L. 1978, ch. 409, § 6; L. 1980, ch. 310, § 4; L. 1983, ch. 316, § 1; Repealed, L. 1996, ch. 109, § 1; July 1.

§ 79-1119 Reports, statements, lists and returns; preservation; confidentiality, exceptions; performance of certain activities by administrative personnel unlawful; penalties for violations

(a) All reports, statements, lists and returns required under the provisions of article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, shall be preserved for three years and thereafter until the director of taxation orders them to be destroyed.

(b) Except in accordance with proper judicial order, or as provided in subsection (c) or K.S.A. 46-1106, and amendments thereto, it shall be unlawful for the director of taxation, or any deputy, agent, clerk or other officer, employee or former employee of the department of revenue or any other state officer or employee or former state officer or employee to divulge, or to make known in any way, the amount of income or any particulars set forth or disclosed in any report, statement, list, return, federal return or federal return information required under the provisions of article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto; and it shall be unlawful for the director of taxation, or any deputy, agent, clerk or other officer or employee of the department of revenue engaged in the administration of the tax imposed under the provisions of article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, to engage in the business or profession of tax accounting or to accept employment, with or without consideration, for any person, firm or corporation for the purpose, directly or indirectly, or preparing tax returns or reports required by the laws of the state of Kansas, by any other state or by the United States government, or to accept any employment for the purpose of advising, preparing material or data, or the auditing of books or records to be used in an effort to defeat or cancel any tax or part thereof that has been assessed by the state of Kansas, any other state or by the United States government.

(c) The secretary or the secretary's designee may:

(1) Publish statistics, so classified as to prevent the identification of particular reports or returns and the items thereof;

(2) allow the inspection of returns by the attorney general or other legal representatives of the state;

(3) provide the post auditor access to all statements, lists, reports or returns in accordance with and subject to the provisions of K.S.A. 46-1106(g), and amendments thereto; or

(4) disclose to the secretary of commerce specific taxpayer information related to financial information previously submitted by the taxpayer to the secretary of commerce concerning or relevant to any privilege tax credits, for purposes of verification of such information or evaluating the effectiveness of any tax credit program administered by the secretary of commerce.

(d) Any person receiving information under the provisions of subsection (c) shall be subject to the confidentiality provisions of subsection (b) and to the penalty provisions of subsection (e).

(e) Any violation of subsection (b) or (c) shall be a class A misdemeanor; and if the offender be an officer or employee of the state, such officer or employee shall be dismissed from office.

(f) Notwithstanding the provisions of this section, the secretary of revenue may, in his or her discretion, permit the commissioner of internal revenue of the United States, or the proper official of any state imposing an income tax or privilege tax on financial institutions, or the authorized representative of either, to inspect the reports, statements, lists or returns made under the provisions of article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, and the secretary of revenue may make available or furnish to the taxing officials of any other state or the commissioner of internal revenue of the United States or other taxing officials of the federal government, or their authorized representatives, information contained in statements, lists, reports, or returns or any audit thereof or the report of any investigation made with respect thereto, filed pursuant to any of the provisions of article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, as the secretary may consider proper, but such information shall not be used for any other purpose than that of the administration of tax laws of such state or of the United States.

History: L. 1979, ch. 314, § 9; L. 1994, ch. 188, § 2; L. 2005, ch. 110, § 3; L. 2023, ch. 66, § 71; July 1.

§ 79-1120 Recapture tax; definitions

As used in K.S.A. 79-1120 to 79-1125, unless the context otherwise requires: (a) "Refund" means a reimbursement by the director of taxation of taxes paid pursuant to the provisions of K.S.A. 79-1106 et seq., including any interest accrued thereon, which reimbursement is made pursuant to a judicial order of any court of competent jurisdiction finding that: (1) Any of the provisions of K.S.A. 79-1106 et seq. is discriminatory in a manner prohibited under 31 U.S.C. § 742; or (2) any of the provisions of K.S.A. 79-1106 et seq. is unconstitutional; or (3) that the tax imposed under K.S.A. 79-1107 or K.S.A. 79-1108 is otherwise invalid;

(b) "Aggregate recapture rate" means one hundred percent (100%) plus the percentage determined by the director of taxation to equal the proportion that income received from securities and obligations of the United States or authorities, commissions or instrumentalities thereof by all institutions subject to taxation under the provisions of K.S.A. 79-1106 et seq. bears to the total federal income received by all such institutions during the period or periods for which refunds are paid;

(c) "Claimant's adjustment factor" means a percentage determined by the director of taxation to equal the proportion that income received from securities and obligations of the United States or authorities, commissions or instrumentalities thereof by the institution receiving the refund bears to the total federal income of such institution during the period or periods for which the refund was received.

History: L. 1979, ch. 314, § 3; July 1.

§ 79-1121 Same; imposition; computation of amount

A recapture tax, in an amount computed as herein provided, shall be imposed on any refund, as defined in K.S.A. 79-1120, received by any national banking association, state bank, trust company or savings and loan association, in the year in which such refund is received. The amount of such tax shall be computed as follows:

(a) Multiply the amount of the refund received by the aggregate recapture rate;

(b) Multiply the amount of the refund received by the claimant's adjustment factor;

(c) Subtract the product obtained under subsection (b) from the product obtained under subsection (a);

(d) The tax shall be in an amount equal to the lesser of the amount determined in subsection (c) or the amount of the refund.

History: L. 1979, ch. 314, § 4; July 1.

§ 79-1122 Same; time for assessment and payment; penalties

The tax imposed under K.S.A. 79-1121 shall be assessed by the director of taxation within sixty (60) days of the payment of a refund. Every national banking association, state bank, trust company or savings and loan association liable for the payment of the tax imposed in K.S.A. 79-1121, shall make payment thereof within thirty (30) days of the date of assessment; and each shall be subject to the penalties imposed on corporations by K.S.A. 79-3228 and K.S.A. 79-3234 insofar as the same can be made applicable.

History: L. 1979, ch. 314, § 5; July 1.

§ 79-1123 Administration of act; rules and regulations

The director of taxation shall administer this act. The secretary of revenue may adopt rules and regulations for the administration of this act.

History: L. 1979, ch. 314, § 6; July 1.

§ 79-1124 Same; disposition of moneys; refunds

(a) The director of taxation shall remit all tax moneys collected under the provisions of K.S.A. 79-1120 to 79-1125, and amendments thereto, to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

(b) Any refunds of tax paid pursuant to K.S.A. 79-1121, and amendments thereto, shall be made from the privilege tax refund fund created in K.S.A. 79-1112, and amendments thereto.

History: L. 1979, ch. 314, § 7; L. 2001, ch. 5, § 444; July 1.

§ 79-1125 Expired

History: L. 1979, ch. 314, § 8; July 1; Expired, December 31, 1984.

§ 79-1126 Credit against tax for interest rate reduction for agricultural production loan

(a) On and after the effective date of this act and prior to July 1, 1990, a state bank or national banking association which extends or renews an agricultural production loan under the provisions of this act to an eligible agricultural borrower at an interest rate which is at least one whole percentage point less than the prime interest rate then specified by the bank on such loans with equivalent collateral, and a state bank or national banking association which reduces the rate of interest being charged on any outstanding agricultural production loan to an eligible agricultural borrower by at least one whole percentage point shall receive a credit against its tax liability pursuant to K.S.A. 79-1106 et seq., for taxable years commencing after December 31, 1987, to the extent hereinafter provided. Such tax credit shall be allowed for such interest rate reductions upon agricultural production loans having a total principal amount not exceeding 15% of the amount of such loans reflected in the bank's report of condition filed with the federal deposit insurance corporation as of December 31, 1985.

(b) For the purposes of this section, the term "eligible agricultural borrower" means any person, partnership or family farm corporation, as defined in K.S.A. 17-5903, and amendments thereto, located in the state of Kansas, having an agricultural production loan which has been classified as substandard or doubtful by any banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration.

(c) An interest rate reduction may be applied under the provisions of this section only when the eligible borrower can be reasonably expected to service the principal and interest for the term of such person's loan.

(d) The total credit against tax liability shall be the amount by which the interest income to the state bank or national banking association on and after the effective date of this act and prior to July 1, 1990, has been reduced on such loans because of such reductions in rates of interest, except that the credit allowed as a result of an interest rate reduction on any one agricultural production loan shall not exceed an amount equal to 3% per annum on the unpaid principal balance of the loan. The tax credit allowed for any taxable year shall not exceed ⅕ of the total tax credit of the bank allowed under this act. Unused tax credit shall be carried forward as a credit to the bank's tax liability in each subsequent taxable year and shall then be taken into account, subject to the limitation that the credit in any one taxable year may not exceed ⅕ of the total tax credit.

History: L. 1986, ch. 367, § 1; L. 1987, ch. 54, § 15; L. 1988, ch. 376, § 1; L. 1989, ch. 292, § 1; April 18.

§ 79-1126a Credit against tax for interest rate reductions on certain agricultural production loans

(a) On and after the effective date of this act and prior to July 1, 2004, a state bank or national banking association which extends or renews an agricultural production loan under the provisions of this section to an eligible agricultural borrower at an interest rate which is at least one whole percentage point less than the prime interest rate then specified by the bank on such loans with equivalent collateral, and a state bank or national banking association which reduces the rate of interest being charged on any outstanding agricultural production loan to an eligible agricultural borrower by at least one whole percentage point shall receive a credit against its tax liability pursuant to K.S.A. 79-1106 et seq., and amendments thereto, for taxable years commencing after December 31, 1999, to the extent hereinafter provided. Such tax credit shall be allowed for such interest rate reductions upon agricultural production loans having a total principal amount not exceeding 15% of the amount of such loans reflected in the bank's report of condition filed with the federal deposit insurance corporation as of December 31, 1999.

(b) For the purposes of this section, the term "eligible agricultural borrower" means any person, limited agricultural partnership, limited liability agricultural company or family farm corporation, as defined in K.S.A. 17-5903, and amendments thereto, located in the state of Kansas, having an agricultural production loan which has been classified as substandard or doubtful: (1) By any banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration; or (2) by the designated loan committee of such banking association prior to examination for classification eligibility by the banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration.

(c) An interest rate reduction may be applied under the provisions of this section only when the eligible borrower can be reasonably expected to service the principal and interest for the term of such person's loan.

(d) The total credit against tax liability shall be the amount by which the interest income to the state bank or national banking association on and after the effective date of this act and prior to July 1, 2004, has been reduced on such loans because of such reductions in rates of interest, except that the credit allowed as a result of an interest rate reduction on any one agricultural production loan shall not exceed an amount equal to 3% per annum on the unpaid principal balance of the loan. The tax credit allowed for any taxable year shall not exceed 1/5 of the total tax credit of the bank allowed under this section. Unused tax credit shall be carried forward as a credit to the bank's tax liability in each subsequent taxable year and shall then be taken into account, subject to the limitation that the credit in any one taxable year may not exceed 1/5 of the total tax credit.

History: L. 2000, ch. 101, § 10; April 27.

§ 79-1127 Estimated tax; manner of payment; penalties

(a) Every national banking association, bank, trust company, and savings and loan association subject to taxation under article 11 of chapter 79 of the Kansas Statutes Annotated whose tax liability can reasonably be expected to exceed $500 shall pay estimated tax in the same manner as a corporation subject to the provisions of K.S.A. 79-32,101 et seq. Such payment shall be made in the manner provided in K.S.A. 79-32,103 and shall be allowed as a credit against the tax imposed by this act.

(b) A penalty at the same rate per annum prescribed by subsection (b) of K.S.A. 79-2968, and amendments thereto, for interest upon delinquent or unpaid taxes shall be applied and added to a taxpayer's amount of underpayment of estimated tax due from the date the estimated tax payment was due until the same is paid or until the 15th day of the fourth month following the close of the taxable year for which such estimated tax is a credit, whichever date is earlier, but such penalty shall not be added if the total amount thereof does not exceed $5. For purposes of this subsection, the amount of underpayment of estimated tax shall be the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to 90% of the tax shown on the return for the taxable year or, if no return was filed, 90% of the tax for such year, over the amount, if any, of the installment paid on or before the last date prescribed for payment.

(c) No penalty shall be imposed upon any taxpayer subject to the provisions hereof if the total amount of all payments of estimated tax made on or before the last date prescribed for payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is the least:

(1) The tax shown on the return of the taxpayer for the preceding taxable year, if a return was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months; or

(2)(A) an amount equal to 90% of the tax for the taxable year computed by placing on an annualized basis the taxable income: (i) For the first three months of the taxable year, in the case of the installment required to be paid in the fourth month; (ii) for the first three months or for the first five months of the taxable year, in the case of the installment required to be paid in the sixth month; (iii) for the first six months or for the first eight months of the taxable year in the case of the installment required to be paid in the ninth month; and (iv) for the first nine months or for the first 11 months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year.

(B) For purposes of this subsection (2), the taxable income shall be placed on an annualized basis by (i) multiplying by 12 the taxable income referred to in subsection (2)(A), and (ii) dividing the resulting amount by the number of months in the taxable year (three, five, six, eight, nine, or 11, as the case may be) referred to in subsection (2)(A).

(d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1992.

History: L. 1992, ch. 295, § 4; May 28.

§ 79-1128 Allocation and apportionment of income of financial institutions engaged in multi-state business activities; definitions

As used in K.S.A. 79-1128 through 79-1132, unless the context otherwise requires:

(a) "Billing address" means the location indicated in the books and records of the taxpayer on the first day of the taxable year, or on such later date in the taxable year when the customer relationship began, as the address where any notice, statement or bill relating to a customer's account is mailed.

(b) "Borrower or credit card holder located in this state" means:

(1) A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state; or

(2) a borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state.

(c) "Business income" means all income to the extent that it may be treated as apportionable business income under the constitution of the United States.

(d) "Commercial domicile" means:

(1) The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or

(2) if a taxpayer is organized under the laws of a foreign country, or of the commonwealth of Puerto Rico, or any territory or possession of the United States, such taxpayer's commercial domicile shall be deemed for the purposes of this act to be the state of the United States or the District of Columbia from which such taxpayer's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer's trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of such employees are performed, as of the last day of the taxable year.

(e) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services that are included in such employee's gross income under the federal internal revenue code. In the case of employees not subject to the federal internal revenue code, such as those employed in foreign countries, the determination of whether such payments would constitute gross income to such employees under the federal internal revenue code shall be made as though such employees were subject to the federal internal revenue code.

(f) "Credit card" means credit, travel or entertainment card.

(g) "Credit card issuer's reimbursement fee" means the fee a taxpayer receives from a merchant's bank because one of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card.

(h) "Employee" means, with respect to a particular taxpayer, any individual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.

(i) "Financial institution" means: a national banking association, federally chartered savings bank, state bank, trust company or savings and loan association.

(j) "Gross rents" means the actual sum of money or other consideration payable for the use or possession of property.

(1) "Gross rents" shall include, but not be limited to:

(A) Any amount payable for the use or possession of real property or tangible property whether designated as a fixed sum of money or as a percentage of receipts, profits or otherwise;

(B) any amount payable as additional rent or in lieu of rent, such as interest, taxes, insurance, repairs or any other amount required to be paid by the terms of a lease or other arrangement; or

(C) a proportionate part of the cost of any improvement to real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement. The amount to be included in gross rents is the amount of amortization or depreciation allowed in computing the taxable income base for the taxable year, except that, where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight and the value of the building is determined in the same manner as if owned by the taxpayer.

(2) The following are not included in the term "gross rents":

(A) Reasonable amounts payable as separate charges for water and electric service furnished by the lessor;

(B) reasonable amounts payable as service charges for janitorial services furnished by the lessor;

(C) reasonable amounts payable for storage, provided such amounts are payable for space not designated and not under the control of the taxpayer; or

(D) that portion of any rental payment which is applicable to the space subleased from the taxpayer and not used by it.

(k) "Loan" means any extension of credit resulting from direct negotiations between the taxpayer and its customer, or the purchase, or both, in whole or in part, of such extension of credit from another. Loans include participations, syndications, and leases treated as loans for federal income tax purposes. Loans shall not include: properties treated as loans under section 595 of the federal internal revenue code; futures or forward contracts; options; notional principal contracts such as swaps; credit card receivables, including purchased credit card relationships; noninterest bearing balances due from depository institutions; cash items in the process of collection; federal funds sold; securities purchased under agreements to resell; assets held in a trading account; securities; interests in a REMIC, or other mortgage-backed or asset-backed security; and other similar items.

(l) "Loan secured by real property" means that 50% or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.

(m) "Merchant discount" means the fee or negotiated discount charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the card holder.

(n) "Nonbusiness income" means all income which is not business income.

(o) "Participation" means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower.

(p) "Person" means an individual, estate, trust, partnership, corporation and any other business entity.

(q) "Principal base of operations" with respect to transportation property means the place of more or less permanent nature from which such property is regularly directed or controlled. With respect to an employee, the "principal base of operations" means the place of more or less permanent nature from which the employee regularly: (1) Starts such employee's work and to which such employee customarily returns in order to receive instructions from such employee's employer; or (2) communicates with such employee's customers or other persons; or (3) performs any other function necessary to the exercise of such employee's trade or profession at some other point or points.

(r) "Real property owned" and "tangible personal property owned" means real and tangible personal property, respectively: (1) On which the taxpayer may claim depreciation for federal income tax purposes; or (2) property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes or could claim depreciation if subject to federal income tax. Real and tangible personal property do not include coin, currency or property acquired in lieu of or pursuant to a foreclosure.

(s) "Regular place of business" means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied and used by employees of the taxpayer.

(t) "State" means a state of the United States, the District of Columbia, the commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country.

(u) "Syndication" means an extension of credit in which two or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount.

(v) "Taxable" means either:

(1) That a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax, including a bank shares tax, a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or

(2) that another state has jurisdiction to subject the taxpayer to any of such taxes regardless of whether, in fact, the state does or does not.

(w) "Transportation property" means vehicles and vessels capable of moving under their own power, such as aircraft, trains, water vessels and motor vehicles, as well as any equipment or containers attached to such property, such as rolling stock, barges, trailers or the like.

History: L. 1996, ch. 270, § 2; July 1.

§ 79-1129 Procedures and methodology in determining allocable and apportionable income; computation of certain deductions from income; filing of certain statements with secretary

(a) Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this state shall allocate and apportion its net income as provided in this act. All items of nonbusiness income, income which is not includable in the apportionable income tax base, shall be allocated pursuant to the provisions of K.S.A. 79-3274 through 79-3278 and amendments thereto. A financial institution organized under the laws of a foreign country, the commonwealth of Puerto Rico, or a territory or possession of the United States whose effectively connected income, as defined under the federal internal revenue code, is taxable both within this state and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in this act and its apportionment factors shall include the part of its property, payroll and receipts that is related to its apportionable income.

(b) (1) For taxable years commencing prior to January 1, 2027, all business income shall be apportioned as follows:

All business income, income which is includable in the apportionable income tax base, shall be apportioned to this state by multiplying such income by the apportionment percentage. The apportionment percentage is determined by adding the taxpayer's receipts factor, as described in K.S.A. 79-1130, and amendments thereto, property factor, as described in K.S.A. 79-1131, and amendments thereto, and payroll factor, as described in K.S.A. 79-1132, and amendments thereto, together and dividing the sum by three. If one of the factors is missing, the two remaining factors are added and the sum is divided by two. If two of the factors are missing, the remaining factor is the apportionment percentage. A factor is missing if both its numerator and denominator are zero, but it is not missing merely because its numerator is zero.

(2) For tax years commencing on or after January 1, 2027, all business income shall be apportioned to this state by multiplying the business income by the receipts factor.

(c) Each factor shall be computed according to the method of accounting, cash or accrual basis, used by the taxpayer for the taxable year.

(d) If the allocation and apportionment provisions of this act do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the secretary of revenue may require, in respect to all or any part of the taxpayer's business activity, if reasonable:

(1) Separate accounting;

(2) the exclusion of any one or more of the factors;

(3) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or

(4) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

(e) In the event a combined report is utilized to determine the Kansas income attributable to a unitary group of financial institutions, the financial institutions in the combined group shall include only those institutions which have a branch or office in Kansas.

(f) (1) There shall be allowed as a deduction an amount computed in accordance with this subsection.

(2) As of July 1, 2025, only publicly traded companies, including affiliated corporations participating in the filing of a publicly traded company's financial statements prepared in accordance with generally accepted accounting principles, shall be eligible for this deduction.

(3) If the provisions of this section result in an aggregate increase in the taxpayer's net deferred tax liability or an aggregate decrease in the taxpayer's net deferred tax asset, or an aggregate change from a net deferred tax asset to a net deferred tax liability, the taxpayer shall be entitled to a deduction, as determined in this subsection. For the purposes of this section, the term "taxpayer" includes a unitary group of businesses that is required to file a combined report. The deferred tax impact deduction provided under this section for a unitary group of businesses that is required to file a combined report shall be calculated using unitary net deferred tax assets and liabilities and deducted against unitary group income.

(4) A taxpayer shall be entitled to a deferred tax impact deduction from the taxpayer's net business income before apportionment equal to the amount necessary to offset the increase in the net deferred tax liability or decrease in the net deferred tax asset, or aggregate change from a net deferred tax asset to a net deferred tax liability. Such increase in the net deferred tax liability, decrease in the net deferred tax asset or the aggregate change from a net deferred tax asset to a net deferred tax liability shall be computed based on the change that would result from the imposition of the single sales factor requirements pursuant to this section, excluding the deduction provided under this paragraph, as of the end of the tax year prior to tax year 2025. The amount of the deduction shall equal the annual deferred tax deduction amount set forth in paragraph (5).

(5) The annual deferred tax deduction amount shall be calculated as follows:

(A) The deferred tax impact determined in paragraph (4) shall be divided by the privilege tax rate in effect for the tax year pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto;

(B) the resulting amount shall be further divided by the Kansas apportionment factor that was used by the taxpayer in the calculation of the deferred tax assets and deferred tax liabilities as provided in this subsection; and

(C) the result multiplied by 1/10 shall represent the total net deferred tax deduction available for the first tax year beginning on or after January 1, 2035, and the next nine successive tax years.

(6) The deduction calculated under paragraph (5) shall not be adjusted as a result of any events subsequent to such calculation, including, but not limited to, any disposition or abandonment of assets. Such deduction shall be calculated without regard to any tax liabilities under the federal internal revenue code and shall not alter the tax basis of any asset. If the deduction under this section is greater than the taxpayer's net business income before apportionment, any excess deduction shall be carried forward and applied as a deduction for future tax years until fully utilized.

(7) At the discretion of the taxpayer, the taxpayer shall be allowed to claim other available tax credits before claiming the deferred tax deduction calculated under this section. Any deferred tax deduction calculated under this section not claimed on a return shall be carried forward and applied as a deduction for future tax years until fully utilized.

(8) Any taxpayer intending to claim a deduction under this subsection shall file a statement with the secretary on or before July 1, 2027, specifying the total amount of the deduction that the taxpayer claims. The statement shall be made on such form and in such manner as prescribed by the secretary and shall contain such information or calculations as the secretary may specify. No deduction shall be allowed under this section for any taxable year except to the extent claimed in the manner prescribed on or before July 1, 2027.

(9) For purposes of this subsection:

(A) "Net deferred tax liability" means deferred tax liabilities that exceed the deferred tax assets of the taxpayer, as computed in accordance with generally accepted accounting principles.

(B) "Net deferred tax asset" means that deferred tax assets exceed the deferred tax liabilities of the taxpayer, as computed in accordance with generally accepted accounting principles.

History: L. 1996, ch. 270, § 1; L. 2025, ch. 123, § 4; July 1.

§ 79-1130 Same; receipts factor defined and described

(a)

General.

The receipts factor is a fraction, the numerator of which is the receipts of the taxpayer in this state during the taxable year and the denominator of which is the receipts of the taxpayer within and without this state during the taxable year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. The receipts factor shall include only those receipts described herein which constitute business income and are included in the computation of the apportionable income base for the taxable year.

(b)

Receipts from the lease of real property.

The numerator of the receipts factor includes receipts from the lease or rental of real property owned by the taxpayer if the property is located within this state or receipts from the sublease of real property if the property is located within this state.

(c)

Receipts from the lease of tangible personal property.

(1) Except as described in paragraph (2) of this subsection, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within this state when it is first placed in service by the lessee.

(2) Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of receipts that is to be included in the numerator of this state's receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.

(d)

Interest from loans secured by real property.

(1) The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. If the property is located both within this state and one or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than 50% of the fair market value of the real property is located within this state. If more than 50% of the fair market value of the real property is not located within any one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state.

(2) The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made and any and all subsequent substitutions of collateral shall be disregarded.

(e)

Interest from loans not secured by real property.

The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this state.

(f)

Net gains from the sale of loans.

The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under the coupon stripping rules of section 1286 of the internal revenue code.

(1) The amount of net gains, but not less than zero, from the sale of loans secured by real property included in the numerator is determined by multiplying such net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.

(2) The amount of net gains, but not less than zero, from the sale of loans not secured by real property included in the numerator is determined by multiplying such net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(g)

Receipts from credit card receivables.

The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to card holders, such as annual fees, if the billing address of the card holder is in this state.

(h)

Net gains from the sale of credit card receivables.

The numerator of the receipts factor includes net gains, but not less than zero, from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders.

(i)

Credit card issuer's reimbursement fees.

The numerator of the receipts factor includes all credit card issuer's reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (g) and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders.

(j)

Receipts from merchant discount.

The numerator of the receipts factor includes receipts from merchant discount if the commercial domicile of the merchant is in this state. Such receipts shall be computed net of any cardholder charge backs, but shall not be reduced by any interchange transaction fees or by any issuer's reimbursement fees paid to another for charges made by its card holders.

(k)

Loan servicing fees.

(1) (A) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (d) and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.

(B) The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (e) and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.

(2) In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include such fees if the borrower is located in this state.

(l)

Receipts from services.

The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state. If the service is performed both within and without this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income-producing activity is performed in this state based on cost of performance.

(m)

Receipts from investment assets and activities and trading assets and activities.

(1) Interest, dividends, net gains, but not less than zero, and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. Investment assets and activities and trading assets and activities include but are not limited to: Investment securities; trading account assets; federal funds; securities purchased and sold under agreements to resell or repurchase; options; futures contracts; forward contracts; notional principal contracts such as swaps; equities; and foreign currency transactions. With respect to the investment and trading assets and activities described in subparagraphs (A) and (B) of this paragraph, the receipts factor shall include the amounts described in such subparagraphs.

(A) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements.

(B) The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities.

(2) The numerator of the receipts factor includes interest, dividends, net gains, but not less than zero, and other income from investment assets and activities and from trading assets and activities described in paragraph (1) of this subsection that are attributable to this state.

(A) The amount of interest, dividends, net gains, but not less than zero, and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.

(B) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (A) of paragraph (1) of this subsection from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities.

(C) The amount of interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions, but excluding amounts described in subparagraphs (A) or (B) of this paragraph, attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (B) of paragraph (1) of this subsection by a fraction, the numerator of which is the average value of such training assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.

(D) For purposes of this paragraph, average value shall be determined using the rules for determining the average value of tangible personal property set forth in subsections (c) and (d) of K.S.A. 79-1131.

(3) In lieu of using the method set forth in paragraph (2) of this subsection, the secretary of revenue may permit or require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this paragraph.

(A) The amount of interest, dividends, net gain, but not less than zero, and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.

(B) The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (A) of paragraph (1) of this subsection from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities.

(C) The amount of interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions, but excluding amounts described in subparagraphs (A) or (B) of this paragraph, attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (B) of paragraph (1) of this subsection by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.

(4) If the taxpayer elects or is required by the secretary of revenue to use the method set forth in paragraph (3) of this subsection, it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the secretary of revenue to use, or the secretary of revenue requires a different method.

(5) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one regular place of business and one such regular place of business is in this state and one such regular place of business is outside this state, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.

(n)

Other receipts.

To the extent not inconsistent with this act, the numerator of the receipts factor includes other receipts pursuant to the rules set forth in K.S.A. 79-3286, 79-3287, and 79-3288, and amendments thereto.

(o)

Attribution of certain receipts to commercial domicile.

All receipts which would be assigned under this section to a state in which the taxpayer is not taxable shall be included in the numerator of the receipts factor, if the taxpayer's commercial domicile is in this state.

History: L. 1996, ch. 270, § 3; July 1.

§ 79-1131 Same; property factor defined and described

(a)

General.

The property factor is a fraction, the numerator of which is the average value of real property and tangible personal property rented to the taxpayer that is located or used within this state during the taxable year, the average value of the taxpayer's real and tangible personal property owned that is located or used within this state during the taxable year, and the average value of the taxpayer's loans and credit card receivables that are located within this state during the taxable year, and the denominator of which is the average value of all such property located or used within and without this state during the taxable year.

(b)

Property included.

The property factor shall include only property the income or expenses of which are included or would have been included if not fully depreciated or expensed, or depreciated or expensed to a nominal amount in the computation of the apportionable income base for the taxable year.

(c)

Value of property owned by the taxpayer.

(1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation or amortization.

(2) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a loan is charged off in whole or in part for federal income tax purposes, the portion of the loan charged off is not outstanding. A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines which is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section.

(3) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a credit card receivable is charged off in whole or in part for federal income tax purposes, the portion of the receivable charged off is not outstanding.

(d)

Average value of property owned by the taxpayer.

The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two. If averaging on this basis does not properly reflect average value, the secretary of revenue may require averaging on a more frequent basis. The taxpayer may elect to average on a more frequent basis. When averaging on a more frequent basis is required by the secretary of revenue or is elected by the taxpayer, the same method of valuation must be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the secretary of revenue or the secretary of revenue requires a different method of determining average value.

(e)

Average value of real property and tangible personal property rented to the taxpayer.

(1) The average value of real property and tangible personal property that the taxpayer has rented from another and which is not treated as property owned by the taxpayer for federal income tax purposes, shall be determined annually by multiplying the gross rents payable during the taxable year by eight.

(2) Where the use of the general method described in this subsection results in inaccurate valuations of rented property, any other method which properly reflects the value may be adopted by the secretary of revenue or by the taxpayer when approved in writing by the secretary of revenue. Once approved, such other method of valuation must be used on all subsequent returns unless the taxpayer receives prior approval from the secretary of revenue or the secretary of revenue requires a different method of valuation.

(f)

Location of real property and tangible personal property owned by or rented to the taxpayer.

(1) Except as described in paragraph (2) of this subsection, real property and tangible personal property owned by or rented to the taxpayer is considered to be located within this state if it is physically located, situated or used within this state.

(2) Transportation property is included in the numerator of the property factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of value that is to be included in the numerator of this state's property factor is determined by multiplying the average value of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft everywhere. If the extent of the use of any transportation property within this state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.

(g)

Location of loans.

(1) (A) A loan is considered to be located within this state if it is properly assigned to a regular place of business of the taxpayer within this state.

(B) A loan is properly assigned to the regular place of business with which it has a preponderance of substantive contacts. A loan assigned by the taxpayer to a regular place of business without the state shall be presumed to have been properly assigned if:

(i) The taxpayer has assigned, in the regular course of its business, such loan on its records to a regular place of business consistent with federal or state regulatory requirements;

(ii) such assignment on its records is based upon substantive contacts of the loan to such regular place of business; and

(iii) the taxpayer uses such records reflecting assignment of loans for the filing of all state and local tax returns for which an assignment of loans to a regular place of business is required.

(C) The presumption of proper assignment of a loan provided in subparagraph (B) of paragraph (1) of this subsection may be rebutted upon a showing by the secretary of revenue, supported by a preponderance of the evidence, that the preponderance of substantive contacts regarding such loan did not occur at the regular place of business to which it was assigned on the taxpayer's records. When such presumption has been rebutted, the loan shall then be located within this state if:

(i) The taxpayer had a regular place of business within this state at the time the loan was made; and

(ii) the taxpayer fails to show, by a preponderance of the evidence, that the preponderance of substantive contacts regarding such loan did not occur within this state.

(2) In the case of a loan which is assigned by the taxpayer to a place without this state which is not a regular place of business, it shall be presumed, subject to rebuttal by the taxpayer on a showing supported by the preponderance of evidence, that the preponderance of substantive contacts regarding the loan occurred within this state if, at the time the loan was made the taxpayer's commercial domicile was within this state.

(3) To determine the state in which the preponderance of substantive contacts relating to a loan have occurred, the facts and circumstances regarding the loan at issue shall be reviewed on a case-by-case basis and consideration shall be given to such activities as the solicitation, investigation, negotiation, approval and administration of the loan.

As used in this paragraph:

(A) "Solicitation" may be either active or passive. Active solicitation occurs when an employee of the taxpayer initiates the contact with the customer. Such activity is located at the regular place of business which the taxpayer's employee is regularly connected with or working out of, regardless of where the services of such employee were actually performed. Passive solicitation occurs when the customer initiates the contact with the taxpayer. If the customer's initial contact was not at a regular place of business of the taxpayer, the regular place of business, if any, where the passive solicitation occurred is determined by the facts in each case.

(B) "Investigation" means the procedure whereby employees of the taxpayer determine the credit worthiness of the customer as well as the degree of risk involved in making a particular agreement. Such activity is located at the regular place of business which the taxpayer's employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed.

(C) "Negotiation" means the procedure whereby employees of the taxpayer and its customer determine the terms of the agreement such as the amount, duration, interest rate, frequency of repayment, currency denomination and security required. Such activity is located at the regular place of business which the taxpayer's employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed.

(D) "Approval" means the procedure whereby employees or the board of directors of the taxpayer make the final determination whether to enter into the agreement. Such activity is located at the regular place of business which the taxpayer's employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed. If the board of directors makes the final determination, such activity is located at the commercial domicile of the taxpayer.

(E) "Administration" means the process of managing the account. This process includes bookkeeping, collecting the payments, corresponding with the customer, reporting to management regarding the status of the agreement and proceeding against the borrower or the security interest if the borrower is in default. Such activity is located at the regular place of business which oversees this activity.

(h)

Location of credit card receivables.

For purposes of determining the location of credit card receivables, credit card receivables shall be treated as loans and shall be subject to the provisions of subsection (g) of this section.

(i)

Period for which properly assigned loan remains assigned.

A loan that has been properly assigned to a state shall, absent any change of material fact, remain assigned to such state for the length of the original term of the loan. Thereafter, such loan may be properly assigned to another state if such loan has a preponderance of substantive contact to a regular place of business there.

History: L. 1996, ch. 270, § 4; July 1.

§ 79-1132 Same; payroll factor defined and described

(a)

General.

The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid for both within and without this state during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.

(b)

Compensation relating to nonbusiness income and independent contractors.

The compensation of any employee for services or activities which are connected with the production of nonbusiness income, income which is not includable in the apportionable income base, and payments made to any independent contractor or any other person not properly classifiable as an employee shall be excluded from both the numerator and denominator of the factor.

(c)

When compensation paid in this state.

Compensation is paid in this state if any one of the following tests, applied consecutively, is met:

(1) The employee's services are performed entirely within this state;

(2) the employee's services are performed both within and without the state, but the service performed without the state is incidental to the employee's service within the state. The term "incidental" means any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction;

(3) if the employee's services are performed both within and without this state, the employee's compensation will be attributed to this state:

(A) If the employee's principal base of operations is within this state; or

(B) if there is no principal base of operations in any state in which some part of the services are performed, but the place from which the services are directed or controlled is in this state; or

(C) if the principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed but the employee's residence is in this state.

History: L. 1996, ch. 270, § 5; July 1.

§ 79-1133 Tax upon cessation of business as financial institution; computation

For taxpayers described in K.S.A. 79-1106, and amendments thereto, a tax is hereby imposed for the privilege of engaging in transactions or activity incidental or related to the cessation of doing business in this state, including cessation due to merger, consolidation, other combination, dissolution, liquidation or any other event. Such tax shall be measured by the net income for the tax year in which the taxpayer ceases to do business and shall be computed using the same applicable rates provided by K.S.A. 79-1107 or 79-1108, and amendments thereto. Such tax shall be due and owing within six months of the date on which the taxpayer ceases to do business. This section shall apply to all such privileges occurring on or after July 1, 1996.

History: L. 1996, ch. 270, § 6; July 1.

§ 79-1134 Supplemental to K.S.A. 79-1106 et seq

K.S.A. 79-1128 through 79-1133 shall be and constitute a part of and shall be supplemental to the privilege tax statutes enacted at K.S.A. 79-1106 et seq., and amendments thereto.

History: L. 1996, ch. 270, § 8; July 1.

§ 79-1135 Consolidated returns or combined reports required, when

(a) Any taxpayer described in K.S.A. 79-1106, and amendments thereto, which owns, capitalizes or utilizes an affiliate with one of the affiliate's purposes being to make, hold or manage for, or on behalf of, the taxpayer, investments in securities which the taxpayer would be permitted to make for its own account may be required to file consolidated returns or combined reports for purposes of determining the tax liability under article 11 of chapter 79 of the Kansas Statutes Annotated as if such taxpayer and affiliate were one entity.

(b) (1) Any taxpayer required to file a consolidated return or combined report under K.S.A. 79-1135, and amendments thereto, and required to determine an apportionment percentage under K.S.A. 79-1129, and amendments thereto, shall not include in either the numerator or the denominator of the receipts factor described in K.S.A. 79-1130, and amendments thereto, amounts received from or provided to an affiliate described in subsection (a) as consideration from investment assets and activities and trading assets and activities that represent inter-company transactions between the taxpayer and such affiliate; and

(2) receipts as described in subsection (m) of K.S.A. 79-1130, and amendments thereto, received by an affiliate described in subsection (a) shall be treated by a taxpayer required to file a consolidated return or combined report under K.S.A. 79-1135, and amendments thereto, as receipts of the taxpayer.

(c) For taxpayers described in K.S.A. 79-1106, and amendments thereto, the secretary of revenue may require returns on a consolidated basis or combined reporting and may distribute or allocate gross income, deductions, credits, or allowances between two or more organizations, trades or businesses, whether or not incorporated, or organized in the United States or Kansas or affiliated, owned or controlled directly or indirectly by the same interests, if the secretary of revenue determines such allocation is necessary to prevent evasion of taxes or to clearly reflect income of the organizations, trades or businesses.

(d) This section shall be and constitute a part of and shall be supplemental to the privilege tax statutes enacted at K.S.A. 79-1106 et seq., and amendments thereto.

History: L. 1998, ch. 194, § 1; July 1.

§ 79-1136 Application of act

The provisions of this act shall apply to all taxable years commencing after December 31, 1997.

History: L. 1998, ch. 194, § 4; July 1.

Article 12 Mutual Fire and Life Insurance Companies (Not in active use)

§ 79-1201 Repealed

Revisor's Note: New act, see chapter 40, article 28.

History: L. 1921, ch. 290, § 1; R.S. 1923, 79-1201; Repealed, L. 1970, ch. 184, § 12; January 1, 1971.

Article 13 Enumeration and Taxation of Dogs

§ 79-1301 Dogs as personalty; rights and restraints

A dog shall be considered as personal property and have all the rights and privileges and be subject to like lawful restraints as other livestock.

History: L. 1913, ch. 331, § 1; R.S. 1923, 79-1301; L. 1963, ch. 465, § 1; April 18.

§ 79-1302 Repealed

History: L. 1913, ch. 331, § 2; R.S. 1923, 79-1302; L. 1959, ch. 373, § 1; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1303 Repealed

History: L. 1913, ch. 331, § 3; R.S. 1923, 79-1303; L. 1959, ch. 365, § 21; Repealed, L. 1965, ch. 511, § 12; June 30.

§§ 79-1304 through 79-1306 Repealed

History: L. 1913, ch. 331, §§ 4 to 6; R.S. 1923, 79-1304 to 79-1306; Repealed, L. 1965, ch. 511, § 12; June 30.

Article 14 Property Valuation, Equalizing Assessments, Appraisers and Assessment of Property

§ 79-1401 Powers and duties of director of property valuation; meetings of county assessors, expenses

The said director of property valuation shall provide a uniform method of keeping the tax rolls and books relating to taxation in each county of the state and in the office of the director of accounts and reports and state treasurer. He or she shall formulate and send to the proper officer in each county all necessary forms not herein provided for, to be used in the listing, assessment, return of property, and collection of taxes. Said director of property valuation, shall from time to time, as often as may be necessary, visit each county in the state for the purpose of requiring the proper assessment and return of property, a uniform value thereof, and the use of forms and system of keeping accounts provided by law or by the director of property valuation.

The director of property valuation shall have general supervision and direction of the county assessors in the performance of their duties, and shall regulate and supervise the due performance thereof. The director of property valuation shall, at least once in two years, require the county assessors of the state to meet with the director of property valuation at the state capitol, upon a day designated, for the purpose of considering matters relating to taxation, to secure a uniform valuation throughout the state, and to discuss and formulate any needed changes in the laws relating to taxation or the forms or methods of keeping the books and accounts thereof. The actual and necessary expenses of county assessors in attending said meeting shall be paid by their respective counties.

History: L. 1907, ch. 408, § 8; July 1; R.S. 1923, 79-1401.

§ 79-1402 General supervision of taxation by director of property valuation; legislative recommendations; records and publications

The state director of property valuation shall have general supervision of the system of taxation throughout the state, shall have power to make a thorough investigation thereof, and shall formulate and recommend legislation for the improvement of the system and for the equalization of the taxation of the state. He or she shall keep in his or her office a public record of his or her acts and orders, and print from time to time such information as he or she may deem proper and as provided in K.S.A. 75-3048.

History: L. 1907, ch. 408, § 9; R.S. 1923, 79-1402; L. 1943, ch. 269, § 27; June 30.

§ 79-1403 Investigations; reports by local officers; testimony and production of books; witness fees; perjury

In making any investigation, the director of property valuation shall have power to require local officers whose duties pertain to the assessment and collection of taxes, or to the disbursement of public funds, to report to it in form as by him prescribed; to call upon individuals and corporations for information bearing upon the subject of taxation; to examine books and papers; to summon witnesses to appear and testify, and to produce books and papers before him at a time and place to be appointed by him; and, in case of the refusal of any person to obey his summons, to report the same to the attorney general, who shall thereupon institute proceedings in the proper court, to compel such obedience. In the discretion of the director of property valuation, fees may be allowed to witnesses, and, on the certificate of the director of property valuation, duly audited, paid by the state treasury for attendance and traveling. And any person testifying falsely shall be guilty of and be punished for perjury.

History: L. 1907, ch. 408, § 10; July 1; R.S. 1923, 79-1403.

§ 79-1404 General duties and powers of director of property valuation

It shall be the duty of the director of property valuation, and the director shall have the power and authority:

First.

To have and exercise general supervision over the administration of the assessment and tax laws of the state, over the county and district appraisers, boards of county commissioners, county boards of equalization, and all other boards of levy and assessment, to the end that all assessments of property, real, personal, and mixed, be made relatively just and uniform and at its true and full cash market value; to require all county and district appraisers, county commissioners and county boards of equalization, under penalty of forfeiture and removal from office as such appraisers or boards, to assess all property of every kind and character at its actual and full cash market value.

Second.

To confer with, advise and direct county and district appraisers, boards of commissioners, boards of equalization and others obligated under the law to make levies and assessments, as to their duties under the statutes of the state.

Third.

To direct proceedings, actions and prosecutions to be instituted to enforce the laws relating to the penalties, liabilities and punishment of public officers, persons and officers or agents of corporations for failure or neglect to comply with orders of the director of property valuation, or with the provisions of the statutes governing the return, assessment and taxation of property; and to cause complaints to be made against county and district appraisers, county commissioners, county boards of equalization, or other assessing or taxing officers, in the courts of proper jurisdiction, for their removal from office for official misconduct or neglect of duty.

Fourth.

To require the attorney general, or county attorneys in their respective counties, to assist in the commencement and prosecution of actions and proceedings for penalties, forfeitures, removals and punishments for violations of the laws of the state in respect to the assessment and taxation of property, or to represent the director of property valuation in any litigation in which the director may become involved in the discharge of the director's duties.

Fifth.

To require township, city, county, state or other public officers to report information as to the assessment of property, collection of taxes, receipts from licenses and other sources, the expenditure of public funds for all purposes, and such other information as may be needful or desirable in the work of the director of property valuation, in such form and upon such blanks as the director of property valuation may prescribe. Also, to make and prosecute such research and investigation as to the detailed properties of corporations, the business, income, reasonable expenditures and true values of the franchise and properties of all public service corporations doing business in this state, as will enable the director of property valuation to ascertain a fair and equitable basis of assessing the same and of making and recommending proper legislation to the legislature, from time to time, and to direct the local assessing and taxing officers in making such assessments.

Sixth.

To require individuals, partnerships, companies, associations, joint-stock companies and corporations to furnish information concerning their capital, funded or other debts, current assets and liabilities, value of property, earnings, operating and other expenses, taxes and other charges, and all other facts which may be needful or desirable to enable the director of property valuation to ascertain the value and relative burdens borne by all kinds of property in the state.

Seventh.

To summon witnesses from any part of the state to appear and give testimony, and to compel said witnesses to produce records, books, papers and documents relating to any subject or matter which the director of property valuation shall have authority to investigate or determine, subject to the restrictions of K.S.A. 79-1424 and amendments thereto.

Eighth.

To cause the deposition of witnesses residing within or without the state, or absent therefrom, to be taken, upon notice to the interested parties, if any, in like manner that depositions of witnesses are taken in civil actions pending in the district court, in any matter which the director of property valuation shall have authority to investigate and determine.

Ninth.

To investigate the work and methods of county and district appraisers, boards of county commissions and county boards of equalization in the assessment, equalization and taxation of all kinds of property, by visiting the counties of the state.

Tenth.

To carefully examine into all cases where evasion or violation of the laws for assessment and taxation of property is alleged, complained of, or discovered, and to ascertain wherein existing laws are defective, or are improperly or negligently administered, and to prepare and recommend measures best calculated to remedy the defects discovered.

Eleventh.

To investigate the tax systems of other states and countries, and to formulate and recommend such legislation as may be deemed expedient to prevent evasion of assessment and tax laws, and to secure just and equal taxation and improvement in the system of taxation in the state.

Twelfth.

To inquire into the system of accounting and auditing public funds in use in townships, cities, counties and state, and to devise and prescribe a uniform system of auditing and accounting of the receipts and disbursements of public funds in the municipalities of the state.

Thirteenth.

To consult and confer with the governor and attorney general of the state upon the subject of taxation, the administration of the laws in relation thereto, and the progress of the work of the director of property valuation, and to furnish the governor, from time to time, such assistance and information as the director may require.

Fourteenth.

To transmit to the governor and to each member of the legislature, 30 days before the meeting of the legislature, the report of the director of property valuation, covering the subject of assessment and taxation, the results of the investigations of the director of property valuation, the director's recommendations for improvement in the system of taxation in the state, together with such measures as may be formulated for the consideration of the legislature.

Fifteenth.

To make appraisement and assessment of all railroads and the property of railroad corporations, excepting such real estate as is not used in the daily operation of its railroad, of all telegraph lines and property, of all telephone lines and property, the property of all express companies, sleeping car companies, and private car lines, doing business within the state of Kansas, of gas pipe lines and property, of all oil pipe lines and property, of all street railroads, electric lines and property, and all express company property, within and without corporate limits of cities, doing business in the state.

Sixteenth.

To require any county board of equalization, at any time after its adjournment, to reconvene and to make such orders as the director of property valuation shall determine are just and necessary, and to direct and order such county boards of equalization to raise or lower the valuation of the property, real or personal, in any township or city, and to raise or lower the valuation of the property of any person, company, or corporation; and to order and direct any county board of equalization to raise or lower the valuation of any class or classes of property; and generally to do and perform any act or to make any order or direction to any county board of equalization or any county or district appraiser as to the valuation of any property or any class of property in any township, city or county which, in the judgment of said director of property valuation, may seem just and necessary, to the end that all property shall be valued and assessed in the same manner and to the same extent as any and all other property, real or personal, required to be listed for taxation.

Seventeenth.

To extend all statutory deadlines prescribed for the mailing of valuation notices, certification of appraisal rolls and the completion of valuation and classification hearings which, in the judgment of the director of property valuation, may seem just and necessary to secure the orderly operation of the system of property taxation within the state, except that the director shall not have the authority to extend the deadlines prescribed by K.S.A. 79-2005 and amendments thereto.

History: L. 1907, ch. 408, § 12; R.S. 1923, 79-1404; L. 1991, ch. 278, § 1; April 18.

§ 79-1404a Review of valuation changes of appraiser by director of property valuation

The director of property valuation shall have authority to review any valuation change made by a county or district appraiser pursuant to K.S.A. 79-1448 and 79-2005, and amendments thereto, or a hearing officer or panel pursuant to K.S.A. 79-1606, and amendments thereto, and may rescind such change upon written findings that such change has caused property not to be valued according to law, provided however, no valuation change shall be rescinded more than 60 days after the date of such change. Any party aggrieved by an order of the director of property valuation rescinding a valuation change may appeal such order to the state board of tax appeals as provided in K.S.A. 74-2438, and amendments thereto.

History: L. 1994, ch. 275, § 16; L. 2008, ch. 109, § 80; L. 2014, ch. 141, § 89; July 1.

§ 79-1404b Presentation of ratio study results and valuation appeals data to county commissioners by director of property valuation; when

In those counties which fail to meet the minimum requirements for substantial appraisal compliance, the director of property valuation shall present the most recent results of the ratio study, including the results of any audits to such board of county commissioners in an open meeting. As a part of such presentation, the director shall present a summary of the number of valuation appeals that were filed in that county and the outcomes of those protests that resulted in reduced valuations of property.

History: L. 2016, ch. 112, § 24; July 1.

§ 79-1405 Violation of laws and regulations by officers

The director of property valuation shall have the power and authority to prosecute any member of any board of county commissioners and any county, township or city assessor for a violation of any of the rules and regulations which may be prescribed, or the violation of any statute of this state relating to the assessment and valuation of property and the collection of taxes.

History: L. 1907, ch. 408, § 13; July 1; R.S. 1923, 79-1405.

§ 79-1406 Repealed

History: L. 1907, ch. 408, § 14; R.S. 1923, 79-1406; L. 1963, ch. 460, § 5; L. 1969, ch. 433, § 3; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1407 Tax exempt bonds

No person shall be required to list for taxation any state, county, city, school district and municipal bonds of the state of Kansas, or other evidences of indebtedness issued by municipal corporations of this state.

History: L. 1925, ch. 279, § 1; L. 1930, ch. 17, § 1; March 11.

§ 79-1408 Interrogatories and questions for taxpayers; penalties

The director of property valuation shall prepare all necessary interrogatories and questions to be answered by the taxpayers and persons of each county, and the form of the same, and the oath to be annexed thereto, and the same shall be correctly and duly answered by each and every person required to list property for taxation; and if any person shall knowingly answer falsely any question or interrogatory so prepared and submitted to such person, such person shall be deemed guilty of perjury, and upon conviction shall be sentenced to the custody of the secretary of corrections for not less than one nor more than five years; and if any person shall willfully refuse to answer such questions and interrogatories and take and subscribe the oath annexed thereto, the person shall be deemed guilty of a misdemeanor, and upon conviction shall be fined not less than $100 nor more than $1,000, or by imprisonment in the county jail of not less than six months nor more than 12 months, or by both such fine and imprisonment, at the discretion of the court.

History: L. 1907, ch. 408, § 16; R.S. 1923, 79-1408; L. 1990, ch. 309, § 83; May 24.

§ 79-1409 Board of equalization; powers; appeals; meetings; changes in valuation, effect; certifications of equalized values; apportionment of state taxes

The state board of tax appeals shall constitute a state board of equalization, and shall equalize the valuation and assessment of property throughout the state; and shall have power to equalize the assessment of all property in this state between persons, firms or corporations of the same assessment district, between cities and townships of the same county, and between the different counties of the state, and the property assessed by the director of property valuation in the first instance. And any person feeling aggrieved by the action of the county board of equalization may, within 45 days after the decision of such board, appeal to the state board of equalization for a determination of such grievance.

It shall be the duty of the state board of equalization to meet in its office, or such other place within any county of the state as the board shall deem advisable, to perform the work of equalization as hereinbefore provided. Such board may meet at any time on and after January 15 of each year as it may deem necessary and shall meet from the 11th day of July, or the next following business day if such date shall fall on a day other than a regular business day, until the 25th day of August as the business of the board shall require. Whenever the valuation of any taxing district, whether it be a county, township, city, school district, or otherwise, is changed by the state board of equalization, the officers of such taxing district who have authority to levy taxes are required to use the valuation so fixed by the state board as a basis for making their levies for all purposes. In case a change is made in such valuation, the state board of tax appeals shall certify the equalized values to the director of property valuation who shall forthwith certify the same to the county clerks of the several counties of the state or to the counties affected by such equalization; and such county clerks shall carry the real estate and tangible personal property on the tax rolls of their respective counties at the valuations so certified, and shall use such valuations as the basis of all tax levies, except that any certification received by a county clerk after August 25 may be handled as an abatement, refund, or added tax as the certification warrants.

The director of property valuation shall apportion the amount of tax for state purposes as required by law to be raised in the state among the several counties therein, in proportion to the valuation of the taxable property therein for the year as equalized by the state board of equalization.

History: L. 1933, ch. 117, § 1 (Special Session); L. 1959, ch. 374, § 1; L. 1963, ch. 466, § 1; L. 1969, ch. 368, § 2; L. 2008, ch. 109, § 81; L. 2014, ch. 141, § 90; July 1.

§ 79-1410 Abstracts of assessments, tabulations

It shall be the duty of the director of property valuation to compile the abstracts of assessments received from county clerks into tabular statements convenient for the use of the state board of tax appeals.

History: L. 1876, ch. 34, § 80; L. 1909, ch. 243, § 10; R.S. 1923, 79-1410; L. 1959, ch. 372, § 2; L. 2008, ch. 109, § 82; L. 2014, ch. 141, § 91; July 1.

§ 79-1411 Repealed

History: L. 1907, ch. 408, § 19, L. 1908, ch. 76, § 1; L. 1909, ch. 251, § 4; L. 1911, ch. 320, § 1; R.S. 1923, 79-1411; L. 1959, ch. 365, § 22; L. 1961, ch. 438 § 1; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1411a County as assessment administration unit

Beginning with the year 1956 the county is hereby declared to be the governmental unit charged with the primary responsibility for the administration of all laws relating to the assessment, review, equalization, extension and collection of real and personal property taxes, except as hereinafter provided.

History: L. 1955, ch. 398, § 1; January 1, 1956.

§ 79-1411b County separate assessment district; appraiser to list and appraise property; appointment of employees; education requirements

Each county shall comprise a separate assessment district, and the county or district appraiser shall have the duty of appraising all tangible property in this county.

Notwithstanding the provisions of this act which require persons, associations, companies or corporations to list tangible personal property for assessment, the county or district appraiser also shall have the duty of listing and appraising all taxable tangible personal property in his or her county used in, owned by, held, or in possession of a business. The board of county commissioners of each county, after consultation with the county or district appraiser, shall determine the most practical method of providing for the listing and appraising of all tangible property as provided herein.

The county or district appraiser shall with the consent of the board of county commissioners appoint such township trustees, assistants, appraisers, and other employees as are required to carry out the provisions of this act and to give such assistance to taxpayers as is necessary.

The county commissioners shall require every employee performing appraisal analysis functions to attend appraisal schools conducted or approved by the director of property valuation or to establish to the satisfaction of the director of property valuation that such employee has received the necessary training to perform such functions.

History: L. 1965, ch. 511, § 8; L. 1992, ch. 178, § 1; July 1.

§ 79-1412 Repealed

History: L. 1909, ch. 251, § 6; R.S. 1923, 79-1412; L. 1939, ch. 317, § 1; L. 1951, ch. 479, § 1; L. 1959, ch. 365, § 23; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1412a Powers and duties of county and district appraisers; limitations

(a) County appraisers and district appraisers shall perform the following duties:

First.

Install and maintain such records and data relating to all property in the county, taxable and exempt, as may be required by the director of property valuation.

Second.

Annually, as of January 1, supervise the listing and appraisal of all real estate and personal property in the county subject to taxation except state-appraised property.

Third.

Attend meetings of the county board of equalization for the purpose of aiding such board in the proper discharge of its duties, making all records available to the county board of equalization.

Fourth.

Prepare the appraisal roll and certify such rolls to the county clerk.

Fifth.

Supervise the township trustees, assistants, appraisers and other employees appointed by the appraiser in the performance of their duties.

Sixth.

The county appraiser or district appraiser in setting values for various types of personal property, shall conform to the values for such property as shown in the personal property appraisal guides devised or prescribed by the director of property valuation.

Seventh.

Carry on continuously throughout the year the process of appraising real property.

Eighth.

If the county appraiser or district appraiser deems it advisable, such appraiser may appoint one or more advisory committees of not less than five persons representative of the various economic interests and geographic areas of the county to assist the appraiser in establishing unit land values, unit values for structures, productivity, classifications for agricultural lands, adjustments for location factors, and generally to advise on assessment procedures and methods.

Ninth.

Perform such other duties as may be required by law.

(b) The director of property valuation shall give notice to county and district appraisers and county boards of equalization of any proposed changes in the guides, schedules or methodology for use in valuing property prescribed to the county and district appraisers for use in setting values for property within the county or district. Such notice shall also be published in the Kansas register and shall provide that such changes are available for public inspection. Changes and modifications in guides, schedules or methodology for use in valuing property which are prescribed by the director of property valuation for use by county and district appraisers on or after July 1 in any year shall not be utilized in establishing the value, for the current tax year, of any property, the value of which has previously been established for such year.

(c) Notwithstanding the provisions of this section, the county appraiser or the county appraiser's designee shall not, at any time, request the following from a taxpayer:

(1) Any appraisal of the property that was conducted for the purpose of obtaining mortgage financing;

(2) any fee appraisal with an effective date more than 12 months prior to January 1 of the valuation year under appeal; or

(3) documents detailing individual lease agreements.

Nothing in this subsection shall prohibit the county appraiser or the county appraiser's designee from requesting a certified rent roll from the taxpayer.

History: L. 1955, ch. 398, § 3; L. 1959, ch. 365, § 24; L. 1965, ch. 511, § 9; L. 1971, ch. 293, § 2; L. 1977, ch. 328, § 2; L. 1985, ch. 313, § 1; L. 1987, ch. 375, § 1; L. 2016, ch. 112, § 11; July 1.

§ 79-1412b Repealed

History: L. 1955, ch. 398, § 5; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1412c Repealed

History: L. 1955, ch. 398, § 3; L. 1959, ch. 365, § 24; L. 1965, ch. 511, § 9; L. 1971, ch. 293, § 2; L. 1977, ch. 328, § 2; L. 1985, ch. 314, § 8; Repealed, L. 1987, ch. 375, § 2; July 1.

§ 79-1412d Application of K.S.A. 79-1412a

The provisions of this act shall apply to all tax years commencing after December 31, 1984.

History: L. 1985, ch. 313, § 2; July 1.

§ 79-1413 Repealed

Revisor's Note: New act, see 79-1413a.

History: L. 1909, ch. 251, § 7; R.S. 1923, 79-1413; Repealed, L. 1959, ch. 375, § 2; June 30.

§ 79-1413a Reappraisal of property within county, when; designation of appraisers; costs, how paid; accessibility of records; forms, approval, filing; written agreements, requirements; restrictions on use of valuations of appraisers; bond, conditions

Whenever upon complaint made to the state board of tax appeals by the county or district appraiser, the director of property valuation, the board of county commissioners, any property taxpayer or any aggrieved party, and a summary proceeding in that behalf had, it shall be made to appear to the satisfaction of the board that the appraisal of real property or tangible personal property in any county is not in substantial compliance with law and the guidelines and timetables prescribed by the director of property valuation, and that the interest of the public will be promoted by a reappraisal of such property, the state board of tax appeals shall order a reappraisal of all or any part of the property in such county to be made by one or more persons, to be appointed by the state board of tax appeals for that purpose, the expense of any such reappraisal to be borne by the county in which is situated the property to be reappraised. The state board of tax appeals shall, upon its own motion, after a hearing, order any such reappraisal if it shall clearly appear that the public would be benefited thereby. Due notice of the time and place fixed for such summary proceeding or hearing shall be mailed to the county clerk and the county appraiser of the county involved, the director of property valuation, who shall be made a party to the proceeding, and to the party filing any such complaint. Upon ordering such a reappraisal the state board of tax appeals may order all or any part of the taxable real property and tangible personal property in such county to be reappraised, and shall either designate the person or persons to make such reappraisal or permit the board of county commissioners to designate such persons with the approval of the state board of tax appeals. The cost of such reappraisal shall be paid from the county general fund, the special countywide reappraisal fund established by K.S.A. 79-1482, and amendments thereto, the issuance of no-fund warrants, or from a special assessment equalization fund in the same manner as provided in K.S.A. 79-1607 and 79-1608, and amendments thereto, for the payment of the cost of appraisals.

The persons designated shall have access to all official records in the office of the county clerk, county treasurer, county or district appraiser and register of deeds pertaining to listing, assessment, and records of the ownership of real property and tangible personal property in such county and all powers of the assessing officials in the county pertaining to discovery of taxable property in the county. They shall reappraise all such taxable real property and tangible personal property in the county as shall be ordered by the state board of tax appeals, except that which is state assessed. They shall make such reappraisals on forms approved by the state director of property valuation, and shall deliver the same upon completion to the county or district appraiser who shall retain the same for use of the county or district appraisers, the county board of equalization and the state board of tax appeals.

No person, firm, corporation, partnership, or association, other than the county or district appraiser, shall commence any contracted reappraisal in any county until a written agreement has been entered into between the board of county commissioners and such contractors. Such agreement shall specifically set out the duties of the reappraisers, and shall contain a stipulation that upon completion of the reappraisal and before final payment to the reappraisers under the agreement, the reappraisers will notify each taxpayer of its recommendations as to the valuation of such taxpayer's property, by mailing such information to the taxpayer's last known address. Pursuant to K.S.A. 79-1460, and amendments thereto, the county or district appraiser shall not be authorized to use the valuations submitted by the reappraisers in the year the reappraisal was completed unless the reappraisal was completed and delivered to such appraiser on or before March 1 of the year in which the valuations established are used as a basis for the levy of taxes. Before entering into any contracts with the county commissioners for reappraisals of property, every reappraiser shall give and file with the board of county commissioners a good and sufficient surety bond by a surety company authorized to do business in this state, approved by the county attorney, in such sum as the county commissioners shall fix, but not less than the amount to be received by the reappraisers under the terms of the contract and conditioned for the faithful performance of all duties required of such reappraisers under the terms of the contract entered into, and the execution and filing of such a bond shall be a condition precedent to entering into such an agreement and to commencing work on the contract of reappraisal. Such bond shall be further conditioned to remain in full force and effect for one year subsequent to the date of the printing of the change of value notices for the reappraisal and the delivery thereof to the county or district appraiser.

History: L. 1959, ch. 375, § 1; L. 1961, ch. 439, § 1; L. 1991, ch. 162, § 1; L. 2008, ch. 109, § 83; L. 2014, ch. 141, § 92; July 1.

§ 79-1414 Repealed

History: L. 1907, ch. 408, § 20; L. 1911, ch. 320, § 2; R.S. 1923, 79-1414; L. 1933, ch. 308, § 1; Repealed, L. 1974, ch. 112, § 11; June 1, 1976.

§ 79-1415 Repealed

History: L. 1907, ch. 408, § 21; R.S. 1923, 79-1415; Repealed, L. 1945, ch. 207, § 3; March 8.

§ 79-1416 Repealed

History: L. 1907, ch. 408, § 22; R.S. 1923, 79-1416; Repealed, L. 1974, ch. 112, § 11; June 1, 1976.

§ 79-1417 Repealed

History: L. 1907, ch. 408, § 23; R.S. 1923, 79-1417; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1418 Repealed

History: L. 1907, ch. 408, § 24; R.S. 1923, 79-1418; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1419 Repealed

History: L. 1907, ch. 408, § 25; L. 1908, ch. 77, § 1; R.S. 1923, 79-1419; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1420 Fraudulent listing or evasion by taxpayer; penalty; prosecution

If any person, association, company, corporation or personal property tax rendition form preparer shall knowingly give a false or fraudulent list, schedule or statement, or shall willfully fail to disclose any personal property taxable under the laws of this state, or shall understate the value of any property taxable under the laws of this state, or shall fail or refuse to deliver to the county or district appraiser, when called upon to do so by a certified letter from such appraiser, a list of the taxable property which under the laws of this state is required to be listed, or shall temporarily convert any part of such property into property not taxable or shall remove such property from the county or state for the fraudulent purpose of preventing such property from being listed, or of evading the payment of taxes thereon, or shall transfer or transmit any property to any person with such intent, he or she or it shall be guilty of a misdemeanor, and subject to a fine of not less than $1,000 nor more than $5,000. Prosecutions under this act shall be brought by the county or district attorney in the district court of the proper county, upon the verified complaint of the director of property valuation or the county or district appraiser.

History: L. 1907, ch. 408, § 27; R.S. 1923, 79-1420; L. 1965, ch. 511, § 10; L. 1992, ch. 165, § 3; July 1.

§ 79-1421 Repealed

History: L. 1907, ch. 408, § 28; R.S. 1923, 79-1421; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1422 Penalty for late filing of or failure to file statement listing property; abatement of penalty

(a) Any person required to file a statement listing property for assessment and taxation purposes under the provisions of this act who fails to make and file such statement on or before the date prescribed by K.S.A. 79-306, and amendments thereto, shall be subject to a penalty as follows:

The appraiser shall, after having ascertained the assessed value of the property of such taxpayer, add 2% thereto as a penalty for late filing if the failure is not for more than one month, with an additional 2% for each additional month or fraction thereof during which such failure continues, not exceeding 10% in the aggregate.

For good cause shown the appraiser shall extend a reasonable amount of time in which to make and file such statement. Such request for extension of time must be in writing and shall state just and adequate reasons on which the request shall be granted. For purposes of this section, on and after January 1, 2022, good cause for granting an extension of time in which to make and file a statement listing property for assessment and taxation purposes shall include, but not be limited to, the previous classification of the property as real property or as a fixture to real property. Such previous classification shall specifically include, but not be limited to, machinery and equipment used in the grain storage and processing industry, ethanol processing industry or other biofuels processing industry that had been previously classified as real property or fixtures to real property.

(b) If, within one year following the date prescribed by K.S.A. 79-306, and amendments thereto, any person shall fail to make and file the statement listing property for assessment and taxation purposes or shall fail to make and file a full and complete statement listing property for such purposes, the appraiser shall proceed to ascertain the assessed value of the property of such taxpayer, and for this purpose the appraiser may examine under oath any person or persons whom the appraiser deems to have knowledge thereof. The appraiser shall, after having ascertained the assessed value of such property, add 12.5% thereto as a penalty for failure to file such statement or for failure to file a full and complete statement.

(c) The state board of tax appeals or the county appraiser shall abate any penalty imposed under the provisions of this section and order the refund of the abated penalty, whenever excusable neglect on the part of the person required to make and file the statement listing property for assessment and taxation purposes is shown, or whenever the property for which a statement of assessment was not filed as required by law is repossessed, judicially or otherwise, by a secured creditor and such secured creditor pays the taxes and interest due. For purposes of this section, on and after January 1, 2022, excusable neglect for the failure to make and file a statement listing property for assessment and taxation purposes shall include, but not be limited to, the previous classification of the property as real property or as a fixture to real property. Such previous classification shall specifically include, but not be limited to, machinery and equipment used in the grain storage and processing industry, ethanol processing industry or other biofuels processing industry that had been previously classified as real property or fixtures to real property.

History: L. 1907, ch. 408, § 29; R.S. 1923, 79-1422; L. 1965, ch. 511, § 11; L. 1968, ch. 95, § 3; L. 1972, ch. 355, § 2; L. 1980, ch. 311, § 1; L. 1981, ch. 378, § 1; L. 1985, ch. 315, § 1; L. 1987, ch. 372, § 2; L. 1995, ch. 39, § 2; L. 2008, ch. 109, § 84; L. 2014, ch. 141, § 93; L. 2024, ch. 81, § 11; July 1.

§ 79-1423 Repealed

History: L. 1907, ch. 408, § 30; R.S. 1923, 79-1423; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1424 Bank records not to be produced or examined

No director of property valuation, assessor or deputy assessor shall have the power to compel the production of the books of any bank or to examine the same; nor shall any officer of any bank be compelled to testify as to the contents of any of the records of such bank, or produce the same for the purpose of examination in any matter relating to assessment or taxation.

History: L. 1907, ch. 408, § 31; July 1; R.S. 1923, 79-1424.

§ 79-1425 Repealed

History: L. 1907, ch. 408, § 32; R.S. 1923, 79-1425; L. 1959, ch. 365, § 25; Repealed, L. 1965, ch. 511, § 12; June 30.

§ 79-1426 Failure of officer to list or properly value, assess or equalize property for taxation unlawful; penalties; variance in appraisal permitted

Any county assessor, deputy assessor, member of the state board of tax appeals, director of property valuation, or member of any county board of equalization, and every other person whose duty it is to list, value, assess or equalize real estate or tangible personal property for taxation, who shall knowingly or willfully fail to list or return for assessment or valuation any real estate or personal property, or who shall knowingly or willfully list or return for assessment or valuation any real estate or personal property at other than as provided for by law, or any assessing officer who shall willfully or knowingly fail to appraise, assess or to equalize the values of any real estate or tangible personal property, which is subject to general property taxes as required in K.S.A. 79-1439, and amendments thereto, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not exceeding $500 or imprisonment in the county jail for a period not exceeding 90 days, and in addition thereto shall forfeit his or her office if an officer mentioned herein. A variance of 10% in the appraisal at fair market value in money shall not be considered a violation of this section.

History: L. 1907, ch. 408, § 39; L. 1909, ch. 251, § 8; R.S. 1923, 79-1426; L. 1963, ch. 460, § 6; L. 1969, ch. 433, § 4; L. 2008, ch. 109, § 85; L. 2014, ch. 141, § 94; July 1.

§ 79-1427 Repealed

History: L. 1876, ch. 34, § 60; L. 1919, ch. 307, § 1; R.S. 1923, 79-1427; L. 1963, ch. 460, § 7; L. 1969, ch. 433, § 5; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1427a Listing and appraisal of escaped personal property; duties of county appraisers; penalty; distribution of taxes paid under protest; grievances, procedure

(a) If, the county appraiser discovers, after the tax roll has been certified to the county clerk, that any tangible personal property subject to taxation has been omitted from the tax rolls, the county clerk shall place such property on the tax roll as an added tax, or if, after one year from the date prescribed by K.S.A. 79-306, and amendments thereto, for the listing of tangible personal property, the county appraiser discovers that any tangible personal property that was subject to taxation in any year or years within two years next preceding January 1 of the calendar year in which it was discovered has not been listed or has been underreported for whatever reason, such property shall be deemed to have escaped taxation. In the case of property that has not been listed, it shall be the duty of the county appraiser to list and appraise such property and, for an added tax, add penalties as prescribed in K.S.A. 79-1422, and amendments thereto, and that shall be designated on the appraisal roll as an added appraisal for that year. In the case of property that has escaped taxation, it shall be the duty of the county appraiser to list and appraise such property and add 12.5% thereto as a penalty for escaping taxation for each such year during which such property was not listed, and it shall be designated on the appraisal roll as "escaped appraisal" for each such preceding year or years. In the case of property that has been listed but underreported, it shall be the duty of the county appraiser to list and appraise the underreported portion of such property and add 12.5% thereto as a penalty for escaping taxation for each such year during which such property was underreported, and it shall be designated on the appraisal roll as "escaped appraisal" for each such preceding year or years. The county clerk, upon receipt of the valuation for such property in either of the aforementioned cases, shall place such property on the tax rolls and compute the amount of tax due based upon the mill levy for the year or years in which such tax should have been levied, and shall certify such amount to the county treasurer as an added or escaped appraisal. The amount of such tax shall be due immediately and payable within 45 days after the issuance of an additional or escaped property tax bill by the county treasurer. The county treasurer may not distribute any taxes assessed under this section and paid under protest by the taxpayer pursuant to K.S.A. 79-2005, and amendments thereto, until such time as the appeal is final. No interest shall be imposed unless the tax remains unpaid after such 45-day period. Taxes levied pursuant to this section that remain unpaid after such 45-day period shall be deemed delinquent and the county treasurer shall collect and distribute such tax in the same manner as prescribed by law for the collection and distribution of other taxes levied upon property that are delinquent. If the owner of such property is deceased, taxes charged as herein provided shall be levied against the estate of such deceased person for only two calendar years preceding death and shall be paid by the legal representative or representatives of such estate. In the event that such escaped appraisal is due to any willful or clerical error of the county appraiser, such property shall be appraised at its fair market value and no penalty shall be added.

(b) A taxpayer with a grievance as to any penalty applied pursuant to the provisions of this section, may appeal to the state board of tax appeals on forms prepared by the state board of tax appeals and provided by the county appraiser. The state board of tax appeals shall have the authority to abate any penalty imposed under the provisions of this section and order the refund of the abated penalty, whenever excusable neglect on the part of the person required to make and file the statement listing property for assessment and taxation purposes is shown, or whenever the property that has been deemed to have escaped taxation is repossessed, judicially or otherwise, by a secured creditor and such creditor pays the taxes and interest due. No interest shall be assessed during the pendency of this appeal.

(c) The provisions of this section shall apply to any tangible personal property discovered during the calendar years 1982, 1983, 1984 and any year thereafter to have escaped appraisal and taxation during any such year or any year within two years next preceding any such year.

History: L. 1985, ch. 309, § 1; L. 1987, ch. 372, § 3; L. 1990, ch. 346, § 1; L. 1995, ch. 38, § 1; L. 2004, ch. 173, § 10; L. 2008, ch. 109, § 86; L. 2014, ch. 141, § 95; L. 2024, ch. 81, § 12; July 1.

§ 79-1427b Waiver of penalties on certain escaped personal property

The board of county commissioners of any county may waive any penalty imposed pursuant to the provisions of K.S.A. 79-1422 and 79-1427a, and amendments thereto, with respect to the discovery in 1993 or 1994 of tangible personal property which has been omitted from the tax rolls or the value of which has been underreported, and any interest that may have accrued thereon, in all cases where the appropriate total amount of tax due on such property as a result of such omission or underreporting is paid in 1994.

History: L. 1994, ch. 219, § 2; April 21.

§ 79-1427c Escaped personal property discovered between January 1, 1994, and March 14, 1995; duties of appraisers; penalty waived, when

If, from and after January 1, 1994, and on or before March 14, 1995, the county or district appraiser discovers any taxable tangible personal property which would be subject to a penalty pursuant to the provisions of K.S.A. 79-1427a, and amendments thereto, such property shall be listed and appraised and taxes collected thereon as provided in K.S.A. 79-1427a, and amendments thereto; however, such property shall not be liable for any taxes that would have been levied against such property for any year prior to the 1992 tax year and no penalty shall be added. Notwithstanding the foregoing, the penalties prescribed by K.S.A. 79-1427a, and amendments thereto, shall be added whenever any person, association, company or corporation that has fraudulently failed to list or has fraudulently underreported tangible property required to be listed for taxation as provided in K.S.A. 79-306, and amendments thereto. Such fraud shall be proven by clear and convincing evidence.

History: L. 1994, ch. 275, § 14; July 1.

§ 79-1428 Repealed

History: L. 1885, ch. 198, § 2; R.S. 1923, 79-1428; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-1429 Repealed

History: L. 1885, ch. 198, § 3; R.S. 1923, 79-1429; L. 1959, ch. 365, § 26; L. 1969, ch. 310, § 59; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1430 Repealed

History: L. 1876, ch. 34, § 66; R.S. 1923, 79-1430; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1431 Repealed

History: L. 1876, ch. 34, § 68; L. 1877, ch. 43, § 1; R.S. 1923, 79-1431; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1432 Repealed

History: L. 1876, ch. 34, § 70; R.S. 1923, 79-1432; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1433 Repealed

History: L. 1876, ch. 34, § 71; R.S. 1923, 79-1433; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1434 Merchandise of transient dealers; notification of county appraiser; valuation of property; payment of tax due; penalties

(a) Whenever, subsequent to January 1 of any year, any person, firm or corporation brings or sends into any county from outside of the state any stock of goods or merchandise which is subject to taxation and which is to be sold or disposed of in a place of business temporarily occupied for their sale, without the intention of engaging in permanent trade in such place, the owner, consignee or person in charge of such goods or merchandise shall immediately notify the city, township or county appraiser. The appraiser shall at once proceed to value the stock of goods or merchandise at its fair market value. Upon the valuation, the owner, consignee or person in charge of such goods or merchandise shall pay to the county treasurer a tax at the rate assessed for state, county, local and other municipal purposes in the taxing district in the current year if the levies have all been determined. If the levies have not been determined, the rate of tax chargeable shall be the rate in such district for all purposes for the preceding year.

(b) It shall not be lawful to sell or dispose of any goods or merchandise referred to in subsection (a) in such taxing district until the appraiser has been notified as provided by subsection (a) and the tax assessed thereon paid to the county treasurer. If owner, consignee or person in charge of the stock of such goods or merchandise fails to notify the appraiser or to pay the tax as herein required or proceeds to sell or dispose [of] all or part of such stock before the payment of any tax levied on account thereof, the owner of such goods or merchandise shall forfeit to the county for the use of the taxing district entitled to such tax a sum equal to twice the amount of tax levied as provided in subsection (a) on account of such stock.

(c) If the person, firm or corporation owning or managing a stock of goods or merchandise referred to in subsection (a) refuses to pay the tax levied as provided in subsection (a) upon demand by the appraiser, the county treasurer shall at once issue a tax warrant to the sheriff of the county, which warrant shall include as the amount to be collected both tax and penalty and the sheriff shall immediately upon receipt of such warrant proceed to collect the taxes and penalty the same as upon execution and shall return such warrant within 60 days from the date thereof.

(d) Every person, firm or corporation bringing into any county of this state from outside of the state goods or merchandise after January 1 shall be deemed subject to the provisions of this section unless such goods or merchandise is exempt from taxation.

(e) No mistake in the name of the owner of the goods or merchandise shall affect the right to recover the penalty provided by this section.

History: L. 1915, ch. 367, § 1; R.S. 1923, 79-1434; L. 1959, ch. 365, § 27; L. 1986, ch. 370, § 3; March 27.

§ 79-1435 Repealed

History: L. 1949, ch. 224, § 1; L. 1965, ch. 516, § 1; L. 1967, ch. 489, § 1; L. 1972, ch. 362, § 1; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1436 Repealed

History: L. 1949, ch. 224, § 2; L. 1965, ch. 516, § 2; L. 1967, ch. 489, § 2; L. 1972, ch. 362, § 2; L. 1974, ch. 428, § 1; L. 1982, ch. 397, § 1; L. 1989, ch. 2, § 7 (Special Session); L. 1991, ch. 162, § 8; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1436a Repealed

History: L. 1967, ch. 489, § 3; L. 1969, ch. 435, § 1; L. 1972, ch. 362, § 3; L. 1985, ch. 311, § 5; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1436b Repealed

History: L. 1969, ch. 435, § 2; L. 1972, ch. 363, § 1; L. 1974, ch. 428, § 2; L. 1976, ch. 423, § 1; L. 1978, ch. 396, § 2; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1437 Repealed

History: L. 1949, ch. 224, § 3; L. 1965, ch. 516, § 3; L. 1967, ch. 489, § 4; L. 1972, ch. 362, § 4; L. 1974, ch. 428, § 3; L. 1982, ch. 397, § 2; L. 1985, ch. 311, § 6; L. 1986, ch. 374, § 1; L. 1989, ch. 2, § 8 (Special Session); Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1437a Repealed

History: L. 1967, ch. 489, § 5; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1437b Repealed

History: L. 1971, ch. 298, § 1; Repealed, L. 1985, ch. 314, § 30; July 1.

§ 79-1437c Real estate sales validation questionnaires; required to accompany transfers of title; retention time; use of information

No deed or instrument providing for the transfer of title to real estate or affidavit of equitable interest in real estate shall be recorded in the office of the register of deeds unless such deed, instrument or affidavit shall be accompanied by a real estate sales validation questionnaire completed by the grantor or grantee or the agent of such grantor or grantee concerning the property transferred. Such questionnaire shall not be filed of record by the register of deeds but shall be retained for a period of five years at which time they shall be destroyed. The register of deeds shall in conjunction with the county clerk use the information derived from such questionnaires in cooperating with and assisting the director of property valuation in developing the information as provided for in K.S.A. 79-1487, and amendments thereto.

History: L. 1991, ch. 162, § 3; L. 1992, ch. 159, § 1; L. 1992, ch. 282, § 18; L. 1995, ch. 252, § 25; January 1, 1996.

§ 79-1437d Same; devised by director of property valuation; approval by legislature; information to be contained therein

The real estate sales questionnaire shall be devised by the director of property valuation, and the director shall furnish copies thereof to the register of deeds. Upon proposing modifications or changes to the real estate sales validation questionnaire devised and used prior to 1992 or any validation questionnaire approved by the legislature in 1992 or thereafter, the director of property valuation shall submit such proposal to the legislature. Upon the failure of the legislature to enact legislation modifying the director's proposal within 60 days of submission thereof, such proposal shall be deemed to be approved, and the director's modified questionnaire may be utilized at anytime thereafter. The questionnaire shall be devised to obtain information regarding the identification and location of the property, name and address of the purchaser, sales price, date of sale, the classification and subclassification to which such property belongs, nature and circumstances peculiar to the sale, whether any personal property was included in the sales price, whether the purchaser assumed any mortgages or liens, loans, leases or taxes, the method of financing, whether any special assessments are levied against the property and such other information as the director of property valuation shall require. No information shall be requested in such questionnaire which would require the disclosure of the interest rate paid by the purchaser or the specific term of any mortgage.

History: L. 1991, ch. 162, § 4; July 1.

§ 79-1437e Same; inapplicability to certain transfers of title

(a) The real estate sales validation questionnaire required by this act shall not apply to transfers of title:

(1) Recorded prior to the effective date of this act;

(2) made solely for the purpose of securing or releasing security for a debt or other obligation;

(3) made for the purpose of confirming, correcting, modifying or supplementing a deed previously recorded, and without additional consideration;

(4) by way of gift, donation or contribution stated in the deed or other instrument;

(5) to cemetery lots;

(6) by leases and transfers of severed mineral interests;

(7) to or from a trust, and without consideration;

(8) resulting from a divorce settlement where one party transfers interest in property to the other;

(9) made solely for the purpose of creating a joint tenancy or tenancy in common;

(10) by way of a sheriff's deed;

(11) by way of a deed which has been in escrow for longer than five years;

(12) by way of a quit claim deed filed for the purpose of clearing title encumbrances;

(13) when title is transferred to convey right-of-way or pursuant to eminent domain;

(14) made by a guardian, executor, administrator, conservator or trustee of an estate pursuant to judicial order;

(15) when title is transferred due to repossession; or

(16) made for the purpose of releasing an equitable lien on a previously recorded affidavit of equitable interest, and without additional consideration.

(b) When a real estate sales validation questionnaire is not required due to one or more of the exemptions provided in subsection (a), the exemption shall be clearly stated on the document being filed.

History: L. 1991, ch. 162, § 5; L. 1992, ch. 159, § 2; L. 1994, ch. 275, § 12; L. 2002, ch. 22, § 1; July 1.

§ 79-1437f Same; disposition and use of contents thereof, to and by whom

Except as otherwise provided by K.S.A. 79-1460, and amendments thereto, contents of the real estate sales validation questionnaire shall be made available only to the following people for the purposes listed hereafter:

(a) County officials for cooperating with and assisting the director of property valuation in developing the information as provided for in K.S.A. 79-1487, and amendments thereto;

(b) any property owner, or the owner's representative, for prosecuting an appeal of the valuation of such owner's property or for determining whether to make such an appeal, but access shall be limited to the contents of those questionnaires concerning the same constitutionally prescribed subclass of property as that of such owner's property;

(c) the county appraiser and appraisers employed by the county for the appraisal of property located within the county;

(d) appraisers licensed or certified pursuant to K.S.A. 58-4101 et seq., and amendments thereto, for appraisal of property and preparation of appraisal reports;

(e) financial institutions for conducting appraisals and evaluations as required by federal and state regulators;

(f) the county appraiser or the appraiser's designee, hearing officers or panels appointed pursuant to K.S.A. 79-1602 or 79-1611, and amendments thereto, and the state board of tax appeals for conducting valuation appeal proceedings;

(g) the board of county commissioners for conducting any of the board's statutorily prescribed duties;

(h) the director of property valuation for conducting any of the director's statutorily prescribed duties; and

(i) a person licensed pursuant to the real estate brokers' and salespersons' act for purposes of fulfilling such person's statutory duties and providing information on market value of property to clients and customers.

History: L. 1991, ch. 162, § 6; L. 1992, ch. 282, § 19; L. 1999, ch. 123, § 2; L. 2002, ch. 23, § 1; L. 2006, ch. 151, § 3; L. 2007, ch. 63, § 1; L. 2008, ch. 109, § 87; L. 2014, ch. 141, § 96; July 1.

§ 79-1437g Same; penalty for violations

Any person who shall falsify the value of real estate transferred shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined not more than $500.

History: L. 1991, ch. 162, § 7; L. 1992, ch. 159, § 3; April 30.

§ 79-1438 Repealed

History: L. 1949, ch. 224, § 4; Repealed, L. 1965, ch. 516, § 7; June 30.

§ 79-1439 Appraisal of real and tangible personal property at fair market value in money; exceptions; rate of assessment

(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.

§ 79-1439a Classification of certain not-for-profit organization real property; assessment rate

(a) In accordance with and for the purposes of section 1 of article 11 of the Kansas constitution, real property, to the extent herein specified, which is owned and operated by a not-for-profit organization not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8) or (10) of subsection (c) of section 501 of the federal internal revenue code, as in effect on January 1, 1994, is hereby included in subclass (4) of class 1 for property tax classification purposes, and shall be assessed at the rate of 12% of its fair market value. With respect to real property owned and operated by a not-for-profit organization not subject to federal income taxation pursuant to paragraph (2) of subsection (c) of section 501 of such code, this section shall only apply to real property leased to a not-for-profit organization not subject to federal income taxation pursuant to paragraph (8) of subsection (c) of section 501 of such code. With respect to real property owned and operated by a not-for-profit organization not subject to federal income taxation pursuant to paragraph (7) of subsection (c) of section 501 of such code, this section shall only apply to land which is actually and regularly used for recreational purposes, other than land accommodating buildings or other improvements associated with such recreational land. Nothing in this subsection shall be deemed to affect the exemption of property by law or the Kansas constitution.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 1993.

History: L. 1994, ch. 333, § 1; May 19.

§ 79-1439b Recoupment of tax when property classified under K.S.A. 79-1439a changes use; procedures

(a) Whenever land owned and operated by a not-for-profit organization not subject to federal income taxation pursuant to paragraph (7) of subsection (c) of section 501 of the federal internal revenue code, as in effect on January 1, 1994, which has been assessed at the rate of 12%, is devoted to a use other than recreational, there shall be a recoupment of property taxes which were not levied upon such land by reason of the assessment thereof at the rate of 12% pursuant to K.S.A. 79-1439a in the amount and manner hereinafter provided. Land which has been assessed at the rate of 12% pursuant to K.S.A. 79-1439a shall be assessed at the rate required by section 1 of article 11 of the Kansas constitution as of January 1 of the year next following its change to a use other than recreational. Property taxes in the amount of the difference between the amount of taxes actually levied upon such land for the two years next preceding the year of such change in assessment rate, and the amount of taxes which would have been levied upon such land for such years had it been assessed at the rate required by section 1 of article 11 of the Kansas constitution shall be determined as of such date and shall become due and payable in such year as provided by K.S.A. 79-2004, and amendments thereto. A lien for such taxes shall attach to the land subject to the same on November 1 in the year such taxes become due and all such taxes remaining due and unpaid after the date prescribed for the payment thereof shall be collected in the manner provided by law for the collection of delinquent taxes. Moneys collected from the recoupment tax hereunder shall be credited by the county treasurer to the several taxing subdivisions within which such land is located in the proportion that the total tangible property tax levies made in the preceding year for each such taxing subdivision bear to the total of all such levies made in that year by all such taxing subdivisions. Such moneys shall be credited to the general fund of the taxing subdivision or if such taxing subdivision is making no property tax levy for the support of a general fund such moneys may be credited to any other tangible property tax fund of general application of such subdivision.

(b) Whenever the use of any such land which is changed to a use other than recreational, the owner thereof shall give written notice of such change to the county appraiser within 60 days after such change in use. Such written notice shall specify the date of such change in use. Failure to give such notice within the time prescribed shall subject the owner of such land to a penalty equal to 10% of the recoupment tax herein provided.

(c) Whenever the use of land is changed from a recreational use to another use as a result of an exercise by the state of Kansas or any political or taxing subdivision thereof of the power of eminent domain or the threat or imminence thereof, no recoupment tax shall be levied and collected upon such land under the provisions of this section.

(d) The county treasurer shall each year include a notice with the tax statement for all land assessed under the provisions of this act, which shall inform the taxpayer that such land has been valued under the provisions of this act and that a recoupment of additional property taxes shall be made if the use of such land is changed to a use other than recreational. Such notice also shall inform the taxpayer of the duty to report any such change in use and of the penalty prescribed for failure to make such report.

History: L. 1994, ch. 333, § 2; May 19.

§ 79-1439c Classification of certain commercial and industrial machinery and equipment

(a) In accordance with the provisions of section 1 of article 11 of the Kansas constitution, all commercial and industrial machinery and equipment which is not classified for property tax purposes within subclass (5) of class 2 of section 1 of article 11 of the Kansas constitution, and which is not being used for the production of income by the owner thereof, is hereby defined as all other tangible personal property not otherwise specifically classified, and shall be classified for property tax purposes within subclass 6 of class 2 of section 1 of article 11 of the Kansas constitution. All such property shall be valued in accordance with the provisions of K.S.A. 79-503a, and amendments thereto.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 1994.

History: L. 1995, ch. 254, § 2; July 1.

§ 79-1439d Classification for property tax purposes of wireless communication towers, broadcast towers and antenna and relay sites

(a) In accordance with the provisions of section 1 of article 11 of the Kansas constitution, all wireless communication towers, broadcast towers, antenna and relay sites, except public utility property valued and assessed pursuant to K.S.A. 79-5a01 et seq., and amendments thereto, are hereby defined as commercial and industrial machinery and equipment, and shall be classified for property tax purposes as tangible personal property within subclass 5 of class 2 of section 1 of article 11 of the Kansas constitution. All such property shall be valued in accordance with the provisions of subsection (b)(2)(E) of K.S.A. 79-1439, and amendments thereto.

(b) The provisions of this section shall apply to all taxable years commencing after December 31, 2002.

History: L. 2004, ch. 171, § 12; July 1.

§ 79-1439e Classification for property tax purposes of a bed, body or box that is used in business and is attached to a motor vehicle by the motor vehicle manufacturer

In accordance with the provisions of section 1 of article 11 of the Constitution of the State of Kansas, a bed, body or box that is regularly used predominantly in a business or industry and is attached to a motor vehicle, except for a bed, body or box that is attached to the motor vehicle by the motor vehicle manufacturer, shall be classified for property tax purposes within subclass 5 of class 2 of section 1 of article 11 of the Constitution of the State of Kansas. All such property shall be valued in accordance with the provisions of subsection (b)(2)(E) of K.S.A. 79-1439, and amendments thereto. The provisions of this section shall be effective on and after July 1, 2008.

History: L. 2008, ch. 182, § 10; June 5.

§ 79-1440 Repealed

History: L. 1963, ch. 460, § 8; L. 1964, ch. 33, § 1 (Budget Session); L. 1967, ch. 490, § 1; Repealed, L. 1985, ch. 314, § 30; July 1.

§ 79-1441 Repealed

History: L. 1963, ch. 460, § 9; L. 1967, ch. 489, § 6; L. 1972, ch. 342, § 91; L. 1974, ch. 428, § 4; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1441a Repealed

History: L. 1967, ch. 489, § 7; L. 1974, ch. 428, § 5; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1442 Repealed

History: L. 1965, ch. 516, § 4; L. 1972, ch. 362, § 5; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1443 Repealed

History: L. 1965, ch. 516, § 5; L. 1972, ch. 362, § 6; L. 1974, ch. 428, § 6; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1444 Same; technical advisory committee; membership; qualifications; compensation and allowances; duties; additional advisory committee, appointment

There is hereby established a technical advisory committee on the assessment-sales ratio study. The committee shall consist of three (3) members, appointed by and serving at the pleasure of the secretary of revenue. Members of the committee shall have such education and training as may be necessary to advise the director in the methodology of conducting studies of the type required under the provisions of this act. Members of the advisory committee on assessment-sales ratio study attending meetings of such committee, or attending a subcommittee meeting thereof authorized by such committee, shall be paid amounts provided in subsection (e) of K.S.A. 75-3223 and amendments thereto. The same shall be paid from appropriations to the secretary of revenue upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or a person or persons designated by him or her.

It shall be the duty of the committee to advise and consult with and assist the director in the review and evaluation of the procedures used by the director of property valuation in making the assessment-sales ratio study and to make recommendations for any changes deemed necessary. It shall be the duty of the board of regents and the administration of each of the state institutions thereunder to authorize any staff members so selected to participate as members in the activities of such committee. The secretary of revenue may appoint an additional advisory committee of not to exceed seven (7) members to serve at his or her pleasure.

History: L. 1965, ch. 516, § 6; L. 1968, ch. 208, § 14; L. 1972, ch. 362, § 7; L. 1974, ch. 348, § 99; L. 1974, ch. 428, § 7; L. 1975, ch. 416, § 27; July 1.

§ 79-1445 County appraisal and assessment; annual determination of compliance; publication of list of counties; redetermination; rules and regulations; limitation on requirement to reappraise

The director of property valuation shall examine the tax assessment and appraisal of taxable property of the various counties prior to September 15 each year. On or before such date, the director shall publish a list of those counties which the director finds to be in substantial compliance with the requirements of law to appraise taxable property of all counties at fair market value in money as defined by K.S.A. 79-503a, and amendments thereto. Such list shall also specify those counties which are not in substantial compliance with the law and every county shall be named in one or the other parts of such list. After such list has been initially published, the board of county commissioners of any county may petition the director of property valuation to reconsider the determination as published in such list. Such petition shall be made in compliance with rules and regulations adopted by the secretary of revenue as to the form and contents of any such petition. Such rules and regulations shall provide for a redetermination, in every case, after the final completion of any countywide reappraisement. The director of property valuation may make a redetermination as to any county whether the same is petitioned for or not.

History: L. 1968, ch. 223, § 1; L. 1969, ch. 433, § 11; L. 1972, ch. 342, § 92; L. 1985, ch. 311, § 7; July 1.

§ 79-1446 Repealed

History: L. 1968, ch. 223, § 2; L. 1969, ch. 433, § 12; Repealed, L. 1992, ch. 131, § 10; July 1.

§ 79-1447 Repealed

History: L. 1969, ch. 433, § 7; L. 1972, ch. 363, § 2; Repealed, L. 1974, ch. 429, § 1; July 1.

§ 79-1448 Appeals by taxpayers from classification or valuation of property; informal meeting, requirements; adjustments in classification or valuations by hearing officers or panels

Any taxpayer may complain or appeal to the county appraiser from the classification or appraisal of the taxpayer's property by giving notice to the county appraiser within 30 days subsequent to the date of mailing of the valuation notice required by K.S.A. 79-1460, and amendments thereto, for real property, and on or before May 15 for personal property. The county appraiser or the appraiser's designee shall arrange to hold an informal meeting with the aggrieved taxpayer with reference to the property in question. At such meeting it shall be the duty of the county appraiser or the county appraiser's designee to initiate production of evidence to substantiate the valuation of such property, including, a summary of the reasons that the valuation of the property has been increased over the previous year, any assumptions used by the county appraiser to determine the value of the property and a description of the individual property characteristics, property specific valuation records and conclusions. The taxpayer shall be provided with the opportunity to review the data sheets applicable to the valuation approach utilized for the subject property. The county appraiser shall take into account any evidence provided by the taxpayer which relates to the amount of deferred maintenance and depreciation for the property. In any appeal from the appraisal of leased commercial and industrial property, the county or district appraiser's appraised value shall be presumed to be valid and correct and may only be rebutted by a preponderance of the evidence, unless the property owner furnishes the county or district appraiser a complete income and expense statement for the property for the three years next preceding the year of appeal within 30 calendar days following the informal meeting. In any appeal from the reclassification of property that was classified as land devoted to agricultural use for the preceding year, the taxpayer's classification of the property as land devoted to agricultural use shall be presumed to be valid and correct if the taxpayer provides an executed lease agreement or other documentation demonstrating a commitment to use the property for agricultural use, if no other actual use is evident. The county appraiser may extend the time in which the taxpayer may informally appeal from the classification or appraisal of the taxpayer's property for just and adequate reasons. Except as provided in K.S.A. 79-1404, and amendments thereto, no informal meeting regarding real property shall be scheduled to take place after May 15, nor shall a final determination be given by the appraiser after May 20. Any final determination shall be accompanied by a written explanation of the reasoning upon which such determination is based when such determination is not in favor of the taxpayer. The county appraiser shall not increase the appraised valuation of the property as a result of the informal meeting. Any taxpayer who is aggrieved by the final determination of the county appraiser may appeal to the hearing officer or panel appointed pursuant to K.S.A. 79-1611, and amendments thereto, and such hearing officer, or panel, for just cause shown and recorded, is authorized to change the classification or valuation of specific tracts or individual items of real or personal property in the same manner provided for in K.S.A. 79-1606, and amendments thereto. In lieu of appealing to a hearing officer or panel appointed pursuant to K.S.A. 79-1611, and amendments thereto, any taxpayer aggrieved by the final determination of the county appraiser, except with regard to land devoted to agricultural use, wherein the value of the property, is less than $3,000,000, as reflected on the valuation notice, or the property constitutes single family residential property, may appeal to the small claims and expedited hearings division of the state board of tax appeals within the time period prescribed by K.S.A. 79-1606, and amendments thereto. Any taxpayer who is aggrieved by the final determination of a hearing officer or panel may appeal to the state board of tax appeals as provided in K.S.A. 79-1609, and amendments thereto. An informal meeting with the county appraiser or the appraiser's designee shall be a condition precedent to an appeal to the county or district hearing panel.

History: L. 1969, ch. 433, § 13; L. 1982, ch. 391, § 34; L. 1988, ch. 377, § 1; L. 1989, ch. 293, § 1; L. 1990, ch. 90, § 4; L. 1991, ch. 279, § 4; L. 1992, ch. 282, § 3; L. 1997, ch. 126, § 43; L. 1998, ch. 146, § 9; L. 1999, ch. 123, § 3; L. 2000, ch. 139, § 5; L. 2008, ch. 109, § 88; L. 2013, ch. 87, § 13; L. 2014, ch. 141, § 10; L. 2016, ch. 112, § 13; L. 2021, ch. 58, § 8; July 1.

§ 79-1449 Repealed

History: L. 1969, ch. 433, § 14; Repealed, L. 1982, ch. 391, § 39; July 1.

§ 79-1450 Construction of certain terms

If the words "justifiable value" or "fair market value" appear elsewhere in the statutes of the state, they shall be construed to mean "fair market value" as defined in K.S.A. 79-503a.

History: L. 1969, ch. 433, § 15; L. 1982, ch. 391, § 35; July 1.

§ 79-1451 Repealed

History: L. 1978, ch. 396, § 1; Repealed, L. 1991, ch. 162, § 9; July 1.

§§ 79-1452 through 79-1454 Repealed

History: L. 1978, ch. 393, §§ 1 to 3; Repealed, L. 1985, ch. 314, § 30; July 1.

§ 79-1455 County as separate appraisal district; duty to appraise annually

Except for counties which have formed appraisal districts pursuant to K.S.A. 19-425 et seq., each county shall comprise a separate appraisal unit, and the county appraiser shall have the duty of appraising all real and tangible personal property in the county.

District appraisers shall have the powers and duties vested in and imposed upon county appraisers. The term "county appraiser" shall be construed to include "district appraiser."

Each year all taxable and exempt real and tangible personal property shall be appraised by the county appraiser at its fair market value as of January 1 in accordance with K.S.A. 79-503a unless otherwise specified by law.

History: L. 1982, ch. 391, § 1; July 1.

§ 79-1456 Duty of county appraiser to follow guidelines, procedures and methodologies of director of property valuation; deviation from appraisal guides, when; rules and regulations

(a) The county appraiser shall follow the policies, procedures and guidelines of the director of property valuation in the performance of the duties of the office of county appraiser. If the director has developed and adopted methodologies to value specific types of property, the county appraiser shall be required to follow such methodologies. Prior to January 1, 2017, the secretary of revenue shall adopt rules and regulations necessary to administer the provisions of this section.

(b) The county appraiser in establishing values for various types of personal property, shall conform to the values for such property as shown in the personal property appraisal guides prescribed or furnished by the director of property valuation. The county appraiser may deviate from the values shown in such guides on an individual piece of personal property for just cause shown and in a manner consistent with achieving fair market value.

History: L. 1982, ch. 391, § 3; L. 2016, ch. 112, § 14; July 1.

§ 79-1457 Availability of forms to general public; extensions of time for filing, when; use of approved forms

On or before January 1 of each year, the county appraiser shall make available to the general public all necessary blank forms prescribed or approved by the director of property valuation which are required to be completed and returned by the public to the county appraiser. The county appraiser may extend the time in which the taxpayer shall complete and file such forms. A request for extension of time shall be in writing, state just and adequate reasons on which the request may be granted, and be received by the county appraiser on or before the date on which such forms are required to be filed.

The county appraiser shall utilize those forms prescribed or approved by the director of property valuation in making the appraisal of all real and tangible personal property.

History: L. 1982, ch. 391, § 4; July 1.

§ 79-1458 Installation and maintenance of records and data; open to public inspection

The county appraiser shall install and maintain such records and data relating to the identification and appraisal of all property in the county, taxable and exempt, required by the director of property valuation.

Except as specifically provided by law, all records of the county appraiser, the county board of equalization and the director of property valuation relating to the identification and appraisal of real and personal property shall be open at all reasonable times to public inspection.

History: L. 1982, ch. 391, § 5; July 1.

§ 79-1459 Preparation of appraisal maps, contents; preparation of appraisal records for improvements and land parcels, contents; classification of property

The county appraiser shall:

(a) Prepare an accurate appraisal map or maps of all real estate located within the county showing: (1) All property or lot lines; (2) the names of all subdivisions; (3) block and lot numbers in urban areas; (4) township, range and government lot numbers in rural areas; (5) street names; (6) rights-of-way; (7) recorded easements; and (8) any other information which may be deemed useful to the county appraiser or may be prescribed by the director of property valuation. Such map or maps shall be kept current.

(b) Utilizing the format prescribed or approved by the director of property valuation, prepare an appraisal record for each improvement or group of buildings which constitute an improvement showing: (1) Name and address of the property owner, the property classification and subclassification, taxing unit number and the city or township in which the property is located; (2) a description of the parcel of real estate adequate to locate it upon the appraisal map; (3) a sketch of the improvements showing dimensions and, if found advisable, a photograph thereof; (4) the building classification category as provided for by law; (5) the major building specifications of each improvement; (6) the exact or approximate date of construction of each building; (7) the value indicators of the improvements; (8) the appraised valuation of the improvements and of the land and of their total; and (9) any other information which may be deemed useful to the county appraiser or may be prescribed by the director of property valuation. If the appraisal record is contained on a card, the card shall have enough columns to show changes and appraised value of five or more successive years.

(c) Utilizing the format prescribed or approved by the director of property valuation, prepare an appraisal record for each parcel of land showing: (1) The name and address of the property owner, the property classification and subclassification, taxing unit number and city or township in which the property is located; (2) a description of the parcel of land adequate to locate it upon the appraisal map; (3) a sketch of the dimension of the land and the total number of acres; (4) the general classification of land as provided for by law and, if agricultural, the number of acres in each capability classification; (5) the value indicators of the appraised land; (6) the appraisal of the land and of the improvements and of their total; and (7) any other information which may be deemed useful to the county appraiser or may be prescribed by the director of property valuation. If the appraisal record is contained on a card, the card shall have enough columns to show changes and appraised value of five or more successive years.

(d) If it is found advisable, combine the land appraisal record and the improvements appraisal record provided for in subsections (b) and (c) showing all information required therein.

(e) Annually, as of January 1, classify all taxable and exempt real and personal property into one of the following classifications:

Residential.

Residential property shall include all land and improvements utilized or intended to be utilized as a dwelling or home, including all land and improvements whether or not contiguous to the land accommodating a dwelling or home used to store household goods and personal effects not used for the production of income.

Commercial.

Commercial property shall include all land and improvements utilized or intended to be utilized as a business or income producing enterprise and all personal property subject to ad valorem taxation listed on commercial personal property statements.

Agricultural.

Agricultural property shall include all land and improvements utilized or intended to be utilized for the production of livestock or crops and all personal property listed on agricultural personal property statements.

State Appraised.

State appraised property shall include all property designated by statute to be appraised by the director of the division of property valuation.

Public Service.

Public service property shall include all land and improvements utilized for benevolent, charitable, religious or governmental purposes and all personal property listed on public service personal property statements.

The county appraiser shall, annually, as of January 1, subclassify each major classification of all taxable and exempt, real and personal property in a manner prescribed by the director of the division of property valuation.

History: L. 1982, ch. 391, § 6; L. 2004, ch. 173, § 12; July 1.

§ 79-1460 Notification of taxpayer of change in classification or appraised valuation of property, contents; duties of appraiser regarding valuation increase of commercial real property; amendment of appraisal rolls by county appraiser; guide to the property tax appeals process

(a) The county appraiser shall notify each taxpayer in the county annually on or before March 1 for real property and May 1 for personal property, by mail directed to the taxpayer's last known address, of the classification and appraised valuation of the taxpayer's property, except that, the valuation for all real property shall not be increased unless the record of the latest physical inspection was reviewed by the county or district appraiser, and documentation exists to support such increase in valuation in compliance with the directives and specifications of the director of property valuation, and such record and documentation is available to the affected taxpayer. Alternatively, the county appraiser may transmit the classification and appraised valuation to the taxpayer by electronic means if such taxpayer consented to service by electronic means.

(b) The valuation for all real property also shall not be increased solely as the result of normal repair, replacement or maintenance of existing structures, equipment or improvements on the property. For the next two taxable years following the taxable year that the valuation for commercial real property has been reduced due to a final determination made pursuant to the valuation appeals process, the county appraiser shall review the computer-assisted mass-appraisal of the property and if, the valuation in either of those two years exceeds the value of the previous year by more than 5%, excluding new construction, change in use or change in classification, the county appraiser shall either:

(1) Adjust the valuation of the property based on the information provided in the previous appeal; or

(2) order an independent fee simple appraisal of the property to be performed by a Kansas certified real property appraiser.

(c) When the valuation for real property has been reduced due to a final determination made pursuant to the valuation appeals process for the prior year, and the county appraiser has already certified the appraisal rolls for the current year to the county clerk pursuant to K.S.A. 79-1466, and amendments thereto, the county appraiser may amend the appraisal rolls and certify the changes to the county clerk to implement the provisions of this subsection and reduce the valuation of the real property to the prior year's final determination, except that such changes shall not be made after October 31 of the current year.

(d) (1) The notice provided under subsection (a) shall specify:

(A) Separately for the previous tax year and the current tax year, the appraised and assessed values for each property class identified on the parcel;

(B) the uniform parcel identification number prescribed by the director of property valuation; and

(C) a statement of the taxpayer's right to appeal, the procedure to be followed in making such appeal and the availability without charge of the guide devised pursuant to subsection (g).

(2) Such notice may, and if the board of county commissioners so require, shall provide the parcel identification number, address and the sale date and amount of any or all sales utilized in the determination of appraised value of residential real property.

(e) In any year in which no change in appraised valuation of any real property from its appraised valuation in the next preceding year is determined, an alternative form of notification which has been approved by the director of property valuation may be utilized by a county.

(f) Failure to timely mail or receive such notice shall in no way invalidate the classification or appraised valuation as changed. The secretary of revenue shall adopt rules and regulations necessary to implement the provisions of this section.

(g) There shall be provided to each taxpayer, upon request, a guide to the property tax appeals process. The director of the division of property valuation shall devise and publish such guide and shall provide sufficient copies thereof to all county appraisers. Such guide shall include, but not be limited to:

(1) A restatement of the law which pertains to the process and practice of property appraisal methodology, including the contents of K.S.A. 79-503a and 79-1460, and amendments thereto;

(2) the procedures of the appeals process, including the order and burden of proof of each party and time frames required by law; and

(3) such other information deemed necessary to educate and enable a taxpayer to properly and competently pursue an appraisal appeal.

(h) As used in this section:

(1) "New construction" means the construction of any new structure or improvements or the remodeling or renovation of any existing structures or improvements on real property.

(2) "Normal repair, replacement or maintenance" does not include new construction.

(3) "Taxpayer" means the person in ownership of the property as indicated on the records of the office of register of deeds or county clerk and includes the lessee of such property if the lease agreement has been recorded or filed in the office of the register of deeds and the real property or improvement thereon is subject of a lease agreement.

History: L. 1982, ch. 391, § 7; L. 1985, ch. 314, § 9; L. 1987, ch. 376, § 1; L. 1988, ch. 377, § 2; L. 1990, ch. 90, § 5; L. 1991, ch. 279, § 1; L. 1992, ch. 282, § 4; L. 1994, ch. 275, § 1; L. 1997, ch. 126, § 28; L. 1999, ch. 123, § 4; L. 1999, ch. 126, § 6; L. 2005, ch. 161, § 1; L. 2014, ch. 141, § 11; L. 2016, ch. 112, § 15; L. 2021, ch. 9, § 2; L. 2023, ch. 92, § 6; July 1.

§ 79-1460a Publication of results of market study analysis

Annually, at least 10 business days prior to the mailing of change of valuation notices pursuant to K.S.A. 79-1460, and amendments thereto, the county or district appraiser shall cause to be published in the official county newspaper and on the official county website, if the county maintains a county website, the results of the market study analysis as prescribed by the director of the division of property valuation of the department of revenue.

History: L. 1991, ch. 279, § 2; L. 2016, ch. 112, § 16; July 1.

§ 79-1461 Investigation of property when no statement filed; listing by appraiser and notice to taxpayer; assistance of county attorney

If any person refuses or fails to complete and deliver to the county appraiser a form of such person's property as required by law, or if the county appraiser shall be of the opinion that any form filed is not adequate or does not truly represent the property to be appraised, the county appraiser shall investigate, identify, list and value such property.

The county appraiser shall list such property in the name of the owner and within five days of ascertaining the fair market value of such property shall provide a notice of such listing and value to the owner.

The appraiser may request the county or district attorney or county counselor to subpoena and examine under oath any person or persons, records or documents that it is reasonable to believe would be useful in identifying and determining the value of the property located within the county.

History: L. 1982, ch. 391, § 8; July 1.

§ 79-1462 Same; refusal to give evidence; penalty

If any person required by the county appraiser to give evidence as to any property, real or personal, refuses to be sworn or affirmed, or if having been sworn or affirmed, refuses to answer the questions or answers falsely or refuses to produce the records or documents touching the subject of inquiry, such person, upon conviction thereof, shall be fined in any sum not more than $500 nor less than $10, or imprisoned in the county jail not exceeding six months, or both.

History: L. 1982, ch. 391, § 9; July 1.

§ 79-1463 Notice of violations to county attorney

The county appraiser shall notify the county or district attorney or the county counselor of all violations by any taxpayer of any provisions of the law relating to the appraisal of property and to sign and verify the complaints or information with respect thereto when prepared by such officer. The county or district attorney shall prosecute all such violations brought to such officer's attention.

History: L. 1982, ch. 391, § 10; July 1.

§ 79-1464 Repealed

History: L. 1982, ch. 391, § 11; Repealed, L. 1988, ch. 377, § 15; July 1.

§ 79-1465 Duty to make changes in classification and value of property, when

The county appraiser shall have the authority and duty to make any necessary changes to the classification or appraised value of property that has been transmitted to the county clerk prior to certification of the appraisal rolls.

History: L. 1982, ch. 391, § 12; July 1.

§ 79-1466 Transmission of completed real property appraisals to county clerk, when; contents

Commencing on January 1 of each year, the county or district appraiser shall transmit the taxable real property appraisals and the exempt real property appraisals to the county clerk continually upon the completion thereof.

Upon completion of transmission of such appraisals to the county clerk, on or before June 1 of each year, the county or district appraiser shall deliver a document certifying that such appraisals constitute the complete appraisal rolls for real property.

The taxable real property appraisal roll shall consist of all real property appraisals which in aggregate list all taxable land and improvements located within the county.

The exempt real property appraisal roll shall consist of all real property appraisals which in aggregate list all exempt land and improvements located within the county.

All transmissions required by this section may be made electronically.

History: L. 1982, ch. 391, § 13; L. 1992, ch. 282, § 5; L. 1994, ch. 71, § 1; L. 2016, ch. 66, § 2; July 1.

§ 79-1467 Transmission of completed personal property appraisals to county clerk, when; contents

Commencing on January 1 of each year, the county or district appraiser shall transmit the taxable personal property appraisals to the county clerk continually upon the completion thereof. Upon completion of transmission of such appraisals to the county clerk, on or before June 1 each year, the county or district appraiser shall deliver a document certifying that such appraisals constitute the complete appraisal rolls for personal property except for personal property which may be subject to investigation and valuation pursuant to law or personal property which may have escaped appraisal in any year, in which cases the appraiser shall transmit to the clerk, upon completion, the appraisals of such property and the clerk shall add the same to the taxable personal property roll at such time.

The taxable personal property roll shall consist of all personal property appraisals completed by the county or district appraiser.

The exempt personal property roll shall include all personal property appraisals completed by the county or district appraiser on personal property that is exempt from ad valorem taxation and is required to be listed with the county or district appraiser.

All transmissions required by this section may be made electronically.

History: L. 1982, ch. 391, § 14; L. 1985, ch. 315, § 2; L. 1987, ch. 377, § 1; L. 1992, ch. 282, § 6; L. 1994, ch. 71, § 2; L. 2016, ch. 66, § 3; July 1.

§ 79-1467a Repealed

History: L. 1982, ch. 391, § 14; L. 1985, ch. 311, § 8; Repealed, L. 1987, ch. 377, § 2; July 1.

§ 79-1467b Transmission of exempt property rolls to director of property valuation; annual report, submission to legislature

On or before July 1 of each year the county clerk of each county shall transmit copies of the current year's exempt real property appraisal and exempt personal property rolls as certified pursuant to K.S.A. 79-1466 and 79-1467, and amendments thereto, and copies of all property exemption claim forms claiming K.S.A. 79-201a

Second

or section 13 of article 11 of the Kansas constitution as the basis for such exemption for the current year filed pursuant to K.S.A. 79-210, and amendments thereto, to the director of property valuation in the manner prescribed by the director. It shall be the duty of the director to prepare an annual report compiling the valuations of property exempted pursuant to K.S.A. 79-201a

Second

and section 13 of article 11 of the Kansas constitution and submit it to the standing committee on taxation of the house and the standing committee on assessment and taxation of the senate, or their successors, at the beginning of each regular session of the legislature.

History: L. 1994, ch. 187, § 5; January 1, 1995.

§ 79-1468 Preparation and furnishing of taxing unit map by county clerk to county appraiser; contents

On or before July 15, 1987, and on or before January 15 of each year thereafter, the county clerk shall prepare and forward to the county appraiser, director of property valuation and the state-assessed public utilities located in the county which are valued and assessed pursuant to K.S.A. 79-5a01 et seq., and amendments thereto, a taxing unit map showing the number and metes and bounds of every taxing unit or any portion of a taxing unit located within the county as the same exists on December 31 of the preceding year. In any year that such map would be identical to the most recently furnished map, the county clerk shall so certify in writing on or before January 15 in lieu of forwarding such map.

History: L. 1982, ch. 391, § 15; L. 1987, ch. 373, § 1; July 1.

§ 79-1469 Showing by taxing unit number on appraisal record of property location

The county appraiser shall show on each appraisal record, the aggregate of which constitutes the appraisal roll, the taxing unit number corresponding to the location of the property appraised. In determining such taxing unit numbers, the county appraiser shall use the taxing unit map or maps furnished and constructed for the current taxing year by the county clerk.

History: L. 1982, ch. 391, § 16; July 1.

§ 79-1470 Request of county board of equalization for changes in classification or valuation of property, when

In any year during the month of April for real property and the month of May for personal property, the county appraiser may request the hearing officer or panel or the county board of equalization to order a change in the classification or the appraised valuation of property on the certified appraisal rolls. Any such request shall be made to the hearing officer or panel, if any, otherwise to the county board of equalization. The county appraiser shall utilize the appraised value appeal form when making such requests.

History: L. 1982, ch. 391, § 17; L. 1988, ch. 377, § 3; July 1.

§ 79-1471 Submission of budget; appointment of assistants; attendance at appraisal schools

The county appraiser shall submit a budget to the board of county commissioners for their approval.

The county appraiser shall appoint and dismiss any assistants necessary to carry out the duties of the office. The county appraiser shall supervise all such appointees in the performance of their duties.

The county appraiser shall be required to attend and may require others under such appraiser's supervision to attend appraisal schools conducted or prescribed by the director of property valuation.

History: L. 1982, ch. 391, § 18; July 1.

§ 79-1472 Attendance of county appraiser or designee at meetings of board of equalization

The county appraiser or the appraiser's designee shall attend meetings of the hearing officer or panel or the county board of equalization for the purpose of aiding such hearing officer or panel or board in matters involving the appraisal of property, and the county appraiser shall make all records concerned therewith available to the hearing officer or panel or the county board of equalization. The absence of the county appraiser or the appraiser's designee from any such meeting shall not affect the authority to meet and conduct the business of the hearing officer or panel or the board.

History: L. 1982, ch. 391, § 19; L. 1988, ch. 377, § 4; July 1.

§ 79-1473 Penalty for neglect of duty by county appraiser or employee

Any county appraiser and any employee acting in the name of the county appraiser who willfully neglects or refuses in whole or in part to perform the duties of the office as required by law shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in a sum not exceeding $500. In addition thereto the appraiser or employee shall forfeit the office or position held by such person.

History: L. 1982, ch. 391, § 20; July 1.

§ 79-1474 Waiver of taxes and penalties upon certain personal property if timely reporting made

Any person or the legal representative of the estate of any person who has not listed taxable tangible personal property or has underreported the same for property tax purposes which, if discovered by the county appraiser, would be deemed to have escaped taxation pursuant to the provisions of subsection (a) of K.S.A. 79-1427a or would be subject to late filing penalties provided by law, and who makes and delivers a full and complete statement of appraisal relative to such property to the county appraiser wherein such property is located within the time period commencing with the effective date of this act, and ending on January 31, 1986, shall not be liable for any taxes or penalties which would have been levied upon any such property for any year prior to the 1984 taxable year.

History: L. 1985, ch. 309, § 2; July 1.

§ 79-1475 Duties of county appraiser and clerk regarding property discovered to have been omitted from tax rolls

Whenever the county appraiser discovers that any real property subject to taxation has been omitted from the tax rolls, such property shall immediately be listed and valued by the appraiser, and returned to the county clerk. The county clerk, upon receipt of the valuation for such property, shall place such property on the tax rolls and compute the amount of tax due based upon the mill levy for the year or years, not to exceed two calendar years preceding January 1 of the calendar year in which the property is discovered, in which such tax should have been levied, and shall certify such amount to the county treasurer as an added or escaped appraisal. The amount of such tax shall be due immediately and payable within 45 days after the issuance of an added or escaped property tax bill by the county treasurer. No interest shall be imposed unless the tax remains unpaid after such 45-day period. Taxes levied pursuant to this section which remain unpaid after such 45 day period shall be deemed delinquent and the county treasurer shall proceed to collect and distribute such tax in the same manner as prescribed by law for the collection and distribution of other taxes levied on property which are delinquent. No property tax levied pursuant to this section shall be payable by any person other than the current owner of the property unless such property was acquired by will, inheritance or gift. Notwithstanding the foregoing, if the current owner of any such property purchased in the tax year in which such property was discovered to have been omitted from the tax rolls pays the property tax which would have been levied upon such property for such year within 45 days after the issuance of an added or escaped property tax bill by the county treasurer, such owner shall not be liable for any property tax which would have been levied upon such property for any prior taxable year.

History: L. 1985, ch. 315, § 3; L. 1990, ch. 346, § 2; L. 1994, ch. 124, § 1; L. 1995, ch. 38, § 2; July 1.

§ 79-1476 Statewide reappraisal of real property; duties and authority of state director of property valuation and county and district appraisers; methods of establishing valuations; valuation of land devoted to agricultural use; time of application of valuations

(a) The director of property valuation is hereby directed and empowered to administer and supervise a statewide program of reappraisal of all real property located within the state. Except as otherwise authorized by K.S.A. 19-428, and amendments thereto, each county shall comprise a separate appraisal district under such program, and the county appraiser shall have the duty of reappraising all of the real property in the county pursuant to guidelines and timetables prescribed by the director of property valuation and of updating the same on an annual basis. In the case of multi-county appraisal districts, the district appraiser shall have the duty of reappraising all of the real property in each of the counties comprising the district pursuant to such guidelines and timetables and of updating the same on an annual basis. Commencing in 2000, every parcel of real property shall be actually viewed and inspected by the county or district appraiser once every six years.

(b) Valuations shall be established for each parcel of real property at its fair market value in money in accordance with the provisions of K.S.A. 79-503a, and amendments thereto.

(c) (1) Valuations shall be established for each parcel of land devoted to agricultural use upon the basis of the agricultural income or productivity attributable to the inherent capabilities of such land in its current usage under a degree of management reflecting median production levels in the manner hereinafter provided. A classification system for all land devoted to agricultural use shall be adopted by the director of property valuation using criteria established by the United States department of agriculture natural resources conservation service.

(A) For all taxable years commencing after December 31, 1989, all land devoted to agricultural use that is subject to the federal conservation reserve program shall be classified as cultivated dry land for the purpose of valuation for property tax purposes pursuant to this section, except that for all taxable years commencing after December 31, 2022, all land devoted to agricultural use that is subject to the federal grassland conservation reserve program (CRP grasslands) shall be classified as grassland for the purpose of valuation for property tax purposes pursuant to this section.

(B) For all taxable years commencing after December 31, 1999, all land devoted to agricultural use that is subject to the federal wetlands reserve program shall be classified as native grassland for the purpose of valuation for property tax purposes pursuant to this section.

(2) Productivity of land devoted to agricultural use shall be determined for all land classes within each county or homogeneous region based on an average of the eight calendar years immediately preceding the calendar year that immediately precedes the year of valuation, at a degree of management reflecting median production levels. The director of property valuation shall determine median production levels based on information available from state and federal crop and livestock reporting services, the natural resources conservation service, and any other sources of data that the director considers appropriate.

(d) The share of net income from land in the various land classes within each county or homogeneous region that is normally received by the landlord shall be used as the basis for determining agricultural income for all land devoted to agricultural use except pasture or rangeland. The net income normally received by the landlord from such land shall be determined by deducting expenses normally incurred by the landlord from the share of the gross income normally received by the landlord. The net rental income normally received by the landlord from pasture or rangeland within each county or homogeneous region shall be used as the basis for determining agricultural income from such land. The net rental income from pasture and rangeland that is normally received by the landlord shall be determined by deducting expenses normally incurred from the gross income normally received by the landlord. Commodity prices, crop yields and pasture and rangeland rental rates and expenses shall be based on an average of the eight calendar years immediately preceding the calendar year that immediately precedes the year of valuation. Net income for every land class within each county or homogeneous region shall be capitalized at a rate determined to be the sum of the contract rate of interest on new federal land bank loans in Kansas on July 1 of each year averaged over a five-year period that includes the five years immediately preceding the calendar year which immediately precedes the year of valuation, plus a percentage not less than 0.75% nor more than 2.75%, as determined by the director of property valuation, except that the capitalization rate calculated for property tax year 2003, and all such years thereafter, shall not be less than 11% nor more than 12%.

(e) Based on the procedures provided in this section, the director of property valuation shall make an annual determination of the value of land within each of the various classes of land devoted to agricultural use within each county or homogeneous region and furnish the same to the several county appraisers who shall classify such land according to its current usage and apply the value applicable to such class of land according to the valuation schedules prepared and adopted by the director of property valuation under the provisions of this section.

(f) It is the intent of the legislature that appraisal judgment and appraisal standards be followed and incorporated throughout the process of data collection and analysis and establishment of values pursuant to this section.

(g) As used in this section:

(1) (A) "Land devoted to agricultural use" means and includes land, regardless of whether it is located in the unincorporated area of the county or within the corporate limits of a city, that is devoted to the production of plants, animals or horticultural products, including, but not limited to: Forages; grains and feed crops; dairy animals and dairy products; poultry and poultry products; beef cattle, sheep, swine and horses; bees and apiary products; trees and forest products; fruits, nuts and berries; vegetables; and nursery, floral, ornamental and greenhouse products.

(B) "Land devoted to agricultural use" includes land:

(i) Established as a controlled shooting area pursuant to K.S.A. 32-943, and amendments thereto, which shall be deemed to be land devoted to agricultural use;

(ii) that is utilized by zoos that hold a valid class C exhibitor license issued by the United States department of agriculture; and

(iii) for all taxable years commencing after December 31, 2020, that is otherwise devoted to the production of plants, animals or horticultural products that is utilized as part of a registered agritourism activity at a registered agritourism location by a registered agritourism operator pursuant to K.S.A. 32-1432, and amendments thereto, including, but not limited to, all land and buildings, whether permanent or temporary, that are utilized for such agritourism activity. For purposes of this clause, the selling of any items, products, services or merchandise associated with the registered agritourism activity by a registered agritourism operator that includes, but is not limited to, point of sales from either land or buildings, shall not change the classification of the agricultural land or buildings as a result of such sales.

(2) "Agritourism activity" means any activity that allows members of the general public, for recreational, entertainment or educational purposes, to view or enjoy rural activities, including, but not limited to, farming activities, ranching activities or historic, cultural or natural attractions. An activity may be an "agritourism activity" whether or not the participant pays to participate in the activity. An activity is not an "agritourism activity" if the participant is paid to participate in the activity.

(h) If a parcel has land devoted to agricultural purposes and land used for suburban residential acreages, rural home sites or farm home sites, the county appraiser shall determine the amount of the parcel used for agricultural purposes and value and assess it accordingly as land devoted to agricultural purposes. The county appraiser shall then determine the amount of the remaining land used for such other purposes and value and assess that land according to its use.

(i) The term "expenses" means those expenses typically incurred in producing the plants, animals and horticultural products described above, including management fees, production costs, maintenance and depreciation of fences, irrigation wells, irrigation laterals and real estate taxes. "Expenses" does not include those expenses incurred in providing temporary or permanent buildings used in the production of such plants, animals and horticultural products.

(j) The provisions of this section shall not be construed to conflict with any other provisions of law relating to the appraisal of tangible property for taxation purposes including the equalization processes of the county and state board of tax appeals.

History: L. 1985, ch. 314, § 1; L. 1987, ch. 378, § 1; L. 1988, ch. 377, § 14; L. 1990, ch. 347, § 1; L. 1994, ch. 275, § 2; L. 1995, ch. 254, § 6; L. 1997, ch. 126, § 40; L. 1997, ch. 187, § 4; L. 1999, ch. 123, § 5; L. 2000, ch. 139, § 7; L. 2002, ch. 194, § 2; L. 2008, ch. 109, § 89; L. 2014, ch. 141, § 97; L. 2016, ch. 112, § 17; L. 2022, ch. 63, § 34; L. 2024, ch. 81, § 13; July 1.

§ 79-1476a Application of K.S.A. 79-1476

The provisions of K.S.A. 79-1476, as amended by section 6 of chapter 254 of the Laws of 1995 shall be applicable to all taxable years commencing after December 31, 1994.

History: L. 1995, ch. 254, § 9; July 1.

§ 79-1476b Repealed

History: L. 1985, ch. 314, § 1; L. 1987, ch. 378, § 1; L. 1988, ch. 377, § 14; L. 1990, ch. 347, § 1; L. 1994, ch. 275, § 2; L. 1995, ch. 254, § 6; L. 1997, ch. 126, § 40; L. 1997, ch. 187, § 4; L. 1999, ch. 123, § 5; L. 2000, ch. 139, § 7; L. 2002, ch. 185, § 37; Repealed, L. 2003, ch. 158, § 11; July 1.

§ 79-1476c Land devoted to agricultural use; adverse influences to be addressed by the director of property valuation and the county appraiser

Adverse influences not sufficiently accounted for in the agricultural use valuation formula for land devoted to agricultural use shall be addressed by the director of property valuation and the county appraiser. Adverse influences include, but are not limited to, canopy cover, salinity and alkalinity, water table fluctuation and newly constructed drainage and flood control areas. The county appraiser shall address canopy cover, salinity and alkalinity, water table fluctuation and newly constructed drainage and flood control areas as follows:

(a) For canopy cover, the county appraiser shall:

(1) View the parcel;

(2) delineate the area impacted on a map;

(3) determine the appropriate reduction from actual inspection and make the appropriate reduction as follows:

(A) 0 to 25% cover = no reduction;

(B) 25% to 50% cover = 20% reduction;

(C) 50% to 75% cover = 30% reduction; and

(D) 75% to 100% cover = 50% reduction; and

(4) establish an adverse influence file for the parcel;

(b) for salinity and alkalinity, the county appraiser shall:

(1) Request that the taxpayer provide soil analysis from a crop consulting service;

(2) delineate the area impacted on a map;

(3) reduce the value as indicated by the report;

(4) establish an adverse influence file for the parcel; and

(5) notify the local United States department of agriculture natural resources conservation service (NRCS) office of the change;

(c) for water table fluctuation, the county appraiser shall:

(1) Delineate the area impacted on a map;

(2) contact the local NRCS office and request verification;

(3) contact the division of property valuation for assistance;

(4) obtain a temporary influence amount from the division of property valuation to use until the NRCS review is complete; and

(5) establish an adverse influence file for the parcel; and

(d) for newly constructed drainage and flood control areas, the county appraiser shall:

(1) View the parcel;

(2) delineate the area impacted on a map;

(3) contact the division of property valuation for assistance;

(4) receive an adverse influence amount from the division of property valuation after the division contacts the responsible agency; and

(5) establish an adverse influence file for the parcel.

History: L. 2024, ch. 81, § 1; July 1.

§ 79-1477 Same; computer system development; duties of secretary of revenue; advisory committee, composition

(a) The secretary of revenue, with the assistance of the advisory committee established pursuant to subsection (b), shall provide for the development of a computer system providing for the processing of such data on tangible property located in this state as deemed necessary for the effective and efficient administration of the appraisal, assessment and equalization laws of the state of Kansas, methods for updating such data on an annual basis, and such other functions as determined necessary for the efficient administration of the property tax laws of this state, including but not limited to the preparation and publishing of annual statistical reports and ratio studies.

(b) The secretary of revenue shall establish an advisory committee, the chairperson of which shall be the director of property valuation, to assist the secretary in the performance of the duties prescribed in subsection (a). Members shall be selected from nominees of the Kansas association of counties, the Kansas association of county commissioners and the Kansas appraisers association.

History: L. 1985, ch. 314, § 2; July 1.

§ 79-1478 Same; payment of costs by state, schedule; assistance of state division of property valuation upon request; contracts with private appraisal firms

The state shall assume a portion of the costs incurred by any county in complying with the provisions of this act. The portion of the cost to be paid to each such county by the state shall be determined in accordance with a statewide payment schedule adopted by the secretary of revenue. Such schedule shall contain a specified amount according to class or subclass of property as specified in K.S.A. 79-1459, and amendments thereto, to be paid by the state to each county on a per parcel basis. Payments shall be made to counties as authorized under the provisions of this section in accordance with appropriation acts of the legislature. No county for which the state board of tax appeals has issued an order pursuant to K.S.A. 79-1479, and amendments thereto, shall be entitled to receive any payment from the state under the provisions of this section for the period of time such an order is in effect.

The state division of property valuation shall make assistance available to any county in the reappraisal of property located in such county upon such county's request. Any county requesting such assistance shall make reimbursement for the costs incurred by the state in providing the same. Counties are hereby authorized to contract with private appraisal firms to conduct the reappraisal of property within the county. Selection of a private firm whose products or services are necessary to conduct a reappraisal must be made from a list of approved firms supplied by the director of property valuation. Contracts executed between counties and such firms must meet the specifications of the director of property valuation.

History: L. 1985, ch. 314, § 3; L. 2008, ch. 109, § 90; L. 2014, ch. 141, § 98; July 1.

§ 79-1478a Withholding of appraisal maintenance cost moneys, when; duties and authorities of director of property valuation

The director of property valuation shall order the state treasurer to withhold all or a portion of funds appropriated by the legislature pursuant to K.S.A. 79-1478, and amendments thereto, upon a finding by the director that a county is not in compliance with statutes, rules and regulations or directives governing property taxation. The order of the director shall be served on the county as provided in K.S.A. 60-304, and amendments thereto. Any county aggrieved by such order may appeal to the state board of tax appeals as provided in K.S.A. 74-2438, and amendments thereto, which shall conduct a summary proceeding thereon pursuant to the Kansas administrative procedure act.

Unless the funds withheld under this section are restored by the state board of tax appeals, such funds shall be deposited in a special training fund to be utilized by the director of property valuation to correct the problem resulting in the withholding of the funds and to provide training for county officials.

History: L. 1992, ch. 48, § 1; L. 2008, ch. 109, § 91; L. 2014, ch. 141, § 99; July 1.

§ 79-1479 Appraisal of property; submission of progress reports; duties and authorities of director of property valuation and state board of tax appeals relating to compliance with reappraisal guidelines and timetables; complaint procedure; review of valuations after completion of reappraisal; compliance plans, approval and enforcement

(a) On or before January 15, 1992, and quarterly thereafter, the county or district appraiser shall submit to the director of property valuation a progress report indicating actions taken during the preceding quarter calendar year to implement the appraisal of property in the county or district. Whenever the director of property valuation shall determine that any county has failed, neglected or refused to properly provide for the appraisal of property or the updating of the appraisals on an annual basis in substantial compliance with the provisions of law and the guidelines and timetables prescribed by the director, the director shall file with the state board of tax appeals a complaint stating the facts upon which the director has made the determination of noncompliance as provided by K.S.A. 79-1413a, and amendments thereto. If, as a result of such proceeding, the state board of tax appeals finds that the county is not in substantial compliance with the provisions of law and the guidelines and timetables of the director of property valuation providing for the appraisal of all property in the county or the updating of the appraisals on an annual basis, it shall order the immediate assumption of the duties of the office of county appraiser by the director of the division of property valuation until such time as the director of property valuation determines that the county is in substantial compliance with the provisions of law. Upon service of any such order on the board of county commissioners, the appraiser shall immediately deliver to the director of property valuation, or the director's designee, all books, records and papers pertaining to the appraiser's office.

Any county for which the director of the division of property valuation is ordered by the state board of tax appeals to assume the responsibility and duties of the office of county appraiser shall reimburse the state for the actual costs incurred by the director of the division of property valuation in the assumption and carrying out of such responsibility and duties, including any contracting costs in the event it is necessary for the director of property valuation to contract with private appraisal firms to carry out such responsibilities and duties.

(b) On or before June 1 of each year, the director of property valuation shall review the appraisal of property in each county or district to determine if property within the county or district is being appraised or valued in accordance with the requirements of law. If the director determines the property in any county or district is not being appraised in accordance with the requirements of law, the director of property valuation shall notify the county or district appraiser and the board of county commissioners of any county or counties affected that the county has 30 days within which to submit to the director a plan for bringing the appraisal of property within the county into compliance.

If a plan is submitted and approved by the director the county or district shall proceed to implement the plan as submitted. The director shall continue to monitor the program to insure that the plan is implemented as submitted. If no plan is submitted or if the director does not approve the plan, the director shall petition the state board of tax appeals for a review of the plan or, if no plan is submitted, for authority for the division of property valuation to assume control of the appraisal program of the county and to proceed to bring the same into compliance with the requirements of law.

If the state board of tax appeals approves the plan, the county or district appraiser shall proceed to implement the plan as submitted. If no plan has been submitted or the plan submitted is not approved, the board shall fix a time within which the county may submit a plan or an amended plan for approval. If no plan is submitted and approved within the time prescribed by the board, the board shall order the division of property valuation to assume control of the appraisal program of the county. The director of property valuation shall certify the amount of the cost incurred by the division in bringing the program in compliance to the state board of tax appeals. The board shall order the county commissioners to reimburse the state for such costs.

(c) The state board of tax appeals shall within 60 days after the publication of the Kansas assessment/sales ratio study review such publication to determine county compliance with K.S.A. 79-1439, and amendments thereto. If in the determination of the board one or more counties are not in substantial compliance and the director of property valuation has not acted under subsection (b), the board shall order the director of property valuation to take such corrective action as is necessary or to show cause for noncompliance.

History: L. 1985, ch. 314, § 4; L. 1991, ch. 162, § 2; L. 2008, ch. 109, § 92; L. 2014, ch. 141, § 100; L. 2024, ch. 1, § 14 (Special Session); June 27.

§ 79-1480 Same; maintenance of valuation listings, contents; public inspection

From and after January 1 of the year in which valuations for real property determined under the program of statewide reappraisal are implemented, each county shall maintain in the office of the county clerk multiple copies of a listing of the assessed valuations of each parcel of real property located within the county. Such listing shall contain separate valuations for the land and for the buildings located thereon. Such listing shall be arranged alphabetically by city and street name and prepared in a manner that each parcel of real property is listed in progressive order by numerical street address for property located within the corporate limits of cities and so far as possible for property located outside of the corporate limits of cities within the county. Property for which no street addresses exist shall be listed separately from property with street addresses and arranged in alphabetical order by township or city and owner's name with information sufficient to disclose the location thereof. Such listings shall be open to public inspection during all normal working hours of the office of the county clerk.

History: L. 1985, ch. 314, § 5; July 1.

§ 79-1481 Statewide reappraisal of real property; class assessment changes prohibited unless approved by state board of tax appeals; procedure

No hearing officer or panel shall issue an order applicable uniformly to all property in any class in any area or areas of the county, which order changes the assessment of such class of property in such area or areas, without the approval of the state board of tax appeals. Whenever any hearing officer or panel proposes to issue any such order, it shall make written application to the state board of tax appeals for a hearing on such matter if such change constitutes the final decision of the county. The state board of tax appeals shall set a time and place for a hearing thereon within five days of receipt of such application. The hearing shall be conducted in accordance with the provisions of the Kansas administrative procedure act. The time set for hearing such matter shall in no event be more than 30 days following the date of receipt of such application. The state board of tax appeals shall notify the hearing officer or panel, the county or district appraiser and the director of property valuation, of the time and place set for hearing. The director of property valuation shall be made a party to such hearing.

History: L. 1985, ch. 314, § 6; L. 1988, ch. 377, § 5; L. 1992, ch. 54, § 1; L. 1994, ch. 275, § 4; L. 2008, ch. 109, § 93; L. 2014, ch. 141, § 101; July 1.

§ 79-1481a Repealed

History: L. 1985, ch. 314, § 6; L. 1988, ch. 356, § 320; Repealed, L. 1992, ch. 54, § 2; July 1.

§ 79-1482 Statewide reappraisal of real property; tax levy to pay costs of reappraisal

The board of county commissioners of each county is hereby authorized to levy a tax upon all taxable tangible property in the county in an amount necessary to pay all costs incurred in conducting programs of countywide reappraisal and complying with the provisions of this act. The proceeds of such tax levies shall be credited to a special countywide reappraisal fund and shall be used only for the purposes of implementing the provisions of this act. Such countywide reappraisal fund shall not be subject to the provisions of K.S.A. 79-2925 to 79-2937, and amendments thereto, except that in making the budgets of such counties the amounts credited to, the amount on hand in such special fund, and the amount expended therefrom shall be shown thereon for the information of the taxpayers of the county.

History: L. 1985, ch. 314, § 7; L. 1990, ch. 66, § 54; May 31.

§ 79-1483 Same; rules and regulations; forms

The secretary of revenue shall adopt rules and regulations providing for the administration of this act. The director of property valuation shall prescribe and furnish forms to the county appraisers necessary to their duties hereunder.

History: L. 1985, ch. 314, § 28; July 1.

§ 79-1484 Severability

If any sentence, clause, subsection or section of this act is held unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature would have enacted the remainder of the act not so held unconstitutional or invalid.

History: L. 1985, ch. 314, § 29; July 1.

§ 79-1485 Kansas real estate ratio study act; purposes

(a) This act shall be known and may be cited as the Kansas real estate ratio study act.

(b) The purpose of this act is to provide statistical information regarding the relationship of the appraised value to the selling price of real estate which has sold during the study year and the relative level of uniformity of appraisal within and among counties and to report such information in convenient form to the legislature and other interested parties. The statistical information determined pursuant to this act may be used by the director in carrying out such director's duties, including, but not limited to, assisting such director in the determination of substantial compliance under K.S.A. 79-1445, and amendments thereto.

History: L. 1992, ch. 131, § 1; L. 1994, ch. 275, § 8; July 1.

§ 79-1486 Same; definitions

As used in this act:

(a) "Sale" or "sales" shall include all transfers of real estate for which a real estate sales validation questionnaire is required by K.S.A. 79-1437c, and amendments thereto; however, all sales for which a real estate sales validation questionnaire is required by K.S.A. 79-1437c, and amendments thereto, need not be included in the final ratios determined;

(b) "valid sale" is a sale that is an indicator of fair market value as defined in K.S.A. 79-503a, and amendments thereto;

(c) "invalid sale" is a sale that is not an indicator of fair market value as defined in K.S.A. 79-503a, and amendments thereto;

(d) "unvalidated sale" is a residential subclass sale that was not selected through a random sampling process and has not been determined to be either a valid sale or an invalid sale;

(e) "real estate" shall include land, improvements and structures which are appraised as real property;

(f) "director" shall mean the director of property valuation;

(g) "classification" shall mean those classifications which apply to real property contained in K.S.A. 79-1439, and amendments thereto, or any stratification which may be prescribed by the director;

(h) "average" shall mean that measure or measures of central tendency which the director shall determine best describes a group of individual ratios;

(i) "ratio" shall mean the numerical relationship between the appraised or assessed value and the selling price; and

(j) "study year" shall mean that twelve-month period beginning annually on January 1.

History: L. 1992, ch. 131, § 2; L. 1994, ch. 275, § 9; July 1.

§ 79-1487 Same; duties of local officials; access of records by director

It shall be the duty of all county officials to cooperate with and assist the director in the development of the information required by this act. Such county officials shall exchange such information as may be necessary to carry out the intent and purposes of this act. The director or the director's agents shall have access to all county records for the purpose of carrying out the intent and purposes of this act.

History: L. 1992, ch. 131, § 3; July 1.

§ 79-1488 Same; authorities and duties of director

It shall be the duty of the director to obtain all information relating to each sale of real estate as the director shall deem necessary to carry out the intent and purposes of this act. The director shall prescribe the form in which the data is obtained. The director shall assign agents who shall verify and categorize each sale as valid, invalid or unvalidated. The director shall determine the median ratio in relation to the county's certified value, the price related differential, and the coefficient of dispersion for each classification of property in each county. If, in the director's opinion, sales from the study year are insufficient to determine reliable ratios for any classification of property in any county, sales from the four-year period preceding the study year may be used to supplement study year sales or the director may obtain or conduct appraisals for the purpose of supplementing, verifying or correcting ratios for the study year. The director may select random samples of residential subclass sales from counties having a total parcel count in excess of 15,000 to determine reliable residential subclass ratios for any such county. The random sample shall be selected prior to any validation process. Data from deeds, other instruments of conveyance and real estate sales validation questionnaires recorded or filed with the register of deeds on or after the first day of February following the study year shall not be used in determining the ratios for any county.

History: L. 1992, ch. 131, § 4; L. 1994, ch. 275, § 10; July 1.

§ 79-1489 Same; notification of ratios to county by the director; appeals, procedure

The director shall determine the mid-year ratios for each county and notify the board of county commissioners thereof. When the final ratios are determined, the director shall notify the board of county commissioners of each county of the ratios determined for such county. If the board of county commissioners disagrees with the ratios determined for the county, such board, within 15 days after receipt of such notice, may appeal such determination to the state board of tax appeals. Written notice of appeal shall be served on the state board of tax appeals and the director by certified mail. The notice of appeal shall clearly and specifically state the facts upon which the appeal is based. The state board of tax appeals shall conduct a summary proceeding in accordance with the provisions of the Kansas administrative procedure act within 30 days of receipt of the written notice of appeal and shall issue findings and a final order within 30 days after the conclusion of such summary proceeding. If the state board of tax appeals finds that corrections in the ratios are necessary, it shall order the director to make necessary corrections consistent with such findings prior to the publication of the study.

History: L. 1992, ch. 131, § 5; L. 1994, ch. 275, § 11; L. 2008, ch. 109, § 94; L. 2014, ch. 141, § 102; July 1.

§ 79-1490 Same; publishing of study, when

The director shall publish the ratio study after the procedures prescribed in K.S.A. 79-1489 have been concluded. If it is determined that the ratio study cannot be published by April 1, the director shall provide a preliminary ratio study to the governor, the speaker of the house and the president of the senate and their respective tax committees on or before March 15.

History: L. 1992, ch. 131, § 6; July 1.

§ 79-1491 Same; rules and regulations

The secretary of revenue shall adopt rules and regulations providing for the administration of this act.

History: L. 1992, ch. 131, § 7; July 1.

§ 79-1492 Same; application of act

The provisions of K.S.A. 79-1437e, 79-1485, 79-1486, 79-1488 and 79-1489 shall apply to all taxable years commencing after December 31, 1993.

History: L. 1992, ch. 131, § 8; L. 1994, ch. 275, § 13; July 1.

§ 79-1493 Same; authority to compile and publish other statistics not affected

Nothing in this act shall preclude the director from gathering, compiling or publishing any information or statistics in addition to those required by this act.

History: L. 1992, ch. 131, § 9; July 1.

§ 79-1494 Binding arbitration process in certain counties for property valuation disputes; procedure; duties and authorities of the director of property valuation

A binding arbitration process is hereby established in Lyon, Ellis, Saline and Shawnee counties. The director of property valuation shall develop a list of persons qualified by virtue of experience and training in the field of property appraisal and tax administration to act as arbitrators of property valuation disputes. The board of county commissioners of such counties shall, on or before August 25, 1992, and on or before August 25 of each ensuing year, by resolution fix the salary to be paid each arbitrator who shall serve in such county and notify the director of property valuation of the amount thereof. The state shall assume a portion of the cost of such arbitration process in accordance with appropriation acts of the legislature.

The county clerk shall furnish an arbitration request form together with a statement of explanation of the consequences of a request for binding arbitration to any property owner who desires to submit the final determination of classification or appraised valuation by the county appraiser to binding arbitration. Such form and statement shall be prescribed by the director of property valuation. The arbitration request form shall be completed and filed with the county clerk within 18 days of the date that a final determination of classification or appraised valuation was mailed to the property owner as provided in K.S.A. 79-1448, and amendments thereto. The property owner may rescind such request by notifying the county clerk prior to the expiration of such 18-day period provided that no hearing has already been conducted thereon, and in such case, the date upon which such notice was received by the county clerk shall be deemed to be the date that an appeal was made to a hearing officer or panel pursuant to K.S.A. 79-1606, and amendments thereto. A request for binding arbitration shall be in lieu of an appeal to the hearing officer or panel as provided in K.S.A. 79-1606, and amendments thereto.

Every request for binding arbitration shall be promptly set for hearing by the county clerk. The property owner and the board of county commissioners shall select an arbitrator to conduct the hearing from the list prepared by the director of property valuation. In the absence of agreement by the property owner and the board of county commissioners, the chief judge of the judicial district in which the property is located shall select the arbitrator from the list. All such hearings shall be completed on or before the last business day in June. The county clerk shall notify the property owner and the county appraiser of the date for hearing at least 10 days in advance of such hearing. Every request for arbitration shall be determined by order of the arbitrator on or before July 5, and the arbitrator shall have no authority to be in session thereafter. Such order may affirm the final determination of the county appraiser, adopt the contentions of the property owner or make any other decision supported by the preponderance of the evidence submitted. Such recorded orders shall be open to public inspection. Notice of the decision of the arbitrator shall be mailed by the county clerk to the property owner and the county appraiser within 15 days of the hearing. The decision of the arbitrator shall be final and not subject to appeal, and the property owner shall be precluded from protesting the valuation of the same property pursuant to K.S.A. 79-2005, and amendments thereto.

The director of property valuation shall prescribe guidelines governing the duties of arbitrators under this section.

The provisions of this section shall apply to all taxable years commencing after December 31, 1992, through December 31, 1995.

History: L. 1992, ch. 282, § 14; L. 1999, ch. 57, § 71; July 1.

§ 79-1495 Computer-assisted mass-appraisal system; verification of accuracy; requirements

In any county which fails to meet the minimum appraisal standards for commercial real property established by the official Kansas appraisal/sales ratio study conducted for the preceding year by the division of property valuation of the department of revenue, the director of property valuation shall be required to perform, or to contract with an independent third party to perform, a market-based appraisal of no less than 1% of the commercial properties appraised by the computer-assisted mass-appraisal system within the county as a verification of the accuracy of such system. The properties shall be selected so to represent a sample of the commercial property types which failed to meet statistical compliance in the county. The property owner shall be allowed the opportunity to meet with the appraiser in order to offer pertinent data and insight on the issues that would affect the value of the property. This appraisal will not be an official appraisal of the property and will be used for the purposes of quality assurance of the mass-appraisal system. If the independent appraisal reveals a statistical deviation greater than 5% on more than 25% of the audited properties, then the director will perform additional audits in those counties and require corrective action necessary to ensure a fair and accurate appraisal.

History: L. 2016, ch. 112, § 22; July 1.

§ 79-1496 Appeals by taxpayers from classification or valuation of property; third-party fee simple appraisals; duties of county appraiser; appeals to state board of tax appeals

Within 60 days after the date the notice of informal meeting results or final determination is mailed to the taxpayer pursuant to K.S.A. 79-1448, and amendments thereto, any taxpayer aggrieved by the final determination of the county appraiser, who has not filed an appeal with the board of tax appeals pursuant to K.S.A. 74-2433f, 79-1448, 79-1609 or 79-1611, and amendments thereto, may file with the county appraiser a third-party fee simple appraisal performed by a Kansas certified general real property appraiser that reflects the value of the property as of January 1 for the same tax year being appealed. For determinations and appeals relating to residential property pursuant to this section, a taxpayer may file with the county appraiser a third-party fee simple appraisal performed by either a Kansas certified residential real property appraiser or a Kansas certified general real property appraiser that reflects the value of the property as of January 1 for the same tax year being appealed. Within 15 days after receipt of the appraisal, the county appraiser shall review and consider such appraisal in the determination of valuation or classification of the taxpayer's property and mail a supplemental notice of final determination. If the final determination is not in favor of the taxpayer then the county appraiser shall notify the taxpayer that the county is required to perform its own, or commission a fee simple single property appraisal. The county appraiser shall then have 90 days to furnish that appraisal along with a new supplemental notice of determination and if not in favor of the taxpayer include an explanation of the reasons the county appraiser did not rely upon the taxpayer's fee simple single property appraisal. Whenever a taxpayer submits a fee simple single property appraisal the burden of proof shall be on the county appraiser to dispute the value of that appraisal. Any taxpayer aggrieved by the final determination of the county appraiser may appeal to the state board of tax appeals as provided in K.S.A. 79-1609, and amendments thereto, within 30 days subsequent to the date of mailing of the supplemental notice of final determination.

History: L. 2016, ch. 112, § 23; L. 2024, ch. 81, § 14; July 1.

Article 15 Death Taxes

§ 79-1501 Repealed

History: L. 1915, ch. 357, § 1; L. 1919, ch. 305, § 1; R.S. 1923, 79-1501; L. 1941, ch. 369, § 1; L. 1955, ch. 400, § 1; L. 1958, ch. 24, § 1 (Special Session); L. 1968, ch. 23, § 1; L. 1977, ch. 329, § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§§ 79-1501a, 79-1501b Repealed

History: L. 1930, ch. 15, §§ 1, 2; L. 1941, ch. 369, §§ 2, 4; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1501c Repealed

Revisor's Note: Later act, see 79-1529.

History: L. 1929, ch. 290, § 1; Repealed, L. 1941, ch. 369, § 29; June 30.

§§ 79-1501d, 79-1501e Repealed

History: L. 1941, ch. 369, §§ 3, 5; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1502 Repealed

History: L. 1915, ch. 357, § 2; R.S. 1923, 79-1502; L. 1941, ch. 369, § 6; L. 1963, ch. 467, § 1; L. 1972, ch. 364, § 1; L. 1974, ch. 430, § 1; L. 1975, ch. 497, § 1; L. 1977, ch. 105, § 30; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1503 Repealed

History: L. 1915, ch. 357, § 3; R.S. 1923, 79-1503; L. 1941, ch. 369, § 7; L. 1977, ch. 105, § 31; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1504 Repealed

History: L. 1915, ch. 357, § 4; R.S. 1923, 79-1504; L. 1941, ch. 369, § 8; L. 1971, ch. 299, § 1; L. 1977, ch. 105, § 32; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1505 Repealed

History: L. 1915, ch. 357, § 5; R.S. 1923, 79-1505; L. 1941, ch. 369, § 9; L. 1971, ch. 299, § 2; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1506 Repealed

History: L. 1915, ch. 357, § 6; R.S. 1923, 79-1506; L. 1941, ch. 369, § 10; Repealed, L. 1978, ch. 395, § 51; July 1.

§§ 79-1507, 79-1508 Repealed

History: L. 1915, ch. 357, §§ 7, 8; R.S. 1923, 79-1507, 79-1508; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1509 Repealed

History: L. 1915, ch. 357, § 9; R.S. 1923, 79-1509; L. 1977, ch. 105, § 33; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1510 Repealed

History: L. 1915, ch. 357, § 10; R.S. 1923, 79-1510; Repealed, L. 1941, ch. 369, § 29; June 30.

§ 79-1511 Repealed

History: L. 1915, ch. 357, § 11; R.S. 1923, 79-1511; L. 1935, ch. 301, § 1; L. 1941, ch. 369, § 11; L. 1972, ch. 364, § 2; L. 1977, ch. 105, § 34; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1512 Repealed

History: L. 1915, ch. 357, § 12; R.S. 1923, 79-1512; L. 1941, ch. 369, § 12; L. 1968, ch. 23, § 2; L. 1969, ch. 436, § 1; L. 1977, ch. 105, § 35; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1513 Repealed

History: L. 1915, ch. 357, § 13; R.S. 1923, 79-1513; L. 1941, ch. 369, § 13; Repealed, L. 1977, ch. 330, § 2; July 1.

§ 79-1514 Repealed

History: L. 1915, ch. 357, § 14; R.S. 1923, 79-1514; L. 1941, ch. 369, § 14; L. 1977, ch. 330 § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1515 Repealed

History: L. 1915, ch. 357, § 15; R.S. 1923, 79-1515; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1516 Repealed

History: L. 1915, ch. 357, § 16; R.S. 1923, 79-1516; L. 1941, ch. 369, § 15; L. 1971, ch. 299, § 3; L. 1977, ch. 105, § 36; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1517 Repealed

History: L. 1915, ch. 357, § 17; L. 1917, ch. 317, § 2; R.S. 1923, 79-1517; L. 1941, ch. 369, § 16; L. 1943, ch. 290, § 2; L. 1963, ch. 468, § 1; L. 1977, ch. 105, § 37; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1518 Repealed

History: L. 1915, ch. 357, § 18; R.S. 1923, 79-1518; L. 1941, ch. 369, § 17; L. 1977, ch. 105, § 38; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1519 Repealed

History: L. 1915, ch. 357, § 19; L. 1917, ch. 319, § 3; R.S. 1923, 79-1519; L. 1941, ch. 369, § 18; L. 1977, ch. 105, § 39; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1520 Repealed

History: L. 1917, ch. 319, § 4; R.S. 1923, 79-1520; L. 1941, ch. 369, § 19; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1521 Repealed

History: L. 1915, ch. 357, § 20; R.S. 1923, 79-1521; L. 1941, ch. 369, § 20; L. 1977, ch. 105, § 40; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1522 Repealed

History: L. 1915, ch. 357, § 21; R.S. 1923, 79-1522; L. 1941, ch. 369, § 21; L. 1977, ch. 105, § 41; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1523 Repealed

History: L. 1915, ch. 357, § 22; R.S. 1923, 79-1522; L. 1941, ch. 369, § 22; L. 1977, ch. 105, § 42; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1524 Repealed

History: L. 1915, ch. 357, § 23; R.S. 1923, 79-1524; Repealed, L. 1941, ch. 369, § 29; June 30.

§ 79-1525 Repealed

History: L. 1915, ch. 357, § 24; R.S. 1923, 79-1525; Repealed, L. 1941, ch. 369, § 29; June 30.

§§ 79-1526 through 79-1528 Repealed

History: L. 1915, ch. 357, §§ 25 to 27; R.S. 1923, 79-1526, 79-1527, 79-1528; L. 1941, ch. 369, §§ 23, 25, 26; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1529 Repealed

History: L. 1939, ch. 318, § 1; L. 1941, ch. 369, § 27; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1530 Repealed

History: L. 1939, ch. 318, § 2; Repealed, L. 1941, ch. 369, § 29; June 30.

§ 79-1531 Repealed

History: L. 1941, ch. 369, § 24; L. 1977, ch. 331, § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1532 Repealed

History: L. 1941, ch. 369, § 28; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1533 Repealed

History: L. 1955, ch. 401, § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1534 Repealed

History: L. 1957, ch. 430, § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1535 Repealed

History: L. 1963, ch. 467, § 2; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1536 Repealed

History: L. 1970, ch. 383, § 1; Repealed, L. 1978, ch. 395, § 51; July 1.

§ 79-1537 Repealed

History: L. 1978, ch. 395, § 1; L. 1979, ch. 316, § 1; L. 1980, ch. 312, § 1; L. 1982, ch. 398, § 1; L. 1993, ch. 38, § 1; L. 1994, ch. 269, § 1; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1537a Repealed

History: L. 1980, ch. 312, § 2; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1537b Repealed

History: L. 1982, ch. 398, § 2; L. 1993, ch. 38, § 4; L. 1994, ch. 269, § 2; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1537c Repealed

History: L. 1982, ch. 398, § 3; L. 1993, ch. 38, § 5; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1537d Repealed

History: L. 1982, ch. 398, § 4; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§§ 79-1537e, 79-1537f Repealed

History: L. 1993, ch. 38, §§ 2, 3; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1538 Repealed

History: L. 1978, ch. 395, § 2; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1538a Repealed

History: L. 1993, ch. 38, § 6; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1539 Repealed

History: L. 1978, ch. 395, § 3; L. 1982, ch. 399, § 1; L. 1993, ch. 38, § 7; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1540 Repealed

History: L. 1978, ch. 395, § 4; L. 1982, ch. 399, § 2; L. 1993, ch. 38, § 8; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1541 Repealed

History: L. 1978, ch. 395, § 5; L. 1979, ch. 316, § 2; L. 1993, ch. 38, § 9; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1541a Transferred

Revisor's Note: Section transferred to 79-15,114.

§ 79-1541b Transferred

Revisor's Note: Section transferred to 79-15,115.

§ 79-1542 Transferred

Revisor's Note: Section transferred to 79-15,101.

§ 79-1542a Repealed

History: L. 1993, ch. 38, § 13; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1543 Repealed

History: L. 1978, ch. 395, § 7; L. 1979, ch. 316, § 14; L. 1980, ch. 313, § 1; L. 1993, ch. 38, § 14; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1544 Repealed

History: L. 1978, ch. 395, § 8; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1545 Repealed

History: L. 1978, ch. 395, § 9; L. 1978, ch. 397, § 1; L. 1979, ch. 316, § 3; L. 1980, ch. 313, § 2; L. 1980, ch. 167, § 1; L. 1983, ch. 317, § 1; L. 1985, ch. 316, § 1; L. 1992, ch. 102, § 5; L. 1993, ch. 38, § 15; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1545a Repealed

History: L. 1978, ch. 397, § 2; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1545b Repealed

History: L. 1980, ch. 314, § 1; L. 1983, ch. 317, § 2; L. 1985, ch. 316, § 2; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1545c Repealed

History: L. 1980, ch. 314, § 3; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1545d Repealed

History: L. 1983, ch. 317, § 3; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1545e Repealed

History: L. 1985, ch. 316, § 3; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1546 Repealed

History: L. 1978, ch. 395, § 10; L. 1993, ch. 38, § 16; Repealed, L. 1998, ch. 181, § 5; July 1.

§ 79-1547 Repealed

History: L. 1978, ch. 395, § 11; L. 1993, ch. 38, § 17; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1548 Repealed

History: L. 1978, ch. 395, § 12; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1549 Repealed

History: L. 1978, ch. 395, § 13; L. 1983, ch. 318, § 1; L. 1993, ch. 38, § 18; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1550 Repealed

History: L. 1978, ch. 395, § 14; L. 1980, ch. 313, § 3; L. 1993, ch. 38, § 19; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1551 Repealed

History: L. 1978, ch. 395, § 15; L. 1993, ch. 38, § 20; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1552 Repealed

History: L. 1978, ch. 395, § 16; L. 1993, ch. 38, § 21; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1553 Repealed

History: L. 1978, ch. 395, § 17; L. 1980, ch. 313, § 4; L. 1993, ch. 38, § 22; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1554 Repealed

History: L. 1978, ch. 395, § 18; L. 1980, ch. 313, § 5; L. 1982, ch. 400, § 1; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1554a Repealed

History: L. 1982, ch. 400, § 2; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1555 Repealed

History: L. 1978, ch. 395, § 19; L. 1980, ch. 313, § 6; L. 1993, ch. 38, § 23; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1556 Repealed

History: L. 1978, ch. 395, § 20; L. 1993, ch. 38, § 24; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1557 Repealed

History: L. 1978, ch. 395, § 21; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1557a Repealed

History: L. 1993, ch. 38, § 25; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1558 Repealed

History: L. 1978, ch. 395, § 22; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§§ 79-1559 through 79-1562 Repealed

History: L. 1978, ch. 395, §§ 23 to 26; L. 1979, ch. 316, §§ 4 to 7; L. 1993, ch. 38, §§ 26 to 29; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1563 Repealed

History: L. 1978, ch. 395, § 27; L. 1993, ch. 38, § 30; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1563a Repealed

History: L. 1993, ch. 38, § 31; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1564 Transferred

Revisor's Note: Section transferred to 79-15,103.

§ 79-1565 Transferred

Revisor's Note: Section transferred to 79-15,104.

§ 79-1566 Repealed

History: L. 1978, ch. 395, § 30; L. 1980, ch. 313, § 8; L. 1980, ch. 308, § 11; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1567 Repealed

History: L. 1978, ch. 395, § 31; L. 1980, ch. 313, § 9; L. 1980, ch. 308, § 12; L. 1993, ch. 38, § 34; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1567a Repealed

History: L. 1993, ch. 38, § 35; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1568 Repealed

History: L. 1978, ch. 395, § 32; L. 1993, ch. 38, § 36; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1569 Transferred

Revisor's Note: Section transferred to 79-15,107.

§ 79-1570 Transferred

Revisor's Note: Section transferred to 79-15,110.

§ 79-1571 Transferred

Revisor's Note: Section transferred to 79-15,109.

§ 79-1572 Transferred

Revisor's Note: Section transferred to 79-15,108.

§ 79-1573 Repealed

History: L. 1978, ch. 395, § 37; L. 1993, ch. 38, § 41; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1574 Transferred

Revisor's Note: Section transferred to 79-15,111.

§ 79-1575 Transferred

Revisor's Note: Section transferred to 79-15,105.

§ 79-1576 Transferred

Revisor's Note: Section transferred to 79-15,106.

§ 79-1577 Transferred

Revisor's Note: Section transferred to 79-15,112.

§ 79-1578 Repealed

History: L. 1978, ch. 395, § 42; L. 1987, ch. 380, § 1; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1579 Transferred

Revisor's Note: Section transferred to 79-15,113.

§ 79-1580 Transferred

Revisor's Note: Section transferred to 79-15,116.

§ 79-1581 Repealed

History: L. 1978, ch. 395, § 45; L. 1980, ch. 313, § 11; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1582 Repealed

History: L. 1978, ch. 395, § 46; Repealed, L. 1993, ch. 38, § 49; January 1, 1994.

§ 79-1583 Transferred

Revisor's Note: Section transferred to 79-15,117.

§ 79-1584 Repealed

History: L. 1978, ch. 395, § 48; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1584a Repealed

History: L. 1979, ch. 316, § 15; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1584b Repealed

History: L. 1980, ch. 313, § 12; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1584c Repealed

History: L. 1980, ch. 167, § 2; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1584d Application of act

The provisions of this act shall be applicable to the estates of all decedents dying after December 31, 1993.

History: L. 1993, ch. 38, § 48; Jan 1, 1994.

§§ 79-1585, 79-1586 Repealed

History: L. 1978, ch. 395, §§ 49, 50; Repealed, L. 1998, ch. 130, § 38; July 1.

§ 79-1587 Transferred

Revisor's Note: Section transferred to 79-15,118.

§§ 79-15,100 Repealed

History: L. 1998, ch. 130, § 17; L. 1999, ch. 79, § 1; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,101 Repealed

History: L. 1978, ch. 395, § 6; L. 1993, ch. 38, § 12; L. 1994, ch. 269, § 3; L. 1998, ch. 130, § 4; L. 2003, ch. 147, § 45; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,102 Repealed

History: L. 1998, ch. 130, § 1; L. 1998, ch. 181, § 3; L. 1999, ch. 79, § 2; L. 2003, ch. 147, § 46; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,103 Repealed

History: L. 1978, ch. 395, § 28; L. 1979, ch. 316, § 8; L. 1980, ch. 313, § 7; L. 1980, ch. 308, § 10; L. 1993, ch. 38, § 32; L. 1994, ch. 269, § 4; L. 1998, ch. 130, § 5; L. 1999, ch. 79, § 3; L. 2003, ch. 147, § 47; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,104 Repealed

History: L. 1978, ch. 395, § 29; L. 1979, ch. 316, § 9; L. 1987, ch. 379, § 1; L. 1993, ch. 38, § 33; L. 1998, ch. 130, § 6; Repealed, L. 1999, ch. 79, § 13; July 1.

§§ 79-15,105 Repealed

History: L. 1978, ch. 395, § 39; L. 1979, ch. 316, § 12; L. 1984, ch. 351, § 6; L. 1988, ch. 356, § 321; L. 1993, ch. 38, § 43; L. 1997, ch. 126, § 9; L. 1998, ch. 130, § 12; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,106 Repealed

History: L. 1978, ch. 395, § 40; L. 1993, ch. 38, § 44; L. 1998, ch. 130, § 13; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,107 Repealed

History: L. 1978, ch. 395, § 33; L. 1979, ch. 316, § 10; L. 1984, ch. 147, § 19; L. 1986, ch. 375, § 1; L. 1993, ch. 38, § 37; L. 1998, ch. 130, § 7; L. 1999, ch. 79, § 4; L. 2000, ch. 24, § 1; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,108 Repealed

History: L. 1978, ch. 395, § 36; L. 1993, ch. 38, § 40; L. 1998, ch. 130, § 10; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,109 Repealed

History: L. 1978, ch. 395, § 35; L. 1979, ch. 316, § 11; L. 1987, ch. 379, § 2; L. 1993, ch. 38, § 39; L. 1998, ch. 130, § 9; L. 1999, ch. 79, § 5; L. 2003, ch. 147, § 48; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,110 Repealed

History: L. 1978, ch. 395, § 34; L. 1993, ch. 38, § 38; L. 1998, ch. 130, § 8; Repealed, L. 1999, ch. 79, § 13; July 1.

§§ 79-15,111 Repealed

History: L. 1978, ch. 395, § 38; L. 1993, ch. 38, § 42; L. 1998, ch. 130, § 11; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,112 Repealed

History: L. 1978, ch. 395, § 41; L. 1993, ch. 38, § 45; L. 2001, ch. 5, § 445; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,113 Repealed

History: L. 1978, ch. 395, § 43; L. 1980, ch. 313, § 10; L. 1983, ch. 315, § 2; L. 1984, ch. 351, § 7; L. 1993, ch. 38, § 46; L. 1998, ch. 130, § 14; L. 1999, ch. 79, § 6; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,114 Repealed

History: L. 1993, ch. 38, § 10; L. 1998, ch. 130, § 2; L. 2000, ch. 24, § 2; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,115 Repealed

History: L. 1993, ch. 38, § 11; L. 1998, ch. 130, § 3; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,116 Repealed

History: L. 1978, ch. 395, § 44; L. 1978, ch. 347, § 24; L. 1987, ch. 379, § 3; L. 1993, ch. 38, § 47; L. 1998, ch. 130, § 15; L. 2001, ch. 5, § 446; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,117 Repealed

History: L. 1978, ch. 395, § 47; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,118 Repealed

History: L. 1979, ch. 306, § 1; L. 1983, ch. 289, § 12; L. 1998, ch. 130, § 16; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,119 Repealed

History: L. 1998, ch. 130, § 18; L. 2001, ch. 63, § 1; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,120 through 79-15,122 Repealed

History: L. 1999, ch. 79, §§ 7 to 9; Repealed, L. 2001, ch. 77, § 2; July 1.

§§ 79-15,123, 79-15,124 Repealed

History: L. 1999, ch. 79, §§ 10, 11; L. 2000, ch. 24, §§ 3, 4; Repealed, L. 2001, ch. 77, § 2; July 1.

§§ 79-15,125 Repealed

History: L. 1999, ch. 79, § 12; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,126 Kansas estate tax apportionment act; definitions; apportionment of estate taxes; deduction, exemption or credit; duties and powers of representative; apportionment of interest and penalties and expenses

(a) As used in this act:

(1) "Court" means a court in which proceedings for administration of an estate are pending or have been completed or, if no proceedings are pending or have been completed, a court in which venue lies for the administration of the estate of the decedent;

(2) "estate" means the gross estate of a decedent as determined for the purpose of estate taxes;

(3) "estate tax" means any estate, inheritance or death tax levied or assessed on the property of a decedent's estate, because of the death of a person, imposed by federal, state, local or foreign law, including the federal estate tax and including interest and penalties imposed in addition to those taxes. Estate tax does not include a tax imposed under section 2701 (d)(1)(A) of the federal internal revenue code of 1986;

(4) "person" includes a trust, natural person, partnership, association, joint stock company, corporation, limited liability company, government, political subdivision or governmental agency;

(5) "person interested in the estate" means a person, or a fiduciary on behalf of that person, who is entitled to receive, or who has received, from a decedent or because of the death of the decedent, property included in the decedent's estate for purposes of the estate tax, but does not include a creditor of the decedent or of the decedent's estate; and

(6) "representative" means the representative, executor or administrator of an estate or any other person who is required to pay estate taxes assessed against the estate.

(b) (1) The representative shall charge each person interested in the estate the fraction of the total estate tax assessed against the estate, that the taxable value of that person's interest in the estate included in determining the amount of the tax bears to the total taxable value of all the interests of all persons interested in the estate included in determining the amount of the tax. The representative shall not apportion estate taxes under this subsection that are otherwise apportioned by federal law.

(2) Subsection (b)(1) shall apply unless the decedent in a written inter vivos or testamentary instrument disposing of or creating an interest in property specifically directs the manner of apportionment of estate tax or grants a discretionary power of apportionment to another person. A direction for the apportionment or nonapportionment of estate tax is limited to the estate tax on the property passing under the instrument unless the instrument specifically provides that such direction is to apply to property passing outside the provisions of the instrument.

(3) If under subsection (b)(2) directions for the apportionment of an estate tax in two or more instruments executed by the same person conflict, the instrument disposing of or creating an interest in the property to be taxed controls. If directions for the apportionment of estate tax in two or more instruments executed by the same person conflicts with respect to an interest in property disposed of or created by neither instrument, the instrument executed or amended most recently controls. If the most recent instruments were executed or amended contemporaneously, and one of the instruments is a last will and testament or codicil, the last will and testament or codicil controls. If directions for the apportionment of estate tax in two or more instruments executed by different persons conflict, the direction of the person in whose estate the property is included controls.

(4) Subsections (b)(2) and (b)(3) do not grant or enlarge the power of a person to apportion estate tax to property passing under an instrument created by another person in excess of the estate tax attributable to the property. Subsections (b)(2) and (b)(3) do not apply to the extent federal law directs a different manner of apportionment.

(c) Any deduction, exemption or credit allowed by law in connection with the estate tax inures to a person interested in the estate as provided by subsections (d), (e) and (f).

(d) If the deduction, exemption or credit is allowed because of the relationship of the person interested in the estate to the decedent, or because of the purpose of the gift, the deduction, exemption or credit inures to the person having the relationship or receiving the gift, unless that person's interest in the estate is subject to a prior present interest that is not allowable as a deduction. The estate tax apportionable to the person having the present interest shall be paid from the corpus of the gift or the interest of the person having the relationship.

(e) A deduction for property of the estate that was previously taxed and a credit for gift taxes or death taxes of a foreign country that were paid by the decedent or the decedent's estate inures proportionally to all persons interested in the estate who are liable for a share of the estate tax.

(f) A credit for inheritance, succession or estate taxes, or taxes of a similar nature applicable to property or interests includable in the estate, inures to the persons interested in the estate who are chargeable with payment of a portion of those taxes to the extent that the credit reduces proportionately those taxes.

(g) To the extent that property passing to or in trust for a surviving spouse or a charitable, public or similar gift or devise is not an allowable deduction for purposes of the estate tax solely because of an inheritance tax or other death tax imposed on and deductible from the property, the property is not included in the computation provided for by subsection (b), and to that extent no apportionment is made against the property. The exclusion provided by this subsection does not apply if the result would be to deprive the estate of a deduction otherwise allowable under section 2053(d) of the federal internal revenue code of 1986, relating to deductions for state death taxes on transfers for public, charitable or religious uses.

(h) The estate tax attributable to an interest in income, an estate for years or for life or another temporary interest in any property or fund, and the remainder interest and any other split interest, is chargeable against the corpus of the property or the funds that are subject to the temporary interest and remainder.

(i) (1) In this subsection, "qualified real property" has the meaning assigned by section 2032A of the federal internal revenue code of 1986.

(2) If an election is made under section 2032A of the federal internal revenue code of 1986, the representative shall apportion estate taxes according to the amount of federal estate tax that would be payable if the election were not made. The amount of the reduction of the estate tax resulting from the election shall be applied to reduce the amount of estate tax allocated to those persons who receive real estate subject to the special use value election is allocated based on the value of the qualified real property that each receives. If the amount applied to reduce the taxes allocated based on the value of the qualified real property is greater than the amount of those taxes, the excess shall be applied to the portion of the taxes allocated for all other property. This amount is to be apportioned under subsection (b)(1).

(3) If additional federal estate tax is imposed under section 2032A(c) of the federal internal revenue code of 1986 because of an early disposition or cessation of a qualified use, the additional tax shall be equitable apportioned among the persons who have an interest in the portion of the qualified real property to which the additional tax is attributable in proportion to their interests. If the qualified real property is split between one or more life or term interests and remainder interests, the additional tax shall be apportioned to each person whose action or cessation of use caused the imposition of additional tax, unless all persons with an interest in the qualified real property agree in writing to dispose of the property, in which case the additional tax shall be apportioned among the remainder interests.

(j) (1) In this subsection, "qualified family-owned business interest" has the meaning assigned by section 2057 of the federal internal revenue code of 1986.

(2) If an election is made under section 2057 of the federal internal revenue code of 1986, the representative shall apportion estate taxes according to the amount of federal estate tax that would be payable if the election were not made. The amount of the reduction of the estate tax resulting from the election shall be applied to reduce the amount of the estate tax allocated to those persons who receive property on which the election is allocated based on the value of the qualified family-owned business interest that each receives. If the amount applied to reduce the taxes allocated based on the value of the qualified family-owned business interest is greater than the amount of those taxes, the excess shall be applied to the portion of the taxes allocated for all other property. This amount is to be apportioned under subsection (b)(1).

(3) If additional federal estate tax is imposed under section 2057(f) of the federal internal revenue code of 1986 because of an early disposition or cessation of a qualified use, the additional tax shall be equitably apportioned among the persons who have an interest in the portion of the qualified family-owned business interest to which the additional tax is attributable in proportion to their interest.

(k) If the date for the payment of any portion of an estate tax is extended, the amount of the extended tax and interest and penalties on such extended tax shall be apportioned to the persons who receive the specific property that gives rise to the extension, except to the extent caused by breach of fiduciary duty of a representative.

(l) If federal law directs the apportionment of the federal estate tax, a similar state tax shall be apportioned in the same manner.

(m) If property includable in an estate does not come into possession of the representative, the representative shall recover from each person interested in the estate the amount of the estate tax apportioned to the person under this act. A representative required to recover unpaid amounts of estate tax apportioned to persons interested in the estate under this act may initiate an action at any time to recover unpaid amounts, or reasonable estimates of such amounts, but is not required to initiate the action until the expiration of 90 days after the date of the final determination of the amount of the estate tax. A representative who initiates an action under this act within a reasonable time after the 90 day period is not subject to any liability or surcharge because any portion of the estate tax apportioned to any person interested in the estate was collectible at a time following the death of the decedent but thereafter became uncollectible. The obligation to recover a tax under this subsection does not apply if:

(1) The duty is waived by the parties who would benefit from such recovery or by the instrument under which the representative derives powers; or

(2) in the reasonable judgment of the representative, proceeding to recover the tax is not cost effective.

(n) If, after complying with the provisions of subsection (m), a representative does not collect from a person interested in the estate an unpaid amount of estate tax apportioned to the person, the amount not collected shall be apportioned among the other persons interested in the estate who are subject to apportionment in the same manner as provided by subsection (b)(1). A person who is charged with or who pays an apportioned amount under this subsection because another person failed to pay an amount of estate tax apportioned to the person charged with the tax has a right of reimbursement for that amount from the person who failed to pay the tax. The representative may enforce the right of reimbursement. The person charged with the tax may also enforce such right of reimbursement provided the representative has either assigned the representative's right to seek reimbursement to the person charged with the tax or six months have expired since the person charged with the tax has paid such tax and there are no pending judicial proceedings in which the representative is pursuing such right of reimbursement.

(o) This section shall be applied after giving effect to any valid disclaimers.

(p) Except as otherwise provided in this act, interest and penalties assessed against the estate by a taxing authority shall be apportioned among and charged to the persons interested in the estate in the manner provided by subsection (b), unless, on application by any person interested in the estate, the court determines that the proposed apportionment is not equitable or that the assessment of interest or penalties was caused by a breach of fiduciary duty of a representative. If the apportionment is not equitable, the court may apportion interest and penalties in an equitable manner. If the assessment of interest or penalties was caused by a breach of fiduciary duty of a representative, the court may charge the representative with the amount of the interest and penalties assessed attributable to such representative's conduct.

(q) Expenses, including attorney and representative fees, reasonably incurred by a representative in determination of the amount, apportionment or collection of the estate tax shall be apportioned among and charged to persons interested in the estate in the manner provided by subsection (b) unless, on application by any person interested in the estate, the court determines that the proposed apportionment is not equitable. If the court determines that the assessment is not equitable, the court may apportion the expenses in an equitable manner.

(r) A representative who has possession of any property of an estate that is distributable to a person interested in the estate may withhold from that property an amount equal to the person's apportioned share of the estate tax.

(s) A representative shall recover from any person interested in the estate the unpaid amount of the estate tax apportioned and charged to the person under this section, unless the representative determines in good faith that an attempt to recover this amount would be economically impractical.

(t) A representative acting in another state may initiate an action in a court of this state to recover a proportionate amount of the federal estate tax, of an estate tax payable to another state, or of a death duty due by a decedent's estate to another state, from a person interested in the estate who is domiciled in this state or owns property in this state subject to attachment or execution. In the action, a determination of apportionment by the court having jurisdiction of the administration of the decedent's estate in the other state is prima facie correct. This act applies only if the state in which the determination of apportionment was made affords a substantially similar remedy.

(u) The prevailing party in an action initiated by a person for the collection of estate taxes from a person interested in the estate to whom estate taxes were apportioned and charged under subsection (b) may be awarded necessary expenses, including reasonable attorney fees.

(v) Nothing in this act shall be construed as creating a lien on real estate.

(w) This act is named and may be cited as the Kansas estate tax apportionment act.

History: L. 2001, ch. 77, § 1; July 1.

§§ 79-15,127 Repealed

History: L. 2002, ch. 185, § 5; Repealed, L. 2003, ch. 147, § 69; May 22.

§§ 79-15,128 Repealed

History: L. 2003, ch. 147, § 49; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,129 through 79-15,145 Repealed

History: L. 2003, ch. 147, §§ 50 to 66; Repealed, L. 2006, ch. 199, § 54; January 1, 2007.

§§ 79-15,146 Applicability of sections; limitation of liability

The provisions of K.S.A. 79-15,100 through 79-15,125 and K.S.A. 79-15,127 through 79-15,145, and amendments thereto, applicable to the estates of all decedents dying after June 30, 1998 and before January 1, 2007, shall only apply to estates for which an estate tax return was filed before January 1, 2017. In the event no estate tax return has been filed with the director before January 1, 2017, no liability which may have been imposed if the return was filed by such date shall accrue to either the estate or the distributees of the estate.

History: L. 2010, ch. 44, § 1; July 1.

§§ 79-15,147 through 79-15,200 Reserved

§§ 79-15,201 through 79-15,206 Repealed

History: L. 2006, ch. 199, §§ 1 to 6; Repealed, January 1, 2010.

§§ 79-15,206a Repealed

History: L. 2009, ch. 142, § 3; Repealed, January 1, 2010.

§§ 79-15,207 through 79-15,252 Repealed

History: L. 2006, ch. 199, §§ 7 to 52; Repealed, January 1, 2010.

§§ 79-15,253 Repealed

Revisor's Note: 79-15,201 through 79-15,253 were repealed by 79-15,253.

History: L. 2006, ch. 199, § 53; L. 2009, ch. 142, § 4; Repealed, January 1, 2010.

§§ 79-15,254 Applicability of act; limitation of liability

The provisions of K.S.A. 79-15,201 through 79-15,253, and amendments thereto, applicable to the estates of all decedents dying after December 31, 2006 and before January 1, 2010, shall only apply to estates for which an estate tax return was filed before January 1, 2020. In the event no estate tax return has been filed with the director before January 1, 2020, no liability which may have been imposed if the return was filed by such date shall accrue to either the estate or the distributees of the estate.

History: L. 2010, ch. 44, § 2; July 1.

Article 16 Miscellaneous Property Tax Provisions

§ 79-1601 Repealed

History: L. 1876, ch. 34, § 73; R.S. 1923, 79-1601; Repealed, L. 1992, ch. 282, § 21; January 1, 1993.

§ 79-1602 Repealed

History: L. 1876, ch. 34, § 74; L. 1911, ch. 317, § 2; L. 1913, ch. 323, § 1; R.S. 1923, 79-1602; L. 1959, ch. 376, § 1; L. 1969, ch. 437, § 1; L. 1971, ch. 293, § 3; L. 1985, ch. 314, § 10; L. 1986, ch. 287, § 1; L. 1988, ch. 377, § 6; L. 1990, ch. 90, § 7; Repealed, L. 1992, ch. 282, § 21; January 1, 1993.

§ 79-1603 Repealed

History: L. 1876, ch. 34, § 75; L. 1913, ch. 323, § 2; R.S. 1923, 79-1603; L. 1959, ch. 376, § 2; L. 1971, ch. 293, § 4; L. 1988, ch. 377, § 7; Repealed, L. 1992, ch. 282, § 21; January 1, 1993.

§ 79-1604 Abstract of assessment rolls for state director of property valuation; forms; valuation of certain motor vehicles credited as supplementary assessments

Immediately after the completion of the labors of the hearing officer or county or district hearing panel, the county clerk shall prepare an abstract of the assessment rolls of the county and forward it to the director of property valuation on or before July 15. Said abstract shall be made in the form prescribed by the director of property valuation and shall give the information asked by the director of property valuation under the various subjects fully and completely as required. The director shall have authority to prescribe a statewide database format. The abstract on motor vehicles will include only those motor vehicles assessed as of the date the abstract is prepared previous to mailing to the director of property valuation. Any motor vehicles acquired, purchased, traded or sold during the time the abstract is being prepared and until September 1, will be assessed and added or subtracted from the original assessment allowing an additional valuation to the abstracted figure on motor vehicles. After the levy is set according to law, valuations of motor vehicles would be credited as supplementary assessments are now credited.

History: L. 1876, ch. 34, § 76; L. 1877, ch. 40, § 1; L. 1909, ch. 243, § 8; R.S. 1923, § 79-1604; L. 1971, ch. 292, § 2; L. 1992, ch. 282, § 8; January 1, 1993.

§ 79-1605 Abstract of assessment rolls; penalty for failure of county clerk to comply

If any county clerk shall refuse or neglect to properly prepare an abstract of the assessment roll of the county and forward the same to the director of property valuation, as required by law, he or she shall forfeit to the state the sum of five hundred dollars, to be recovered in the name of the county commissioners by civil action before any court of competent jurisdiction; and the verified certificate of the director of property valuation setting forth the failure of the clerk to comply with the provisions of said section, shall be prima facie evidence of such refusal or neglect, on the trial of such action.

History: L. 1876, ch. 34, § 77; L. 1909, ch. 243, § 9; R.S. 1923, 79-1605; L. 1992, ch. 282, § 9; January 1, 1993.

§ 79-1606 Appeals to hearing panels or officers; procedure and forms; hearings and disposition; duties of county clerk

(a) The county or district appraiser, hearing officer or panel and arbitrator shall adopt, use and maintain the following records, the form and method of use of which shall be prescribed by the director of property valuation: (1) Appeal form, (2) hearing docket, and (3) record of cases, including the disposition thereof.

(b) The county clerk shall furnish appeal forms to any taxpayer who desires to appeal the final determination of the county or district appraiser as provided in K.S.A. 79-1448, and amendments thereto. Any such appeal shall be in writing and filed with the county clerk within 18 days of the date that the final determination of the appraiser was mailed to the taxpayer.

(c) The hearing officer or panel shall hear and determine any appeal made by any taxpayer or such taxpayer's agent or attorney. All such hearings shall be held in a suitable place in the county or district. Sufficient evening and Saturday hearings shall be provided as shall be necessary to hear all parties making requests for hearings at such times.

(d) Every appeal so filed shall be set for hearing by the hearing officer or panel, which hearing shall be held on or before July 1, and the hearing officer or panel shall have no authority to be in session thereafter, except as provided in K.S.A. 79-1404, and amendments thereto. The county clerk shall notify each appellant and the county or district appraiser of the date for hearing of the taxpayer's appeal at least 10 days in advance of such hearing. It shall be the duty of the county or district appraiser to initiate the production of evidence to demonstrate, by a preponderance of the evidence, the validity and correctness of the classification or appraisal of residential property or real property used for commercial and industrial purposes, except that no such duty shall accrue with regard to leased commercial and industrial property unless the property owner has furnished to the county or district appraiser a complete income and expense statement for the property for the three years next proceeding [preceding] the year of appeal. No presumption shall exist in favor of the county or district appraiser with respect to the validity or correctness of any such classification or valuation. Every such appeal shall be determined by order of the hearing officer or panel which shall be accompanied by a written explanation of the reasoning upon which such order is based. Such order shall be recorded in the minutes of such hearing officer or panel on or before July 5. Such recorded orders and minutes shall be open to public inspection. Notice as to disposition of the appeal shall be mailed by the county clerk to the taxpayer and the county or district appraiser within five days after the determination.

History: L. 1955, ch. 398, § 4; L. 1959, ch. 376, § 3; L. 1969, ch. 438, § 1; L. 1971, ch. 293, § 5; L. 1982, ch. 391, § 36; L. 1988, ch. 377, § 8; L. 1990, ch. 90, § 8; L. 1992, ch. 282, § 10; L. 1996, ch. 264, § 8; L. 1999, ch. 126, § 9; L. 2000, ch. 139, § 6; July 1.

§ 79-1607 Repealed

History: L. 1958, ch. 29, § 1; (Special Session) L. 1988, ch. 377, § 9; L. 1990, ch. 66, § 55; Repealed, L. 1992, ch. 282, § 21; January 1, 1993.

§ 79-1608 Transfer of general fund moneys to special assessment equalization fund; use of moneys; retransfers, when

The board of county commissioners of any county by resolution is hereby authorized and empowered to transfer at the close of any budget year all or any part of the balance of the money in the county general fund, and subject to legal expenditure in such year, to a special appraisal fund. Upon the adoption of such resolution, a copy thereof shall be delivered to the county treasurer and the treasurer shall credit the amount provided in such resolution to such special fund and shall debit the general fund.

Such transfers may be made notwithstanding the provisions of K.S.A. 79-2925 to 79-2937, and amendments thereto. All moneys credited to such special fund shall be used by the county for the purpose of assuring that all property in the county is classified and appraised according to law and for the purpose of the employment of or contracting for appraisal assistance, hearing officers or panels and arbitrators. Such special appraisal fund shall not be subject to the provisions of K.S.A. 79-2925 to 79-2937, and amendments thereto, except that in making the budgets of such counties the amounts credited to, and the amount on hand in such special fund, and the amount expended therefrom shall be shown thereon for the information of the taxpayers of the county.

If the board of county commissioners shall determine at any time that all or any part of the money which has been transferred to such special fund is not needed for the purposes for which so transferred, the board of county commissioners is hereby authorized and empowered by resolution to retransfer such amount not needed to the general fund of the county, and such retransfer and expenditure thereof shall be subject to the provisions of K.S.A. 79-2925 to 79-2937, and amendments thereto.

History: L. 1958, ch. 29, § 2 (Special Session); L. 1988, ch. 377, § 10; L. 1992, ch. 282, § 11; January 1, 1993.

§ 79-1609 Appeals to state board of tax appeals; notice, requirements; procedure; limit on increased appraised valuation by the board

Any person aggrieved by any order of the hearing officer or panel, or by the classification and appraisal of an independent appraiser, as provided in K.S.A.

79-5b03, and amendments thereto, may appeal to the state board of tax appeals by filing a written notice of appeal, on forms approved by the state board of tax appeals and provided by the county clerk for such purpose, stating the grounds thereof and a description of any comparable property or properties and the appraisal thereof upon which they rely as evidence of inequality of the appraisal of their property, if that be a ground of the appeal, with the state board of tax appeals and by filing a copy thereof with the county clerk within 30 days after the date of the order from which the appeal is taken. The notice of appeal may be signed by the taxpayer, any person with an executed declaration of representative form from the property valuation division of the department of revenue or any person authorized to represent the taxpayer in K.S.A.

74-2433f(f), and amendments thereto. A county or district appraiser may appeal to the state board of tax appeals from any order of the hearing officer or panel. With regard to any matter properly submitted to the board relating to the determination of valuation of residential property or real property used for commercial and industrial purposes for taxation purposes, it shall be the duty of the county appraiser to initiate the production of evidence to demonstrate, by a preponderance of the evidence, the validity and correctness of such determination. With regard to leased commercial and industrial property, the burden of proof shall be on the taxpayer unless, within 30 calendar days following the informal meeting required by K.S.A.

79-1448, and amendments thereto, the taxpayer furnished to the county or district appraiser a complete income and expense statement for the property for the three years next preceding the year of appeal. Such income and expense statement shall be in such format that is regularly maintained by the taxpayer in the ordinary course of the taxpayer's business. If the taxpayer submits a single property appraisal with an effective date of January 1 of the year appealed, the burden of proof shall return to the county appraiser. With regard to any matter properly submitted to the board relating to the determination of valuation of property for taxation purposes, the board shall not increase the appraised valuation of the property to an amount greater than the final determination of appraised value by the county appraiser from which the taxpayer appealed.

History: L. 1959, ch. 376, § 4; L. 1971, ch. 300, § 1; L. 1972, ch. 365, § 1; L. 1988, ch. 377, § 11; L. 1992, ch. 282, § 12; L. 1996, ch. 264, § 9; L. 1999, ch. 126, § 10; L. 2008, ch. 109, § 95; L. 2013, ch. 87, § 14; L. 2014, ch. 141, § 12; L. 2015, ch. 100, § 15; L. 2021, ch. 58, § 9; July 1.

§ 79-1609a Repealed

History: L. 1959, ch. 376, § 4; L. 1971, ch. 300, § 1; L. 1972, ch. 365, § 1; L. 1988, ch. 377, § 11; L. 1992, ch. 282, § 12; L. 1996, ch. 264, § 9; L. 1999, ch. 126, § 10; L. 2008, ch. 109, § 95; L. 2013, ch. 87, § 14; L. 2014, ch. 140, § 8; Repealed, L. 2015, ch. 100, § 17; July 1.

§ 79-1610 Decision of hearing officer or panel; notice to taxpayer; change in assessment of class of property; appeal not heard is denied

Notice of the decision of the hearing officer or panel on any appeal shall be mailed to the taxpayer and the county appraiser within five days after the date of the making of such decision. Any appeal duly perfected not heard by the hearing officer or panel on or before the date of final adjournment of the hearing officer or panel, shall be deemed to have been denied as of the date of final adjournment and the hearing officer or panel shall mail a notice of such denial to the taxpayer within five days after the date of such final adjournment.

History: L. 1969, ch. 437, § 2; L. 1985, ch. 311, § 9; L. 1988, ch. 377, § 12; L. 1992, ch. 282, § 13; L. 1994, ch. 275, § 5; July 1.

§ 79-1611 Appointment of hearing officers and panels to hear appeals from valuation and classification of property; qualifications and salary; removal of appointees, when

The board of county commissioners of each county may appoint at least one hearing officer or county hearing panel of not fewer than three individuals to hear and determine appeals from the final determination of classification and appraised valuation of real or personal property by the county appraiser. The board of county commissioners, with the approval of the director of property valuation, may unite with the board of county commissioners of one or more counties to form a district for the purpose of appointing at least one hearing officer or district hearing panel of not fewer than three individuals. In any county wherein a hearing officer or county or district hearing panel is not appointed pursuant to this section any appeal from the final determination of the county appraiser shall be filed directly with the state board of tax appeals as provided in K.S.A. 79-1609, and amendments thereto.

The board of county commissioners shall fix the salary to be paid the hearing officer or each member of the county hearing panel. In the case of a district hearing officer or district hearing panel, the salary to be paid shall be fixed by joint resolution by the boards of county commissioners published in the official county newspaper of each county. The board of county commissioners of each county is hereby authorized to levy a tax upon all taxable tangible property in the county in an amount necessary to pay all costs incurred in complying with this section and K.S.A. 79-1494, and amendments thereto.

No person may serve as a hearing officer or on a county or district hearing panel who is not qualified by virtue of experience and training in the field of property appraisal and property tax administration, such qualifications to be determined by the director of property valuation who shall prescribe guidelines governing the duties of the hearing officers or county and district hearing panels. Each hearing officer and member of a county or district hearing panel shall attend and complete a training program conducted by the director of property valuation or the director's designee. Any person who has performed an appraisal of any property the appraised valuation of which is appealed to a hearing officer or the county or district hearing panel shall not hear such appeal and may not participate in any deliberations on such appeal. The board of county commissioners, or individual members thereof, may serve as a hearing officer or as members of the county or district hearing panel provided they meet the foregoing requirements.

Whenever the director of property valuation shall conclude that any person appointed as a hearing officer or to a county or district hearing panel has failed or neglected to discharge such person's duties as required by law and that the interest of the public will be promoted by the removal of such person, the director of property valuation shall issue an order suspending or terminating such person as a hearing officer or member of the hearing panel in the same manner and subject to the same conditions provided in subsection (b) of K.S.A. 19-431, and amendments thereto.

The provisions of this section shall apply to all taxable years commencing after December 31, 1997.

History: L. 1992, ch. 282, § 7; L. 1998, ch. 146, § 10; L. 2008, ch. 109, § 96; L. 2014, ch. 141, § 103; July 1.

§ 79-1612 Military service, deployment outside United States; property tax deferral; rules and regulations

(a) A person who is in full-time military service of the United States and is or soon to be mobilized or deployed outside of the United States for a period of at least six months solely by reason of military orders, on or before December 1 of the year in which such person files a claim under this section, may elect to defer all or part of such person's real property taxes for such person's principal place of residence for any year in which such person is serving in active military duty for a period not to exceed two years. To exercise such election to defer, such person shall obtain a claim for deferral from the county clerk and file such claim with the county treasurer of the county in which the property is located. A person who is a family member or an attorney-in-fact of such person otherwise qualified to claim this deferral, may act for such person in claiming such deferral when such person's military service prevents such person from making such claim for deferral. The claim shall be accompanied by proof of military status in a form as provided by the secretary of revenue.

(b) Such deferral shall have the effect of deferring all or part of such person's real property taxes as provided in subsection (a) for a period not to exceed two years, and to waive any interest or penalties related to such deferred real property taxes.

(c) All such deferred real property taxes shall become payable when the deferral period ends, or the property is sold or title of such property is transferred to someone other than the person who made the election pursuant to subsection (a).

(d) The secretary of revenue shall adopt rules and regulations regarding the forms that support the deferral claimed pursuant to this section and such other matters necessary to administer the provisions of this section.

History: L. 2008, ch. 156, § 4; July 1.

§ 79-1613 Homestead or building or improvement destroyed or substantially destroyed by natural disaster; abatement of tax

(a) As used in this section:

(1) "Destroyed or substantially destroyed" means damage of any origin sustained by a homestead or building or improvement as the direct result of: (A) An earthquake, flood, tornado, fire or storm; or (B) an event or occurrence that the governor of the state of Kansas has declared a disaster, whereby the cost of restoring the structure damaged as a result of subparagraph (A) or (B) to its before-damaged condition would equal or exceed 50% of the market value of the structure before the damage occurred.

(2) "Homestead" means the dwelling, or any part thereof, whether owned or rented, that is occupied as a residence by the household and so much of the land surrounding it, as defined as a home site for ad valorem tax purposes, and may consist of a part of a multi-dwelling or multi-purpose building and a part of the land upon which it is built or a manufactured home or mobile home and the land upon which it is situated. "Owned" includes a vendee in possession under a land contract, a life tenant, a beneficiary under a trust and one or more joint tenants or tenants in common.

(b) The owner of any building or improvement listed and assessed for property taxation purposes as real property or any homestead listed and assessed for property taxation purposes that was destroyed or substantially destroyed may make application to the board of county commissioners of the county in which such property is located for the abatement of property taxes levied upon such homestead or building or improvement or for a credit against property taxes payable by such owner, as permitted by this section.

(1) If such homestead or building or improvement has been so destroyed or substantially destroyed after January 1 of a particular year but prior to August 15 of such year, the owner of such homestead or building or improvement may make application to such board of county commissioners for the abatement of property taxes levied upon such homestead or building or improvement, or if such property taxes have been paid or partially paid, may make application for the granting of a credit against property taxes payable by such owner during any or all of the next succeeding three taxable years.

(2) If such homestead or building or improvement has been so destroyed or substantially destroyed on or after August 15 of a particular year but prior to January 1 of the next succeeding year, the owner of such homestead or building or improvement may make application to such board of county commissioners for the granting of a credit against property taxes payable by such owner during any or all of the next succeeding three taxable years.

(c) An application for relief as permitted by subsection (b) may be made for abatement of property taxes assessed but not yet paid, or for a grant of a credit for assessed property taxes paid or for both, as the case may be, and may be made on or before December 20 of the year next succeeding the year for which such taxes have been assessed.

(d) Upon receipt of any such application, subject to budgetary restraints of the county or taxing subdivision, the board of county commissioners shall inquire into and make findings regarding, among other things, whether the property is a homestead, as defined in subsection (a), whether the property is a building or improvement, whether the homestead or the building or improvement was destroyed or substantially destroyed, as defined in subsection (a) and the assessed valuation thereof. If it is determined that an owner of such homestead or building or improvement is entitled to an abatement of all or any portion of the property taxes levied against such homestead or building or improvement or is entitled to a credit against property taxes payable by such owner in any or all of the next succeeding three years, the board may issue an order so providing.

(e) The county clerk and county treasurer shall in each case of abatement or credit correct their records in accordance therewith and the county clerk shall notify the governing body of any taxing district affected thereby.

(f) The provisions of this section shall be applicable to all taxable years commencing after December 31, 2018.

(g) Notwithstanding any provision of subsection (c) to the contrary, an application for relief as permitted by subsection (b) may be made for abatement of property taxes assessed but not yet paid, or for a grant of a credit for assessed property taxes paid, or for both, as the case may be, and may be made on or before December 20, 2022, for taxable years 2019 and 2020.

History: L. 2013, ch. 135, § 8; L. 2014, ch. 81, § 3; L. 2022, ch. 63, § 35; July 1.

§ 79-1614 Business shutdown or restricted by government entity related to state of disaster emergency; reimbursement of tax

(a) The owner of any building listed and assessed for property taxation purposes as real property that maintains a business on the property that was shut down or restricted by the state, county, city or other political subdivision of the state pursuant to an executive order issued by the governor pursuant to K.S.A. 48-925, and amendments thereto, or any action taken by a county, city or other political subdivision of the state related to a state of disaster emergency declared pursuant to K.S.A. 48-924, and amendments thereto, or state of local disaster emergency declared pursuant to K.S.A. 48-932, and amendments thereto, may make application to the board of county commissioners of the county in which such property is located for the reimbursement of the property taxes levied upon such property during the shutdown or restriction. The county treasurer shall reimburse from the county general fund any owner who makes an application or operator that joins in an application that is determined to be valid for the period of time that the shutdown or restriction remained in effect. For ordered shutdowns, the reimbursement shall be calculated as a 1/365

amount of the total ad valorem real property taxes levied by the state, county and all other taxing subdivisions due for the property for the year multiplied by the number of calendar days the ordered shutdown was in effect. For ordered restrictions, the reimbursement shall be calculated as a

1/365 amount of the total ad valorem real property taxes levied by the state, county and all other taxing subdivisions due for the property for the year multiplied by the percentage of the ordered restrictions and further multiplied by the number of calendar days the ordered restriction was in effect.

(b) If the owner is the operator of the business on the property that was shut down or restricted, the owner shall be entitled to 100% of such reimbursement amount. If the owner is not the operator of such business that was shut down or restricted from conducting operations: (1) The owner shall disclose and attest to the identity of the operator of such business on the application form; (2) the owner shall be entitled to 50% of such reimbursement amount; (3) the operator of such business shall be entitled to 50% of such reimbursement amount if such operator joins in the owner's application; and (4) such operator that joins in the owner's application may elect to assign such operator's share of the reimbursement amount to the owner to be credited against any delinquent rent due to the owner.

(c) If the state, a city or other political subdivision of the state was the governmental entity that shut down or restricted the business resulting in a reimbursement to an owner or operator pursuant to this section, such governmental entity that shut down or restricted the business shall reimburse the county for the cost of such reimbursement.

(d) For purposes of this section, "restriction" or "restricted" means any occupancy limitation, limitation on periods of operation or the exertion by any governmental entity of other significant control on business resources or functionality.

(e) The provisions of this section shall be applicable on and after January 1, 2022.

History: L. 2021, ch. 115, § 1; July 1.

§ 79-1615 COVID-19 retail storefront property tax relief act; citation and purpose of act

The provisions of K.S.A. 2025 Supp. 79-1615 through 79-1627, and amendments thereto, shall be known and may be cited as the COVID-19 retail storefront property tax relief act. The purpose of this act shall be to provide refunds to certain businesses impacted by COVID-19 related shutdowns and restrictions during tax years 2020 and 2021 based on a portion of property taxes accrued on retail storefront property.

History: L. 2022, ch. 98, § 1; July 1.

§ 79-1616 Definitions

As used in this act:

(a) "Act" means the COVID-19 retail storefront property tax relief act.

(b) (1) "Claimant" means a for-profit business, regardless of legal structure, who has filed a claim under the provisions of this act and who:

(A) Conducts a majority of its retail sales through customers' physical, on-site presence at a retail storefront property;

(B) was in operation on or prior to July 1, 2019, and filed a 2019 tax return;

(C) had at least $10,000 in annual revenues, including gross sales and receipts, in 2019;

(D) received less gross revenue in 2020 or 2021, as applicable, compared to 2019;

(E) was in active operations as of March 1, 2020; and

(F) has not received more than a total of $150,000 in prior COVID-19-related local, state or federal funding or any combination thereof.

(2) "Claimant" shall not include:

(A) Grocery stores and pharmacies;

(B) hardware stores and home improvement businesses;

(C) retail liquor stores;

(D) manufacturers and food processors;

(E) schools, such as pre-kindergarten, kindergarten through grade 12, post-secondary, higher education, technical education and training;

(F) hospitals and healthcare providers, including, but not limited to, physicians, surgeons, psychologists and psychoanalysts, but not including personal services providers such as massage therapists and chiropractors;

(G) property management and real estate services, including owners or operators of short-term rental properties;

(H) professional services, including, but not limited to, accounting, insurance, legal, financial services and firms, information technology, engineering and architecture;

(I) agriculture and aquaculture producers, including farms, ranches and fisheries, but not including their retail storefronts used to conduct retail sales to customers;

(J) hosts or operators of a vacation or short-term rental unit;

(K) passive businesses, investment companies and investors who file a schedule E on their individual tax returns;

(L) financial businesses primarily engaged in the business of lending, such as banks, finance companies and factoring companies;

(M) cable companies, telephone companies, utilities and other similar businesses; and

(N) energy production, generation and distribution companies.

(3) When a retail storefront is occupied by two or more businesses and more than one of the businesses is able to qualify as a claimant, the businesses may determine between them as to whom the claimant will be. If they are unable to agree, the matter shall be referred to the secretary of revenue whose decision shall be final.

(c) "Gross rent" means the rental paid at arm's length solely for the right of occupancy of a retail storefront paid to a landlord, as expressly set out in the rental agreement, exclusive of charges for any utilities, services, furniture and furnishings or personal property appliances furnished by the landlord as a part of the rental agreement, whether or not expressly set out in the rental agreement. Whenever the director of taxation finds that the landlord and tenant have not dealt with each other at arm's length and that the gross rent charge was excessive, the director may adjust the gross rent to a reasonable amount for the purpose of the claim.

(d) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on a claimant's retail storefront in 2020 or 2021, as applicable, by the state of Kansas and the political and taxing subdivisions of the state. When a retail storefront is owned by two or more persons or entities as joint tenants or tenants in common and one or more of the persons or entities is not a part of claimant's business, "property taxes accrued" is that part of property taxes levied on the retail storefront that reflects the ownership percentage of the claimant's business. For purposes of this act, property taxes are "levied" when the tax roll is delivered to the local treasurer with the treasurer's warrant for collection. When a claimant owns its retail storefront part of a calendar year, "property taxes accrued" means only taxes levied on the retail storefront when both owned and occupied as a retail storefront by the claimant's business at the time of the levy, multiplied by the percentage of 12 months that the property was owned and occupied by the business as its retail storefront in the year. When a business owns and occupies two or more different retail storefronts in the same calendar year, property taxes accrued shall be the sum of the taxes allocable to those several properties while occupied by the business as its retail storefront during the year. Whenever a retail storefront is an integral part of a larger unit such as a multi-purpose or multi-retail storefront building, property taxes accrued shall be that percentage of the total property taxes accrued as the value of the retail storefront is of the total value. For the purpose of this act, the word "unit" refers to that parcel of property covered by a single tax statement of which the retail storefront is a part.

(e) "Rent constituting property taxes accrued" means 15% of the gross rent actually paid in cash or its equivalent in 2020 or 2021, as applicable, by a claimant solely for the right of occupancy of a retail storefront on which ad valorem property taxes were levied in full for that year. When a claimant occupies two or more different retail storefronts in the same calendar year, rent constituting property taxes accrued shall be computed by adding the rent constituting property taxes accrued for each property rented by the claimant while occupied by the claimant as its retail storefront during the year.

(f) "Retail storefront" means the real property in this state, whether owned or rented, that is occupied by the claimant's business and where the claimant conducts retail sales through customers' physical, on-site presence. "Retail storefront" may consist of a part of a multi-purpose or multi-retail storefront building. "Owned" includes a vendee in possession under a land contract, a life tenant, a beneficiary under a trust and one or more joint tenants or tenants in common.

History: L. 2022, ch. 98, § 2; July 1.

§ 79-1617 Eligibility; amount of refund, computation; maximum amount of refund

(a) For tax years 2020 and 2021, a claimant shall be eligible for a claim for refund under this act if the claimant's eligible business operated at the retail storefront was operationally shut down or restricted by a COVID-19-related order or action imposed by the state, a local unit of government or a local health officer, including, but not limited to, by an executive order issued by the governor pursuant to K.S.A. 48-925, and amendments thereto, or any action taken by a local unit of government related to a state of disaster emergency declared pursuant to K.S.A. 48-924, and amendments thereto, or a state of local disaster emergency declared pursuant to K.S.A. 48-932, and amendments thereto.

(b) The amount of refund under this act shall be equal to 33% of the COVID-19 qualifying sum. The COVID-19 qualifying sum shall be the sum of the COVID-19 ordered shutdown days gross rebate amount calculated pursuant to subsection (c) and the COVID-19 ordered restricted operations days gross rebate amount calculated pursuant to subsection (d).

(c) The COVID-19 ordered shutdown days gross rebate amount shall be the amount of the claimant's property taxes accrued or rent constituting property taxes accrued for the tax year divided by the applicable factor set forth in the following schedule:

| Number of ordered shutdown days | Divide property taxes accrued or rent constituting property taxes accrued by: | | --- | --- | | 91 or more | 3 | | 61 to 90 | 4 | | 31 to 60 | 6 | | 1 to 30 | 12 |

(d) The COVID-19 ordered restricted operations days gross rebate amount shall be the amount of the claimant's property taxes accrued or rent constituting property taxes accrued for the tax year divided by the applicable factor set forth in the following schedule:

| Number of ordered restricted operations days | Divide property taxes accrued or rent constituting property taxes accrued by: | | --- | --- | | 211 or more | 2 | | 181 to 210 | 2.289 | | 151 to 180 | 2.667 | | 121 to 150 | 3.2 | | 91 to 120 | 4 | | 61 to 90 | 5.333 | | 31 to 60 | 8 | | 1 to 30 | 16 |

(e) For purposes of subsections (c) and (d), an eligible calendar day may be counted only once as either an ordered shutdown day or an ordered restricted operations day.

(f) A claimant with a qualifying business at a retail storefront that ceased operations after March 1, 2020, and before January 1, 2021, is eligible for a rebate only for tax year 2020.

(g) The maximum amount of a refund that may be claimed by a claimant in any single tax year pursuant to this act shall be $5,000 per retail storefront.

History: L. 2022, ch. 98, § 3; July 1.

§ 79-1618 Claims payable from American rescue plan-state fiscal relief-federal fund; no warrant issued for less than $5; no interest allowed on claim

A claimant may claim property tax relief under this act with respect to property taxes accrued or rent constituting property taxes accrued and, after audit by the director of taxation with respect to this act, the allowable amount of such claim shall be paid, except as otherwise provided in K.S.A. 2025 Supp. 79-1623, and amendments thereto, to the claimant from the American rescue plan-state fiscal relief-federal fund. Such payment shall be made upon warrants of the director of accounts and reports pursuant to vouchers approved by the director of taxation, but no warrant issued shall be drawn in an amount of less than $5. No interest shall be allowed on any payment made to a claimant pursuant to this act.

History: L. 2022, ch. 98, § 4; July 1.

§ 79-1619 Only one claimant per retail storefront permitted

Only one claimant per retail storefront per year shall be entitled to relief under this act.

History: L. 2022, ch. 98, § 5; July 1.

§ 79-1620 Deadline for filing claim; exception

For tax years 2020 and 2021, no claim shall be paid or allowed unless such claim is filed with and in the possession of the department of revenue on or before April 15, 2023, except that the director of taxation may extend the time for filing any claim or accept a claim filed after the filing deadline when good cause exists, if the claim has been filed within four years of the deadline.

History: L. 2022, ch. 98, § 6; July 1.

§ 79-1621 Forms and instructions; rules and regulations

(a) In administering this act, the director of taxation shall make available suitable forms with instructions for claimants.

(b) The secretary of revenue is hereby authorized to adopt such rules and regulations as may be necessary for the administration of the provisions of this act.

History: L. 2022, ch. 98, § 7; July 1.

§ 79-1622 Information required in support of claim

(a) Every claimant under this act shall provide to the director of taxation, in support of a claim, reasonable proof of eligibility for the refund.

(b) Every claimant who is a retail storefront owner, or whose claim is based wholly or partly upon retail storefront ownership at some time during the calendar year, shall supply to the director of taxation, in support of a claim, the amount of property taxes levied upon the property claimed as a retail storefront and a statement that the property taxes accrued used for purposes of this act have been or will be paid by the claimant. Upon request by the director, such claimant shall provide a copy of the statement of property taxes levied upon the property claimed as a retail storefront.

(c) Every claimant who is a retail storefront renter, or whose claim is based wholly or partly upon retail storefront rental at some time during the calendar year, shall supply to the division, in support of a claim, a statement prescribed by the director certifying the amount of gross rent paid and that ad valorem property taxes were levied in full for that year on the property, all or a part of which was rented by the claimant.

(d) The information required to be furnished under subsection (b) or (c) shall be in addition to that required under subsection (a).

History: L. 2022, ch. 98, § 8; July 1.

§ 79-1623 Amount of claim may be applied against outstanding tax liability; payment of refund to county treasurer, when

(a) The amount of any claim otherwise payable under this act may be applied by the director of taxation against any liability outstanding on the books of the department of revenue against the claimant in the year that the claim relates.

(b) If there are delinquent property taxes for tax year 2020 or 2021 on a retail storefront owned by the claimant, the refund shall be paid to the county treasurer of the county in which such retail storefront is located and applied to such delinquent property taxes.

History: L. 2022, ch. 98, § 9; July 1.

§ 79-1624 Claimant not eligible for refund, when

If there are delinquent property taxes for a tax year commencing prior to January 1, 2020, on a retail storefront owned by the claimant, the claimant shall not be eligible for the refund pursuant to this act for such retail storefront.

History: L. 2022, ch. 98, § 10; July 1.

§ 79-1625 Excessive claims; disallowance or recovery; fraudulent intent, misdemeanor; correction of certain excessive claims

In any case in which it is determined that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and, if the claim has been paid, the amount paid may be recovered by assessment as income taxes are assessed, and such assessment shall bear interest from the date of payment or credit of the claim, until recovered, at the rate of 1% per month. The claimant in such case and any person who assisted in the preparation or filing of such excessive claim or supplied information upon which such excessive claim was prepared, with fraudulent intent, shall be guilty of a class B misdemeanor. In any case in which it is determined that a claim is or was excessive and was negligently prepared, 10% of the corrected claim shall be disallowed, and, if the claim has been paid, the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed, and such assessment shall bear interest at the rate of 1% per month from the date of payment until recovered. In any case in which it is determined that a claim is or was excessive due to the fact that the claimant neglected to include certain income received during the year, the claim shall be corrected and the excess disallowed, and, if the claim has been paid, the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed.

History: L. 2022, ch. 98, § 11; July 1.

§ 79-1626 Disallowance of claim if title received by claimant was primarily for purpose of making claim

A claim shall be disallowed if the director of taxation finds that the claimant received title to such claimant's retail storefront primarily for the purpose of receiving benefits under this act.

History: L. 2022, ch. 98, § 12; July 1.

§ 79-1627 Appeals process

To the extent applicable, the provisions of K.S.A. 79-3226, and amendments thereto, shall apply to claims for refunds allowable pursuant to this act that may become in dispute.

History: L. 2022, ch. 98, § 13; July 1.

Article 17 Correction of Irregularities

§ 79-1701 Correction of clerical errors by county clerk

The county clerk shall, prior to November 1, correct the following clerical errors in the assessment and tax rolls for the current year, which are discovered prior to such date:

(a) Errors in the description or quantity of real estate listed;

(b) errors which have caused improvements to be assessed upon real estate when no such improvements were in existence;

(c) errors whereby improvements located upon one tract or lot of real estate have been assessed as being upon another tract or lot;

(d) errors whereby taxes have been charged upon property which the state board of tax appeals has specifically declared to be exempt from taxation under the constitution or laws of the state;

(e) errors whereby the taxpayer has been assessed twice in the same year for the same property in one or more taxing districts in the county;

(f) errors whereby the assessment of either real or personal property has been assigned to a taxing district in which the property did not have its taxable situs; and

(g) errors whereby the values or taxes are understated or overstated as a result of a mathematical miscomputation on the part of the county.

History: L. 1913, ch. 322, § 1; L. 1917, ch. 321, § 1; R.S. 1923, 79-1701; L. 1939, ch. 319, § 1; L. 1943, ch. 291, § 1; L. 1975, ch. 496, § 1; L. 1985, ch. 317, § 1; L. 1999, ch. 123, § 6; L. 2008, ch. 109, § 97; L. 2014, ch. 141, § 104; July 1.

§ 79-1701a Correction of clerical errors by board of county commissioners; refund, cancellation or credit of overpayments of taxes based on errors

Any taxpayer, the county appraiser or the county clerk shall, on their own motion, request the board of county commissioners to order the correction of the clerical errors in the appraisal, assessment or tax rolls as described in K.S.A. 79-1701, and amendments thereto. The board of county commissioners of the several counties are hereby authorized to order the correction of clerical errors, specified in K.S.A. 79-1701, and amendments thereto, in the appraisal, assessment or tax rolls for the current year and the immediately preceding two years during the period on and after November 1 of each year. If a county treasurer has collected and distributed the property taxes of a taxpayer and it shall thereafter be determined that the tax computed and paid was based on an erroneous assessment due to a clerical error which resulted in an overpayment of taxes by the taxpayer, and such error is corrected under the provisions hereof then the county commissioners may direct a refund in the amount of the overpayment plus interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, plus two percentage points, per annum, from the date of payment from tax moneys collected during the current year and approve a claim therefor. If all or any portion of the taxes on such property remain unpaid, the board of county commissioners shall cancel that portion of such unpaid taxes which were assessed on the basis of the error which is being corrected. In lieu of taking such a refund the taxpayer may, at the taxpayer's option, be allowed a credit on the current year's taxes in the amount of the overpayment plus interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, from the date of payment for the previous year. In the event the error results in an understatement of value or taxes as a result of the correction of the clerical errors listed in subsection (a), (c), (f) or (g) of K.S.A. 79-1701, and amendments thereto, and the board of county commissioners of the several counties are hereby authorized to correct such error and order an additional assessment or tax bill, or both, to be issued, except that, in no such case shall the taxpayer be assessed interest or penalties on any tax which may be assessed. If such error applies to property which has been sold or otherwise transferred subsequent to the time the error was made, no such additional assessment or tax bill shall be issued.

History: L. 1968, ch. 261, § 1; L. 1975, ch. 496, § 2; L. 1982, ch. 391, § 37; L. 1985, ch. 317, § 2; L. 1997, ch. 126, § 21; L. 1999, ch. 123, § 7; L. 2011, ch. 88, § 4; L. 2011, ch. 88, § 4; L. 2013, ch. 87, § 15; July 1.

§ 79-1701b Repealed

History: L. 1968, ch. 261, § 2; Repealed, L. 1975, ch. 496, § 5; July 1.

§ 79-1702 Cancellation or refund of taxes by state board of tax appeals, when; cancellation and abatement of certain taxes on property of the state, municipalities or exempt institutions; property assessed in more than one county; powers of court

If any taxpayer, municipality or taxing district shall have a grievance described under the provisions of K.S.A. 79-1701 or 79-1701a, and amendments thereto, which is not remediable thereunder solely because not reported within the time prescribed therein, or which was remediable thereunder and reported to the proper official or officials within the time prescribed but which has not been remedied by such official or officials, such grievance may be presented to the state board of tax appeals and if it shall be satisfied from competent evidence produced that there is a real grievance, it may direct that the same be remedied either by canceling the tax, if uncollected, together with all penalties charged thereon, or if the tax has been paid, by ordering a refund of the amount found to have been unlawfully charged and collected and interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, minus two percentage points.

In all cases where the identical property owned by any taxpayer has been assessed for the current tax year in more than one county in the state, the board is hereby given authority to determine which county is entitled to the assessment of the property and to charge legal taxes thereon, and if the taxes have been paid in a county not entitled thereto, the board is hereby empowered to direct the authorities of the county which has so unlawfully collected the taxes to refund the same to the taxpayer with all penalties charged thereon.

No tax grievance shall be considered by the state board of tax appeals unless the same is filed within four years from the date the tax would have become a lien on real estate.

In all cases where an error results in an understatement of values or taxes as a result of the correction of the clerical errors listed in subsection (a), (c), (f) or (g) of K.S.A. 79-1701, and amendments thereto, the state board of tax appeals, if it shall be satisfied from competent evidence produced that there is an understatement as a result of a clerical error, may order an additional assessment or tax bill, or both, to be issued so that the proper value of the property in question is reflected, except that, in no such case shall the taxpayer be assessed interest or penalties on any tax which may be assessed. No increase shall be ordered to correct such error that extends back more than two years from the date of the most recent tax year. If such error applies to property which has been sold or otherwise transferred subsequent to the time the error was made, no such additional assessment or tax bill shall be issued.

Errors committed in the valuation and assessment process that are not specifically described in K.S.A. 79-1701, and amendments thereto, shall be remediable only under the provisions of K.S.A. 79-2005, and amendments thereto.

History: L. 1913, ch. 322, § 2; L. 1917, ch. 321, § 2; R.S. 1923, 79-1702; L. 1943, ch. 291, § 2; L. 1961, ch. 440, § 1; L. 1970, ch. 384, § 1; L. 1975, ch. 496, § 3; L. 1980, ch. 311, § 2; L. 1985, ch. 317, § 3; L. 1997, ch. 126, § 22; L. 1999, ch. 123, § 8; L. 2008, ch. 109, § 98; L. 2013, ch. 87, § 16; L. 2014, ch. 141, § 105; July 1.

§ 79-1702a Repealed

History: L. 1943, ch. 291, § 3; Repealed, L. 1975, ch. 496, § 5; July 1.

§ 79-1703 Unlawful release, discharge, remission or commutation of taxes; civil action authorized thereon; disposition of funds recovered; settlement of taxes, when

(a) Except as provided in subsection (b) or as otherwise provided by law, no board of county commissioners or other officer of any county shall have power to release, discharge or remit any portion of the taxes assessed or levied against any person or property within their respective jurisdictions for any reason whatever. Any taxes so discharged, released or remitted may be recovered by civil action from the members of the board of county commissioners or such other officer and the sureties of their official bonds at the suit of the attorney general, the county attorney, or of any citizen of the county or the board of education of any school district a part of the territory of which is in such county, as the case may be, and when collected shall be paid into the county treasury to be properly apportioned and paid to the county, municipalities, school districts and other taxing subdivisions entitled thereto. Nothing in this subsection shall be construed to prohibit a board of county commissioners from entering into an agreement whereby the board agrees to pay the full amount of the taxes assessed or levied against any person or property on behalf of such person, as long as such amount is properly apportioned and paid to the county, municipalities, school districts and other taxing subdivisions entitled to a portion of such amount.

(b) In the event a person, partnership or corporation has failed to pay any portion of the taxes assessed or levied against its property located within any county and such person, partnership or corporation is a debtor in an action filed pursuant to the United States bankruptcy code, the county commissioners of any such county may compromise, assign, transfer or otherwise settle such tax claim in such fashion as the commissioners deem to be in the best interest of the state and all taxing subdivisions affected thereby, subject to approval by the state board of tax appeals; except that, the state and each other taxing subdivision affected by any such settlement shall receive the same proportional share of its respective tax claim. The state board of tax appeals shall respond to such settlement request within 30 days from the date of receiving such request or such request shall be deemed approved.

History: L. 1913, ch. 322, § 3; R.S. 1923, 79-1703; L. 1943, ch. 291, § 4; L. 1969, ch. 334, § 6; L. 1982, ch. 401, § 1; L. 1991, ch. 280, § 1; L. 2008, ch. 109, § 99; L. 2014, ch. 81, § 4; L. 2015, ch. 100, § 16; July 1.

§ 79-1703a Repealed

History: L. 1913, ch. 322, § 3; R.S. 1923, 79-1703; L. 1943, ch. 291, § 4; L. 1969, ch. 334, § 6; L. 1982, ch. 401, § 1; L. 1991, ch. 280, § 1; L. 2008, ch. 109, § 99; L. 2014, ch. 141, § 106; Repealed, L. 2015, ch. 100, § 17; July 1.

§ 79-1704 Cities between 20,000 and 24,000; compromise, abatement or cancellation, when

Whenever in any city of the first class having a population of more than 20,000 and less than 24,000 inhabitants, the title to any real property, upon which taxes may be due and delinquent, may be vested in such city, then the state board of tax appeals is hereby authorized upon application of such city, and for good reason shown, to compromise, abate or cancel all such taxes or any part thereof.

History: L. 1949, ch. 492, § 1; L. 2008, ch. 109, § 100; L. 2014, ch. 141, § 107; July 1.

§ 79-1705 Erroneous reporting of cost of personal property for tax purposes; correction and refund; procedure

Notwithstanding any provision of law to the contrary, if a taxpayer discovers that, the retail cost when new of personal property reported to the county appraiser pursuant to K.S.A. 79-306, and amendments thereto, for tax year 1999, is erroneous and the statutory time for requesting the correction of such error has expired, within 60 days of the effective date of this act, the taxpayer may petition the board of county commissioners, who upon a majority vote, may order the correction of such error and order the refund of that portion of the taxes that were collected on the basis of such error. No interest shall be paid on any refund made as a result of the provisions of this section. A board of county commissioners which orders a correction and refund of taxes pursuant to this section, shall notify the secretary of revenue of the Kansas department of revenue of such action of the board within 30 days of taking such action.

History: L. 2005, ch. 199, § 3; May 19.

Article 18 Levy of Taxes

§ 79-1801 Certification of city, county, township, school and other taxing subdivision levies; collection of tax; distribution of proceeds of taxes by county treasurer

Each year the governing body of any city, the trustees of any township, the board of education of any school district and the governing bodies of all other taxing subdivisions shall certify, on or before October 1, to the proper county clerk the amount of ad valorem tax to be levied. Thereupon, the county clerk shall place the tax upon the tax roll of the county, in the manner prescribed by law, and the tax shall be collected by the county treasurer. The county treasurer shall distribute the proceeds of the taxes levied by each taxing subdivision in the manner provided by K.S.A. 12-1678a, and amendments thereto.

History: L. 1876, ch. 34, § 82; R.S. 1923, 79-1801; L. 1969, ch. 334, § 7; L. 1981, ch. 379, § 1; L. 1981, ch. 380, § 2; L. 1983, ch. 319, § 2; L. 2005, ch. 2, § 16 (Special Session); L. 2016, ch. 66, § 4; L. 2021, ch. 9, § 3; L. 2021, ch. 58, § 12; L. 2025, ch. 128, § 3; May 8.

§ 79-1802 Levies by county commissioners

The county commissioners shall meet on the first Monday of August in each year, and shall estimate and determine the amount of money to be raised by tax for all county purposes, and all other taxes which they shall be required by law to levy.

History: L. 1876, ch. 34, § 83; March 11; R.S. 1923, 79-1802.

§ 79-1803 Computation of tax levy rates by county clerk, when; delivery of tax rolls to county treasurer

As soon as the action of the state board of equalization is certified to the county clerk, the county clerk shall change the valuations as directed and shall notify the county appraiser of such change. After all amounts of ad valorem tax levies have been certified to the county clerk, the county clerk shall compute the final tax levy rate to be applied to each tract or lot of real property, in the name of the owner, if known, and upon the amount of personal property in the name of each person, company or corporation, which shall be levied equally upon all real and personal property subject to the same tax, and set down all taxes on the tax roll. The amount of penalties imposed pursuant to K.S.A. 79-332a, 79-1422 and 79-1427a, K.S.A. 79-5a14 and 79-5a15, and amendments thereto, shall not be considered in computing the final tax levy rate. The clerk shall complete the same, and attach a certificate thereto, and deliver it to the county treasurer on or before November 1, and shall charge the treasurer with the amount of the respective taxes assessed on the tax roll.

History: L. 1876, ch. 34, § 84; L. 1909, ch. 244, § 1; R.S. 1923, 79-1803; L. 1960, ch. 57, § 1; L. 1961, ch. 441, § 1; L. 1981, ch. 379, § 2; L. 1982, ch. 391, § 38; L. 1994, ch. 219, § 1; L. 2008, ch. 182, § 5; July 1.

§ 79-1804 When tax due; lien on real property

All taxes shall be due on the first day of November of each year. A lien for all taxes shall attach to the real property subject to the same on the first day of November in the year in which such tax is levied, and such lien shall continue until such taxes and penalty, charges and interest which may have accrued thereon, shall be paid by the owner of the property or other person liable to pay the same: Provided, That in the event fee title to such property shall be acquired on or after the first day of January in any year and before the first day of November in such year by the United States government by purchase, condemnation or otherwise or shall be acquired by purchase, condemnation or otherwise for use exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent or charitable purposes, then the taxes shall become due immediately upon such property and a lien for such taxes shall attach to all such real estate prior to its being so conveyed or acquired, said taxes to be computed upon the basis of the levy for the year last preceding in which such property is so conveyed or acquired, and the amount of tax due shall be that proportion of the full year's tax as the period of the year to the date of the possession of such real property is taken under such condemnation proceedings or conveyance bears to the full year.

The county clerk shall immediately compute such taxes and certify the same to the county treasurer who shall proceed to collect such taxes as provided by law: Provided further, however, When property is acquired by condemnation proceedings the county treasurer shall certify the amount of the taxes to the court having jurisdiction of the condemnation proceedings in order that the notice may be served upon the lien holders as provided by law; the county attorney may also collect the amount of such taxes by civil action against the persons liable therefor.

History: L. 1876, ch. 34, § 85; R.S. 1923, 79-1804; L. 1949, ch. 467, § 1; L. 1959, ch. 365, § 28; June 30.

§ 79-1805 Payment of tax as between grantor and grantee

As between grantor and grantee of any land, where there is no express agreement as to which shall pay the taxes that may be assessed thereon, if such land is conveyed on or after the first day of January and before the first day of November, then the grantee shall pay the same; if conveyed on or after the first day of November and before the first day of the next ensuing January, then the grantor shall pay them: Provided, That in the event the real estate shall be acquired on or after the first day of January in any year by the United States by purchase, condemnation or otherwise or shall be acquired by purchase, condemnation or otherwise and used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent or charitable purposes, then the grantor shall pay the taxes as provided in K.S.A. 79-1804.

History: R.S. 1923, 79-1805; L. 1949, ch. 467, § 2; L. 1959, ch. 365, § 29; June 30.

§ 79-1806 County clerk to transmit statement of levies to state director of property valuation; report and statement by director; report of taxes levied on and values of motor vehicles

(a) The county clerk shall, on or before November 15 in each year, transmit to the director of property valuation, on forms to be prepared and supplied by the director of property valuation, a statement showing the total amount of taxes, other than motor vehicle taxes collected pursuant to article 51 of chapter 79 of the Kansas Statutes Annotated, levied in the county for all purposes in such year, and the rate percent. The director of property valuation shall include the statement in the director's report to the governor and the legislature. On or before November 30, the director of property valuation shall transmit to the director of accounts and reports and to the state treasurer a statement showing the valuation, levy and amount of tax for state purposes in each county in the state.

(b) On or before January 15, 1982, and on or before January 15 of each year thereafter, the county clerk of each county shall report to the director of property valuation the total amount of taxes levied within the county upon motor vehicles under the provisions of article 51 of chapter 79 of the Kansas Statutes Annotated and the total of the taxable values utilized in the computation of such tax.

History: L. 1876, ch. 34, § 87; L. 1909, ch. 243, § 11; R.S. 1923, 79-1806; L. 1937, ch. 359, § 2; L. 1979, ch. 309, § 16; L. 1981, ch. 381, § 1; July 1.

§ 79-1807 Change in boundary of taxing district; effective for tax purposes, when

(a) Except as provided in subsection (b) of this section, whenever any of the territory of a municipality or other taxing district is annexed, attached, or transferred to another municipality or other taxing district on or before April 1 of any year, or whenever an entire municipality or other taxing district is merged or consolidated with another municipality or taxing district on or before April 1 of any year, such annexation, attachment, transfer, merger, or consolidation shall take effect for tax purposes as of the last day of December preceding such annexation, attachment, transfer, merger or consolidation: Provided, That the taxes due on November 1 next preceding the date said organization, incorporation, or change takes effect for taxation purposes shall be collected and distributed as before assessed and levied;

(b) Whenever any of the territory of a school district or community junior college district is attached or transferred to another school district or community junior college district on or before July 1 of any year, or whenever any school district or community junior college district is organized on or before July 1 of any year, or whenever any entire school district or community junior college district is attached to or consolidated with one or more other school districts or community junior college districts on or before July 1 of any year, such attachment, transfer, consolidation or organization shall take effect for tax purposes as of the last day of December preceding the effective date of such attachment, transfer, consolidation or organization: Provided, That the taxes due on November 1 next preceding the date said attachment, transfer, consolidation or organization takes effect for taxation purposes shall be collected and distributed as before assessed and levied.

History: L. 1927, ch. 324, § 1; L. 1957, ch. 489, § 1; L. 1959, ch. 365, § 30; L. 1963, ch. 461, § 1; L. 1965, ch. 517, § 1; L. 1969, ch. 334, § 8; April 28.

§ 79-1807a Repealed

History: L. 1963, ch. 461, § 2; Repealed, L. 1969, ch. 334, § 9; April 28.

§ 79-1808 Special fund to pay special assessments on real estate owned by taxing unit or municipality; tax levy, use of proceeds

Whenever any taxing subdivision or municipality of the state of Kansas is the owner of real estate against which special assessments are levied by any other taxing subdivision or municipality to pay for public improvements benefiting such real estate, the governing body or officer authorized to levy taxes for the taxing subdivision or municipality owning such real estate shall have authority to make such levies as may be necessary to provide funds to pay such special assessments against its property, and interest thereon, and, in the case of cities and counties, to pay a portion of the principal and interest on bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities located in the county and the proceeds thereof shall be placed in a special assessment fund. Said tax levy shall be separate and in addition to all other levies authorized or limited by law and shall not be subject to the aggregate tax levy limitation prescribed by article 19 of chapter 79 of the Kansas Statutes Annotated, or acts amendatory thereof or supplemental thereto.

Such special assessment fund shall not be subject to the provisions of K.S.A. 79-2925 to 79-2936, inclusive, or acts amendatory thereof or supplemental thereto, except that in making the budgets of such taxing subdivisions or municipalities the amounts credited to and the amount on hand in, such special assessment fund and the amount expended therefrom shall be shown thereon for the information of the taxpayers of such taxing subdivisions or municipalities.

History: L. 1949, ch. 479, § 1; L. 1951, ch. 480, § 1; L. 1979, ch. 52, § 196; July 1.

Article 19 Limitations on Tax Levies

§ 79-1901 Repealed

History: L. 1909, ch. 245, § 1; R.S. 1923, 79-1901; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1902 Repealed

History: L. 1909, ch. 245, § 2; L. 1913, ch. 329, § 1; L. 1915, ch. 362, § 1; R.S. 1923, 79-1902; L. 1927, ch. 328, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1903 Repealed

History: L. 1909, ch. 245, § 3; R.S. 1923, 79-1903; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1904 Repealed

History: L. 1909, ch. 245, § 4; R.S. 1923, 79-1904; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1905 Repealed

History: L. 1909, ch. 245, § 5; R.S. 1923, 79-1905; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-1906 Repealed

History: L. 1909, ch. 245, § 6; R.S. 1923, 79-1906; L. 1927, ch. 329, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§§ 79-1907 through 79-1910 Repealed

History: L. 1909, ch. 245, §§ 7 to 10; R.S. 1923, 79-1907 to 79-1910; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1911 Repealed

History: L. 1909, ch. 245, § 11; R.S. 1923, 79-1911; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1912 Repealed

History: L. 1909, ch. 245, § 13; R.S. 1923, 79-1912; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1913 Repealed

History: L. 1909, ch. 245, § 14; L. 1920, ch. 52, § 5; R.S. 1923, 79-1913; Repealed, L. 1933, ch. 309, § 27; April 3.

§§ 79-1914, 79-1915 Repealed

History: L. 1917, ch. 327, §§ 1, 2; R.S. 1923, 79-1914, 79-1915; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1916 Repealed

History: L. 1911, ch. 261, § 1; L. 1913, ch. 279, § 1; L. 1915, ch. 317, § 1; L. 1917, ch. 288, § 1; L. 1920, ch. 52, § 6; R.S. 1923, 79-1916; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1917 Repealed

History: L. 1909, ch. 245, § 15; L. 1920, ch. 52, § 2; R.S. 1923, 79-1917; Repealed, L. 1925, ch. 280, § 1; March 17.

§ 79-1918 Repealed

History: L. 1911, ch. 261, § 2; L. 1913, ch. 279, § 2; L. 1915, ch. 317, § 2; L. 1917, ch. 285, § 1; L. 1920, ch. 52, § 3; R.S. 1923, 79-1918; Repealed, L. 1927, ch. 267, § 2; March 21.

§ 79-1919 Repealed

History: L. 1917, ch. 288, § 2; L. 1920, ch. 52, § 4; R.S. 1923, 79-1919; Repealed, L. 1927, ch. 267, § 2; March 21.

§ 79-1920 Repealed

History: L. 1911, ch. 322, § 1; R.S. 1923, 79-1920; Repealed, L. 1933, ch. 309, § 27; April 3.

§§ 79-1921, 79-1922 Repealed

History: L. 1911, ch. 321, §§ 1, 2; R.S. 1923, 79-1921, 79-1922; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1923 Repealed

History: L. 1909, ch. 245, § 17; L. 1921, ch. 292, § 1; L. 1923, ch. 235, § 1; R.S. 1923, 79-1923; L. 1927, ch. 330, § 1; L. 1929, ch. 285, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1924 Repealed

History: L. 1921, ch. 124, § 1; R.S. 1923, 79-1924; L. 1925, ch. 281, § 1; L. 1927, ch. 331, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1925 Repealed

History: L. 1921, ch. 112, § 1; R.S. 1923, 79-1925; L. 1925, ch. 282, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1926 Repealed

History: L. 1909, ch. 245, § 18; L. 1911, ch. 81, § 1; L. 1913, ch. 98, § 1; L. 1920, ch. 67, § 1; R.S. 1923, 79-1926; Repealed, L. 1927, ch. 331, § 2; June 1.

§ 79-1927 Repealed

History: L. 1917, ch. 270, § 1; R.S. 1923, 79-1927; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1928 Repealed

History: L. 1917, ch. 113, § 1; L. 1919, ch. 147, § 1; L. 1921, ch. 142, § 1; R.S. 1923, 79-1928; L. 1925, ch. 283, § 1; L. 1927, ch. 332, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1929 Repealed

History: L. 1911, ch. 112, § 1; L. 1917, ch. 325, § 1; R.S. 1923, 79-1929; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1930 Repealed

History: L. 1915, ch. 142, § 1; R.S. 1923, 79-1930; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1931 Repealed

History: L. 1909, ch. 245, § 21; R.S. 1923, 79-1931; Repealed, L. 1925, ch. 283, § 2; May 28.

§ 79-1932 Repealed

History: L. 1909, ch. 245, § 23; L. 1913, ch. 326, § 1; L. 1917, ch. 326, § 1; L. 1920, ch. 52, § 1; R.S. 1923, 79-1932; L. 1925, ch. 284, § 1; L. 1927, ch. 333, § 1; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1933 Repealed

History: L. 1911, ch. 265, § 1; R.S. 1923, 79-1933; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1934 Repealed

History: L. 1909, ch. 245, § 24; L. 1915, ch. 358, § 1; L. 1920, ch. 52, § 1; R.S. 1923, 79-1934; Repealed, L. 1933, ch. 309, § 27; April 3.

§§ 79-1935, 79-1936 Repealed

History: L. 1909, ch. 245, §§ 25, 26; R.S. 1923, 79-1935, 79-1936; Repealed, L. 1933, ch. 309, § 27; April 30.

§ 79-1937 Repealed

History: L. 1909, ch. 245, § 27; R.S. 1923, 79-1937; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1938 Repealed

History: L. 1909, ch. 245, § 28; R.S. 1923, 79-1938; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1939 Repealed

History: L. 1909, ch. 245, § 29; R.S. 1923, 79-1939; Repealed, L. 1933, ch. 309, § 27; April 3.

§§ 79-1940, 79-1941 Repealed

History: L. 1919, ch. 310, §§ 1, 2; R.S. 1923, 79-1940, 79-1941; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1942 Repealed

History: L. 1919, ch. 311, § 1; R.S. 1923, 79-1942; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1943 Repealed

History: L. 1909, ch. 256, § 1; R.S. 1923, 79-1943; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1944 Repealed

History: L. 1915, ch. 366, § 1; R.S. 1923, 79-1944; Repealed, L. 1933, ch. 309, § 27; April 3.

§ 79-1945 Authority for counties to levy taxes

The board of county commissioners of any county is hereby authorized and empowered to levy taxes in each year for the general fund and other county purposes. Revenues derived from property taxes levied for mental health programs or for programs for people with disabilities, whether deposited in special funds or in the general funds of the several counties, shall be expended exclusively for such purposes.

History: L. 1933, ch. 309, § 1; L. 1941, ch. 370, § 1; L. 1981, ch. 379, § 3; L. 1999, ch. 154, § 23; May 27.

§ 79-1946 Limit on levy for county general expenses and payment on bonds issued under K.S.A. 12-1774; increase by certain counties

The board of county commissioners of each of the several counties is hereby authorized to fix a rate of levy annually for current expenses of the county and to pay a portion of the principal and interest on bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by any city located in such county.

History: L. 1933, ch. 309, § 2; L. 1935, ch. 302, § 1; L. 1939, ch. 320, § 1; L. 1941, ch. 370, § 2; L. 1945, ch. 348, § 1; L. 1951, ch. 481, § 1; L. 1955, ch. 402, § 1; L. 1957, ch. 490, § 1; L. 1965, ch. 518, § 1; L. 1967, ch. 491, § 1; L. 1971, ch. 301, § 1; L. 1973, ch. 393, § 29; L. 1974, ch. 431, § 1; L. 1979, ch. 52, § 197; L. 1990, ch. 66, § 56; L. 1999, ch. 154, § 24; May 27.

§ 79-1946a Repealed

History: L. 1938, ch. 81, § 1; Repealed, L. 1941, ch. 370, § 24; June 30.

§ 79-1947 Repealed

History: L. 1933, ch. 309, § 3; L. 1941, ch. 370, § 3; L. 1943 ch. 292, § 1; L. 1945, ch. 348, § 2; L. 1947, ch. 444, § 1; L. 1951, ch. 482, § 1; L. 1951, ch. 483, § 3; L. 1951, ch. 485, § 19; L. 1951, ch. 484, § 2; L. 1953, ch. 424, § 1; L. 1955, ch. 402, § 2; L. 1957, ch. 491, § 1; L. 1959, ch. 377, § 2; L. 1961, ch. 442, § 1; L. 1965, ch. 518, § 2; L. 1967, ch. 491, § 2; L. 1970, ch. 100, § 45; L. 1973, ch. 392, § 1; L. 1974, ch. 432, § 1; L. 1974, ch. 433, § 1; L. 1975, ch. 162, § 39; L. 1975, ch. 163, § 4; L. 1976, ch. 424, § 1; L. 1977, ch. 332, § 1; L. 1978, ch. 398, § 1; L. 1982, ch. 403, § 1; L. 1982, ch. 402, § 1; L. 1982, ch. 404, § 1; L. 1984, ch. 352, § 1; L. 1987, ch. 381, § 1; L. 1988, ch. 378, § 2; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1947a Repealed

History: L. 1941, ch. 370, § 4; Repealed, L. 1949, ch. 276, § 3; June 1.

§ 79-1947b Repealed

History: L. 1974, ch. 432, § 2; L. 1990, ch. 66, § 57; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1948 Repealed

History: L. 1933, ch. 309, § 4; L. 1933, ch. 118, § 1 (Special Session); L. 1941, ch. 370, § 5; L. 1943, ch. 293, § 1; L. 1949, ch. 468, § 1; L. 1951, ch. 486, § 1; L. 1953, ch. 425, § 1; L. 1955, ch. 403, § 1; L. 1959, ch. 378, § 1; L. 1961, ch. 443, § 1; L. 1970, ch. 77, § 11; L. 1973, ch. 393, § 30; L. 1975, ch. 494, § 33; L. 1977, ch. 333, § 2; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1948a Repealed

History: L. 1947, ch. 445, § 1; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-1949 Repealed

History: L. 1933, ch. 309, § 5; L. 1935, ch. 111, § 2; L. 1939, ch. 321, § 1; L. 1941, ch. 370, § 6; L. 1945, ch. 349, § 1; L. 1947, ch. 446, § 1; L. 1953, ch. 426, § 1; L. 1970, ch. 77, § 12; L. 1973, ch. 393, § 31; L. 1975, ch. 494, § 34; L. 1977, ch. 333, § 3; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1950 Repealed

History: L. 1933, ch. 309, § 6; L. 1935, ch. 303, § 1; L. 1937, ch. 361, § 2; L. 1941, ch. 370, § 7; L. 1945, ch. 350, § 1; L. 1947, ch. 447, § 1; L. 1949, ch. 469, § 1; L. 1951, ch. 487, § 1; L. 1953, ch. 427, § 1; L. 1955, ch. 404, § 1; L. 1957, ch. 492, § 1; L. 1959, ch. 379, § 1; L. 1961, ch. 444, § 1; L. 1970, ch. 77, § 13; L. 1973, ch. 393, § 32; L. 1975, ch. 494, § 35; L. 1977, ch. 333, § 4; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1950a General and special improvement levies in lieu of bond issues in certain cities of first-class

In order to enable cities of the first class having a population by the official state census of more than sixty-five thousand (65,000) and less than one hundred thirty-five thousand (135,000) and any city of the first class having a population of not less than ten thousand (10,000) and not more than fifty-five thousand (55,000) and operating under the city manager form of government and any city of the first class operating under the mayor-council form of government to pay cash in lieu of issuing bonds for the cost of general improvements or the city's share of the cost of special improvements, the governing bodies of said cities are hereby authorized to levy annually not to exceed three (3) mills on each dollar of assessed tangible valuation of such city for such purposes and such tax levy may be levied outside of the aggregate limit prescribed by article 19 of chapter 79 of the Kansas Statutes Annotated.

History: L. 1941, ch. 370, § 8; L. 1943, ch. 294, § 1; L. 1945, ch. 351, § 1; L. 1947, ch. 448, § 1; L. 1949, ch. 470, § 1; L. 1957, ch. 88, § 17; L. 1963, ch. 470, § 1; L. 1967, ch. 492, § 1; July 1.

§ 79-1950b Special improvement fund in cities of more than 200,000; tax levies; reimbursement; budget requirements

Any city of the first class having a population of more than two hundred thousand (200,000) proposing to make any improvement the cost of which will be paid by the issuance of temporary notes or improvement bonds may by ordinance establish a "special improvement fund" in the city treasury and levy annually not to exceed one-tenth (1/10) mill on the assessed taxable tangible property of the city for the purposes of such fund. The levy herein authorized shall be in addition to and not limited by any other act authorizing or limiting the tax levies of any such city. Such fund may be used to pay the preliminary costs of preparing plans, studies, engineering reports, publication costs and other miscellaneous costs of such improvements when ordered by the governing body and until temporary notes or improvement bonds shall have been issued and sold: Provided, That such fund shall be reimbursed from the proceeds of such improvement bond funds or temporary notes: Provided further, The special improvement fund shall not exceed an amount equal to that which may be raised by such levy during a period of two (2) years. Such fund need not be budgeted for expenditure during the year but the amount thereof shall be stated in the published budget of expenditure.

History: L. 1967, ch. 492, § 2; July 1.

§ 79-1951 Repealed

History: L. 1933, ch. 309, § 7; L. 1941, ch. 370, § 9; L. 1947, ch. 449, § 1; L. 1949, ch. 471, § 1; L. 1951, ch. 488, § 1; L. 1951, ch. 485, § 20; L. 1951, ch. 484, § 3; L. 1955, ch. 405, § 1; L. 1959, ch. 380, § 1; L. 1961, ch. 445, § 1; L. 1970, ch. 77, § 14; L. 1973, ch. 393, § 33; L. 1975, ch. 494, § 36; L. 1977, ch. 333, § 5; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1952 Repealed

History: L. 1933, ch. 309, § 8; L. 1937, ch. 362, § 2; L. 1941, ch. 370, § 10; L. 1943, ch. 297, § 1; L. 1945, ch. 101, § 2; L. 1947, ch. 450, § 1; L. 1949, ch. 472, § 1; L. 1951, ch. 489, § 1; L. 1951, ch. 485, § 21; L. 1951, ch. 484, § 4; L. 1953, ch. 428, § 1; L. 1963, ch. 471, § 1; L. 1970, ch. 81, § 18; L. 1973, ch. 393, § 34; L. 1975, ch. 494, § 37; L. 1977, ch. 333, § 6; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1952a Repealed

History: L. 1937, ch. 363, § 1; Repealed, L. 1941, ch. 370, § 24; June 30.

§ 79-1953 Repealed

History: L. 1933, ch. 309, § 9; L. 1935, ch. 304, § 1; L. 1939, ch. 322, § 1; L. 1941, ch. 370, § 11; L. 1945, ch. 352, § 1; L. 1947, ch. 119, § 2; L. 1949, ch. 473, § 1; L. 1951, ch. 485, § 22; L. 1951, ch. 484, § 1; L. 1958, ch. 25, § 1 (Special Session); L. 1961, ch. 446, § 1; L. 1965, ch. 519, § 1; L. 1970, ch. 82, § 13; L. 1973, ch. 393, § 35; L. 1975, ch. 494, § 38; L. 1977, ch. 333, § 7; Repealed, L. 1999, ch. 154, § 78; May 27.

§ 79-1954 Repealed

History: L. 1933, ch. 309, § 10; L. 1938, ch. 74, § 1; L. 1941, ch. 370, § 12; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954a Repealed

History: L. 1937, ch. 371, § 1; L. 1941, ch. 370, § 13; L. 1947, ch. 451, § 1; L. 1953, ch. 429, § 1; Repealed, L. 1957, ch. 494, § 2; June 29.

§ 79-1954b Repealed

History: L. 1941, ch. 372, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954c Repealed

History: L. 1941, ch. 372, § 2; L. 1945, ch. 353, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954d Repealed

History: L. 1943, ch. 314, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954e Repealed

History: L. 1943, ch. 314, § 2; L. 1945, ch. 354, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954f Repealed

History: L. 1943, ch. 315, § 1; L. 1945, ch. 355, § 1; L. 1947, ch. 452, § 1; L. 1955, ch. 406, § 1; L. 1957, ch. 494, § 1; L. 1959, ch. 381, § 1; L. 1961, ch. 447, § 1; L. 1963, ch. 472, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1954g Repealed

History: L. 1949, ch. 491, § 1; L. 1955, ch. 407, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954h Repealed

History: L. 1951, ch. 507, § 1; L. 1955, ch. 408, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954i Repealed

History: L. 1953, ch. 453, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954j Repealed

History: L. 1953, ch. 452, § 1; Repealed, L. 1957, ch. 493, § 2; June 29.

§ 79-1954k Repealed

History: L. 1957, ch. 439, § 1; L. 1961, ch. 448, § 1; L. 1963, ch. 472, § 2; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1954l Repealed

History: L. 1963, ch. 472, § 3; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1955 Repealed

History: L. 1933, ch. 309, § 11; L. 1941, ch. 370, § 14; L. 1945, ch. 356, § 1; L. 1957, ch. 495, § 1; L. 1963, ch. 474, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1955a Repealed

History: L. 1937, ch. 372, § 1; L. 1938, ch. 76, § 1; L. 1941, ch. 370, § 15; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955b Repealed

History: L. 1943, ch. 316, § 1; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955c Repealed

History: L. 1947, ch. 470, § 1; L. 1953, ch. 430, § 1; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955d Repealed

History: L. 1947, ch. 470, § 2; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955e Repealed

History: L. 1949, ch. 398, § 1; L. 1953, ch. 431, § 1; L. 1955, ch. 409, § 1; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955f Repealed

History: L. 1953, ch. 454, § 1; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955g Repealed

History: L. 1955, ch. 413, § 1; Repealed, L. 1957, ch. 495, § 2; June 29.

§ 79-1955h Repealed

History: L. 1959, ch. 303, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1955i Repealed

History: L. 1961, ch. 375, § 1; L. 1963, ch. 475, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1955j Repealed

History: L. 1963, ch. 473, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1956 Repealed

History: L. 1933, ch. 309, § 12; L. 1935, ch. 305, § 1; L. 1937, ch. 360, § 1; L. 1941, ch. 370, § 16; L. 1943, ch. 296, § 1; L. 1949, ch. 474, § 1; L. 1951, ch. 490, § 1; L. 1953, ch. 432, § 1; L. 1955, ch. 410, § 1; L. 1957, ch. 496, § 1; L. 1958, ch. 27, § 1 (Special Session); L. 1959, ch. 382, § 1; L. 1961, ch. 449, § 1; L. 1963, ch. 476, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1956a Repealed

History: L. 1955, ch. 428, § 4; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1957 Repealed

History: L. 1933, ch. 309, § 13; L. 1937, ch. 299, § 2; L. 1941, ch. 370, § 17; L. 1958, ch. 28, § 1 (Special Session); L. 1963, ch. 477, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1958 Repealed

History: L. 1933, ch. 309, § 14; L. 1941, ch. 370, § 18; L. 1945, ch. 357, § 1; L. 1949, ch. 377, § 2; L. 1953, ch. 332, § 2; L. 1955, ch. 411, § 1; L. 1957, ch. 497, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1958a Repealed

History: L. 1939, ch. 324, § 1; L. 1941, ch. 373, § 1; Repealed, L. 1949, ch. 377, § 4; February 18.

§ 79-1958b Repealed

History: L. 1947, ch. 471, § 1; L. 1955, ch. 412, § 1; L. 1957, ch. 498, § 1; L. 1959, ch. 383, § 1; L. 1961, ch. 450, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1958c Repealed

History: L. 1957, ch. 416, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1958d Repealed

History: L. 1963, ch. 373, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1958e Repealed

History: L. 1963, ch. 374, § 1; Repealed, L. 1965, ch. 402, § 20; May 1.

§§ 79-1958f through 79-1958h Repealed

History: L. 1963, ch. 376, §§ 1 to 3; Repealed, L. 1965, ch. 402, § 20; May 1.

§ 79-1959 Repealed

History: L. 1933, ch. 309, § 15; L. 1941, ch. 370, § 19; Repealed, L. 1945, ch. 290, § 16; April 3.

§ 79-1960 Repealed

History: L. 1933, ch. 309, § 16; L. 1938, ch. 63, § 2; Repealed, L. 1941, ch. 370, § 24; June 30.

§ 79-1961 Repealed

History: L. 1933, ch. 309, § 17; L. 1938, ch. 61, § 2; Repealed, L. 1941, ch. 370, § 24; June 30.

§ 79-1962 Authority for townships to levy taxes

The governing body of any township is hereby authorized and empowered to levy taxes in each year for the general fund and other township purposes, except that levies of taxes for road and noxious weed purposes shall only be levied on all taxable tangible property located outside of incorporated cities.

History: L. 1933, ch. 309, § 18; L. 1938, ch. 75, § 1; L. 1939, ch. 323, § 1; L. 1941, ch. 370, § 20; L. 1943, ch. 298, § 1; L. 1945, ch. 358, § 1; L. 1947, ch. 453, § 1; L. 1949, ch. 475, § 2; L. 1951, ch. 491, § 1; L. 1951, ch. 485, § 23; L. 1951, ch. 484, § 5; L. 1963, ch. 478, § 3; L. 1970, ch. 385, § 13; L. 1977, ch. 334, § 1; L. 1984, ch. 353, § 1; L. 1985, ch. 318, § 1; L. 1986, ch. 388, § 1; L. 1986, ch. 376, § 1; L. 1986, ch. 377, § 1; L. 1987, ch. 394, § 1; L. 1999, ch. 154, § 25; May 27.

§ 79-1962a Repealed

History: L. 1953, ch. 433, § 1; Repealed, L. 1969, ch. 440, § 1; July 1.

§ 79-1963 Sinking fund levies, special city levies or road levies; limitations do not apply

No limitation imposed by this act shall in any wise apply to or in any way limit any levy which is authorized by statute for the purpose of creating sinking and interest funds necessary to liquidate at maturity the principal and interest of any indebtedness authorized by law or for the payment of any final judgment; nor shall any provision of this act apply to or in any way limit special taxes levied by ordinance in any city. And nothing in this act shall be construed to limit the levy provided by any special act heretofore passed for the construction of roads, and under which any county is now operating.

History: L. 1933, ch. 309, § 19; April 3.

§ 79-1964 Election for increase in levy or budget; limitation; section inapplicable to certain taxing subdivisions

If any board of levy, or any officer that is charged with the duty of levying taxes in any taxing district other than a city, county or community junior college, or if the district board of any school district shall be of the opinion that the amount of tax will be insufficient for the needs of such taxing district for the current year, the question of an increased levy or budget may be submitted to the voters of such taxing district at a general election or at a special election called for the purpose in the manner provided by law for calling special elections in such taxing district. If any question of increasing the levy or budget shall be submitted at any election as above set forth, due notice thereof shall be given for at least thirty days in advance of such election by publication in the official county paper for all taxing districts, except school districts, by posting a notice in the manner provided by law for other elections or meetings; said notice shall also give the proposed increase in levy or budget. If three-fourths of the votes cast at any such election shall be in favor of the increased levy as named in said election notice, or shall vote a budget that requires an increased levy to raise it, then the officers charged with levying taxes shall make such increased levy for the year voted upon, and thereafter the limitation of this act shall apply unless an increased levy for a particular year shall be voted at another election in like manner: Provided, however, That the increased levy or budget voted in accordance with this section shall in no event exceed twenty-five percent of the maximum levies authorized by law in any taxing district.

History: L. 1933, ch. 309, § 20; L. 1941, ch. 370, § 21; L. 1945, ch. 359, § 1; L. 1949, ch. 377, § 3; L. 1973, ch. 393, § 36; April 30.

§ 79-1964a State board of tax appeals may authorize increase of specific levy, when; procedure; limitation; section inapplicable to certain taxing subdivisions

When it is apparent to the governing body of any taxing district except cities, counties, community colleges, and school districts at tax levying time that the rate of levy, for any individual fund for which the board desires to make a levy, is so limited by the maximum levy limit for the individual fund or by the aggregate limit, that it is impossible to raise sufficient tax plus receipts from all other sources, to finance the proposed budget of expenditures for such fund for the ensuing budget year, the governing body may make application to the state board of tax appeals for authority to increase such rate of levy. The application shall be signed and sworn to, and shall have a majority approval of any governing body composed of three members or less, and a ¾ majority of any governing body composed of more than three members. The application shall reveal the following:

(1) A copy of the proposed budget for the ensuing budget year;

(2) a detailed statement showing why the proposed budget of expenditures cannot be reduced so that the amount to be raised by taxation for such fund will not exceed the individual fund limit of levy, or the limitation placed upon such fund by reason of the aggregate limit; and

(3) the proposed rate of levy for each fund of such taxing district, such rates to be computed so that the total, except those specifically exempted, does not exceed the aggregate limit.

If the state board of tax appeals finds that evidence submitted in support of the application shows that the rate of levy for any fund is so limited that it will be impossible for the taxing district to pay for the imperative governmental functions payable from such fund, the state board of tax appeals is empowered to authorize such taxing district to increase the rate of levy for such fund for that particular year. The order of the state board of tax appeals shall state definitely the exact increase (in mills) in the rate of levy authorized for such fund. The amount of increases in the rate of levy for any fund of any taxing district shall not exceed 25% of the maximum limit of levy for such fund. The amount of increase in the rate of levy for any fund of any taxing district shall not exceed 25% of the amount of levy for such fund which can be made within the aggregate limit. Such tax levy may be levied outside of the aggregate limit prescribed by this article or any amendments thereto.

No order for an increased levy for any fund of any taxing district shall be made without a public hearing before the state board of tax appeals conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the district applying for such authority at least 10 days prior to such hearing. The notice shall be in such form as the state board of tax appeals prescribes, and the expense of such publication shall be borne by the taxing district making application. Any taxpayer interested may file a written protest against such application. All records and findings of such hearings shall be subject to public inspection.

History: L. 1941, ch. 370, § 22; L. 1973, ch. 393, § 37; L. 1988, ch. 356, § 322; L. 2008, ch. 109, § 101; L. 2014, ch. 141, § 108; July 1.

§ 79-1964b Increased levy in taxing districts in counties adjoining regular army post or military reservation; procedure; limitation; section inapplicable to certain taxing subdivisions

Whenever it shall be the opinion of the majority of the members of any body authorized to levy taxes in any taxing district other than a city, county or community college located in any county adjoining a regular army post or military reservation, or of any officer solely charged with that duty therein, that the rates of levy in the particular taxing district under consideration are so limited as to be insufficient for the raising of the funds necessary to supply the needs of such taxing district for general or maintenance expenses for the current tax year, such levying officers or officer shall have authority to fix rates of levy in such district which will raise an amount of money for such taxing district not exceeding by 50% the amount of money which can be raised in such taxing district for the current tax year by using the rates limited by law. No such authority shall be exercised until an application for its exercise shall be made to the state board of tax appeals, which body, if the evidence submitted in support of the application shall show an emergency need for the additional amount hereby authorized or any part thereof, is hereby empowered to order such increase as may have been shown to be necessary, but no order for the making of such increased levy shall be made without a public hearing before the state board of tax appeals conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the district applying for such authority at least 10 days prior to such hearing. The notice shall be in such form as the state board of tax appeals may prescribe, and the expense of such publication shall be borne by the district making application. At no time shall any increase authorized by the state board of tax appeals in any such taxing district exceed by more than 50% the amount of money that can be raised by taxation in any such district for the current tax year.

History: L. 1941, ch. 371, § 3; L. 1973, ch. 393, § 38; L. 1988, ch. 356, § 323; L. 2008, ch. 109, § 102; L. 2014, ch. 141, § 109; July 1.

§ 79-1964c Repealed

History: L. 1943, ch. 317, § 1; Repealed, L. 1949, ch. 377, § 4; February 18.

§ 79-1965 Levies in excess of limitation unlawful; duty of county clerk to reduce levy and give notice thereof to taxing subdivision

Any amount of ad valorem tax to be levied for a fund of any taxing subdivision which is certified to the county clerk and produces a tax levy rate or amount that is in violation of the provisions of existing statutes, shall be unlawful, and in any such case it shall be unlawful for the county clerk of any county within the state to enter upon the tax roll of the county any such excessive levy. In case of any such excess in any levy the county clerk shall reduce the levy and extend upon the tax roll only the part thereof as will comply with the provisions of existing statutes. In the event the county clerk determines it is necessary to change any amount of ad valorem tax to be levied in a budget so certified, the county clerk shall give notice to the taxing subdivision affected at least seven days prior to making the change.

History: L. 1933, ch. 309, § 21; L. 1973, ch. 394, § 1; L. 1981, ch. 379, § 4; July 1.

§ 79-1966 Penalty for violation of act by officer

Any officer of any taxing district or any county clerk who shall violate any provision of this act shall be guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not less than one hundred dollars nor more than five hundred dollars, and shall also be subject to removal from office by a civil action.

History: L. 1933, ch. 309, § 22; April 3.

§§ 79-1967, 79-1968 Repealed

History: L. 1933, ch. 309, §§ 23, 24; Repealed, L. 1941, ch. 377, § 15; June 30.

§ 79-1969 Repealed

History: L. 1933, ch. 309, § 25; L. 1938, ch. 74, § 2; Repealed, L. 1941, ch. 370, § 24; June 30.

§ 79-1970 Effect of act

The levy limitations herein fixed shall supersede and take the places of all other tax-levy limitations heretofore fixed by statutes for the same purposes for which levies are herein authorized and fixed.

History: L. 1933, ch. 309, § 26; April 3.

§ 79-1971 Effect of K.S.A. 79-1964b

The levy limitations herein fixed shall supersede and take the place of all other tax levy limitations heretofore fixed by statutes for the same purposes for which levies are herein authorized and fixed.

History: L. 1941, ch. 371, § 4; June 30.

§ 79-1972 Certain acts of 1941 legislature saved from repeal

This act [*] shall not be construed as repealing any acts relating to limitation of tax levies passed by the 1941 regular session of the legislature.

History: L. 1941, ch. 370, § 23; June 30.

§ 79-1973 Expired

Revisor's Note: The text of this section has not been included in this printing, since its provisions expired on December 31, 1988 (79-1974). For text of the section, see L. 1986, ch. 378 § 1.

History: L. 1983, ch. 312, § 1; L. 1986, ch. 378, § 1; July 1; Expired, December 31, 1988.

§ 79-1974 Expiration of act

The provisions of K.S.A. 79-1973, and amendments thereto, shall expire on December 31, 1988.

History: L. 1983, ch. 312, § 2; L. 1986, ch. 378, § 2; July 1.

Article 20 Collection and Cancellation of Taxes

§ 79-2001 Entry of unpaid real property taxes; publication notice of all taxes; mailing of tax statements; contents of statements

(a) As soon as the county treasurer receives the tax roll of the county, the treasurer shall enter in a column opposite the description of each tract or parcel of land the amount of unpaid taxes and the date of unredeemed sales, if any, for previous years on such land. The treasurer shall cause a notice to be published in the official county paper once each week for three consecutive weeks, stating in the notice the amount of taxes charged for state, county, township, school, city or other purposes for that year, on each $1,000 of valuation.

(b) Each year after receipt of the tax roll from the county clerk and before December 1, the treasurer shall mail to each taxpayer, as shown by the rolls, a tax statement which indicates the taxing unit, assessed value of real and personal property, the mill levy and tax due. In addition, with respect to land devoted to agricultural use, such statement shall indicate the acreage and description of each parcel of such land. The tax statement shall also indicate separately each parcel of real property which is separately classified for property tax purposes. The county appraiser shall provide the information necessary for the county treasurer to comply with the provisions of this section. The tax statement also may include the intangible tax due the county. All items may be on one statement or may be shown on separate statements and may be on a form prescribed by the county treasurer. The statement shall be mailed to the last known address of the taxpayer or to a designee authorized by the taxpayer to accept the tax statement, if the designee has an interest in receiving the statement. When any statement is returned to the county treasurer for failure to find the addressee, the treasurer shall make a diligent effort to find a forwarding address of the taxpayer and mail the statement to the new address. All tax statements mailed pursuant to this section shall be mailed by first-class mail. The requirement for mailing a tax statement shall extend only to the initial statement required to be mailed in each year and to any follow-up required by this section. Alternatively, the county treasurer may transmit the tax statement to the taxpayer by electronic means if such taxpayer consented to service by electronic means.

(c) After receipt of the tax roll from the county clerk and before December 1, the treasurer shall mail to each taxpayer, as shown by the tax rolls, a tax information form which indicates the taxing unit, assessed value of real property for the current and next preceding taxable year, the mill levy for the current and next preceding taxable year and, in the case of unified school districts, the mill levy required by K.S.A. 72-5142, and amendments thereto, shall be separately indicated, the tax due and an itemization of each taxing unit's mill levy for the current and next preceding taxable year and the percentage change in the amount of revenue produced therefrom, if any. In addition, with respect to land devoted to agricultural use, such form shall indicate the acreage and description of each parcel of such land. The tax information form shall also indicate separately each parcel of real property which is separately classified for property tax purposes. The county appraiser shall provide the information necessary for the county treasurer to comply with the provisions of this section. The tax information form may be separate from the tax statement or a part of the tax statement. The tax information form shall be in a format prescribed by the director of property valuation. The tax information form shall be mailed to the last known address of the taxpayer. When a tax information form is returned to the county treasurer for failure to find the addressee, the treasurer shall make a diligent effort to find a forwarding address of the taxpayer and mail the tax information form to the new address. All tax information forms mailed pursuant to this section shall be mailed by first class mail. Alternatively, the county treasurer may transmit the tax information forms to the taxpayer by electronic means if such taxpayer consented to service by electronic means.

History: L. 1876, ch. 34, § 88; L. 1886, ch. 30, § 1; R.S. 1923, 79-2001; L. 1972, ch. 366, § 1; L. 1981, ch. 173, § 78; L. 1982, ch. 166, § 1; L. 1984, ch. 354, § 1; L. 1986, ch. 80, § 5; L. 1987, ch. 71, § 14; L. 1990, ch. 90, § 6; L. 1997, ch. 126, § 26; L. 2015, ch. 4, § 75; L. 2017, ch. 95, § 105; L. 2023, ch. 92, § 7; L. 2025, ch. 128, § 4; May 8.

§ 79-2002 Tax receipts by county treasurer; contents

Receipts shall be given for all taxes received by the county treasurer, except that with respect to payments received by mail, receipts shall be given only upon request of the taxpayer. Payment of current ad valorem property taxes shall be validated by a statement indicating the date received and the amount paid on all copies of such receipts.

History: L. 1876, ch. 34, § 89; L. 1886, ch. 30, § 2; R.S. 1923, 79-2002; L. 1943, ch. 299, § 1; L. 1982, ch. 405, § 1; L. 1997, ch. 126, § 34; July 1.

§ 79-2003 Warrants to be received in payment of taxes, when

The county treasurer shall accept in payment of taxes state warrants and any matured coupons of the state bonds in payment of state taxes, county warrants in payment of county tax, township warrants in payment of the tax of the proper township, city warrants in payment of the proper city tax, or other such evidence of indebtedness as the city may authorize the treasurer to receive. Warrants shall be received only in payment of the tax for the fund to which such warrants may be drawn.

History: L. 1876, ch. 34, § 90; R.S. 1923, 79-2003; L. 1983, ch. 49, § 98; May 12.

§ 79-2004 Time for payment of real estate taxes; interest, when; distribution of interest to city, when

(a) Except as provided by K.S.A. 79-4521, and amendments thereto, any person charged with real property taxes on the tax books in the hands of the county treasurer may pay, at such person's option, the full amount thereof on or before December 20 of each year, or 1/2 thereof on or before December 20 and the remaining 1/2 on or before May 10 next ensuing. If the full amount of the real property taxes listed upon any tax statement is $10 or less the entire amount of such tax shall be due and payable on or before December 20.

In case the first half of the real property taxes remains unpaid after December 20, the first half of the tax shall draw interest at the rate prescribed by K.S.A.

79-2968, and amendments thereto, plus five percentage points per annum and may be paid at any time prior to May 10 following by paying 1/2 of the tax together with interest at such rate from December 20 to date of payment. Subject to the provisions of subsection (d), all real property taxes of the preceding year and accrued interest thereon which remain due and unpaid on May 11 shall accrue interest at the rate prescribed by K.S.A.

79-2968, and amendments thereto, plus five percentage points per annum from May 10 until paid, or until the real property is sold for taxes by foreclosure as provided by law. Except as provided by subsection (c), all interest herein provided shall be credited to the county general fund, and whenever any such interest is paid the county treasurer shall enter the amount of interest so paid on the tax rolls in the proper column and account for such sum.

(b) Whenever any date prescribed in subsection (a) for the payment of real property taxes occurs on a Saturday or Sunday, such date for payment shall be extended until the next-following regular business day of the office of the county treasurer.

(c) The board of county commissioners may enter into an agreement with the governing body of any city located in the county for the distribution of part or all of the interest paid on special assessments levied by the city which remain unpaid.

(d) All real property taxes of any year past due and unpaid on the effective date of this section and interest accrued thereon pursuant to this section prior to its amendment by this act shall draw interest at the rate prescribed by K.S.A.

79-2968, and amendments thereto, plus five percentage points per annum from the effective date of this section until paid or until the real property is sold for taxes by foreclosure as provided by law.

History: L. 1876, ch. 34, § 91; L. 1893, ch. 110, § 1; L. 1919, ch. 309, § 1; R.S. 1923, 79-2004; L. 1933, ch. 310, § 1; L. 1933, ch. 119, § 1 (Special Session); L. 1937, ch. 364, § 1; L. 1943, ch. 300, § 1; L. 1943, ch. 301, § 1; L. 1957, ch. 499, § 1; L. 1972, ch. 367, § 1; L. 1979, ch. 312, § 1; L. 1980, ch. 308, § 2; L. 1984, ch. 355, § 1; L. 1987, ch. 382, § 1; L. 1989, ch. 2, § 1 (Special Session); L. 1992, ch. 319, § 1; L. 1994, ch. 9, § 1; L. 1997, ch. 126, § 23; L. 2003, ch. 146, § 4; L. 2014, ch. 141, § 13; L. 2016, ch. 112, § 18; July 1.

§ 79-2004a Time for payment of personal property taxes; interest, when

(a) Any taxpayer charged with personal property taxes on the tax books in the hands of the county treasurer may at such taxpayer's option pay the full amount thereof on or before December 20 of each year, or ½ thereof on or before December 20 and the remaining ½ thereof on or before May 10 next ensuing, except that: (1) All unpaid personal property taxes of the preceding year must first be paid; and (2) if the full amount of the personal property taxes listed upon any tax statement shall be $10 or less the entire amount of such taxes shall be due and payable on or before December 20.

In the event anyone charged with personal property taxes shall fail to pay the first half thereof on or before December 20, the full amount thereof shall become immediately due and payable.

In case the first half of the taxes remains unpaid after December 20, the entire and full amount of personal property taxes charged shall draw interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, per annum from December 20 to date of payment. Subject to the provisions of subsection (c) all personal property taxes of the preceding year and interest thereon which shall remain due and unpaid on May 11 shall draw interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, per annum from May 10 until paid. All interest herein provided for shall be credited to the county general fund and retained by the county, and whenever any such interest is paid, the county treasurer shall enter the amount of interest so paid on the tax rolls in the proper column and account for such sum.

(b) Whenever any date prescribed in subsection (a) for the payment of personal property taxes occurs on a Saturday or Sunday, such date for payment shall be extended until the next-following regular business day of the office of the county treasurer.

(c) All personal property taxes of any year past due and unpaid on the effective date of this section and interest accrued thereon pursuant to this section prior to its amendment by this act shall draw interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, per annum from the effective date of this section until paid.

History: L. 1943, ch. 301, § 2; L. 1945, ch. 360, § 1; L. 1957, ch. 499, § 2; L. 1959, ch. 384, § 1; L. 1972, ch. 367, § 2; L. 1979, ch. 312, § 2; L. 1980, ch. 308, § 3; L. 1981, ch. 382, § 1; L. 1987, ch. 382, § 2; L. 1989, ch. 2, § 2 (Special Session); L. 1992, ch. 319, § 2; L. 1997, ch. 126, § 24; L. 2003, ch. 146, § 5; L. 2014, ch. 141, § 14; July 1.

§ 79-2004b Repealed

History: L. 1968, ch. 410, § 1; L. 1969, ch. 441, § 1; Repealed, L. 1972, ch. 367, § 3; July 1.

§ 79-2004c Repealed

History: L. 1876, ch. 34, § 91; L. 1893, ch. 110, § 1; L. 1919, ch. 309, § 1; R.S. 1923, 79-2004; L. 1933, ch. 310, § 1; L. 1933, ch. 119, § 1 (Special Session); L. 1937, ch. 364, § 1; L. 1943, ch. 300, § 1; L. 1943, ch. 301, § 1; L. 1957, ch. 499, § 1; L. 1972, ch. 367, § 1; L. 1979, ch. 312, § 1; L. 1980, ch. 308, § 2; L. 1984, ch. 355, § 1; L. 1987, ch. 382, § 1; L. 1989, ch. 2, § 1 (Special Session); L. 1992, ch. 98, § 2; Repealed, L. 1994, ch. 9, § 2; July 1.

§ 79-2005 Protesting payment of taxes; written statement of grounds; distribution of taxes paid under protest; proceedings for recovery of protested taxes, limitations; informal meeting, requirements; refund of protested taxes; taxing districts authorized to issue no-fund warrants; loans by pooled money investment board to counties or taxing subdivisions to pay such refund of taxes, requirements and procedures; levy of taxes for payment of no-fund warrants and PMIB loans

(a) Any taxpayer, before protesting the payment of such taxpayer's taxes, shall be required, either at the time of paying such taxes, or, if the whole or part of the taxes are paid prior to December 20, no later than December 20, or, with respect to taxes paid in whole or in part in an amount equal to at least 1/2 of such taxes on or before December 20 by an escrow or tax service agent, no later than January 31 of the next year, to file a written statement with the county treasurer, on forms approved by the state board of tax appeals and provided by the county treasurer, clearly stating the grounds on which the whole or any part of such taxes are protested and citing any law, statute or facts on which such taxpayer relies in protesting the whole or any part of such taxes. When the grounds of such protest is an assessment of taxes made pursuant to K.S.A.

79-332a

and

79-1427a, and amendments thereto, the county treasurer may not distribute the taxes paid under protest until such time as the appeal is final. When the grounds of such protest is that the valuation or assessment of the property upon which the taxes are levied is illegal or void, the county treasurer shall forward a copy of the written statement of protest to the county appraiser who shall within 15 days of the receipt thereof, schedule an informal meeting with the taxpayer or such taxpayer's agent or attorney with reference to the property in question. At the informal meeting, it shall be the duty of the county appraiser or the county appraiser's designee to initiate production of evidence to substantiate the valuation of such property, including a summary of the reasons that the valuation of the property has been increased over the preceding year, any assumptions used by the county appraiser to determine the value of the property and a description of the individual property characteristics, property specific valuation records and conclusions. The taxpayer shall be provided with the opportunity to review the data sheets applicable to the valuation approach utilized for the subject property. The county appraiser shall take into account any evidence provided by the taxpayer which relates to the amount of deferred maintenance and depreciation of the property. The county appraiser shall review the appraisal of the taxpayer's property with the taxpayer or such taxpayer's agent or attorney and may change the valuation of the taxpayer's property, if in the county appraiser's opinion a change in the valuation of the taxpayer's property is required to assure that the taxpayer's property is valued according to law, and shall, within 15 business days thereof, notify the taxpayer in the event the valuation of the taxpayer's property is changed, in writing of the results of the meeting. The county appraiser shall not increase the appraised valuation of the property as a result of the informal meeting. In the event the valuation of the taxpayer's property is changed and such change requires a refund of taxes and interest thereon, the county treasurer shall process the refund in the manner provided by subsection (l).

(b) No protest appealing the valuation or assessment of property shall be filed pertaining to any year's valuation or assessment when an appeal of such valuation or assessment was commenced pursuant to K.S.A.

79-1448, and amendments thereto, nor shall the second half payment of taxes be protested when the first half payment of taxes has been protested. Notwithstanding the foregoing, this provision shall not prevent any subsequent owner from protesting taxes levied for the year in which such property was acquired, nor shall it prevent any taxpayer from protesting taxes when the valuation or assessment of such taxpayer's property has been changed pursuant to an order of the director of property valuation.

(c) A protest shall not be necessary to protect the right to a refund of taxes in the event a refund is required because the final resolution of an appeal commenced pursuant to K.S.A.

79-1448, and amendments thereto, occurs after the final date prescribed for the protest of taxes.

(d) If the grounds of such protest shall be that the valuation or assessment of the property upon which the taxes so protested are levied is illegal or void, such statement shall further state the exact amount of valuation or assessment which the taxpayer admits to be valid and the exact portion of such taxes which is being protested.

(e) If the grounds of such protest shall be that any tax levy, or any part thereof, is illegal, such statement shall further state the exact portion of such tax which is being protested.

(f) Upon the filing of a written statement of protest, the grounds of which shall be that any tax levied, or any part thereof, is illegal, the county treasurer shall mail a copy of such written statement of protest to the state board of tax appeals and the governing body of the taxing district making the levy being protested.

(g) Within 30 days after notification of the results of the informal meeting with the county appraiser pursuant to subsection (a), the protesting taxpayer may, if aggrieved by the results of the informal meeting with the county appraiser, appeal such results to the state board of tax appeals.

(h) After examination of the copy of the written statement of protest and a copy of the written notification of the results of the informal meeting with the county appraiser in cases where the grounds of such protest is that the valuation or assessment of the property upon which the taxes are levied is illegal or void, the board shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act, unless waived by the interested parties in writing. If the grounds of such protest is that the valuation or assessment of the property is illegal or void the board shall notify the county appraiser thereof.

(i) In the event of a hearing, the same shall be originally set not later than 90 days after the filing of the copy of the written statement of protest and a copy, when applicable, of the written notification of the results of the informal meeting with the county appraiser with the board. With regard to any matter properly submitted to the board relating to the determination of valuation of residential property or real property used for commercial and industrial purposes for taxation purposes, it shall be the duty of the county appraiser to initiate the production of evidence to demonstrate, by a preponderance of the evidence, the validity and correctness of such determination except that no such duty shall accrue to the county or district appraiser with regard to leased commercial and industrial property unless the property owner has furnished to the county or district appraiser a complete income and expense statement for the property for the three years next preceding the year of appeal. No presumption shall exist in favor of the county appraiser with respect to the validity and correctness of such determination. In all instances where the board sets a request for hearing and requires the representation of the county by its attorney or counselor at such hearing, the county shall be represented by its county attorney or counselor. The board shall take into account any evidence provided by the taxpayer which relates to the amount of deferred maintenance and depreciation for the property. In any appeal from the reclassification of property that was classified as land devoted to agricultural use for the preceding year, the taxpayer's classification of the property as land devoted to agricultural use shall be presumed to be valid and correct if the taxpayer provides an executed lease agreement or other documentation demonstrating a commitment to use the property for agricultural use, if no other actual use is evident. With regard to any matter properly submitted to the board relating to the determination of valuation of property for taxation purposes, the board shall not increase the appraised valuation of the property to an amount greater than the appraised value reflected in the notification of the results of the informal meeting with the county appraiser from which the taxpayer appealed.

(j) When a determination is made as to the merits of the tax protest, the board shall render and serve its order thereon. The county treasurer shall notify all affected taxing districts of the amount by which tax revenues will be reduced as a result of a refund.

(k) If a protesting taxpayer fails to file a copy of the written statement of protest and a copy, when applicable, of the written notification of the results of the informal meeting with the county appraiser with the board within the time limit prescribed, such protest shall become null and void and of no effect whatsoever.

(l) (1) In the event the board orders that a refund be made pursuant to this section or the provisions of K.S.A.

79-1609, and amendments thereto, or a court of competent jurisdiction orders that a refund be made, and no appeal is taken from such order, or in the event a change in valuation which results in a refund pursuant to subsection (a), the county treasurer shall, as soon thereafter as reasonably practicable, refund to the taxpayer such protested taxes and, with respect to protests or appeals commenced after the effective date of this act, interest computed at the rate prescribed by K.S.A.

79-2968, and amendments thereto, minus two percentage points, per annum from the date of payment of such taxes from tax moneys collected but not distributed. Upon making such refund, the county treasurer shall charge the fund or funds having received such protested taxes, except that, with respect to that portion of any such refund attributable to interest the county treasurer shall charge the county general fund. In the event that the state board of tax appeals or a court of competent jurisdiction finds that any time delay in making its decision is unreasonable and is attributable to the taxpayer, it may order that no interest or only a portion thereof be added to such refund of taxes.

(2) No interest shall be allowed pursuant to paragraph (1) in any case where the tax paid under protest was inclusive of delinquent taxes.

(m) Whenever, by reason of the refund of taxes previously received or the reduction of taxes levied but not received as a result of decreases in assessed valuation, it will be impossible to pay for imperative functions for the current budget year, the governing body of the taxing district affected may issue no-fund warrants in the amount necessary. Such warrants shall conform to the requirements prescribed by K.S.A.

79-2940, and amendments thereto, except they shall not bear the notation required by such section and may be issued without the approval of the state board of tax appeals. The governing body of such taxing district shall make a tax levy at the time fixed for the certification of tax levies to the county clerk next following the issuance of such warrants sufficient to pay such warrants and the interest thereon. All such tax levies shall be in addition to all other levies authorized by law.

(n) Whenever a taxpayer appeals to the board of tax appeals pursuant to the provisions of K.S.A.

79-1609, and amendments thereto, or pays taxes under protest related to one property whereby the assessed valuation of such property exceeds 5% of the total county assessed valuation of all property located within such county and the taxpayer receives a refund of such taxes paid under protest or a refund made pursuant to the provisions of K.S.A.

79-1609, and amendments thereto, the county treasurer or the governing body of any taxing subdivision within a county may request the pooled money investment board to make a loan to such county or taxing subdivision as provided in this section. The pooled money investment board is authorized and directed to loan to such county or taxing subdivision sufficient funds to enable the county or taxing subdivision to refund such taxes to the taxpayer. The pooled money investment board is authorized and directed to use any moneys in the operating accounts, investment accounts or other investments of the state of Kansas to provide the funds for such loan. Each loan shall bear interest at a rate equal to the net earnings rate of the pooled money investment portfolio at the time of the making of such loan. The total aggregate amount of loans under this program shall not exceed $50,000,000 of unencumbered funds pursuant to article 42 of chapter 75 of the Kansas Statutes Annotated, and amendments thereto. Such loan shall not be deemed to be an indebtedness or debt of the state of Kansas within the meaning of section 6 of article 11 of the constitution of the state of Kansas. Upon certification to the pooled money investment board by the county treasurer or governing body of the amount of each loan authorized pursuant to this subsection, the pooled money investment board shall transfer each such amount certified by the county treasurer or governing body from the state bank account or accounts prescribed in this subsection to the county treasurer who shall deposit such amount in the county treasury. Any such loan authorized pursuant to this subsection shall be repaid within four years. The county or taxing subdivision shall make not more than four equal annual tax levies at the time fixed for the certification of tax levies to the county clerk following the making of such loan sufficient to pay such loan within the time period required under such loan. All such tax levies shall be in addition to all other levies authorized by law.

(o) The county treasurer shall disburse to the proper funds all portions of taxes paid under protest and shall maintain a record of all portions of such taxes which are so protested and shall notify the governing body of the taxing district levying such taxes thereof and the director of accounts and reports if any tax protested was levied by the state.

(p) This statute shall not apply to the valuation and assessment of property assessed by the director of property valuation and it shall not be necessary for any owner of state assessed property, who has an appeal pending before the state board of tax appeals, to protest the payment of taxes under this statute solely for the purpose of protecting the right to a refund of taxes paid under protest should that owner be successful in that appeal.

History: L. 1929, ch. 291, § 1; L. 1941, ch. 374, § 1; L. 1971, ch. 302, § 1; L. 1971, ch. 303, § 1; L. 1972, ch. 368, § 1; L. 1974, ch. 434, § 1; L. 1980, ch. 315, § 1; L. 1982, ch. 406, § 1; L. 1985, ch. 311, § 10; L. 1988, ch. 377, § 13; L. 1989, ch. 2, § 3 (Special Session); L. 1990, ch. 348, § 1; L. 1990, ch. 66, § 58; L. 1991, ch. 279, § 5; L. 1993, ch. 239, § 1; L. 1994, ch. 275, § 3; L. 1996, ch. 264, § 11; L. 1997, ch. 126, § 25; L. 1999, ch. 126, § 11; L. 2004, ch. 173, § 13; L. 2005, ch. 161, § 2; L. 2008, ch. 109, § 103; L. 2010, ch. 84, § 1; L. 2013, ch. 87, § 17; L. 2014, ch. 141, § 110; L. 2016, ch. 112, § 19; L. 2021, ch. 58, § 10; July 1.

§ 79-2005a Same; invalidity of part

If any provision of this act or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act which can be given effect without the invalid provision or application and to this end the provisions of this act are severable.

History: L. 1971, ch. 303, § 2; April 30.

§ 79-2005b Taxes paid under protest; disorganization of taxing district; no-fund warrants; tax levies

Whenever any taxpayer shall be entitled to recover any taxes which were paid under protest and any portion of the proceeds thereof were distributed to a taxing district which has been disorganized, the board of county commissioners shall issue no-fund warrants in an amount necessary to refund that portion of the taxes distributed to the taxing district which was disorganized and shall at the time next prescribed by law for the certification of tax levies provide for the levy of taxes upon all taxable property in the territory comprising the disorganized taxing district at the time of its disorganization in an amount necessary for the payment of such warrants together with the interest thereon.

History: L. 1971, ch. 302, § 2; April 3.

§ 79-2005c Repealed

History: L. 1929, ch. 291, § 1; L. 1941, ch. 374, § 1; L. 1971, ch. 302, § 1; L. 1971, ch. 303, § 1; L. 1972, ch. 368, § 1; L. 1974, ch. 434, § 1; L. 1980, ch. 315, § 1; L. 1982, ch. 406, § 1; L. 1985, ch. 311, § 10; L. 1988, ch. 356, § 324; Repealed, L. 1989, ch. 2, § 11 (Special Session); December 14.

§§ 79-2006 through 79-2008 Repealed

History: L. 1931, ch. 314, §§ 1, 2, 3; Repealed, L. 1933, ch. 311, § 1; June 5.

§ 79-2009 Highway or railroad bridge; appointment of receiver upon failure to pay tax

If any person, company or corporation owning, controlling or operating any highway or railroad bridge over any stream or river which forms the boundary line between this and any other state shall neglect, fail or refuse to pay the tax assessed against such property within thirty days after the same shall become due and payable, on application to the district court by petition, in the name of the state of Kansas, of the board of county commissioners, or of the governing body of any city, or the officer of any municipal township interested in such tax, it shall be the duty of the district court to appoint a receiver of such bridge property, rights, privileges, and franchises; and such receiver shall hold, possess, manage and control such bridge property under the orders of the court until the termination of the litigation in relation to such taxes, or until such tax is paid, by proper decree to declare a forfeiture of its charter.

History: L. 1943, ch. 301, § 8; June 28.

§ 79-2010 County commissioners to certify list of claims allowed

The board of county commissioners of the several counties shall certify to the county treasurer and the county attorney of their respective counties a list of claims allowed by said board of county commissioners within two days after the said claims have been allowed, setting forth the names of claimants and the amounts of said claims allowed.

History: L. 1943, ch. 301, § 9; June 28.

§ 79-2011 County treasurer to check claims against delinquent tax lists; certification to county commissioners and county attorney

Upon the receipt of the certification of claims allowed as provided in K.S.A. 79-2010, and amendments thereto, the county treasurer shall carefully check the claims against the delinquent real and personal property tax of the current year and for seven years preceding the current year, and within two days of the receipt of the list of claims as provided for in K.S.A. 79-2010, and amendments thereto, the county treasurer shall certify to the board of county commissioners and the county attorney a list of all claimants whose claims are allowed, and whose real or personal property tax is delinquent, setting forth the name of the claimant and the amount of tax together with any penalties or interest due, and setting forth the year or years for which the tax was levied. Although the name of the claimant as appearing upon the claim filed is not the same as appearing upon the tax roll, if it is known that such claimant is one and the same, the claim shall be handled in the same manner as though the name was identical on the claim and the tax roll.

History: L. 1943, ch. 301, § 10; L. 1963, ch. 479, § 1; L. 2016, ch. 112, § 20; July 1.

§ 79-2012 County commissioners to authorize county treasurer to credit delinquent taxpayer for the amount of claim; receipt; warrant issued where claim exceeds delinquent tax

Upon receipt of the certification from the county treasurer as provided for in K.S.A. 79-2011, the county commissioners shall forthwith authorize the county treasurer in writing under the seal of the county to credit said delinquent taxpayer with the amount of said claim, and the county treasurer shall issue a receipt to claimant in the amount of the claim, noting thereon the amount of tax and penalties and interest remaining unpaid, if any, or in the event that the claim allowed is in excess of the delinquent tax and penalties and interest, the county commissioners shall issue a warrant in payment of the difference between the tax and penalties and interest for which the county treasurer's receipt was issued, and the county treasurer's receipt or the county treasurer's receipt and the warrant issued by the board of county commissioners shall constitute full payment of said claim.

History: L. 1943, ch. 301, § 11; June 28.

§ 79-2013 County commissioners to issue warrants to county treasurer for amount of claims credited on delinquent tax

After all claims for the month have been settled and the county treasurer has issued receipts covering the claims of claimants whose personal property tax was delinquent, it shall be the duty of the board of county commissioners to issue warrants against the proper funds of the county (being the funds from which the claim would have been paid) in favor of the county treasurer. The county treasurer shall credit such warrants to the county tax account, and at the time for distributing taxes shall distribute these collections to the proper municipalities or taxing bodies and funds for which the original tax was levied.

History: L. 1943, ch. 301, § 12; June 28.

§ 79-2014 Abatement and cancellation of unpaid taxes upon certain mineral interests or royalties

All unpaid taxes upon any mineral interest or mineral royalty in real estate, the title to which has merged with the title to the surface interests in a single ownership or any interest or royalty given or granted for any term, and the term of which interest or royalty has expired or terminated, together with the penalties and interest on such unpaid taxes, shall by resolution of the board of county commissioners, be ordered abated, canceled and stricken from the tax rolls.

History: L. 1945, ch. 373, § 1; L. 1955, ch. 415, § 1; L. 1969, ch. 442, § 1; April 10.

§ 79-2015 Actions for debt to collect taxes, fees, interest and penalties, when; remedies

The taxes, fees, interest and penalties, levied and assessed by any state law administered by the secretary of revenue may be collected in the same manner as a personal debt of the taxpayer to the state of Kansas from the time the same shall become due, and shall be recoverable in any court of competent jurisdiction in any action in the name of the state of Kansas, on relation of the secretary of revenue or the secretary's designee. Such suit may be maintained, prosecuted, and all proceedings taken to the same effect and extent as for the enforcement of a right of action for debt. All provisional remedies available in such actions shall be, and are hereby made available to the state of Kansas in the enforcement of the payment of any state tax, except that the remedy herein provided shall be in addition to the various warrant and lien procedures now provided by law for the collection of delinquent taxes.

History: L. 1959, ch. 402, § 1; L. 2002, ch. 186, § 8; July 1.

§ 79-2016 Same; liabilities imposed by other states; comity

The courts of this state shall recognize and enforce liability for taxes lawfully imposed by other states which extend a like comity to this state.

History: L. 1959, ch. 402, § 2; April 1.

§ 79-2017 Collection of delinquent taxes in certain counties; tax lien

In Douglas, Sedgwick, Johnson and Shawnee counties, all taxes on personal property that remain due and unpaid on February 16 or June 1 shall be collected in the following manner:

The county treasurer on or before March 25 shall send a notice by mail to the person, firm, unincorporated association, company or corporation to whom such taxes were assessed, and which remain unpaid on February 16 of any year, to its post office address as shown by the current tax roll. Alternatively, the county treasurer may transmit the notice to the taxpayer by electronic means if such taxpayer consented to service by electronic means.

The county treasurer on or before June 27 shall send a notice by mail to the person, firm, unincorporated association, company or corporation to whom such taxes were assessed, and which remain unpaid on June 1 of any year, to its post office address as shown by the current tax roll. Alternatively, the county treasurer may transmit the notice to the taxpayer by electronic means if such taxpayer consented to service by electronic means.

Failure to receive any such tax notice shall not relieve such person, firm, unincorporated association, company or corporation defaulting in payment of personal taxes from any interest and costs attached thereto. Such notice shall state the amount of personal tax charged against the party, and notify the party that the tax may be paid by paying the amount of the tax as assessed and interest the amount of which shall be computed in accordance with the provisions of K.S.A. 79-2004a, and amendments thereto, on the delinquent tax.

The county treasurer is hereby authorized to accept payment of delinquent taxes in full without payment of the interest due upon such delinquent taxes if the amount of the interest due is less than $5 and is further authorized to accept as payment in full, any interest payment in an amount not less than $5 less than the full amount of the interest due.

Should such taxes, due and unpaid on February 16 remain unpaid for a period of 25 days after the mailing of such notice, or taxes due and unpaid on June 1 remain unpaid for a period of 14 days after the mailing of such notice, the county treasurer shall issue a warrant signed by the treasurer directed to the sheriff of the county, commanding the sheriff to levy the amount of such unpaid taxes and the amount of the interest thereon, together with the sheriff's fees for collecting the taxes, upon any personal property, tangible or intangible, of the person, firm, unincorporated association, company or corporation to whom such taxes were assessed.

To allow the time necessary for preparation of such warrants, the county treasurer shall not receive any payment of delinquent personal property taxes or interest thereon, due and unpaid on February 16, during a period beginning the 26th day after mailing of notices and extending through the last regular business day of April in any year or taxes or interest due and unpaid on June 1, during a period beginning the 15th day after mailing of such notices and extending through the regular business day of July 15 in any year. Such warrant shall be delivered to the sheriff by the county treasurer before the first regular business day in May and the 15th regular business day in July in each year. Upon receipt of such tax warrant, the sheriff shall proceed to collect such taxes the same as upon execution, except that where such taxes were levied and assessed pursuant to K.S.A. 79-329 through 79-334, and amendments thereto, they shall be collected as follows:

The sheriff shall cause notice to be given by registered mail to the purchaser of the oil and gas from such lease of the amount of such delinquent taxes and the name of the person against whom they were assessed and from and after the receipt of such notice such purchaser shall not pay to the person owing the taxes any of the proceeds of the sale of any oil or gas from such lease, but shall pay them to the sheriff until the full amount of such taxes and costs are paid after which the purchaser may resume the payments for such oil or gas to such person, but this exception shall not prevent the levy of an execution and sale of the leasehold interest or the physical personal property on any such lease for the payment of delinquent taxes owed by the owner thereof.

The sheriff, as soon as the sheriff collects the tax warrant, shall make a return thereof and shall make a return of all tax warrants delivered to the sheriff on or before October 1 of the year following the year in which the tax was levied. If the warrant so returned shows that the tax has been collected, the sheriff shall pay the tax to the county treasurer. If such return shows that such tax has not been collected, then the county treasurer shall file with the clerk of the district court of the treasurer's county an abstract of the total amount of unpaid taxes and interest due plus penalties and costs. The clerk shall enter the total amount of the unpaid taxes in the appearance docket and note the entry in the general index. No fee shall be charged for either such entry. The total amount shall become a judgment in the same manner and to the same extent as any other judgment under the code of civil procedure and shall become a lien on real estate from and after the time of the filing thereof. A transcript of the judgment may be filed with the clerk of the district court in any other county and when the judgment is entered in the manner provided above, the judgment shall become a lien upon real estate located in such county in the same manner as is provided in case of other judgments. No fee shall be made for making the entry. Execution, garnishment or other proceedings in aid of execution may issue within the county or to any other county on the judgment in the same manner as on judgments under the code of civil procedure except that any real estate taken upon execution for the collection of such taxes shall be sold without appraisement. None of the exemptions provided for in the code of civil procedure shall apply to any such judgment but no such judgment secured for taxes on personal property shall be levied against a homestead.

At the time of filing the abstract of the taxes, interest, penalties and costs with the clerk of the district court, the county treasurer shall serve notice, in writing, on the county counselor of such filing. It shall be the duty of the county counselor to commence such proceedings as are necessary for the collection of such judgment. If execution is not issued within five years from the date of the entry of any such judgment, or if five years shall have intervened between the date of the last execution issued on such judgment and the time of issuing another writ of execution thereon, such judgment shall become dormant, and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such dormant judgment may be revived in like manner as dormant judgments under the code of civil procedure. Any such judgment remaining uncollected after seven years may be allowed to become dormant if the county commissioners determine, after consideration of all relevant facts, that it is not reasonable to expect that such judgment will be collected. The board of county commissioners may allow such judgments to become dormant at any time if the original amount of the judgment was less than $50.

History: L. 1968, ch. 396, § 1; L. 1969, ch. 441, § 2; L. 1971, ch. 304, § 1; L. 1976, ch. 145, § 242; L. 1977, ch. 109, § 39; L. 1979, ch. 312, § 4; L. 1980, ch. 308, § 5; L. 1984, ch. 147, § 20; L. 1985, ch. 319, § 1; L. 1990, ch. 349, § 1; L. 2003, ch. 146, § 8; L. 2004, ch. 171, § 1; L. 2023, ch. 92, § 8; July 1.

§ 79-2018 Employment of persons to assist collection of unpaid personal property taxes in counties; contingency fee compensation; disposition of taxes; costs

The board of county commissioners of any county may employ attorneys or other persons to assist the county in the collection of personal property taxes remaining unpaid from and after the date the same became a judgment. The employment of such attorney or other persons shall be in writing and shall be on a contingent fee basis, but in no event shall the fees and charges for such collections exceed the sum of 50% of the amount collected. Any taxes so collected shall be credited ratably to the funds for which such taxes were levied and the cost of collecting shall be apportioned and charged ratably against the funds for which such taxes were collected.

History: L. 1972, ch. 369, § 1; L. 1994, ch. 200, § 1; July 1.

§ 79-2019 Same; bond of contract collectors; report and accounting of taxes collected

Any attorney or collector, other than the sheriff, with whom the county has contracted for the collection of personal property taxes, shall furnish a good and sufficient bond, in an amount to be fixed by the board of county commissioners, for the faithful discharge of his or her duties and for the payment to the county of all moneys collected pursuant to time of the agreement. Each contract collector shall, on the tenth day of each month, file with the county treasurer a verified report and account of the taxes collected by him or her the preceding month, showing the name of each person from whom taxes were collected, the amount collected, and at the same time, he or she shall pay to the county treasurer the full amount collected.

History: L. 1972, ch. 369, § 2; July 1.

§ 79-2020 Voluntary transfer of personal property before tax paid; lien, exception; collection

If any owner of personal property surrenders or transfers such property to another after the date such property is assessed and before the tax thereon is paid, whether by voluntary repossession or any other voluntary act in reduction or satisfaction of indebtedness, then the taxes on the personal property of such taxpayer shall fall due immediately, and a lien shall attach to the property so surrendered or transferred, and shall become due and payable immediately. Such lien shall be in preference to all other claims against such property. The county treasurer, after receiving knowledge of any such surrender or transfer, shall issue immediately a tax warrant for the collection thereof and the sheriff shall collect it as in other cases. The lien shall remain on the property and any person taking possession of the property does so subject to the lien. The one owing such tax shall be liable civilly to any person taking possession of such property for any taxes owing thereon, but the property shall be liable in the hands of the person taking possession thereof for such tax. If the property is sold in the ordinary course of retail trade it shall not be liable in the hands of the purchasers. No personal property which has been transferred in any manner after it has been assessed shall be liable for the tax in the hands of the transferee after the expiration of three years from the time such tax originally became due and payable.

History: L. 1985, ch. 184, § 1; July 1.

§ 79-2021 Expired

History: L. 1990, ch. 87, § 1; May 31; Expired, January 1, 1991.

§ 79-2022 Contingent fee based employment to audit personal property tax returns prohibited, when

The board of county commissioners of any county shall not employ on a contingent fee basis any person to audit personal property tax returns for the purpose of discovering property that has escaped taxation or been undervalued.

History: L. 1994, ch. 200, § 2; July 1.

§ 79-2023 Wyandotte county accumulated interest amnesty program

(a) In accordance with the provisions of this section, the board of county commissioners of Wyandotte county may institute and administer a property tax accumulated interest amnesty program. Such program shall only be in effect for a 60-day period as specified by such board, and shall be instituted and completed prior to July 1, 1995. Notice of the institution and time period of such program shall be by publication in a newspaper having general circulation in the county. Also, notices shall be mailed to the owner of any homestead or other property who may qualify to participate in the program.

(b) Upon completion and execution of an application affidavit for eligibility for participation in the amnesty program by a qualified person, and payment of all or a portion of delinquent property tax, the county treasurer shall cancel all accumulated interest which has accrued upon the amount of such tax paid.

(c) As used in this section: (1) "Qualified person" means an individual or such individual's heirs who own and reside in a homestead upon which is owed delinquent property tax, or a person, corporation or other association of persons who own real property upon which is owed delinquent property tax; (2) "homestead" shall have the meaning ascribed thereto by section 9 of article 15 of the Kansas constitution; and (3) "delinquent property tax" means property tax, including any special assessments, levied upon a homestead or other real property which has remained unpaid for at least two years after it became due.

(d) The provisions of this section shall not be construed to conflict or otherwise affect any other provisions of law relating to the redemption, sale or foreclosure of real estate resulting from delinquent property tax.

History: L. 1994, ch. 267, § 1; May 5.

§ 79-2024 Partial payment or payment plan for delinquent or nondelinquent property taxes authorized

Notwithstanding any other provision of law to the contrary, the county treasurer of every county may accept partial payment or establish a payment plan for delinquent or nondelinquent real property tax or personal property tax in accordance with payment guidelines established therefor by the county treasurer. Nothing in this section shall be construed to modify any consequences of untimely payment.

History: L. 1994, ch. 267, § 2; L. 2012, ch. 126, § 3; L. 2021, ch. 9, § 4; April 1.

§ 79-2025 Cancellation of taxes and penalties on certain property in Johnson county by county commissioners

Notwithstanding any provision of law to the contrary, for the purpose of facilitating the sale or transfer of the Kuhlman Diecasting property located at 16400 Mission Road, Johnson county, Kansas, the board of county commissioners of Johnson county, upon a majority vote, may cancel all or a part thereof, of any uncollected real estate taxes and penalties on such property. Such property is legally described as:

THAT PART OF THE EAST HALF OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 14, RANGE 25, IN JOHNSON COUNTY, KANSAS, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE WEST ALONG THE NORTH LINE OF SAID SOUTHEAST QUARTER TO THE NORTHWEST CORNER OF THE EAST HALF OF SAID SOUTHEAST QUARTER; THENCE SOUTH ON THE LINE RUNNING NORTH AND SOUTH THROUGH THE CENTER OF SAID QUARTER SECTION 441 FEET, CROSSING THE BIG BLUE RIVER, TO A POINT 6 FEET SOUTH OF THE SOUTH BANK OF SAID RIVER; THENCE SOUTHERLY AND FOLLOWING THE SOUTHERLY AND WESTERLY BANK OF SAID RIVER AND 6 FEET DISTANT THEREFROM TO THE CENTER OF WHAT IS KNOWN AS CAMP BRANCH; THENCE DOWN THE CENTER OF SAID BRANCH TO THE CENTER OF SAID BIG BLUE RIVER; THENCE FOLLOWING DOWN THE CENTER OF SAID RIVER TO THE EAST LINE OF SAID SECTION 16; THENCE NORTH ALONG THE EAST LINE OF SAID SECTION TO THE PLACE OF BEGINNING; BUT EXCEPTING THEREFROM THE RIGHT OF WAY OF THE MISSOURI PACIFIC RAILROAD; AND ALSO EXCEPTING THEREFROM ALL THAT PART OF THE NORTH 154 FEET OF SAID SOUTHEAST QUARTER WHICH LIES EAST OF SAID MISSOURI PACIFIC RAILROAD RIGHT OF WAY.

History: L. 2007, ch. 152, § 4; April 26.

§ 79-2026 Liability for unpaid taxes on personal property abandoned or repossessed; extinguishment of tax lien

Whenever personal property in this state is abandoned or repossessed after it is assessed and before the taxes are paid, the owner or lessee of any real property upon which such property was situated at the time of abandonment or repossession shall acquire such property free of any tax lien for unpaid taxes that may otherwise exist if lawful title to such property is acquired by such landowner or lessee within 12 months of the time such property is deemed abandoned or within 12 months of the time legal proceedings are commenced to effect a repossession. Any lien for unpaid taxes shall be extinguished for any such personal property acquired by the landowner or lessee as set forth herein. In no circumstances shall the landowner or lessee be liable for any taxes owned [owed] prior to the date the personal property is acquired by such landowner or lessee.

History: L. 2014, ch. 81, § 2; L. 2016, ch. 112, § 21; July 1.

Article 21 Sale of Personal Property for Taxes

§ 79-2101 Collection of delinquent taxes; tax lien

Except as provided by K.S.A. 79-2017, and amendments thereto, all the taxes on personal property that remain due and unpaid on January 1 or June 1 shall be collected in the following manner:

The county treasurer, on or before February 20, shall send a notice by mail to the person, firm, unincorporated association, company or corporation to whom such taxes were assessed, and which remain unpaid on January 1 of any year, to its post office address as shown by the records in the office of the county treasurer. The county treasurer, on or before June 10, shall send a notice by mail to the person, firm, unincorporated association, company or corporation to whom such taxes were assessed, and which remain unpaid on June 1 of any year, to its post office address as shown by the records in the office of the county treasurer. Failure to receive any such notice shall not relieve such person, firm, unincorporated association, company or corporation defaulting in payment of personal taxes from any interest and costs attached thereto. Such notice shall state the amount of personal tax charged against the party, and notify the party that the tax may be paid by paying interest thereon from the date it became due and payable to date of payment computed under the provisions of K.S.A. 79-2004a, and amendments thereto.

If such taxes remain unpaid for a period of 14 days after mailing such notice, the county treasurer shall issue a warrant signed by the treasurer directed to the sheriff of the county, commanding the sheriff to levy the amount of such unpaid taxes and the interest thereon, together with the costs of executing the warrant and the sheriff's fees for collecting the same, upon any personal property, tangible or intangible, of the person, firm, unincorporated association, company or corporation to whom such taxes were assessed. Such warrant shall be delivered to the sheriff. Upon receipt of such tax warrant, the sheriff shall proceed to collect the taxes the same as upon execution, except that taxes levied and assessed pursuant to K.S.A. 79-329 through 79-334, and amendments thereto, shall be collected as follows:

The sheriff or county treasurer shall cause notice to be given by registered mail to the purchaser of the oil and gas from such lease of the amount of such delinquent taxes and the name of the person against whom they were assessed. From and after the receipt of such notice such purchaser shall not pay to the person owing the taxes or any of the proceeds of the sale of any oil or gas from such lease, but shall pay the proceeds to the sheriff until the full amount of such taxes and costs are paid after which the purchaser may resume the payments for such oil or gas to such person, but this exception shall not prevent the levy of an execution and sale of the leasehold interest or the physical personal property on any such lease for the payment of delinquent taxes owed by its owner. Tax warrants issued pursuant to K.S.A. 79-329 through 79-334, and amendments thereto, shall not be required to be returned prior to 24 months after issuance.

The sheriff, as soon as collecting the tax warrant, shall make a return thereof and shall make a return of all tax warrants delivered to the sheriff on or before October 1 of the year following the year in which the tax was levied except as otherwise provided by the preceding paragraph. If the warrant so returned shows that the tax has been collected, the sheriff shall pay the tax to the county treasurer. If such return shows that such tax has not been collected, the county treasurer shall file with the clerk of the district court of the treasurer's county an abstract of the total amount of unpaid taxes and interest due plus penalties and costs of executing the warrant. The clerk shall enter the total amount in the appearance docket and note the entry in general index. No fee shall be charged for making the entry. The total amount shall become a judgment in the same manner and to the same extent as any other judgment under the code of civil procedure and shall become a lien on real estate from and after the time of the filing thereof. A transcript of the judgment may be filed with the clerk of the district court in any other county and when it is entered in the manner provided above it shall become a lien upon real estate located in such county in the same manner as is provided in case of other judgments, except that no fee shall be charged for making the entry. Execution, garnishment or other proceedings in aid of execution may issue within the county or to any other county on the judgment in the same manner as on judgments under the code of civil procedure except that any real estate taken upon execution for the collection of such taxes shall be sold without appraisement. None of the exemptions provided for in the code of civil procedure shall apply to any such judgment but no such judgment secured for taxes on personal property shall be levied against a homestead.

At the time of filing the abstract of the taxes, interest, penalties and costs of executing the warrant with the clerk of the district court, the county treasurer shall serve notice, in writing, on the county attorney of such filing. It shall be the duty of the county attorney to commence such proceedings as are necessary for the collection of such judgment. If execution is not issued within five years from the date of the entry of any such judgment, or if five years shall have intervened between the date of the last execution issued on such judgment, and the time of issuing another writ of execution thereon, such judgment shall become dormant, and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such dormant judgment may be revived in like manner as dormant judgments under the code of civil procedure. Any such judgment remaining uncollected after 20 years may be allowed to become dormant if the county commissioners determine, after consideration of all relevant facts, that it is not reasonable to expect such judgment will be collected. The board of county commissioners may allow such judgment to become dormant at any time if the original amount of the judgment was less than $50.

History: L. 1876, ch. 34, § 92; L. 1895, ch. 256, § 1; L. 1913, ch. 325, § 1; R.S. 1923, 79-2101; L. 1929, ch. 286, § 1; L. 1933, ch. 310, § 2; L. 1943, ch. 301, § 3; L. 1945, ch. 360, § 2; L. 1947, ch. 454, § 1; L. 1947, ch. 455, § 1; L. 1961, ch. 451, § 1; L. 1976, ch. 145, § 243; L. 1977, ch. 109, § 40; L. 1979, ch. 312, § 5; L. 1980, ch. 308, § 6; L. 1984, ch. 147, § 21; L. 1985, ch. 319, § 2; L. 1990, ch. 349, § 2; L. 1998, ch. 188, § 9; L. 2003, ch. 146, § 9; January 1, 2004.

§§ 79-2101a through 79-2101c Repealed

History: L. 1931, ch. 313, §§ 1 to 3; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-2102 Repealed

History: L. 1876, ch. 34, § 93; R.S. 1923, 79-2102; Repealed, L. 2012, ch. 126, § 5; July 1.

§ 79-2103 Sheriff to note removal of taxpayer

It shall be the duty of the several sheriffs of this state, in making their returns of the delinquent tax warrants to the treasurers of their respective counties, to note in their return the county to which any such delinquent taxpayer may have removed or resides, with the date of his or her removal, if he or she shall be able to ascertain such fact; and it is hereby made his or her duty to make diligent inquiry therefor.

History: L. 1876, ch. 34, § 94; March 11; R.S. 1923, 79-2103.

§ 79-2104 Alias tax warrants to sheriff of county to which taxpayer has removed

It shall be the duty of the several county treasurers in the state, immediately after their receiving said warrants returned as provided in the preceding section, to issue an alias tax warrant, directed to the sheriff of any county in this state into which any such taxpayer may have removed or may reside, or in which his or her personal property may be found, who shall proceed to collect said taxes the same as upon execution, together with his or her costs upon the same, and after collecting the said taxes to forward the same to the treasurer of the county who issued said warrant, together with the warrant, and his or her return endorsed thereon: Provided, That if said warrant be returned unsatisfied, in whole or in part, the county treasurer may issue further alias tax warrants to the sheriff of his or her county or to the sheriff of any county in this state in which the taxpayer has personal property.

History: L. 1876, ch. 34, § 95; R.S. 1923, 79-2104; L. 1931, ch. 305, § 1; February 26.

§ 79-2105 Repealed

History: L. 1876, ch. 34, § 96; R.S. 1923, 79-2105; Repealed, L. 1943, ch. 301, § 13; June 28.

§ 79-2106 Fees of sheriffs and treasurers

For the services specified in the preceding sections the sheriffs shall be entitled to the same fees as they are allowed by law on executions, and the treasurers to receive for furnishing the clerk of the district court with such abstract the same fee as is provided by law for issuing tax warrants.

History: L. 1876, ch. 34, § 97; March 11; R.S. 1923, 79-2106.

§ 79-2107 Sheriff's return of tax warrants; liability of treasurer and sheriff

All warrants returned by the sheriff shall be endorsed with date of service, date of collection, and amount collected, and if no property is found, so state; and if any treasurer or sheriff shall fail to issue or serve and return the warrants as provided by this act, such treasurer or sheriff shall be held liable for the amount of tax upon which warrants have so failed to be issued, served or returned. The board of county commissioners shall not allow the claim for the salary of any sheriff for any month after the month of October in any year unless and until said sheriff has made return of each and every personal property tax warrant which has been issued at any time during said year.

History: L. 1876, ch. 34, § 98; R.S. 1923, 79-2107; L. 1943, ch. 301, § 4; June 28.

§ 79-2108 Penalties and interest where injunction restraining collection dissolved

In cases where the county treasurer or sheriff shall by injunction be restrained from the collection of taxes due upon personal property, and the injunction be dissolved, the county treasurer or sheriff shall collect the original taxes and penalties, with interest from the date of the injunction at the rate prescribed by K.S.A. 79-2004a, and amendments thereto.

History: L. 1941, ch. 375, § 34; L. 1980, ch. 308, § 13; L. 1992, ch. 319, § 5; July 1.

§ 79-2109 Sale of personalty before tax paid; liens; liability

(a) On and after January 1, 2015, if any owner of personal property sells or transfers such property to another after the date such property is assessed and before the tax thereon is paid, then the taxes on the personal property of such taxpayer which is being sold or transferred shall fall due immediately, and a lien shall attach to the property so sold or transferred. The lien shall be for an amount equal to the tax assessment for the year in which the sale or transfer is made and shall become due and payable immediately. The lien shall attach to the property and is not a personal debt of the purchaser or transferee. In no circumstance shall the purchaser or transferee be liable for any taxes owed by the seller or transferor prior to the year in which the sale or transfer occurred. Such lien shall be in preference to all other claims against such property. The county treasurer, after receiving knowledge of any such surrender or transfer, shall issue immediately a tax warrant for the collection thereof and the sheriff shall collect it as in other cases. The lien shall remain on the property and any person taking possession of the property does so subject to the lien. The one owing such tax shall be liable civilly to any person taking possession of such property for any taxes owing thereon, but the property shall be liable in the hands of the person taking possession thereof for such tax. If the property is sold in the ordinary course of retail trade it shall not be liable in the hands of the purchasers. No personal property which has been transferred in any manner after it has been assessed shall be liable for the tax in the hands of the transferee after the expiration of three years from the time such tax originally became due and payable.

(b) If, at the time of the sale, taxes on the personal property remain due and unpaid for any tax year or years prior to the year of the sale, then such unpaid taxes shall be a personal debt of the seller, subject to collection under K.S.A. 79-2017 or 79-2101, and amendments thereto, as the case may be. The county treasurer of the county where such personal property taxes remain due and unpaid shall update the records of the county treasurer to show that the seller or transferor is delinquent and owes personal property taxes levied against the seller or transferor for such previous year or years for the purposes of vehicle registration under K.S.A. 8-173, and amendments thereto.

History: L. 1943, ch. 301, § 5; L. 2014, ch. 81, § 5; July 1.

§ 79-2110 Repealed

Revisor's Note: Transferred from 79-317. 79-317 was also repealed by L. 1943, ch. 301, § 13 and a similar section enacted (see 79-2109).

History: L. 1899, ch. 248, § 4; R.S. 1923, 79-317; L. 1943, ch. 288, § 1; Repealed, L. 2014, ch. 81, § 12; July 1.

§ 79-2111 Personalty seized by legal process; taxes as preference over other claims

If the personal property of any taxpayer be seized by any legal process and if the taxpayer does not have a sufficient amount of other property to pay the taxes which is exempt from levy and sale under such legal process, then the taxes on the personal property of such taxpayer shall at once fall due, and be paid from the proceeds of the sale of the property so taken on such legal process, in preference to all other claims against it.

History: L. 1943, ch. 301, § 6; June 28.

§ 79-2112 Same; proceedings when property sold, seized, or attempted to be removed or sold

If property subject to taxation be sold, seized, or attempted to be removed or sold, as described in sections 3, 4 and 5 [*] of this act before the sheriff has made his or her return thereof, or before the county clerk has turned over the tax rolls for that year to the county treasurer, then, the county assessor shall furnish the county treasurer the assessment of that person. The county treasurer shall at once levy upon the property so returned to him or her the percentage of tax levied in that county for the previous year, and collect the same as in this act provided. Should the percentage thus collected exceed the rate levied for the current year, such excess shall be returned to the person entitled thereto by the county treasurer, upon the order of the board of county commissioners. If the tax books for that year have come into the possession of the county treasurer, then, if such property be not listed therein, the county assessor shall enter the same on the tax books, and levy thereon the same percentage of tax that is levied in that county for that year, and the county treasurer shall then collect the taxes so levied as in other cases.

History: L. 1943, ch. 301, § 7; June 28.

Article 22 State Ad Valorem Property Tax Levies

§ 79-2201 Remittance of proceeds of state property tax levies, when; disposition of same

The county treasurer shall remit all moneys allocated to the state from the proceeds of tax levies imposed by K.S.A. 76-6b01, 76-6b04 and 76-6b09, and amendments thereto, except the proceeds of such tax levies imposed upon motor vehicles, to the state treasurer as provided in this section. The county treasurer, on or before October 31, January 20, March 20, June 5 and September 20 of each year, shall remit to the state treasurer the estimated amount collected for and owed to the state, except that the amount so determined and remitted shall not be less than the actual amount collected for the state as of the date which is 20 days prior to the date of remittance. Each such remittance shall be accompanied by certification which specifies the amount for each year for which the taxes were collected and are remitted. Upon receipt of such moneys, the state treasurer shall deposit the same in the state treasury and shall credit the appropriate portions of each such deposit to the Kansas educational building fund, to the state institutions building fund and to the correctional institutions building fund in accordance with the tax levies in effect under K.S.A. 76-6b01, 76-6b04 and 76-6b09, and amendments thereto, for the period for which the taxes were collected.

History: L. 1876, ch. 34, § 99; L. 1891, ch. 41, § 1; L. 1905, ch. 471, § 1; L. 1923, ch. 224, § 1; R.S. 1923, 79-2201; L. 1937, ch. 359, § 3; L. 1967, ch. 493, § 1; L. 1974, ch. 414, § 7; L. 1984, ch. 356, § 1; L. 1986, ch. 360, § 3; L. 2003, ch. 146, § 6; January 1, 2004.

§ 79-2202 Forfeiture by county treasurer for failure to pay money into state treasury

If any county treasurer shall fail to pay into the state treasury any moneys in his or her hands for that purpose within the time prescribed by law, he or she shall in addition to other penalties be liable to the following: If he or she fail for the space of ten days, he or she shall forfeit to the state ten percent of the amount withheld; and if he or she fail for thirty days after such specified time, he or she shall forfeit his or her office as treasurer and be deemed guilty of embezzlement, and shall be punished in the same manner as for the larceny of the amount withheld: Provided, That if he or she can show sufficient reason for such delay he or she shall not be subject to any penalty.

History: L. 1876, ch. 34, § 101; March 11; R.S. 1923, 79-2202.

§ 79-2203 County clerk's statement to director of accounts and reports, contents; county responsible to state for levies after making adjustments

On or before June 30 of each year, the county clerk shall send to the director of accounts and reports a statement showing tax information prescribed by the director of accounts and reports. Such information may include, but shall not be limited to: (1) all double and erroneous assessments abated, (2) taxes refunded, (3) additions to the tax rolls made subsequent to the certification thereof to the director of property valuation, (4) the amount of tax warrants uncollected and returned by the sheriff "not found" and "no property." Also a showing of the valuations and levy rates of personal tax warrants of prior years for which credit has been taken in previous settlements with the state, and which have been subsequently collected, and the state's share of the tax warrants thus collected. Such statement shall be signed by the county clerk and countersigned by the county treasurer. Each county is responsible to the state for the full amount of the taxes levied by law for state and other purposes, after making adjustment for the credits and additions as shown on said statement.

History: L. 1876, ch. 34, § 102; R.S. 1923, 79-2203; L. 1937, ch. 359, § 4; L. 1981, ch. 381, § 2; July 1.

§ 79-2204 County treasurers not required to pay more than taxes collected

County treasurers shall not be required to pay into the state treasury more state taxes than shall have been actually collected by them in their respective counties.

History: L. 1876, ch. 34, § 104; March 11; R.S. 1923, 79-2204.

§§ 79-2205, 79-2206 Repealed

History: L. 1943, ch. 318, §§ 1, 2; L. 1956, ch. 62, §§ 1, 2; L. 1957, ch. 501, §§ 1, 2; Repealed, L. 1974, ch. 414, § 11; July 1.

Article 23 Sale of Real Estate for Taxes

§ 79-2301 Real estate subject to sale

All real estate on which the taxes shall not have been paid as provided by law on or before May 10 in each year, commencing with the year 1941, shall be subject to sale as hereinafter provided.

History: L. 1876, ch. 34, § 105; R.S. 1923, 79-2301; L. 1941, ch. 375, § 1; L. 2010, ch. 26, § 3; July 1.

§ 79-2302 Listing of real estate subject to sale, contents; notice of sale, contents

Between July 1 and July 10 of each year, the county treasurer shall prepare a list of all real estate subject to sale, describing the real estate in the same manner as described of record in the office of the county clerk or the register of deeds of the county in which the real estate is located. The county treasurer also shall prepare an accompanying notice stating that the county treasurer will sell the real estate described in the list to the county for the amount of the delinquent taxes and legal charges due on the real estate and that the sale will be on or after the first Tuesday of September following publication of the notice under K.S.A. 79-2303, and amendments thereto. The list shall show the names of the owners of the real estate, as shown of record in the office of the county clerk or the register of deeds of the county in which the real estate is located, the description and address, if available, of each tract or parcel of land and the total of the amount of unpaid taxes upon each tract or parcel. If any county treasurer at any time discovers that any tract or lot of real estate has not been put on the list of delinquent taxes and not sold for any preceding year, the treasurer shall be required to place the omitted tract or lot on the list of delinquent taxes for the current year, and sell the tract or lot as directed by this act in other cases.

History: L. 1876, ch. 34, § 106; R.S. 1923, 79-2302; L. 1941, ch. 375, § 2; L. 1959, ch. 385, § 1; L. 1961, ch. 452, § 1; L. 1974, ch. 435, § 1; L. 1982, ch. 166, § 2; L. 1983, ch. 321, § 1; July 1.

§ 79-2302a Same; errors or irregularities in notices not to affect sale or title

No irregularity or informality in the advertisement nor any error or omission in the listing of the names shall affect the legality of the sale or the title to any real estate subject to sale or sold for taxes under the act of which K.S.A. 79-2302 is amendatory, or under the act providing for judicial foreclosure and sale of realty by county.

History: L. 1959, ch. 385, § 2; June 30.

§ 79-2303 Publication of listing of real estate subject to sale; costs

(a) The county treasurer shall cause the notice and list prepared under K.S.A. 79-2302, and amendments thereto, to be published in the official county newspaper or in a newspaper of general circulation in the county in accordance with the provisions of K.S.A. 64-101, and amendments thereto. The notice and list shall be submitted to the newspaper on or before August 1 of each year and shall be published once each week for three consecutive weeks immediately prior to the week when the day of sale will occur. The county treasurer also shall cause a copy of the list and notice to be posted in some conspicuous place in the county treasurer's office. The cost of publication of the notice and list shall be paid from the general fund of the county, and a $15 fee for each tract or lot shall be added to the tax due for the tract or lot as part of the costs of collection. The fee shall be collected in the manner provided for the collection of the unpaid taxes.

History: L. 1876, ch. 34, § 107; R.S. 1923, 79-2303; L. 1941, ch. 375, § 3; L. 1982, ch. 166, § 3; L. 1989, ch. 294, § 2; L. 1994, ch. 68, § 4; July 1.

§ 79-2304 Same; affidavit of publication

Every printer who shall publish such list and notice shall immediately after the last publication thereof transmit to the treasurer of the proper county an affidavit of such publication, made by such person to whom the fact of publication shall be known. No printer shall be paid for such publication who shall fail to transmit such affidavit before the date of the sale. The county treasurer shall also make, or cause to be made, an affidavit or affidavits of the printing of such list and notice as above required; all of which shall be carefully preserved by him or her, and deposited as hereinafter specified.

History: L. 1876, ch. 34, § 108; R.S. 1923, 79-2304; L. 1941, ch. 375, § 4; September 1.

§ 79-2305 Publication of lists during years 1909 and 1910

Laws 1913, chapter 221, section 1, included by reference. [Provides for payment for publication of tax-sale notice during the years 1909 and 1910 within five years after such publication. Validates all deeds issued based upon such tax-sale notice with relation to proof of publication.]

History: R.S. 1923, 79-2305.

§ 79-2306 Time of sale; county treasurer to bid off in name of county

On the day designated in the notice of sale the county treasurer shall sell the real estate on which the taxes and legal charges have not been paid, and it shall be the duty of the county treasurer of such county, to bid off in the name of the county all real estate advertised for sale for delinquent taxes for the amount of the delinquent taxes and the legal charges due thereon, including the costs of advertising and the fees for selling, and no bid shall be received by said county treasurer from any other person for the real estate so sold.

History: L. 1876, ch. 34, § 109; R.S. 1923, 79-2306; L. 1941, ch. 375, § 5; September 1.

§ 79-2307 Repealed

History: L. 1876, ch. 34, § 110; R.S. 1923, 79-2307; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2308 Repealed

History: L. 1876, ch. 34, § 111; R.S. 1923, 79-2308; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2309 Repealed

History: L. 1876, ch. 34, § 112; R.S. 1923, 79-2309; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2310 Repealed

History: L. 1876, ch. 34, § 113; R.S. 1923, 79-2310; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2311 Repealed

History: L. 1876, ch. 34, § 114; R.S. 1923, 79-2311; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2312 Repealed

History: L. 1876, ch. 34, § 115; R.S. 1923, 79-2312; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2313 Repealed

History: L. 1876, ch. 34, § 116; R.S. 1923, 79-2313; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2314 Repealed

History: L. 1876, ch. 34, § 117; R.S. 1923, 79-2314; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2315 Name in which real estate sold

When any real estate is sold for taxes, it shall not be necessary to sell it as the property of any person or persons; and no sale of any real estate for taxes shall be considered invalid on account of its having been charged on the tax roll in any other name than that of the rightful owner, but such real estate must be in other respects described on the tax roll as provided by K.S.A. 79-2316, and the taxes for which it is sold must be due and unpaid at the time of such sale.

History: L. 1876, ch. 34, § 118; R.S. 1923, 79-2315; L. 1941, ch. 375, § 6; September 1.

§ 79-2316 Description of real estate in tax proceedings

It shall be sufficient to describe real estate in all proceedings relative to assessing, advertising, selling or foreclosing the same for taxes by initial letter, abbreviations and figures, to designate the township, range, section or parts of section, and also the number of lots and blocks. All of such descriptions which shall indicate the real estate intended with ordinary and reasonable certainty and which would be sufficient between grantor and grantee in an ordinary conveyance, shall be sufficient.

History: L. 1876, ch. 34, § 119; R.S. 1923, 79-2316; L. 1941, ch. 375, § 7; September 1.

§ 79-2317 Record of sales; contents of list; duty of county treasurer in counties of less than 100,000 to furnish duplicate to county clerk; exception

The county treasurer shall immediately after the close of the sale of real estate for taxes record a list of all real estate in a book prepared for that purpose. Said list shall contain: (1) The date of sale thereof. (2) The name of the owner or owners, if known. (3) The description of each tract or lot. (4) The name of the county as purchaser. (5) The total amount of taxes at the time of sale. (6) Columns for showing the name of person redeeming, and date of redemption. (7) Columns for showing total amount paid for redemption. (8) Columns for showing date of foreclosing and name of person to whom sold on foreclosure sale. The county treasurer of all counties having a population of less than one hundred thousand (100,000) except the county treasurer of any county having a population of more than forty thousand (40,000) and less than fifty thousand (50,000), and having an assessed tangible valuation of more than one hundred million dollars ($100,000,000), shall furnish the county clerk with a duplicate of the record of sales herein provided for.

History: L. 1876, ch. 34, § 120; R.S. 1923, 79-2317; L. 1941, ch. 375, § 8; L. 1968, ch. 86, § 1; July 1.

§ 79-2318 Sale papers filed with county clerk

The county treasurer shall file with the county clerk all affidavits, notices and papers having reference to such tax sale, to be preserved by him or her.

History: L. 1876, ch. 34, § 121; R.S. 1923, 79-2318; L. 1941, ch. 375, § 9; September 1.

§ 79-2319 Taxation and sale of real estate bid off by county; subsequent taxes and additional lien

All real estate bid off for the county at any tax sale shall continue liable to be taxed in the same manner as if they were property of individuals, and such taxes and charges shall be a lien upon such real estate; but no real estate so bid off for the county shall be sold for any taxes levied subsequent to such bid until they have been redeemed, or shall be foreclosed by the county and sold at foreclosure sale. If the subsequent taxes shall not be paid such real estate shall be advertised with, and in the same manner as, the other real estate on which the taxes are not paid, and shall be subject to the same charges as if they should be sold. The treasurer shall enter such taxes and charges in the book of tax sales of the year in which said real estate was sold to the county, opposite such real estate, and such taxes and charges shall constitute an additional lien.

History: L. 1876, ch. 34, § 122; L. 1911, ch. 327, § 1; R.S. 1923, 79-2319; L. 1941, ch. 375, § 10; September 1.

§ 79-2320 Repealed

History: L. 1876, ch. 34, § 123; L. 1877, ch. 38, § 1; R.S. 1923, 79-2320; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2321 Repealed

History: L. 1876, ch. 34, § 124; R.S. 1923, 79-2321; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2322 Sale in October when not sold in September; sale after injunction enjoining sale dissolved; publication notice

If any county treasurer shall unavoidably omit or fail to sell any real estate for unpaid taxes on the first Tuesday of September, he or she shall advertise and sell such real estate on the fourth Monday of October next ensuing, and such advertisement and sale shall conform in all respects to the provisions of this act, and shall be as binding and valid as if such sale had been made on the first Tuesday of September. If any real estate on which the taxes shall not have been paid has been advertised as provided by law, and has not been sold to the county by reason of any injunction or judicial proceeding, after such injunction shall have been dissolved it shall only be necessary for the county treasurer to cause to be published in some newspaper of general circulation in his or her county a notice stating that such real estate was not sold, by reason of such injunction; and such real estate shall be sold to the county at such time and place as shall therein be specified, which time shall not be less than ten days from the date of publication, said sale to be conducted in the same manner as herein provided for the sale of other real estate for delinquent taxes.

History: L. 1876, ch. 34, § 125; R.S. 1923, 79-2322; L. 1941, ch. 375, § 11; September 1.

§ 79-2323 Penalties and interest on sale after injunction dissolved

In case the county treasurer shall be restrained by reason of an injunction, and the injunction shall be dissolved, the treasurer, at the sale provided for in K.S.A. 79-2322, shall include all penalties and interest that would have accrued had the sale taken place at the time fixed by law.

History: L. 1876, ch. 34, § 126; R.S. 1923, 79-2323; L. 1941, ch. 375, § 12; September 1.

§ 79-2323a Sale upon dissolution of injunction; publication notice

In all cases where the collection of any tax has been enjoined, prior to the publication of the notice of sale of real estate for delinquent taxes, and the injunction shall be dissolved, the county treasurer shall proceed to sell to the county the real estate upon which such tax was charged, first giving two weeks notice thereof by publishing once each week for two consecutive weeks immediately prior to the date fixed for the sale in some newspaper of general circulation in said county, a notice stating the time and place of the sale and the amount of said taxes; said sale and proceedings to be conducted in the same manner as prescribed by this act for the sale of real estate for delinquent taxes.

History: L. 1941, ch. 375, § 13; September 1.

§ 79-2324 Repealed

History: L. 1921, ch. 288, § 1; R.S. 1923, 79-2324; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2325 Repealed

History: L. 1921, ch. 288, § 2; R.S. 1923, 79-2325; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2326 Repealed

History: L. 1921, ch. 288, § 3; R.S. 1923, 79-2326; L. 1933, ch. 312, § 1; Repealed, L. 1941, ch. 375, § 35; September 1.

Article 24 Redemption of Real Estate and Remission, Compromise or Respread of Real Estate Taxes

§ 79-2401 Repealed

History: L. 1876, ch. 34, § 127; L. 1879, ch. 41, § 1; L. 1893, ch. 110, § 2; R.S. 1923, 79-2401; L. 1933, ch. 312, § 2; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2401a Redemption of real estate bid off by county; partial redemption; period of redemption; interest; foreclosure on expiration of period

(a) (1) Except as provided by paragraph (2) and subsection (b), real estate bid off by the county for both delinquent taxes and special assessments, as defined by subsection (c), shall be held by the county until the expiration of two years from the date of the sale, subject only to the right of redemption as provided by this section. Any owner or holder of the record title, the owner's or holder's heirs, devisees, executors, administrators, assigns or any mortgagee or the owner's or holder's assigns may redeem the real estate sold in the sale at any time within two years after the sale by paying to the county treasurer the amount for which the real estate was sold plus the interest accrued, all delinquent taxes and special assessments and interest thereon that have accrued after the date of such sale which remain unpaid as of the date of redemption and costs and expenses of the sale and redemption, including, but not limited to, abstracting costs incurred in anticipation of a tax sale.

(2) Any abandoned building or structure and the land accommodating such building or structure bid off by the county for either delinquent taxes or special assessments, or both, as defined by subsection (c), shall be held by the county until the expiration of one year from the date of the sale, subject only to the right of redemption as provided by this section. Any owner or holder of the record title, the owner's or holder's heirs, devisees, executors, administrators, assigns or any mortgagee or the owner's or holder's assigns may redeem the real estate sold in the sale at any time within one year after the sale by paying to the county treasurer the amount for which the real estate was sold plus the interest accrued, all delinquent taxes and special assessments and interest thereon that have accrued after the date of such sale which remain unpaid as of the date of redemption and costs and expenses of the sale and redemption, including, but not limited to, abstracting costs incurred in anticipation of a tax sale.

When used in this subsection "abandoned building or structure and the land accommodating such building or structure" shall mean a building or structure which, for a period of at least one year, has been unoccupied and which there has been a failure to perform reasonable maintenance of such building or structure and the land accommodating such building or structure.

(b) (1) Except as provided by paragraph (2), real estate which is a homestead under section 9 of article 15 of the Kansas Constitution and all real estate not described in subsection (a) shall be held by the county until the expiration of three years from the date of the sale and may be redeemed partially by paying to the county treasurer the amount of taxes for which the real estate was sold for one or more years, beginning with the first year for which the real estate was carried on the tax-sale book of the county plus interest at the rate prescribed by K.S.A. 79-2004, and amendments thereto, on the amount from the date the same was carried on the sale book. Upon payment and partial redemption, the time when a tax foreclosure sale may be commenced shall be extended by the number of years paid in the partial redemption.

(2) In Johnson county, real estate which is a homestead under section 9 of article 15 of the Kansas constitution and all real estate not described in subsection (a) shall be held by the county until the expiration of three years from the date of the sale and may be redeemed partially by paying to the county treasurer the amount of taxes for which the real estate was sold for one or more years, beginning with the most recent year for which the real estate was carried on the tax-sale book of the county plus interest at the rate prescribed by K.S.A. 79-2004, and amendments thereto, on the amount from the date the same was carried on the sale book.

(c) For the purpose of this act, the terms "real estate bid off by the county for both delinquent taxes and special assessments" and "real estate bid off by the county for either delinquent taxes or special assessments," or both, shall include only real estate on which there are delinquent taxes of a general ad valorem property tax nature or delinquent special assessments, or both, or other special taxes levied by a city, county or other municipality in response to a petition or request of the landowners. Upon publication of the listing of real estate subject to sale under the provisions of K.S.A. 79-2302, and amendments thereto, the clerk of any city, county or other municipality which has levied special assessments during the past 10 years shall certify to the county treasurer those listed parcels of real estate which are located within a special assessment district, but no parcel shall be so certified unless the public improvement was constructed pursuant to a petition or request of one or more landowners sufficient to authorize the improvement under the applicable statutory special assessment procedure used by the city, county or other municipality.

(d) If at the expiration of the redemption period, the real estate has not been redeemed, the real estate shall be disposed of by foreclosure and sale in the manner provided by K.S.A. 79-2801 et seq., and amendments thereto.

History: L. 1941, ch. 375, § 14; L. 1980, ch. 308, § 28; L. 1984, ch. 355, § 2; L. 1992, ch. 319, § 6; L. 1993, ch. 257, § 1; L. 1995, ch. 254, § 7; L. 2002, ch. 185, § 22; L. 2007, ch. 126, § 2; July 1.

§ 79-2401b Repealed

History: L. 1941, ch. 375, § 14; L. 1980, ch. 308, § 28; L. 1984, ch. 355, § 2; L. 1992, ch. 320, § 2; Repealed, L. 1993, ch. 257, § 3; July 1.

§ 79-2402 Repealed

History: L. 1876, ch. 34, § 128; R.S. 1923, 79-2402; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2403 Certificate of redemption; entries on tax sales book

Upon redemption or partial redemption as provided in K.S.A. 79-2401a of any real estate sold for taxes and bid off by the county, the treasurer shall execute to the person so redeeming, a certificate, specifying the name of such person, the real estate so redeemed, and the amount of redemption money paid, which said redemption money shall be paid in lawful money of the United States. The treasurer shall enter on the book of tax sales, opposite such real estate, the name of the person redeeming or partially redeeming, the date of redemption, and the amount paid therefor.

History: L. 1876, ch. 34, § 129; R.S. 1923, 79-2403; L. 1933, ch. 312, § 3; L. 1941, ch. 375, § 15; L. 1968, ch. 376, § 2; July 1.

§ 79-2404 Repealed

History: L. 1876, ch. 34, § 130; R.S. 1923, 79-2404; L. 1933, ch. 312, § 4; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2405 Repealed

History: L. 1876, ch. 34, § 131; R.S. 1923, 79-2405; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2406 Repealed

History: L. 1876, ch. 34, § 132; L. 1889, ch. 198, § 1; L. 1893, ch. 110, § 3; R.S. 1923, 79-2406; L. 1935, ch. 306, § 1; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2407 Repealed

History: L. 1876, ch. 34, § 133; R.S. 1923, 79-2407; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2408 Repealed

History: L. 1876, ch. 34, § 134; R.S. 1923, 79-2408; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2409 Repealed

History: L. 1876, ch. 34, § 136; R.S. 1923, 79-2409; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2410 Repealed

History: L. 1876, ch. 34, § 137; L. 1905, ch. 499, § 1; R.S. 1923, 79-2410; L. 1939, ch. 325, § 1; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2411 Repealed

History: L. 1879, ch. 43, § 1; L. 1893, ch. 110, § 4; R.S. 1923, 79-2411; L. 1933, ch. 312, § 5; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2412 Repealed

History: L. 1879, ch. 43, § 2; L. 1893, ch. 110, § 5; R.S. 1923, 79-2412; L. 1933, ch. 312, § 6; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2413 Repealed

History: L. 1901, ch. 122, § 1; R.S. 1923, 79-2413; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2414 Repealed

History: L. 1901, ch. 122, § 2; L. 1911, ch. 328, § 1; R.S. 1923, 79-2414; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2415 Temporary remission and cancellation of penalties, costs and expenses up to September 1, 1941; interest rate after September 1, 1939

With respect to all lands bid off for taxes in the name of the county at the tax sale of September, 1938, or prior years, and now held by said county, the owner, holder of record title, his or her heirs, executors, administrators, assigns or mortgagee may, at any time before September 1, 1939, the taxes due and payable November 1, 1938, having been paid, redeem said land or make partial redemption thereof by paying one or more half year's tax beginning with the first year for which said land was carried on the tax-sale book of the county, without the payment of any penalties, costs, expenses or interest which are hereby remitted.

At any time before September 1, 1941, the taxes due November 1, 1938, and for subsequent years having been paid, said persons may redeem said lands or make partial redemption thereof by paying one or more one half year's tax beginning with the first year for which said land was carried on the tax-sale book of the county without paying any penalties, costs, or expenses, which are hereby remitted and by paying interest on such back tax at the rate of six percent per annum from September 1, 1939.

In case redemption as provided herein is made by a mortgage holder, the mortgagor or his or her assigns may redeem from such mortgage holder or his or her assigns upon payment of the amount of taxes paid by such mortgage holder with interest at the rate of six percent per annum from the date of redemption by such mortgage holder.

History: L. 1939, ch. 326, § 1; March 1.

§ 79-2415a Temporary remission and cancellation of penalties, costs, expenses and interest up to September 1, 1941

With respect to all lands bid off for taxes in the name of the county at the tax sale of September, 1940, or prior years, and now held by said county, the owners, holder of record title, his or her heirs, executors, administrators, assigns or mortgagees may, at any time before September 1, 1941, redeem said land by paying all of the delinquent taxes thereon without the payment of any penalties, costs, expenses or interest which are hereby remitted. In case redemption as provided herein is made by a mortgage holder, the mortgagor or his or her assigns may redeem from such mortgage holder or his or her assigns, upon payment of the amount of the taxes paid by such mortgage holder with interest at the rate of six percent per annum from the date of redemption by such mortgage holder.

History: L. 1941, ch. 376, § 1; April 15.

§ 79-2416 No tax-sale certificates issued nor tax deeds executed prior to September 1, 1939; exceptions

The various county treasurers shall not issue any tax-sale certificates nor shall the various county clerks execute any tax deeds prior to September 1, 1939, for lands bid off for taxes in the name of the county: Provided, That with respect to all lands bid off for taxes in the name of the county at the tax sale of September, 1938, or prior years, no tax-sale certificates nor tax deeds shall be issued or executed so long as all the current taxes beginning with taxes due November 1, 1938, have been paid: Provided, That if such lands have not been redeemed prior to September 1, 1941, tax-sale certificates and tax deeds shall be issued and executed as provided by law: And provided further, That unless such current taxes had been paid, tax-sale certificates and tax deeds shall be issued as provided by law: Provided further, That tax deeds may be executed in those instances where compromise tax-sale certificates have been assigned prior to the effective date of this act [*].

History: L. 1939, ch. 326, § 2; March 1.

§ 79-2416a No tax-sale certificates nor tax deeds executed prior to September 1, 1941; exceptions

The various county treasurers shall not issue any tax-sale certificates nor shall the various county clerks execute any tax deeds prior to September 1, 1941, for lands bid off for taxes in the name of the county: Provided, That if such lands have not been redeemed prior to September 1, 1941, tax-sale certificates and tax deeds shall be issued and executed as provided by law: Provided further, That tax deeds may be executed in those instances where tax-sale certificates have been assigned prior to the effective date of this act [*].

History: L. 1941, ch. 376, § 2; April 1.

§ 79-2416b Same; stay of proceedings

All actions for the foreclosure and sale of property for taxes as provided in article 28, chapter 79, of the General Statutes of 1935, or any acts amendatory thereof or supplemental thereto, shall be stayed and no further proceedings had until September 1, 1941.

History: L. 1941, ch. 376, § 3; April 15.

§ 79-2416c Same; act supplemental

This act shall be supplemental to, and not amendatory of, section 79-2415 of the General Statutes Supplement of 1939.

History: L. 1941, ch. 376, § 4; April 15.

§ 79-2416d Cancellation of real estate tax penalties and interest incurred prior to 1910

The state board of tax appeals shall have the authority, upon such application and proper showing as the board may require, to cancel all penalties and accrued interest on real estate taxes where such real estate taxes were incurred prior to January 1, 1910.

History: L. 1951, ch. 504, § 1; L. 2008, ch. 109, § 104; L. 2014, ch. 141, § 111; July 1.

§§ 79-2417 through 79-2422 Repealed

History: L. 1937, ch. 367, §§ 1 to 6; Repealed, L. 1943, ch. 302, § 8; June 28.

§§ 79-2423 through 79-2426 Repealed

History: L. 1939, ch. 336, §§ 1 to 4; Repealed, L. 1943, ch. 302, § 8; June 28.

§§ 79-2427 through 79-2430 Repealed

History: L. 1941, ch. 155, §§ 1 to 4; Repealed, L. 1949, ch. 476, § 1; June 30.

§ 79-2431 Action for foreclosure and sale of property of Bourbon county fair association stayed

All actions for the foreclosure and sale of property owned by the Bourbon county fair association described as lots 1 through 10 of block 27 of the South Side Park addition to the city of Fort Scott, Bourbon county, Kansas, for delinquent and unpaid special assessments levied by the city of Fort Scott for the financing of sewer improvements and certified to the county clerk of Bourbon county for collection commencing in the year 1971 and annually thereafter, shall be stayed and no further proceedings had.

History: L. 1984, ch. 56, § 1; April 5.

§ 79-2432 Same; redetermination of assessments; penalties and interest canceled

The board of county commissioners of Bourbon county is hereby authorized to negotiate on behalf of the Bourbon county fair association with the city of Fort Scott for the redetermination of the benefit accruing to such property and the determination of the amount of the cost of such improvement together with accrued interest thereon which should be assessed against such property. Any portion of the cost of such improvement together with the interest thereon which it is determined should not be assessed against the property of the Bourbon county fair association and which has not been assessed against other property within the benefit district may be paid by the city of Fort Scott from general funds of the city legally available for such purpose. Upon the redetermination of the amount of the assessment chargeable against the property of the Bourbon county fair association, such amount together with a number of installments to be determined by the governing body of the city shall be certified to the county clerk of Bourbon county and the amount so certified shall be collected as other taxes are collected. All penalties and accrued interest assessed against the Bourbon county fair association for failure to pay special assessments upon the property described in K.S.A. 79-2431 for the sewer improvements hereinbefore described are hereby canceled.

History: L. 1984, ch. 56, § 2; April 5.

Article 25 Conveyance of Land Sold for Taxes (Not in active use)

§ 79-2501 Repealed

History: L. 1876, ch. 34, § 138; R.S. 1923, 79-2501; L. 1933, ch. 312, § 7; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2502 Repealed

History: L. 1889, ch. 248, § 1; R.S. 1923, 79-2502; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2503 Repealed

History: L. 1876, ch. 34, § 139; R.S. 1923, 79-2503; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2504 Repealed

History: L. 1876, ch. 34, § 140; R.S. 1923, 79-2504; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2505 Repealed

History: L. 1876, ch. 34, § 141; R.S. 1923, 79-2505; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2506 Repealed

History: L. 1876, ch. 34, § 142; L. 1893, ch. 110, § 6; R.S. 1923, 79-2506; L. 1933, ch. 312, § 8; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2507 Repealed

History: L. 1876, ch. 34, § 143; L. 1879, ch. 40, § 1; R.S. 1923, 79-2507; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2508 Repealed

History: L. 1876, ch. 34, § 144; R.S. 1923, 79-2508; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2509 Repealed

History: L. 1876, ch. 34, § 145; L. 1879, ch. 40, § 2; L. 1923, ch. 236, § 1; R.S. 1923, 79-2509; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2510 Repealed

History: L. 1876, ch. 34, § 146; L. 1879, ch. 40, § 3; R.S. 1923, 79-2510; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2511 Repealed

History: L. 1876, ch. 34, § 147; L. 1879, ch. 40, § 4; R.S. 1923, 79-2511; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2512 Repealed

History: L. 1886, ch. 31, § 1; R.S. 1923, 79-2512; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2513 Repealed

History: L. 1886, ch. 31, § 2; R.S. 1923, 79-2513; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2514 Repealed

History: L. 1886, ch. 31, § 3; R.S. 1923, 79-2514; Repealed, L. 1941, ch. 375, § 35; September 1.

Article 26 Floating and Federal Liens

§ 79-2601 Period of lien of tax certificate; extension

No tax certificate issued for the sale of real estate for delinquent taxes to an individual for which no tax deed shall have been taken out shall be a lien on such real estate after the expiration of five years from the date of such sale: Provided, That whenever any extension of the time for redemption of said property is secured as provided in sections 79-2326 and 79-2401 of the General Statutes of 1935 the lien of the tax certificate shall be extended a like period of time.

History: L. 1881, ch. 114, § 1; R.S. 1923, 79-2601; L. 1933, ch. 312, § 9; L. 1937, ch. 366, § 1; April 7.

§ 79-2602 Same; period of lien of tax certificate on real estate bid off for taxes by cities and counties; extension

When any real estate is or has been bid off for delinquent taxes to cities or counties and the tax certificate assigned, the lien thereof shall not be valid without a tax deed taken thereon after the expiration of four years from the date of such sale to the city or county where such assignment is made, more than one year prior to the expiration of four years from the sale; and when such assignment is made three or more years from the expiration of said sale, the said lien shall expire in one year after the date of such assignment, unless a tax deed be taken on such tax certificate within such time: Provided, That whenever any extension of the time for redemption of said property is secured as provided in sections one [79-2326] and two [79-2401] hereof the lien of the tax certificate shall be extended a like period of time.

History: L. 1881, ch. 114, § 2; R.S. 1923, 79-2602; L. 1933, ch. 312, § 10; June 5.

§ 79-2603 Same; prior certificates

In all cases where real property has been heretofore sold to individuals or to counties or cities for delinquent taxes, and the tax certificates assigned, the provisions of the foregoing sections shall apply to them, except that such person holding such tax certificates shall have one year after the taking effect of this act in which to take out such tax deeds.

History: L. 1881, ch. 114, § 3; May 10; R.S. 1923, 79-2603.

§ 79-2604 Same; lien not impaired when deed fails to pass title or when real property bid off to city or county

Nothing herein shall be construed to impair the lien for taxes on real estate deeded for delinquent taxes, in case the deed shall from any cause fail to pass a title to such property; nor to impair the lien on any real property bid off to any city or county, and unassigned.

History: L. 1881, ch. 114, § 4; May 10; R.S. 1923, 79-2604.

§ 79-2605 Repealed

History: L. 1923, ch. 107, § 1; R.S. 1923, 79-2605; Repealed, L. 1967, ch. 494, § 6; July 1.

§ 79-2606 Repealed

History: L. 1923, ch. 107, § 2; R.S. 1923, 79-2606; L. 1965, ch. 564, § 411; Repealed, L. 1967, ch. 494, § 6; July 1.

§ 79-2607 Repealed

History: L. 1923, ch. 107, § 3; R.S. 1923, 79-2607; L. 1967, ch. 215, § 2; L. 1983, ch. 129, § 2; Repealed, L. 1988, ch. 379, § 8; April 7.

§ 79-2608 Repealed

History: L. 1967, ch. 494, § 1; L. 1968, ch. 147, § 1; Repealed, L. 1988, ch. 379, § 8; April 7.

§ 79-2609 Repealed

History: L. 1967, ch. 494, § 2; Repealed, L. 1988, ch. 379, § 8; April 7.

§ 79-2610 Repealed

History: L. 1967, ch. 494, § 3; L. 1978, ch. 347, § 22; Repealed, L. 1988, ch. 379, § 8; April 7.

§§ 79-2611, 79-2612 Repealed

History: L. 1967, ch. 494, §§ 4, 5; Repealed, L. 1988, ch. 379, § 8; April 7.

§ 79-2613 Federal liens; application of act thereto

This act applies only to federal tax liens and to other federal liens' notices of which under any act of congress or any regulation adopted pursuant thereto are required or permitted to be filed in the same manner as notices of federal tax liens.

History: L. 1988, ch. 379, § 1; April 7.

§ 79-2614 Same; place of filing

(a) Notices of liens, certificates and other notices affecting federal tax liens or other federal liens must be filed in accordance with the provisions of this act.

(b) Notices of liens upon real property for obligations payable to the United States and certificates and notices affecting the liens shall be filed in the office of the register of deeds of the county in which the real property subject to the liens is situated.

(c) Notices of federal liens upon personal property, whether tangible or intangible, for obligations payable to the United States and certificates and notices affecting the liens shall be filed as follows:

(1) If the person against whose interest the lien applies is a corporation or a partnership whose principal executive office is in this state, as these entities are defined in the federal internal revenue code of 1986 as in effect on December 31, 1987, in the office of the secretary of state;

(2) if the person against whose interest the lien applies is a trust that is not covered by paragraph (1), in the office of the secretary of state;

(3) if the person against whose interest the lien applies is the estate of a decedent, in the office of the secretary of state; and

(4) in all other cases, in the office of the register of deeds of the county where the person against whose interest the lien applies resides at the time of filing of the notice of lien.

History: L. 1988, ch. 379, § 2; April 7.

§ 79-2615 Same; entitlement of lien to be filed

Certification of notices of liens, certificates or other notices affecting federal liens by the secretary of the treasury of the United States or the secretary's designee, or by any official or entity of the United States responsible for filing or certifying of notice of any other lien, entitles them to be filed and no other attestation, certification or acknowledgment is necessary.

History: L. 1988, ch. 379, § 3; April 7.

§ 79-2616 Same; duties of filing officers; methods of filing; certificate of notices on file; copies of documents on file, fees

(a) If a notice of federal lien, a refiling of a notice of federal lien or a notice of revocation of any certificate described in subsection (b) is presented to a filing officer who is:

(1) The secretary of state, the secretary shall cause the notice to be marked, held and indexed in accordance with part 5 of article 9 of the uniform commercial code, and amendments thereto, as if the notice were a financing statement within the meaning of the uniform commercial code, except the notice shall remain filed for 10 years from the date of filing, if the date of filing was on or after November 5, 1990, and liens filed prior to November 5, 1990, shall remain on file for a period of four years from the close of the preceding required refiling period; or

(2) any other officer described in K.S.A. 79-2614, and amendments thereto, the officer shall endorse thereon the officer's identification and the date and time of receipt and file it alphabetically or enter it in an alphabetical index showing the name and address of the person named in the notice; the date and time of receipt, the title and address of the official or entity certifying the lien and the total amount appearing on the notice of lien.

(b) If a certificate of release, nonattachment, discharge or subordination of any lien is presented to the secretary of state for filing, the secretary shall:

(1) Cause a certificate of release or nonattachment to be marked, held and indexed as if the certificate were a termination statement within the meaning of the uniform commercial code; and

(2) cause a certificate of discharge or subordination to be marked, held and indexed as if the certificate were a release of collateral within the meaning of the uniform commercial code.

(c) If a refiled notice of federal lien referred to in subsection (a) or any of the certificates or notices referred to in subsection (b) is presented for filing to any other filing officer specified in K.S.A. 79-2614, and amendments thereto, such officer shall enter the refiled notice or the certificate with the date of filing in any alphabetical lien index.

(d) Upon request of any person, the filing officer shall issue a certificate showing whether there is on file, on the date and hour stated therein, any notice of lien or certificate or notice affecting any lien filed pursuant to this act or pursuant to the uniform federal tax lien registration act, K.S.A. 79-2608 et seq., and amendments thereto, as it existed prior to the effective date of this act, naming a particular person, and if a notice or certificate is on file, giving the date and hour of filing of each notice or certificate. Upon request, the filing officer shall furnish a copy of any notice of federal lien, or notice or certificate affecting a federal lien.

History: L. 1988, ch. 379, § 4; L. 1994, ch. 35, § 1; L. 2002, ch. 159, § 5; May 23.

§ 79-2617 Same; filing fees

The filing officer shall charge the same filing and information retrieval fees and credit the amounts in the same manner as financing statements filed under part 5 of article 9 of the uniform commercial code and amendments thereto.

History: L. 1988, ch. 379, § 5; L. 2002, ch. 159, § 6; May 23.

§ 79-2618 Same; uniform application and construction

This act shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this act among states enacting it.

History: L. 1988, ch. 379, § 6; April 7.

§ 79-2619 Same; citation of act

This act may be cited as the uniform federal lien registration act.

History: L. 1988, ch. 379, § 7; April 7.

Article 27 Leasing of Real Estate Bid in at Foreclosure Sale by County

§ 79-2701 Repealed

History: L. 1901, ch. 391, § 1; R.S. 1923, 79-2701; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2702 Repealed

History: L. 1901, ch. 391, § 2; R.S. 1923, 79-2702; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2703 Repealed

History: L. 1901, ch. 391, § 3; L. 1907, ch. 414, § 1; R.S. 1923, 79-2703; Repealed, L. 1941, ch. 375, § 35; September 1.

§§ 79-2704, 79-2705 Repealed

History: L. 1901, ch. 391, §§ 4, 5; R.S. 1923, 79-2704, 79-2705; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2706 Lease of real estate bid in by county; period of lease

Where real estate is foreclosed and sold for taxes, and bid in at such foreclosure sale for the county and the board of county commissioners have been unable to sell the same for a price which they deem adequate, the board of county commissioners may lease such real estate for a period of not to exceed one year, and may continue to so lease the same until the board of county commissioners shall sell the same.

History: L. 1941, ch. 375, § 30; September 1.

§ 79-2707 Receipt upon payment of rental price; execution of lease

Upon the payment by the lessee of any such real estate of the rental price therefor to the county treasurer, it shall be the duty of the county treasurer to issue his or her receipt in duplicate therefor, one of which shall be retained in his or her office and the other shall be delivered to the lessee, and upon presentation by him or her of said duplicate receipt to the county clerk, it shall be the duty of the county clerk to prepare a written lease of said real estate to such lessee, which lease shall be signed by the chairman of the board of county commissioners, and attested by the county clerk under the seal of his or her office.

History: L. 1941, ch. 375, § 31; September 1.

§ 79-2708 Credit of rental money to county general fund

The county treasurer upon the payment to him or her of any such rental money, after deducting the costs and expenses incident thereto, shall enter the same upon the books of his or her office to the credit of the county general fund.

History: L. 1941, ch. 375, § 32; L. 1943, ch. 302, § 1; L. 1945, ch. 362, § 9; April 1.

§ 79-2709 List of real estate subject to lease

The county treasurer, upon request by the board of county commissioners, shall furnish to the county clerk a list of the real estate in his or her county subject to lease under the provisions of this act.

History: L. 1941, ch. 375, § 33; September 1.

Article 28 Judicial Foreclosure and Sale of Real Estate by County

§ 79-2801 Action to enforce lien for unredeemed real estate bid in by county; summons; service by publication; assistance by city in foreclosure proceedings, when

(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 amendments 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 discretion 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 assessments, is less than $10,000, the bringing of the action shall be within the discretion of the board of county commissioners. The petition shall contain 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. 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 prescribed 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 assessments. 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 foreclosure 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 commissioners.

History: L. 1901, ch. 392, § 1; R.S. 1923, 79-2801; L. 1931, ch. 306, § 1; L. 1933, ch. 312, § 11; L. 1941, ch. 375, § 16; L. 1945, ch. 362, § 1; L. 1949, ch. 477, § 1; L. 1968, ch. 398, § 4; L. 1984, ch. 355, § 3; L. 1985, ch. 320, § 1; L. 1986, ch. 379, § 1; L. 1992, ch. 320, § 4; L. 1993, ch. 257, § 2; L. 2001, ch. 214, § 2; July 1.

§ 79-2802 Joinder of parties defendant; decree as to

In such action the county attorney or county counselor may join as many parties as defendants as there are parties interested in the real estate described in the petition, whether such defendants are jointly interested in the property described or not, and may unite in one action all persons having or claiming to have any interest in any of the real estate described; but the court in its decree shall ascertain and determine the amount of taxes, charges, penalties and interest to the date of the filing of the petition, chargeable to each particular tract, lot, or piece of real estate, and in the decree state the name or names of the particular defendant or defendants who has or who appears to have any interest in the tract, lot or piece of real estate upon which a lien is fixed by order of the court.

History: L. 1901, ch. 392, § 2; R.S. 1923, 79-2802; L. 1941, ch. 375, § 17; L. 1945, ch. 362, § 2; L. 1968, ch. 398, § 5; July 1.

§ 79-2802a Receivership

If any tract, lot or piece of real estate mentioned and described in the petition filed as aforesaid has any rental or usable value, it shall be the duty of the court or judge, on application of the county attorney or county counselor, and such fact being made to appear by affidavit, to forthwith appoint a receiver, as in other cases, who shall take possession of such property and collect the rents and profits therefrom, and to care for such property under the order of the court or judge; and such rents and profits, after deducting necessary expenses and disbursements for repairs, insurance, and the expenses of the receiver, shall be applied in payment of the taxes on such property, as hereinbefore provided.

History: L. 1941, ch. 375, § 18; L. 1968, ch. 398, § 6; July 1.

§ 79-2803 Joinder of issues; trial; judgment; redemption before day of sale; duties of clerk and sheriff; apportionment of costs, charges and expenses

Issues may be joined in said action as in other civil actions, but after such issues are so joined said actions shall stand for trial and shall have precedence over all other actions except criminal cases and it shall be the duty of such district court, in as summary way as possible, to investigate and to decide what taxes, charges, interest, and penalty thereon, to the date of the filing of the petition, shall have been legally assessed and charged on such tract, lot, or piece of real estate, and to render judgment therefor, together with the interest, charges and penalty thereon, as provided by law, together with and including in such judgment any taxes, interest charges and penalties which became a lien on such tract, lot, or piece of real estate after the filing of the petition in the same manner as if set out in the petition, together with the cost and expenses of the proceeding and sale and to charge the same as a first and prior lien on said tract, lot, or piece of real estate, subject, however, to valid covenants running with the land and to valid easements of record or in use, whether the holder thereof appears or not, and to order the sale of the said real estate for the payment of such taxes, charges, interest and penalty and the costs, and expense of such proceedings and sale; which sale shall be made and conducted as hereinafter provided: Provided, That any person interested in any tract, lot or piece of real estate as owner or holder of the record title, his or her heirs, devisees, executors, administrators, assigns, or any mortgagee or his or her assigns may before the day of sale hereinafter provided for, make redemption in the following manner: Such redemptioner, his or her agent or attorney shall file with the clerk of the court an application to redeem, identifying the parcel to be redeemed, and paying to said clerk, to cover its equitable share of all costs and expenses of the proceedings and sale, such amount as the court may order, or if no order be made then an amount equal to five percent of the amount set forth in the petition as the lien for taxes, charges, interest and penalties chargeable to each tract, lot or piece of real estate plus such charges if any as may be chargeable separately against said parcel.

Upon receipt of such payment the clerk shall issue a receipt therefor which shall be forthwith exhibited to the county treasurer, who shall forthwith calculate the amount of taxes, charges, interest and penalties chargeable against said real estate as of such date, which amount shall be forthwith paid to said treasurer, who shall thereupon issue in triplicate a certificate showing such redemption, one copy of which he or she shall forthwith deliver to the clerk of the district court, the other to such redemptioner, and the third to the county attorney. Such payments shall be a full satisfaction and redemption of such tract, lot or piece of real estate from the lien and shall stay all further proceedings for the collection of such lien as against the particular tract, lot or piece of real estate so redeemed.

The clerk shall immediately upon receipt of such certificate make an entry upon the records in his or her office opposite such case showing that the lien as to such tract, lot or piece of real estate has been redeemed. If an order of sale has been issued the clerk shall thereupon issue and deliver to the sheriff a statement reciting such redemption specifically identifying the tract, lot or piece of real estate redeemed and thereupon the sheriff shall strike such lot, tract or piece of real estate from the execution or order of sale and shall not include it in the sale, and upon making return of the execution or order of sale he or she shall attach thereto such statement.

The court shall as soon as practicable after the sale equitably apportion the cost and charges, and the expenses of the proceedings and sale to each tract, lot or piece of real estate, and the total costs, charges and expenses of the proceedings and sale, less the amount thereof paid by redemptioners shall be deducted from the gross sum received from the sale of all of said lots, tracts, and pieces of real estate, and the balance shall be equitably apportioned to each tract, lot, or piece of real estate that sold for more than its share of the costs, charges, and expenses of the proceedings and sale, and tax liens on all real estate sold or redeemed in said action shall be satisfied and discharged of record.

If any lot, tract or piece of real estate sells for more than the judgment lien for the taxes, interest, penalty, and charges plus its share of the costs, charges and expenses of the proceedings and sale, such excess shall be ordered by the court paid upon due proof to the owner or party entitled thereto.

History: L. 1901, ch. 392, § 3; R.S. 1923, 79-2803; L. 1941, ch. 375, § 19; L. 1943, ch. 302, § 2; L. 1945, ch. 362, § 3; April 1.

§ 79-2803a Sale of lots or tracts as unit

Lots or tracts may be sold or transferred as a single group or unit or in more than one group or unit either:

(a) Upon the motion of any party to the action and the court grants such motion by order after making a finding that any two or more lots or tracts constitute a single unit for usual uses and will sell for a higher price if sold together; or

(b) by the county, without a court order, if such lots or tracts previously have been offered at public auction for delinquent property taxes, but which did not sell at the previous public auction.

History: L. 1943, ch. 302, § 3; L. 2002, ch. 185, § 20; June 6.

§ 79-2803b Order and conduct of sale authorized by K.S.A. 79-2803a

(a) As a part of an order issued pursuant to K.S.A. 79-2803a, and amendments thereto, and upon application of the county, a court may authorize the county to dispose of one or more lots or tracts by negotiated public or private sale or transfer if the court finds that such property or properties had been included as a part of a prior judgment and order of sale and had not been purchased at the sale.

(b) Any sale or transfer authorized pursuant to subsection (a), shall be conducted in accordance with this subsection. The county may negotiate the sale or transfer of the property on such terms and conditions it deems advisable and shall publish notice of the proposed sale or transfer in the official county newspaper. Such notice shall describe the property and shall state the name of the purchaser or recipient and the sales price or other consideration, or shall state the other manner of transfer. The notice also shall state the date, time, and general location of the hearing to confirm the sale or transfer of the property. The purchaser or recipient of the property shall execute an affidavit pursuant to the provisions of K.S.A. 79-2804h, and amendments thereto, and the county may not sell or transfer of the property to any person who is prohibited from purchasing the property under the provisions of K.S.A. 79-2812, and amendments thereto. Any sale or transfer of real estate by the county under this section shall be subject to a hearing upon and order of confirmation by the court and, thereafter, shall be conveyed to the purchaser or recipient by the sheriff of the county, who shall issue a sheriffs deed, in conformance with K.S.A. 79-2804, and amendments thereto, upon receipt of the courts order confirming the sale or transfer of the property. The deed shall convey the property with all rights provided by K.S.A. 79-2804, and amendments thereto.

History: L. 2002, ch. 185, § 21; June 6.

§ 79-2804 Order of sale; publication notice; auctioneer may be employed; procedure for bidding in behalf of county; deed, execution and recordation

After the rendition of such judgment there shall be issued by the clerk of the district court to the sheriff of the county an execution or order of sale, which shall describe each tract, lot or piece of real estate mentioned and described in such judgment or decree, on which the lien has not been paid, with the amount of lien charged to each tract, lot or piece of real estate and the costs, charges and expenses of the proceedings and sale chargeable to each piece, lot or tract, in such amount as the court may order. If no order is made, then a sum equal to 5% of the amount set forth in the petition as the lien for taxes, charges, interest and penalties chargeable to each tract, lot or piece of real estate, with the name of the ascertained owner thereof, as disclosed by the judgment or decree, with the command to advertise and sell the real estate described therein. Such order of sale shall be delivered to the sheriff of the county, who shall thereupon cause notice of sale to be published once each week for three consecutive weeks in some newspaper of general circulation in the county, in accordance with the provisions of K.S.A. 64-101, and amendments thereto. The notice shall describe each tract, lot or piece of real estate to be sold and the lien for which it is to be sold, as determined by the judgment of the court and fix the date of sale, which shall not be less than 30 days from the date of the first publication. The notice shall state that the sale will be held at the front door of the courthouse in the county or shall identify some other location in the county where the sale will be held, as selected by the chief judge of the judicial district in which the county is located.

On the day fixed for the sale by such notice, the sheriff shall offer each such tract, lot or piece of real estate for sale, separately, and the same shall be sold at public auction for the highest and best bid obtainable therefor. The sheriff may employ an auctioneer for such reasonable compensation as may be determined by the court, to be allowed as a part of the costs and expenses of the proceedings and sale. The sheriff or such other person as may be authorized by the board of county commissioners, if directed by the county commissioners, may bid at such sale in the name of the county such amount as the county commissioners authorize. No bid in behalf of such county shall be accepted in excess of the amount of the judgment lien and interest thereon, as provided by law, plus the costs, charges and expenses of the proceedings and sale as set forth in the execution or order of sale. If the county is the successful bidder the costs, charges and expenses of the proceeding and sale set forth in the execution and order of sale shall be paid by the county to the clerk of the district court and charged to the county general fund. If such sale, for want of time, cannot be completed on the day fixed by the notice, it may be adjourned from day to day until completed.

The sheriff shall make return to the clerk and the same, as soon as practicable, shall be examined by the court, and if found by the court to be regular, it shall be confirmed, and the sheriff ordered to forthwith execute to the purchasers at such sale a good and sufficient deed therefor.

If one person or the county purchases more than one tract, lot or piece of real estate, the same may be included in one deed. The deed shall be executed by the sheriff and acknowledged before the clerk of the district court. No particular form of deed shall be required. It shall be sufficient if it shows the date of sale, a description of the property conveyed, the amount for which each tract, lot or piece of real estate was sold, the name of the purchaser, the date such sale was confirmed by the court and the title of the suit in which the tax lien was foreclosed. The deed shall be filed for record, by the sheriff at the time the deed is executed, in the office of the register of deeds of the county where such real estate is situated. Any fee or charge for such filing shall be collected from the successful bidder at the time of sale and deposited with the register of deeds at the time of recording. When the deed is filed it shall vest in the purchaser or grantee therein named, as against all persons, including, but not limited to, corporations and municipal corporations, parties to such proceedings, a fee simple title thereto, subject only to valid covenants running with the land and valid easement of record in use and subject to taxes and interest which have become a lien thereon, subsequent to the date upon which such judgment was rendered. Such deed shall be prima facie evidence of the regularity of all proceedings prior to the date of filing the same for record.

After the sale and confirmation thereof by the court, an execution shall issue, upon praecipe of the county attorney, county counselor or the purchaser, requiring the officer to deliver possession of the real estate, particularly describing it, to the parties entitled thereto, including the county. When the deed is executed to the county by the sheriff, it shall be filed for record forthwith in the office of the register of deeds. Thereupon the assessed valuation of such real estate shall be eliminated from the assessment and tax rolls until such time as such real estate is sold as provided by K.S.A. 79-2804f, and amendments thereto.

History: L. 1901, ch. 392, § 4; R.S. 1923, 79-2804; L. 1941, ch. 375, § 20; L. 1943, ch. 302, § 4; L. 1945, ch. 362, § 4; L. 1968, ch. 398, § 7; L. 1972, ch. 371, § 1; L. 1978, ch. 399, § 1; L. 1989, ch. 294, § 3; L. 1999, ch. 57, § 72; July 1.

§ 79-2804a Sale of school lands; bond

When school lands are sold on foreclosure for taxes a deed shall not be given to the purchaser until he or she shall have paid all the installments and the interest due thereon at the time, and shall have given a bond as required from the purchaser in the first instance; and upon filing such bond with the county clerk a deed shall be given to the purchaser.

History: L. 1941, ch. 375, § 21; September 1.

§ 79-2804b Actions to open, vacate or modify foreclosure proceedings; time limitations

Legal or equitable actions or proceedings may be brought to open, vacate, modify or set aside any judgment rendered for taxes, interest and costs or any order of sale made under the provisions of K.S.A. 79-2803, or amendments thereto, or any sale made under the provisions of K.S.A. 79-2804, or any amendments thereof, but every such action or proceeding, including those brought to set aside judgments on the grounds and in the manner prescribed by the code of civil procedure, must be commenced within twelve months after the date the sale of the real estate, which was affected by such judgment, order of sale or sale, was confirmed by the court. The time limitation herein fixed for the bringing of any such action or proceeding shall be construed as a condition precedent to the bringing of any such action or proceeding and shall not be construed as a statute of limitations.

The petition in every such action or proceeding shall show that such action or proceeding was commenced within the time herein limited. If any such action or proceeding is not commenced within the time herein limited, or if the petition in any such action or proceeding shall not show that such action or proceeding was so commenced, the court shall have no jurisdiction of such action or proceeding. The provisions of this section shall apply to all judgments, orders of sale, and sales whether the purchaser at the foreclosure sale be the county or an individual.

History: L. 1941, ch. 375, § 22; L. 1945, ch. 362, § 5; L. 1949, ch. 478, § 1; April 15.

§ 79-2804c Refund of purchase money, taxes and charges when foreclosure sale adjudged to be invalid; interest; quitclaim deed

If after the sale of real estate on foreclosure for taxes it shall be adjudged that the sale on foreclosure was invalid or void, the board of county commissioners shall by proper order cause the money paid therefor on the sale, together with such subsequent taxes and charges paid thereon by the purchaser or such purchaser's assigns to be refunded, with interest on such amount at the rate prescribed by K.S.A. 79-2004, and amendments thereto, upon the delivery of a quitclaim deed from the party holding under the sheriff's deed, executed to such person or persons as the commissioners shall direct in such order. In all such cases no interest shall be allowed after the person claiming under the sheriff's deed shall have received actual notice that such deed has been adjudged invalid or void.

History: L. 1941, ch. 375, § 23; L. 1980, ch. 308, § 29; L. 1992, ch. 319, § 7; July 1.

§ 79-2804d Refund of amount paid to state, township, city or school district, when money so refunded by county

When any sale of real estate on foreclosure shall be set aside as invalid or void and money and interest have been refunded thereon, or when any refunding shall have been made under the provisions of law, the proportions thereof which have been paid as taxes to the state, township, city, school district, or other taxing districts, with interest as provided in K.S.A. 79-2804c, or amendments thereto, and costs thereon, shall be refunded to the county, and on the next settlement thereafter the county treasurer of such county shall be credited therewith, on the certificate of the board of the county commissioners.

History: L. 1941, ch. 375, § 24; L. 1945, ch. 362, § 6; April 1.

§ 79-2804e Repealed

History: L. 1941, ch. 375, § 25; Repealed, L. 1943, ch. 302, § 8; June 28.

§ 79-2804f Record of real estate acquired by county; sale by county; removal and sale of improvements, when; reduction of price and sale six months after confirmation of sale; advertisement; bids; deed; assessment and entry on tax rolls

(a) The county commissioners shall keep a record of all real estate acquired by the county under the provisions of K.S.A. 79-2804, and amendments thereto, showing: The case by name, title and number, together with the date of filing of the petition and of the sale and identifying the tract, lot or piece of real estate described therein; the amount of judgment lien and the amount set forth in the order of sale of the charges, costs and expenses of the proceeding and sale paid by the county. Such record shall upon request be open to inspection at all reasonable times.

(b) Except as provided by subsection (c), such real estate shall be sold by the board of county commissioners of the county at private or public sale for cash in hand; the consideration for the purchase to be at least the original amount of the judgment lien and interest thereon as provided by law, plus the amount of costs set forth in the order of sale and plus any and all subsequent taxes and special assessments on such real estate that were not included in such judgment. If in the discretion of the board of county commissioners it is deemed necessary to prevent a menace to the public health or welfare, or that repair or rehabilitation of any structures thereon would be economically unsound, the board may remove or cause to be removed any such improvements upon any property acquired by the county under the provisions of this act. The board of county commissioners may sell all or any of the salvaged materials therefrom at public or private sale, and after first deducting the cost of such removal, shall credit the remainder of such proceeds to the county general fund. Any deficiency shall be charged to such general fund.

If, at the end of six months from and after the confirmation of the sale to the county to any of the real estate, any of the real estate remains unsold, the board of county commissioners may reduce the price therefor and sell the same after first advertising the same once each week for three consecutive weeks in the county describing the real estate, giving the location thereof and requesting sealed bids therefor on or before a specified date and the board shall accept the highest cash bid received. The board of county commissioners may reject bids in an amount less than the current market value of the real estate and if no bid is accepted or received, such board may sell the same for such sum that, in the board's judgment, would be the market value thereof, but no such sale shall be made for an amount less than the best bid received, if any, and rejected. The board of county commissioners, at any time after the end of six months from and after the confirmation of the sale to the county and after advertising such real estate at least three times in the official county paper and such other papers as the board shall direct, describing the same, giving the general location thereof, and the time and place of sale, may sell such real estate at public auction for cash in hand to the highest bidder therefor.

All real estate sold by the county as provided in this subsection shall be conveyed to the purchaser by a good and sufficient deed by the county clerk of the county upon a written order from the board of county commissioners. Such order shall be deemed conclusive evidence of the compliance with this section in any action challenging the validity of such deed. Immediately upon the execution of any such deed, the county clerk shall assess the real estate so conveyed and enter the valuation thereof on the assessment and tax rolls.

(c) Any property acquired by the board of county commissioners pursuant to K.S.A. 79-2804, and amendments thereto, may be transferred to the county land bank as provided by K.S.A. 1997 Supp. 19-26,108.

History: L. 1941, ch. 375, § 26; L. 1943, ch. 302, § 5; L. 1945, ch. 362, § 7; L. 1951, ch. 492, § 1; L. 1969, ch. 444, § 1; L. 1996, ch. 264, § 23; July 1.

§ 79-2804g Sales of real estate to certain persons prohibited; exceptions

(a) Whenever any tract, lot or piece of real estate is offered for sale at public auction pursuant to K.S.A. 79-2804, and amendments thereto, such tract, lot or piece of real estate shall not be sold, either directly or indirectly, to:

(1) Any person having a statutory right to redeem such real estate prior to such sale, pursuant to the provisions of K.S.A. 79-2803, and amendments thereto, except that this paragraph (1) shall not prohibit sale to any person or such person's assignee who held an interest in such real estate as mortgagee of record at the time of the sale;

(2) any parent, grandparent, child, grandchild, spouse, sibling, trustee or trust beneficiary who held an interest in a tract as owner or holder of the record title or who held an interest at any time when any tax constituting part of the county's judgment became due; or

(3) with respect to a title holding corporation, any current or former stockholder, current officer or director, or any person having a relationship enumerated in paragraph (2) to such stockholder, officer or director.

(b) If any such real estate is acquired by a county pursuant to K.S.A. 79-2804, and amendments thereto, and, at the end of six months from and after confirmation of such sale to the county, such real estate is advertised for sale at public auction, as provided in K.S.A. 79-2804f, and amendments thereto, such real estate shall not be sold, either prior to or at such auction, to any person having a statutory right to redeem such real estate, under the provisions of K.S.A. 79-2803, and amendments thereto, for an amount less than the original judgment lien and interest thereon, plus the costs, charges and expenses of the proceedings and sale, as set forth in the execution and order of sale issued pursuant to K.S.A. 79-2804, and amendments thereto.

(c) If any tract, lot or piece of real estate purchased at public auction pursuant to K.S.A. 79-2804, and amendments thereto, is transferred, sold, given or otherwise conveyed to any person who had a statutory right to redeem such real estate prior to such sale pursuant to K.S.A. 79-2803, and amendments thereto, within 10 years of the date of the public auction, such person shall be liable for an amount equal to the original judgment lien and interest thereon from the date of the public auction, except that this subsection shall not apply to any person or such person's assignee who held an interest in such real estate as mortgagee of record at the time of the sale.

(d) The provisions of this section shall apply to the sale or conveyance of any real estate by a county land bank established pursuant to K.S.A. 19-26,104, and amendments thereto.

History: L. 1971, ch. 305, § 1; L. 1989, ch. 294, § 4; L. 1994, ch. 200, § 3; L. 1995, ch. 254, § 8; L. 1998, ch. 188, § 5; L. 2003, ch. 156, § 7; July 1.

§ 79-2804h Confirmation of sale of property under K.S.A. 79-2804; affidavit required

No sale of real estate as provided for in article 28 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, shall be confirmed as provided for in K.S.A. 79-2804, and amendments thereto, until the purchaser at the sale files with the clerk of the court, an affidavit stating that the purchase of the real estate was not made, either directly or indirectly, for any person having the statutory right to redeem, other than any person or such person's assignee who held an interest in such real estate as mortgagee of record at the time of the sale.

History: L. 1971, ch. 305, § 2; L. 2003, ch. 156, § 8; July 1.

§ 79-2804i Purchase by city of property offered for sale under K.S.A. 79-2804

Cities are hereby granted the authority to buy real estate offered for sale pursuant to K.S.A. 79-2804 if special assessments have been levied by the city on such real estate and remain due and unpaid at the time of such sale. Such authority shall be exercised by a representative of the city, as authorized and directed by the governing body thereof, who may bid at such sale an amount equal to any other bid received not to exceed the amount of the judgment lien, including the unpaid special assessments levied by the city, and interest thereon as provided by law plus the cost, charges and expenses of the proceedings and sale as set forth in the execution of order of sale. If the city is the successful bidder, it shall be required to pay the delinquent real estate taxes plus the costs and expenses of sale, but shall not be required to pay any delinquent special assessments which are a result of improvements made or work done by or on behalf of the city or any interest and penalties on said delinquent special assessments.

History: L. 1976, ch. 64, § 1; L. 1978, ch. 400, § 1; July 1.

§ 79-2804j Repealed

History: L. 1971, ch. 305, § 1; L. 1989, ch. 294, § 4; L. 1994, ch. 200, § 3; L. 1995, ch. 254, § 8; L. 1971, ch. 305, § 1; L. 1989, ch. 294, § 4; L. 1994, ch. 200, § 3; L. 1996, ch. 264, § 24; Repealed, L. 1998, ch. 188, § 11; July 1.

§ 79-2805 Apportionment of proceeds of sale

The proceedings so authorized by this act in the name of the board of county commissioners of the county shall be for the benefit of the state of Kansas, any city, township, school district or other taxing unit interested in such taxes to be recovered. The balance equitably apportioned to each tract, lot or piece of real estate as provided in K.S.A. 79-2803, and amendments thereto, shall be paid by the clerk of the district court to the county treasurer, who shall prorate to each fund, if practicable, its proportionate interest in the entire lien for taxes and interest included in the foreclosure action. If the court shall find such proration impracticable, distribution shall be made among the various funds in such proportion as the court shall direct. If the proceeds of the sale of any particular tract, lot or piece of real estate sold by the board of county commissioners after the county has bid the same in at the tax foreclosure sale shall not equal or shall exceed the amount necessary to pay the entire lien for taxes, interest and costs which were included in the foreclosure action plus any and all subsequent taxes and special assessments and interest on said real estate due and unpaid at the time of such sale, the amount collected shall be apportioned as follows:

(a) First in the payment of the advertising, commission and other costs incident to the sale;

(b) the balance prorated, if practicable to each fund, in proportion to its interest in the entire lien for taxes and interest which were included in the foreclosure action.

If such proration is impracticable such balance shall be prorated to each fund on the basis of the levy made for the year in which such sale is made by the county. Prorations and distributions shall be made only as and when the county receives said funds upon final sale, unless said county decides to use said real estate for county purposes; in that event it shall cause all taxes other than taxes levied by the county to be paid forthwith to the taxing unit that levied the same. The county treasurer at the time of making his or her proration and distribution shall cancel all taxes charged against such real estate which were due and unpaid at the time such sale or resale was made and shall issue his or her receipt therefor.

History: L. 1901, ch. 392, § 5; R.S. 1923, 79-2805; L. 1941, ch. 375, § 27; L. 1943, ch. 302, § 6; L. 1945, ch. 362, § 8; April 1.

§ 79-2805a Repealed

History: L. 1943, ch. 302, § 7; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-2805b Repealed

History: L. 1945, ch. 362, § 10; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-2806 Repealed

History: L. 1901, ch. 392, § 6; R.S. 1923, 79-2806; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2807 Repealed

History: L. 1901, ch. 392, § 7; R.S. 1923, 79-2807; Repealed, L. 1933, ch. 314, § 1; March 27.

§ 79-2808 Amount of state tax uncollected certified to director of accounts and reports; credit; penalty for unlawful certification

The county treasurer of any county in which any real estate has been sold for less than the full amount of the taxes, penalties, interest and costs under the provisions of K.S.A. 79-2804 or 79-2804f, shall certify to the director of accounts and reports the amount of the proper proportion of state tax thus uncollected and the county shall be entitled to credit therefor, and the director of accounts and reports and treasurer of state shall credit the county with the amounts of the same: Provided, That any county treasurer who shall willfully certify to the director of accounts and reports any amount for which the county is not entitled to credit shall be adjudged guilty of a misdemeanor, and, upon conviction, be punished by a fine in double the amount thus incorrectly certified.

History: L. 1941, ch. 375, § 28; September 1.

§ 79-2809 Sale, redemption, conveyance, foreclosure and sale of real estate begun under prior statutes

All tax foreclosure actions begun prior to the effective date of this act shall be completed in conformity with the laws in effect prior to such date, and in all cases where tax sale certificates are held by persons other than the county, the redemption and conveyance of lands governed thereby shall be governed by the law in force prior to the effective date of this act. In all other cases the provisions of this act shall govern, but no suit for the foreclosure of tax liens on lands first bid off by the county at the tax sale held in September, 1940, or any prior year, shall be filed until the expiration of four years from the date of the first sale from which said land has not been redeemed.

History: L. 1941, ch. 375, § 29; September 1.

§ 79-2810 Action to enforce lien for delinquent taxes upon real estate bid in by counties over 300,000; county counselor duties; employment and compensation of abstracters

In counties having a population of more than three hundred thousand (300,000) inhabitants the county counselor or his or her duly authorized deputy shall have the authority to institute an action in the name of the county commissioners against the owners, or supposed owners of real estate which has been or shall be sold and bid in by the county at any delinquent tax sale and shall remain unredeemed on the first day of September of the third year after such sale in the same manner as prescribed by statute to be done by the county attorney.

In connection therewith the county counselor is authorized to hire such person or persons as the volume of work dictates and as may be feasible, consistent with the money allowed to the county counselor by the county commissioners.

On and after the fifteenth day of September of each year, the county treasurer of said counties shall furnish to the county counselor a list of each tract, lot, parcel or piece of real estate which has been bid in by the county at any delinquent tax service and shall remain unredeemed on the first day of September of the third year after such sale and the name of the owner or supposed owner to whom the last tax statement or statements have been sent. The board of county commissioners of such county shall have the power to employ abstracters who are bonded and licensed under Kansas law to furnish title information necessary to bring such action and said county commissioners shall also be empowered to pay any bonded and licensed abstracters for any such services that have been furnished to the county from and after July 1, 1968.

History: L. 1968, ch. 398, § 1; L. 1969, ch. 445, § 1; July 1.

§ 79-2811 County sale for affordable low-income housing; abatement of taxes

(a) If real estate has been or shall be sold and bid by the county, and the redemption period has expired, the board may sell such real estate to provide affordable low-income housing or for community development or economic development purposes which are hereby declared to be public purposes. Any such sale shall not be subject to the provisions of K.S.A. 79-2801 et seq., and amendments thereto.

(b) The board of county commissioners may abate any delinquent ad valorem property taxes, special assessments or other special taxes on any property sold pursuant to subsection (a). If such taxes or assessments are not abated, any moneys received from the sale of such property shall be apportioned in the manner provided by K.S.A. 79-2805, and amendments thereto.

History: L. 1992, ch. 320, § 3; July 1.

§ 79-2812 Persons not eligible to purchase real estate at tax sale

Except as otherwise provided by K.S.A. 79-2804g, and amendments thereto, no person shall be eligible to purchase real estate at any delinquent tax sale conducted pursuant to the provisions of K.S.A. 79-2801 et seq., and amendments thereto, if such person is the record owner of real estate upon which there are delinquent taxes of a general ad valorem tax nature or delinquent special assessments in existence as reflected by the records of the county treasurer.

History: L. 1994, ch. 124, § 2; July 1.

Article 29 Miscellaneous Provisions

§ 79-2901 Payment of taxes or redemption of lands by mortgagee

In cases where lands are mortgaged, if the mortgagor fails or neglects to pay the taxes, or in case said mortgagor permits any land so mortgaged to be sold for any taxes, the mortgagee may pay said taxes or redeem any land so sold for taxes. And on the payment of any such mortgage, or in the action to foreclose the same, such mortgagee may demand the taxes so paid, with interest thereon with interest at the rate per annum prescribed by K.S.A. 79-2004, and amendments thereto, unless a different rate is provided in the mortgage contract, or include them in any judgment rendered on the mortgage; and any taxes so paid by any mortgagee shall be a lien on such lands so mortgaged until the same be paid except that where the mortgage lien covers only a part of the land upon which taxes were levied or assessed, said mortgagee shall be required to pay only the taxes upon that part covered by said mortgage, and the county clerk shall be required to apportion the taxes due upon the whole of said tract as between said mortgaged portion and that not mortgaged to said mortgagee.

History: L. 1876, ch. 34, § 148; R.S. 1923, 79-2901; L. 1933, ch. 315, § 1; L. 1980, ch. 308, § 14; L. 1992, ch. 319, § 13; July 1.

§ 79-2902 Lands in controversy; payment of taxes; recovery, when

In case taxes are paid by any party whose lands are in controversy in any of the courts of this state, and the party so paying shall fail to recover such land, such party shall be entitled to collect from the parties recovering the taxes so paid, with interest thereon at the rate prescribed by K.S.A. 79-2004, and amendments thereto, and the taxes so paid shall be a lien on any such land.

History: L. 1876, ch. 34, § 149; L. 1980, ch. 308, § 15; L. 1992, ch. 319, § 8; July 1.

§ 79-2903 Liability of executor or administrator for failure to list lands or pay taxes

Every person being seized or having the care of lands as executor or administrator, and who shall neglect or refuse either to list or pay the taxes on the same, shall be liable in an action to the devisee or devisees of the persons whose executor he or she is for any damage occasioned by such neglect.

History: L. 1876, ch. 34, § 150; March 11; R.S. 1923, 79-2903.

§ 79-2904 Agent or attorney liable for failure to pay taxes on lands

Every person having the care of land as agent or attorney, such agent or attorney having funds of the principal in his or her hands for that purpose, neglecting or refusing either to list or pay the taxes on such land, shall be liable in an action to his or her principal for any damage such principal may have sustained by such neglect or refusal.

History: L. 1876, ch. 34, § 151; March 11; R.S. 1923, 79-2904.

§ 79-2905 Conservator liable for failure to list or pay taxes

Every person holding lands as conservator, and neglecting or refusing to list or pay the taxes on the same in manner aforesaid, shall be liable in an action to his or her conservatee for any damage such conservatee may have sustained by such neglect or refusal.

History: L. 1876, ch. 34, § 152; R.S. 1923, 79-2905; L. 1965, ch. 514, § 2; January 1, 1966.

§ 79-2906 Repealed

History: L. 1876, ch. 34, § 153; R.S. 1923, 79-2906; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2907 Warrants received for taxes; endorsement

It shall be the duty of every county treasurer who may receive any state, county, city, township or school-district order or warrant in payment of any taxes, or for lands sold for taxes, to endorse upon such order or warrant the date of its reception, the amount of interest allowed thereon; and no credit shall be allowed to any treasurer for any warrant or order, or any interest thereon, not so endorsed.

History: L. 1876, ch. 34, § 154; March 11; R.S. 1923, 79-2907.

§ 79-2908 Sale and conveyance of lands for taxes under prior statutes

All matters relative to the sale and conveyance of lands for taxes under any prior statute shall be fully completed according to the laws under which they originated, the same as if such laws remained in force.

History: L. 1876, ch. 34, § 155; March 11; R.S. 1923, 79-2908.

§ 79-2909 Repealed

History: L. 1876, ch. 34, § 156; R.S. 1923, 79-2909; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-2910 Limitations of actions for recovery of land under repealed statutes

The limitation of actions for the recovery of lands sold for taxes, prescribed by any statute which has been repealed, shall not be affected by any such repeal if the same period of limitation is or has been continued or reenacted in the repealing statute.

History: L. 1876, ch. 34, § 157; March 11; R.S. 1923, 79-2910.

§ 79-2910a Actions to recover tax by the U.S. and other states and subdivisions; rights

Any state of the United States of America or any political subdivision thereof shall have the right to sue in the courts of Kansas to recover any tax which may be owing to it when the like right is accorded to the state of Kansas and its political subdivisions by such state, whether such right is granted by statutory authority or as a matter of comity.

History: L. 1951, ch. 505, § 1; June 30.

§ 79-2911 Repeals by act of 1876

Laws 1876, chapter 34, section 158, included by reference. [This section provided for the repeal of acts relating to taxation which it amended and superseded, as follows: "That an act entitled 'An act to provide for the assessment and collection of taxes,' approved February twenty-seventh, eighteen hundred and sixty-eight, and all acts and parts of acts amendatory and supplemental thereto, together with section fifty-five of chapter twenty-five, Laws of eighteen hundred and sixty-eight; and also chapters one hundred and twenty, one hundred and twenty-one, one hundred and twenty-two, one hundred and twenty-three and one hundred and twenty-four, Session Laws of eighteen hundred and sixty-nine; also section two, chapter forty-three, and chapter one hundred and twenty, Session Laws of eighteen hundred and seventy; also chapters one hundred and forty-nine and one hundred and fifty, Session Laws of eighteen hundred and seventy-one; also chapters sixty-five and one hundred and eighty-four and one hundred and ninety-six, Session Laws of eighteen hundred and seventy-two; also chapters ninety-six and one hundred and thirty-one, Session Laws of eighteen hundred and seventy-four; also chapters one hundred and forty-five and one hundred and forty-seven, Session Laws of eighteen hundred and seventy-five, and all acts and parts of acts, either general or special, inconsistent with the provisions of this act, be and the same are hereby repealed, except so far as provided for in sections one hundred and twenty-three and one hundred and twenty-four."]

History: R.S. 1923, 79-2911.

§ 79-2912 Loss of tax-sale certificate

The owner of any tax-sale certificate which has been lost or which may hereafter be lost, and the land therein described shall not have been redeemed at the time a tax deed becomes due thereon, may exhibit to the treasurer evidence satisfactory to him or her of such loss, and upon his or her executing a bond to the treasurer, with sufficient surety to protect any person who should thereafter show his or her right thereto, then the treasurer shall issue to said owner a duplicate tax-sale certificate, which shall have the same effect in all respects as the original.

History: L. 1877, ch. 42, § 1; March 15; R.S. 1923, 79-2912.

§ 79-2913 Credit by state of overpayment of taxes by county, when

In all cases in which any county has heretofore or shall hereafter pay into the state treasury a greater amount of money than is or may be due from such county for the year in which such surplus money was paid, it shall be the duty of the director of accounts and reports and treasurer of state, at the close of each fiscal year, to credit such overpaid or surplus amount to the county paying the same as a credit upon the taxes due or thereafter to become due from such county to the state.

History: L. 1875, ch. 146, § 1; May 15; R.S. 1923, 79-2913.

§ 79-2914 Apportionment of funds where lands sold for less than full amount of taxes

If any county lands or town lots have been sold under the provisions of law and the full amount of the tax charged against such lands or town lots has not been realized, the county treasurer and county clerk of such county are hereby directed to divide and charge the amount of such unrealized tax to the several funds in proper proportion, according to the tax levies of the years for the tax of which the said lands or town lots were sold.

History: L. 1885, ch. 199, § 1; March 14; R.S. 1923, 79-2914.

§ 79-2915 Same; distribution of proceeds; amount uncollected charged to several funds

The proceeds arising from such sale shall be distributed to the several funds entitled thereto in proper proportion, as shown upon the tax roll; and any portion of the tax that may remain uncollected by reason of the redemption or assignment herein provided for shall be divided among and charged to the several funds in proper proportion according to the tax levies of the various years for which the tax was delinquent.

History: L. 1879, ch. 43, § 3; L. 1885, ch. 199, § 2; March 14; R.S. 1923, 79-2915.

§ 79-2916 Repealed

History: L. 1885, ch. 199, § 3; R.S. 1923, 79-2916; Repealed, L. 1941, ch. 375, § 35; September 1.

§ 79-2917 Repealed

History: L. 1885, ch. 199, § 6; R.S. 1923, 79-2917; L. 1937, ch. 359, § 5; L. 1974, ch. 414, § 8; Repealed, L. 2004, ch. 31, § 4; July 1.

§ 79-2918 Same; use of funds after full amount of state taxes paid into state treasury

When by virtue of the foregoing provisions any county shall have paid into the state treasury the full amount of state tax levied for any particular year, all moneys thereafter collected on such tax shall be applied to the payment of any state tax theretofore levied and unpaid, and any balance remaining shall be applied to the payment of the state tax for succeeding years.

History: L. 1885, ch. 199, § 7; R.S. 1923, 79-2918; L. 1937, ch. 359, § 6; L. 1957, ch. 502, § 1; L. 1974, ch. 414, § 9; July 1.

§ 79-2919 Neglect of duties by officers; penalties

If any officer charged by the statutes with any duty in relation to assessment and taxation, or who under the statutes may be required by other officers to perform certain duties, shall willfully fail or neglect to perform any of such duties when required to do so by the statute in terms or by any person thereunto authorized by the statute, and shall continue to so fail or neglect to perform such duties after having been notified of the default by the authority or authorities thereunto authorized, such officer so continuing in default shall forfeit a sum not less than fifty dollars ($50) nor more than five hundred dollars ($500), to be recovered in an action brought in the name of the state by the county attorney, or by the attorney general upon request of the director of property valuation, in the district court of the county of such officer, and may be removed from office at the discretion of the court. All moneys recovered under the provisions of this act shall be paid to the county treasurer.

History: L. 1915, ch. 364, § 1; R.S. 1923, 79-2919; L. 1973, ch. 106, § 28; June 1.

§§ 79-2920 through 79-2924 Repealed

History: L. 1931, ch. 310, §§ 1 to 5; Repealed, L. 1933, ch. 316, § 14; March 24.

§ 79-2925 Budgets of taxing bodies; application of act; exceptions; definitions

(a) This act shall apply to all taxing subdivisions or municipalities of the state, except: (1) Townships in counties having the county road unit system which have an annual expenditure of less than two hundred dollars;

(2) any money received by such taxing subdivision or municipality as a gift or bequest;

(3) any revolving fund set up for the operation of a municipal airport. Any city, board of park commissioners, or other agency designated and authorized to operate a municipal airport is hereby authorized to set up a revolving fund for use as an operating fund, either out of the budget or out of the receipts from the operation of such airport, in an amount as may be reasonable and necessary as an operating fund for the efficient and business-like operation of such airport. The financial transactions of said airport shall be audited in accordance with the minimum standard audit program prescribed by the director of accounts and reports as other municipal funds. Profits arising from the operation of the airport after the payment of all necessary operating expenses and the establishment of the revolving fund shall be applied to reduce the tax levy for the budgeted fund under which the operation of such airport is financed;

(4) any special recreation facilities reserve set up by the board of park commissioners in any city for the repair, replacement, or addition to the recreation facilities of such city. The financial transactions of said recreation facilities shall be audited in accordance with the minimum standard audit program prescribed by the director of accounts and reports as other municipal funds. Profits arising from the coliseum events fund and the coliseum concessions, after the payment of all necessary expenses, and the establishment and maintenance of such special recreation facilities reserve shall be applied to reduce the tax levy for the budget fund under which the operation of such recreation facilities is financed; and

(5) any special recreation facilities fund set up by the board of county commissioners for the operation of a county coliseum. The financial transactions of the special recreation facilities fund shall be audited in accordance with the minimum standard audit program prescribed by the director of accounts and reports as other municipal funds. Moneys derived from the operation of a county coliseum and deposited in the special recreation facilities fund shall be applied to reduce the tax levy for the budget fund under which the operation of such county coliseum is financed.

(b) Whenever the term "fund" is used in this act it is intended to have reference to those funds which are authorized by statute to be established. "Fund" is not intended to mean the individual budgeted items of a fund, but is intended to have reference to the total of such individual items.

(c) Whenever the term "director" is used in this act it shall mean the state director of property valuation.

History: L. 1933, ch. 316, § 1; L. 1933, ch. 121, § 1 (Special Session); L. 1941, ch. 377, § 1; L. 1945, ch. 92, § 2; L. 1959, ch. 62, § 3; L. 1969, ch. 446, § 1; L. 1971, ch. 185, § 19; L. 1975, ch. 498, § 1; L. 1980, ch. 89, § 4; July 1.

§ 79-2925a Budget of Shawnee county; budget period; no-fund warrants

On or before August 1, 1974, the board of county commissioners of Shawnee county shall prepare a budget for such county for the period commencing January 1, 1975, and ending December 31, 1975, and thereafter each budget prepared by the board for an ensuing budget year shall be prepared for a period commencing January 1 and ending December 31 of the succeeding calendar year. In order to provide moneys sufficient for the operation of such county during the period between November 1, 1974, and December 31, 1974, the board is hereby authorized to issue no-fund warrants in an amount not to exceed ⅙ of the amount of the budget of expenditures adopted for the 1975 budget year. Such warrants shall be issued, registered, redeemed and bear interest in the manner and in the form prescribed by K.S.A. 79-2940, and amendments thereto, except that they shall not bear the notation required by such section and may be issued without the approval of the state board of tax appeals. Moneys received from the issuance of such warrants may be expended during the period for which the warrants were issued, even though the same were not budgeted for, and any tax levied to redeem such warrants shall be exempt from the limitations imposed under the provisions of K.S.A. 79-5001 to 79-5016, inclusive, and amendments thereto.

History: L. 1974, ch. 109, § 1; L. 2008, ch. 109, § 105; L. 2014, ch. 141, § 112; July 1.

§ 79-2925b Repealed

History: L. 1999, ch. 154, § 21; L. 2014, ch. 37, § 1; L. 2015, ch. 4, § 76; L. 2015, ch. 99, § 5; L. 2015, ch. 102, § 2; L. 2015, ch. 105, § 1; L. 2016, ch. 66, § 5; L. 2017, ch. 95, § 106; Repealed, L. 2021, ch. 9, § 8; April 1.

§ 79-2925c Tax lid, cities and counties; exceptions; elections, when required

(a) (1) On and after January 1, 2017, and prior to January 1, 2021, the governing body of any city or county shall not approve any appropriation or budget which provides for funding by property tax revenues in an amount exceeding that of the next preceding year as adjusted to reflect the average changes in the consumer price index for all urban consumers as published by the United States department of labor for the preceding five calendar years, which shall not be less than zero, unless the city or county approves the appropriation or budget with the adoption of a resolution and such resolution has been submitted to and approved by a majority of the qualified electors of the city or county voting at an election called and held thereon, except as otherwise provided.

(2) The election shall be called and held in the manner provided by K.S.A. 10-120, and amendments thereto, and may be:

(A) Held at the next regularly scheduled election to be held in August or November;

(B) may be a mail ballot election, conducted in accordance with K.S.A. 25-431 et seq., and amendments thereto; or

(C) may be a special election called by the city or county. Nothing in this subsection shall prevent any city or county from holding more than one election in any year. The city or county requesting the election shall be responsible for paying all costs associated with conducting the election.

(b) A resolution by the governing body of a city or county otherwise required by the provisions of this section shall not be required to be approved by an election required by subsection (a) under the following circumstances:

(1) Increased property tax revenues that, in the current year, are produced and attributable to the taxation of:

(A) The construction of any new structures or improvements or the remodeling or renovation of any existing structures or improvements on real property, which shall not include any ordinary maintenance or repair of any existing structures or improvements on the property;

(B) increased personal property valuation;

(C) real property located within added jurisdictional territory;

(D) real property which has changed in use;

(E) expiration of any abatement of property from property tax; or

(F) expiration of a tax increment financing district, rural housing incentive district, neighborhood revitalization area or any other similar property tax rebate or redirection program.

(2) Increased property tax revenues that will be spent on:

(A) Bond, temporary notes, no fund warrants, state infrastructure loans and interest payments not exceeding the amount of ad valorem property taxes levied in support of such payments, and payments made to a public building commission and lease payments but only to the extent such payments were obligations that existed prior to July 1, 2016;

(B) payment of special assessments not exceeding the amount of ad valorem property taxes levied in support of such payments;

(C) court judgments or settlements of legal actions against the city or county and legal costs directly related to such judgments or settlements;

(D) expenditures of city or county funds that are specifically mandated by federal or state law with such mandates becoming effective on or after July 1, 2015, and loss of funds from federal sources after January 1, 2017, where the city or county is contractually obligated to provide a service;

(E) expenses relating to a federal, state or local disaster or federal, state or local emergency, including, but not limited to, a financial emergency, declared by a federal or state official. The board of county commissioners may request the governor to declare such disaster or emergency; or

(F) increased costs above the consumer price index for law enforcement, fire protection or emergency medical services.

(3) Any increased property tax revenues generated for law enforcement, fire protection or emergency medical services shall be expended exclusively for these purposes but shall not be used for the construction or remodeling of buildings.

(4) The property tax revenues levied by the city or county have declined:

(A) In one or more of the next preceding three calendar years and the increase in the amount of funding for the budget or appropriation from revenue produced from property taxes does not exceed the average amount of funding from such revenue of the next preceding three calendar years, adjusted to reflect changes in the consumer price index for all urban consumers as published by the United States department of labor for the preceding calendar year; or

(B) the increase in the amount of ad valorem tax to be levied is less than the change in the consumer price index plus the loss of assessed property valuation that has occurred as the result of legislative action, judicial action or a ruling by the board of tax appeals.

(5) Whenever a city or county is required by law to levy taxes for the financing of the budget of any political or governmental subdivision of this state that is not authorized by law to levy taxes on its own behalf, and the governing body of such city or county is not authorized or empowered to modify or reduce the amount of taxes levied therefore, the tax levies of the political or governmental subdivision shall not be included in or considered in computing the aggregate limitation upon the property tax levies of the city or county.

(6) Any tax levy increase as a result of another taxing entity being dissolved and all powers, responsibilities, duties and liabilities of the taxing entity have been transferred to a city located in the county in which the taxing entity is located, or to the county in which the taxing entity is located, to carry on the function and responsibilities of the dissolved taxing entity, so long as the levy increase does not exceed the levy of the dissolved taxing entity.

History: L. 2016, ch. 66, § 6; L. 2019, ch. 21, § 4; L. 2021, ch. 9, § 5; April 1.

§ 79-2926 Budget forms prescribed; electronic format furnished by director of accounts and reports; duties of certain officers

(a) Subject to the provisions of subsection (b), the director of accounts and reports shall prepare and prescribe forms for the annual budgets of all taxing subdivisions or municipalities of the state. Such forms shall show the information required by this act necessary and proper to disclose complete information as to the financial condition of such taxing subdivision or municipality, and the receipts and expenditures thereof, both past and anticipated.

(b) (1) From and after July 1, 2004 and based upon recommendations by the state department of education, the director shall prepare and prescribe forms for the annual budget and a summary of the proposed budget of school districts. The state department of education shall make such recommendations after considering the best practices and standards established by the government finance officers association and the association of school business officials.

(2) (A) The school district budget form shall include a separate table outlining the aggregate amount of expenditures for salaries and wages for the following categories:

(i) Certified and noncertified administrators;

(ii) persons employed full-time as teachers;

(iii) other certified employees who are not employed full-time as teachers;

(iv) classified employees;

(v) other positions designated by the state department of education; and

(vi) substitutes and other temporary employees.

(B) The school district budget form shall show the number of full-time employee positions specified in paragraph (A) of this subsection and the average salaries or wages for such positions.

(C) The school district budget form shall show any other information recommended by the state department of education.

(3) The summary of the proposed budget form shall include:

(A) An overview of the proposed budget of the school district and the budgetary process;

(B) a summary of the changes in the proposed budget from the previous budget year;

(C) a summary of the estimated expenditures to be made and revenues to be received in the ensuing budget year and the sources of such revenue;

(D) the internet website address for school building report cards compiled by the state department of education; and

(E) any other information specified by the state department of education.

(4) Nothing in this subsection (b) shall be construed as limiting the authority of school districts to develop and provide material or information in addition to that required by the state department of education.

(5) The state department of education shall provide technical advice and assistance to school districts to insure compliance with the provisions of this section.

(c) All such budget and tax levy forms shall be printed by the division of printing in such quantity as required by the director. The director shall deliver the forms for school districts to the clerk of the board of education of each school district. The forms for all other taxing subdivisions or municipalities of the state shall be delivered by the director to the county clerk of each county, who shall deliver the same to the presiding officer of the governing body of the respective taxing subdivisions or municipalities within the county.

(d) Beginning in 2009, all such forms required by this section, shall be in an electronic format to facilitate filing such forms electronically.

History: L. 1933, ch. 316, § 2; L. 1933, ch. 121, § 2 (Special Session); L. 1941, ch. 377, § 2; L. 1969, ch. 310, § 60; L. 1970, ch. 386, § 1; L. 1971, ch. 185, § 20; L. 1974, ch. 364, § 29; L. 2003, ch. 116, § 18; L. 2008, ch. 163, § 1; July 1.

§§ 79-2926a, 79-2926b Repealed

History: L. 1933, ch. 121, §§ 3, 4 (Special Session); Repealed, L. 1941, ch. 377, § 15; June 30.

§ 79-2927 Itemized budget; parallel columns showing corresponding items and revenue; non-appropriated balances; balanced budget required, exception

(a) The governing body of each taxing subdivision or municipality shall meet not later than the first day of August of each year, and shall prepare in writing on forms furnished by the director of accounts and reports a budget itemized and classified by funds and showing amounts to be raised by taxation and from other sources for the ensuing budget year. The budget shall show in parallel columns all amounts and items to be expended for the ensuing budget year and the amounts appropriated for corresponding or other items during the current budget year and amounts expended for corresponding or other items during the preceding budget year. The budget for each fund shall not include any item for sundry or miscellaneous purposes in excess of 10% of the total. Except for school districts, municipal universities and community colleges, the budget for each fund may include a non-appropriated balance of not to exceed 5% of the total of each fund.

(b) The budget shall show in parallel columns the amount of revenue actually received from taxation and from other sources, with the amount from each source separately stated for the preceding budget year and the amount actually received and estimated to be received from taxation and from sources other than direct taxation with the amount for each source separately stated for the current budget year and also the amount estimated to be received during the ensuing budget year, with the amount estimated to be received from each source separately stated. Except as provided by K.S.A. 79-2927a, and amendments thereto, the budget of expenditures for each fund shall balance with the budget of revenues for such fund and that portion of the budget of revenues to be derived from ad valorem property taxation shall not exceed the amount of tax which can be raised by any fund limit or aggregate limit placed upon such fund.

History: L. 1933, ch. 316, § 3; L. 1941, ch. 377, § 3; L. 1970, ch. 387, § 1; L. 1989, ch. 295, § 1; L. 2003, ch. 116, § 19; July 1.

§ 79-2927a School districts; balanced budget not required; unexpended moneys

(a) When preparing the budget for a school district, the board of education of the district shall budget to expend only the amount estimated to be spent from each fund of the school district.

(b) Except as provided by this subsection, any unexpended moneys remaining in a fund of a school district at the end of the budget year may be carried forward into such fund for succeeding budget years. The provisions of this subsection shall not apply to the general fund or the supplemental general fund of the school district.

(c) Whenever unexpended moneys in a school district fund are carried forward into such fund for the succeeding budget year, the budget of the school district shall reflect the ending balance in such fund which the school district estimates will be carried forward to the succeeding budget year.

(d) If the board of education determines it is necessary to expend moneys which had been budgeted to be carried forward into the next succeeding budget year, the board shall amend its previously adopted budget. Any amended budget shall be subject to the same publication, notice and public hearing requirements as is required by K.S.A. 79-2929, and amendments thereto, for the adoption of the original budget.

History: L. 2003, ch. 116, § 20; July 1.

§ 79-2928 Repealed

History: L. 1933, ch. 316, § 4; Repealed, L. 1941, ch. 377, § 15; June 30.

§ 79-2929 Proposed budget; amendments; public hearing; notice, publication and contents

Prior to the filing of the adopted budget with the county clerk, the governing body of each taxing or political subdivision or municipality shall meet for the purpose of answering and hearing objections of taxpayers relating to the proposed budget and for the purpose of considering amendments to such proposed budget. The governing body shall give at least 10 days' notice of the time and place of the meeting by publication in a weekly or daily newspaper of the county having a general circulation therein. Such notice shall include the proposed budget and shall set out all essential items in the budget except such groupings as designated by the director of accounts and reports on a special publication form prescribed by the director of accounts and reports and furnished with the regular budget form. Such form shall also include the revenue neutral rate as provided in K.S.A. 2025 Supp. 79-2988, and amendments thereto. The notice of a governing body of any taxing subdivision or municipality having an annual expenditure of $500 or less shall specify the time and place of the meeting required by this section but shall not be required to include the proposed budget of such taxing subdivision or municipality.

History: L. 1933, ch. 316, § 5; L. 1941, ch. 377, § 4; L. 1970, ch. 387, § 2; L. 1978, ch. 402, § 1; L. 1981, ch. 173, § 79; L. 2021, ch. 9, § 6; April 1.

§ 79-2929a Amended budget; publication; electronic filing; notice; public hearing; clerical errors

(a) The governing body of any taxing subdivision or municipality which is subject to the budget law provisions of K.S.A. 79-2925 through 79-2936, and amendments thereto, which proposes to amend its adopted current budget during the year in which such budget is in effect, shall be subject to the same publication, notice and public hearing requirements as required by K.S.A. 79-2929, and amendments thereto, for the adoption of the original budget. In addition, such published budget shall show any proposed changes in the amount of expenditures, by fund. Any proposed increase in expenditures shall be balanced by previously unbudgeted increases in revenue other than ad valorem property taxes. A copy of the adopted amended budget shall be filed with the county clerk and with the director of accounts and reports. Beginning in 2009, all such budget information shall be filed electronically with the county clerk and with the director of accounts and reports.

(b) Whenever a clerical error in the calculation of the assessed valuation of any taxing subdivision or municipality which is subject to the provisions of K.S.A. 79-2925 through 79-2936, and amendments thereto, is discovered after the governing body has adopted the budget and prior to October 1, the governing body may amend such budget. Any budget amended pursuant to this subsection shall be subject to the same publication, notice and public hearing requirements as required by K.S.A. 79-2929, and amendments thereto, for the adoption of the original budget. A copy of such amended budget shall be filed with the county clerk and the director of the division of accounts and reports. Beginning in 2009, all such budget information shall be filed electronically with the county clerk and with the director of accounts and reports.

History: L. 1981, ch. 368, § 1; L. 1989, ch. 218, § 10; L. 1992, ch. 280, § 53; L. 2004, ch. 59, § 1; L. 2008, ch. 163, § 2; July 1.

§ 79-2930 Submission of adopted budgets and additional information to county clerk; electronic filing; use of budget information and tax to be levied from previous year in certain circumstances; duties of county clerk; limitation on taxes levied, exception

(a) Two copies of the budget certificate giving the amount of ad valorem tax to be levied and the total amount of the adopted budget of expenditures by fund, along with itemized budget forms for each and every fund and proof of publication of the notice of budget hearing containing the budget summary shall be presented to the county clerk within the time prescribed by K.S.A. 79-1801, and amendments thereto. All such budget information shall be filed electronically with the county clerk. Where action has been taken under any statute to increase the amount of tax to be levied authorized by law, a statement showing the increased amount or tax levy rate voted, or a copy of the charter resolution or ordinance making the change, shall be attached to the budget each year the change is in effect. If any taxing subdivision does not present or file such budget information with the county clerk by 5:00 p.m. on October 1, then the county clerk shall use the previous year's budget information and amount of ad valorem tax to be levied of such taxing subdivision.

(b) The county clerk shall make any reductions to the ad valorem tax to be levied, compute the tax levy rates based on the final equalized assessed valuation, and enter such on the budget certificate before attesting the budget, except that with regard to levies made under K.S.A. 75-2551, and amendments thereto, such levies shall be based upon the certified preliminary abstract of property values submitted to the director of property valuation pursuant to K.S.A. 79-1604, and amendments thereto. On or before December 31 each year, a copy of all budgets for taxing subdivisions of the county, properly attested, shall be filed with the director of accounts and reports, along with a copy of the tax levy rate summary. All such budget information shall be filed electronically with the director of accounts and reports.

(c) Each fund of the adopted budget certified to the county clerk in no event shall exceed the amount of ad valorem tax to be levied and the proposed expenditures of such fund in the proposed budget as originally published. The governing body of each taxing subdivision shall not certify an amount of ad valorem taxes to be levied that is in excess of any tax levy rate or amount limitations or any aggregate tax levy limitations. The governing bodies, in fixing the amount may take into consideration and make allowance for the taxes which may not be paid, except that such allowance shall not exceed by more than 5% the percentage of delinquency for the preceding tax year.

History: L. 1933, ch. 316, § 6; L. 1941, ch. 377, § 5; L. 1970, ch. 387, § 3; L. 1974, ch. 364, § 28; L. 1981, ch. 379, § 5; L. 2006, ch. 205, § 11; L. 2008, ch. 163, § 3; L. 2022, ch. 63, § 36; L. 2025, ch. 128, § 5; May 8.

§ 79-2931 Repealed

History: L. 1933, ch. 316, § 7; L. 1941, ch. 377, § 6; Repealed, L. 1970, ch. 387, § 6; March 13.

§ 79-2932 Repealed

History: L. 1933, ch. 316, § 8; L. 1941, ch. 377, § 7; Repealed, L. 1969, ch. 317, § 9; April 25.

§ 79-2933 Time for budget hearing; adoption; validity of levies

The hearing herein required to be held upon all budgets by all taxing subdivisions or municipalities of the state shall be held not less than ten (10) days prior to the date on which they shall certify their annual levies to the county clerk as required by law. After such hearing the budget shall be adopted or amended and adopted as amended, but no levy shall be made until and unless a budget is prepared, published and filed, but no levy of taxes shall be invalidated because of any insufficiency, informality, or delay in preparing, publishing and filing said budget.

History: L. 1933, ch. 316, § 9; L. 1941, ch. 377, § 8; L. 1970, ch. 387, § 4; March 13.

§ 79-2934 Funds appropriated by budget; balances; duties of clerks and officers; distribution of tax proceeds

The budget as approved and filed with the county clerk for each year shall constitute and shall hereafter be declared to be an appropriation for each fund, and the appropriation thus made shall not be used for any other purpose. No money in any fund shall be used to pay for any indebtedness created in excess of the total amount of the adopted budget of expenditures for such fund. Any balance remaining in such fund at the end of the current budget year shall be carried forward to the credit of the fund for the ensuing budget year. The clerk or secretary of each taxing subdivision or municipality shall open and keep an account of each fund, showing the total amount appropriated for each fund, and shall charge such appropriation with the amount of any indebtedness created at the time such indebtedness is incurred. If any indebtedness is reimbursed during the current budget year and the reimbursement is in excess of the amount which was shown as reimbursed expense in the budget of revenues for the current budget year, the charge made shall be reduced by the amount of the reimbursement.

No part of any fund shall be diverted to any other fund, whether before or after the distribution of taxes by the county treasurer, except as provided by law. The county treasurer shall distribute the proceeds of the taxes levied by each taxing subdivision in the manner provided by K.S.A. 12-1678a, and amendments thereto.

History: L. 1933, ch. 316, § 10; L. 1941, ch. 377, § 9; L. 1945, ch. 363, § 1; L. 1970, ch. 387, § 5; L. 1983, ch. 319, § 3; July 1.

§ 79-2935 Creation of indebtedness in excess of budget unlawful; exceptions

It shall be unlawful for the governing body of any taxing subdivision or municipality in any budget year to create an indebtedness in any manner or in any fund after the total indebtedness created against such fund shall equal the total amount of the adopted budget of expenditures for such fund for that budget year. Any indebtedness incurred by the governing body or any officer or officers of such taxing subdivision or municipality in excess of said amount shall be void as against such taxing subdivision or municipality: Provided, That indebtedness may be created in excess of the total amount of the adopted budget of expenditures for the current budget year only when payment has been authorized by a vote of the municipality, or when provision has been made for payment by the issuance of bonds, or when provision has been made for payment by the issuance of warrants authorized by the commission in accordance with the provisions of K.S.A. 79-2938, 79-2939 and 79-2940.

History: L. 1933, ch. 316, § 11; L. 1941, ch. 377, § 10; June 30.

§ 79-2936 Removal from office for violation

Any member of the governing body, or any other officer of any taxing subdivision or municipality of the state, who violates any of the provisions of this act shall be subject to removal from office.

History: L. 1933, ch. 316, § 12; L. 1941, ch. 377, § 14; June 30.

§ 79-2937 Invalidity of part

If any section, clause, sentence, paragraph, part or provision of this act shall be held invalid by any court it shall be conclusively presumed that this act would have been passed by the legislature without such invalid section, clause, sentence, paragraph, part or provision, and the act as a whole shall not be declared invalid by reason of the fact that one or more sections, clauses, sentences, paragraphs, parts or provisions may be held invalid by any court.

History: L. 1933, ch. 316, § 13; March 24.

§ 79-2938 No-fund warrants for shortages in revenue, when; procedure; limitation of amount; notice and hearing; protests; tax levy to pay

Whenever during the current budget year it becomes apparent to the governing body of any taxing district that because of unforeseen circumstances the revenues of the current budget year for any fund are insufficient to finance the adopted budget of expenditures for such fund for the current budget year, the governing body may make application to the state board of tax appeals for authority to issue warrants to pay for such budgeted expenditures. The application shall be signed and sworn to, and shall have a majority approval of any governing body composed of three members or less, and a ¾ majority of any governing body composed of more than three members. The application shall reveal the following: (1) The circumstances which caused the shortage in revenues; (2) a copy of the budget adopted for the current budget year; and (3) a detailed statement showing why the budget of expenditures cannot be reduced during the remainder of the current budget year so that additional revenue will not be necessary. If the state board of tax appeals shall find that the evidence submitted in writing in support of the application shows:

(a) That the adopted budget of revenues balanced with the adopted budget of expenditures;

(b) that the governing body exercised prudent judgment at the time of preparing the budget of revenues; and

(c) that the budget of expenditures cannot be reduced during the remainder of the current budget year so that additional revenue will not be necessary, the state board of tax appeals is empowered to authorize the issuance of warrants for the payment of that portion, in dollars, of the unfinanced budget of expenditures which the state board of tax appeals deems necessary. The amount of such warrants for any fund of any taxing district shall not exceed 25% of the amount of money that could have been raised by levy for such fund under the individual fund limit for the payment of expenses for the current budget year, nor shall the amount of such warrants for any fund, of any taxing district exceed 25% of the amount of money that could have been raised by levy for such fund under the limitation placed upon such fund by reason of the aggregate limit, and in no case shall the total amount of such warrants for all funds exceed 25% of the amount of money that could have been raised by levy within the aggregate limit prescribed by law for such taxing district for the payment of expenses of the current budget year. The limitations of the foregoing provision shall have no application to funds for payment of general obligation bonds and interest thereon.

No order for the issuance of such warrants shall be made without a public hearing before the state board of tax appeals conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the district applying for such authority at least 10 days prior to such hearing. The notice shall be in such form as the state board of tax appeals prescribes, and the expense of such publication shall be borne by the taxing district making application. Any taxpayer interested may file a written protest against such application. Any member of the governing body of the taxing district making an application hereunder may appear and be heard in person at such hearing in support of the application. All records and findings of such hearings shall be subject to public inspection. Whenever the authority to issue warrants under this section is granted, the governing body of such taxing district shall make a tax levy, at the first tax-levying period after such authority is granted, sufficient to pay such warrants, and such tax levy may be levied outside of the aggregate tax levy limit prescribed by law.

History: L. 1941, ch. 377, § 11; L. 1963, ch. 480, § 1; L. 1976, ch. 424, § 2; L. 1988, ch. 356, § 325; L. 2008, ch. 109, § 106; L. 2014, ch. 141, § 113; July 1.

§ 79-2939 No-fund warrants for emergencies, when; procedure; limitation of amount; notice and hearing; protests; tax levy to pay

Whenever there is an unforeseen occurrence which causes an expense in any fund of any municipality or other taxing district which could not have been anticipated at the time the budget for the current budget year was prepared, and by reason of such unforeseen occurrence the governing body of any such municipality or taxing district is of the opinion that it will be impossible to pay for such unforeseen expense and pay for the imperative functions of the fund without incurring indebtedness in excess of the adopted budget of expenditures for the current budget year, the governing body may make application to the state board of tax appeals for authority to issue no-fund warrants to pay for such unforeseen expense. The application shall be signed and sworn to, and shall have a majority approval of any governing body composed of three members or less, and a ¾ majority of any governing body composed of more than three members. The application shall reveal: (1) The nature of the unforeseen occurrence; (2) a copy of the final budget adopted for the current budget year; and (3) a detailed statement showing why the budgeted expenditures for the current budget year cannot be reduced during the remainder of the current budget year so that the total expenditure for the current budget year, including the unforeseen expense, will not exceed the adopted budget. If the state board of tax appeals shall find that the evidence submitted in writing in support of the application shows:

(a) There was an occurrence which could not have been foreseen at the time the budget for the current budget year was prepared; and

(b) that from the time of such unforeseen occurrence to the end of the current budget year it will be impossible to reduce the expenditures of the adopted budget to the extent the total expenditure for the current budget year, including the unforeseen expense, will not exceed the adopted budget, the state board of tax appeals is empowered to authorize the issuance of warrants for the payment of that portion, in dollars, of such unforeseen expense which must be in excess of the adopted budget. The amount of such warrants for a public utility fund shall not exceed the amount of money on hand in the utility fund not required for budgeted expenses. The amount of such warrants for any fund, excepting public utility funds, of any municipality or other taxing district, other than a township, shall not exceed the amount of money that could have been raised by levy for such fund under the individual fund limit for the payment of expenses of the current budget year, nor shall the amount of such warrants for any fund, of any municipality or other taxing district, other than a township, exceed the amount of money that could have been raised by levy for such fund under the limitation placed upon such fund by reason of the aggregate limit, and in no case shall the total amount of such warrants for all such tax funds, other than warrants issued by a township, exceed the amount of money that would have been raised by levy within the aggregate limit prescribed by law for such municipality or other taxing district for the payment of expenses of the current budget year.

No order for the issuance of such warrants shall be made without a public hearing before the state board of tax appeals conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the district applying for such authority at least 10 days prior to such hearing. The notice shall be in such form as the state board of tax appeals prescribes, and the expense of such application shall be borne by the municipality or taxing district making application. Any taxpayer interested may file a written protest against such application. Any member of the governing body of the municipality or other taxing district making application hereunder may appear and be heard in person at such hearing in support of the application. All records and findings of such hearings shall be subject to public inspection.

Whenever the authority to issue warrants under this section is granted, the governing body of such municipality or other taxing district shall make not more than five equal annual tax levies, as determined by the state board of tax appeals, except as to any public utility funds, at the next succeeding tax-levying periods after such authority is granted, sufficient to pay such warrants, and such tax levy or levies may be levied outside of the aggregate tax levy limit prescribed by law. If there is money in the fund over and above the amount needed for the adopted budget, such money shall be used and the tax levy or levies shall be only for the difference, if any, between the money available and the amount of warrants issued. Any municipality having a surplus in any public utility fund may use such surplus to pay the warrants authorized by the state board of tax appeals under this section. When the money must be raised by a tax levy the taxing unit may issue and sell at par no-fund warrants in multiples of $100 and place the money in the fund and issue regular warrants in the usual manner. Whenever any municipality or taxing district receives insurance money in payment of damage occasioned by the unforeseen occurrence, and authority to issue warrants is authorized by the state board of tax appeals under this section, such insurance money shall be deposited with the county treasurer immediately and used by the county treasurer in lieu of ad valorem taxes as provided in K.S.A. 79-2940, and amendments thereto. This section shall not require a deposit of insurance money in excess of the total amount of such warrants and interest thereon.

History: L. 1941, ch. 377, § 12; L. 1947, ch. 456, § 1; L. 1975, ch. 499, § 1; L. 1976, ch. 424, § 3; L. 1981, ch. 383, § 1; L. 1988, ch. 356, § 326; L. 2008, ch. 109, § 107; L. 2014, ch. 141, § 114; July 1.

§ 79-2939a Expired

History: L. 1981, ch. 383, § 2; April 17; Expired, January 1, 1983.

§ 79-2939b No-fund warrants to cover the failure of receipt of motor vehicle tax

To finance needed expenditures and to avoid violations of the cash basis law resulting from the failure of receipts from the special tax on motor vehicles to equal the amount budgeted therefrom, the governing body of any city may, during the calendar year 1981, issue no-fund warrants. The amount of such warrants shall not exceed the difference between the amount budgeted as receipts from 1981 from the special tax on motor vehicles and the amount actually received from such tax in 1981. The resolution providing for the issuance of such no-fund warrants may authorize the city clerk or other finance officer of the city, subject to the approval of the mayor or city manager of such city, to sell such amounts of the authorized warrants as may be necessary. Moneys not immediately needed in any fund of the city may be invested in such no-fund warrants. Such resolution shall provide for the redemption during 1982 of any warrants which are actually sold, with the principal and interest thereon payable from receipts from the special motor vehicle tax revenue of the city.

History: L. 1981, ch. 60, § 1; July 1.

§ 79-2940 No-fund warrants; issuance, interest, form, registration, redemption and transfer of surplus funds to general fund

A certified copy of orders issued by the state board of tax appeals authorizing the issuance of warrants in accordance with the provisions of K.S.A. 79-2938 and 79-2939, and amendments thereto, shall be delivered by the state board of tax appeals to the county treasurer, county clerk, and clerk of the municipality or other taxing district. Warrants issued thereunder shall be issued in like manner as other warrants, or such warrants in multiples of $100 not exceeding the amount authorized and to be raised by tax levy may be issued and sold at par and the money placed in the fund and paid out on regular warrants, and the warrants or single warrant issued under this section shall bear interest at the rate of not more than the maximum rate of interest prescribed by K.S.A. 10-1009, and amendments thereto, except that such warrants shall be made payable at the office of the county treasurer, shall be designated on their face as "no-fund warrants," and shall also bear the notation "issued pursuant to authority granted by order No. ______, dated ______________ of the state board of tax appeals."

Such warrants, when presented to the county treasurer, shall be registered in accordance with the provisions of K.S.A. 10-807 and 10-808, and amendments thereto. No warrants shall be registered in excess of the amount authorized by the state board of tax appeals. The county treasurer shall maintain a separate register for such warrants and all warrants issued under a particular order of the state board of tax appeals shall be registered under the particular order number in the register. When the tax levy to redeem warrants issued under K.S.A. 79-2938 and 79-2939, and amendments thereto, is made, the county treasurer shall keep the proceeds of such tax levy in a separate fund and charge the warrants against such fund when paid. In the event a surplus exists in any such fund at any tax levying time, the county treasurer shall certify the amount of such surplus to the county clerk and the county clerk shall deduct the levy equivalent of such surplus from the general fund tax levy of such district, and the maximum general fund levy and aggregate limit of such taxing district shall be reduced accordingly, and that amount of surplus shall be considered and used as revenue in lieu of ad valorem taxes for such taxing district.

On January 1 following such action by the county clerk, and in that event only, the county treasurer shall transfer to the general fund of such taxing district the amount of surplus as used by the county clerk in reducing ad valorem taxes, except that the governing body of any city may request, by resolution, that the county treasurer pay to the city treasurer all money collected from the levy for the payment of emergency warrants. Upon presentation of such resolution, the county treasurer shall pay to the city treasurer all moneys collected from the levy for the payment of such warrants and the city treasurer shall deposit the money in the bond and interest fund and redeem the emergency warrants for which such levy was made and shall forthwith exhibit such redeemed warrants to the county treasurer who shall record such redemption in the warrant register. The provisions of this act shall not apply to utilities managed, operated and controlled by a board of public utilities as provided for by chapter 126 of the Laws of Kansas for 1929.

History: L. 1941, ch. 377, § 13; L. 1943, ch. 303, § 1; L. 1947, ch. 456, § 2; L. 1970, ch. 64, § 90; L. 1985, ch. 321, § 1; L. 2008, ch. 109, § 108; L. 2014, ch. 141, § 115; July 1.

§ 79-2941 Warrants for emergencies, when; procedure; limitation of amount; notice and hearing

Whenever it shall be apparent to a majority of the members of any board authorized to levy taxes in any taxing district in any county adjoining a United States army post or military reservation, or to any officer solely charged with that duty therein, that the rates of levy in the particular taxing district under consideration are so limited as to be insufficient for the raising of funds necessary to supply the needs of such taxing district for general maintenance expenses for the current tax year, such officers or officer shall have the authority to issue warrants to meet such general maintenance expenses for the current tax year to the amount of money not exceeding 50% of the amount of money which can be raised in such taxing district by using the rates limited by law. No such authority to issue warrants shall be exercised until an application for such exercise shall be made to the state board of tax appeals, which body, if the evidence submitted in support of the application shall show an emergency need for the issue of warrants for the additional amount hereby authorized or any part thereof, is hereby empowered to order the issuance of such warrants as may be shown to be necessary, but no order for the issuance of such warrants shall be made without a public hearing before the state board of tax appeals conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the district applying for such authority at least 10 days prior to such hearing.

The notice shall be in such form as the state board of tax appeals shall prescribe, and the expense of such publication shall be borne by the district making application. At no time shall the issuance of such warrants authorized by the state board of tax appeals in any such taxing district exceed in amount 50% of the amount of money that can be raised by taxation in any such district for the current tax year under the existing rates.

History: L. 1941, ch. 371, § 1; L. 1988, ch. 356, § 327; L. 2008, ch. 109, § 109; L. 2014, ch. 141, § 116; July 1.

§ 79-2942 Same; tax levy to pay

Whenever any board or officer shall issue warrants under the authority prescribed in K.S.A. 79-2941, the said board or officer is authorized and empowered to fix the rates of levy in such district which will raise an amount of money sufficient to pay and discharge such warrants. Such rate of levy shall be in addition to the rate authorized or limited by law at the time of making such levy: Provided, That the amount of such warrants shall not exceed by more than fifty percent the amount of money that could be raised by taxation in any such district for the year in which the indebtedness represented by the warrants was incurred.

History: L. 1941, ch. 371, § 2; June 30.

§§ 79-2943, 79-2944 Repealed

History: L. 1943, ch. 257, §§ 1, 2; Repealed, L. 1951, ch. 478, § 1; June 30.

§§ 79-2945 through 79-2947 Repealed

History: L. 1949, ch. 399, §§ 1 to 3; Repealed, L. 1970, ch. 387, § 6; L. 1970, ch. 402, § 28; L. 1970, ch. 388, § 1; July 1.

§§ 79-2948 through 79-2950 Repealed

History: L. 1949, ch. 387, §§ 1 to 3; Repealed, L. 1970, ch. 387, § 6; L. 1970, ch. 402, § 28; L. 1970, ch. 388, § 1; July 1.

§ 79-2951 No-fund warrants for emergencies in certain cities of second class, when; procedure; limitation of amount; notice and hearing; protests; tax levy to pay

Whenever there is an unforeseen occurrence which causes an expense in any fund of any city of the second class having a population over 3,000 and located in a county having a population of not less than 14,000 nor more than 16,000 with a total assessed tangible valuation under $30,000,000 which could not have been anticipated at the time the budget for the current budget year was prepared, and by reason of such unforeseen occurrence the governing body of any such city is of the opinion that it will be impossible to pay for such unforeseen expense and pay for the imperative functions of such fund without incurring indebtedness in excess of the adopted budget of expenditures for the current budget year, the governing body may make application to the state board of tax appeals for authority to issue warrants to pay for such unforeseen expense. The application shall be signed and sworn to, and shall have a majority approval of any governing body composed of three members or less, and a ¾ majority of any governing body composed of more than three members. The application shall reveal: (1) The nature of the unforeseen occurrence; (2) a copy of the final budget adopted for the current budget year; and (3) a detailed statement showing why the budgeted expenditures for the current budget year cannot be reduced during the remainder of the current budget year so that the total expenditure for the current budget year, including the unforeseen expense, will not exceed the adopted budget. If the board shall find that the evidence submitted in writing in support of the application shows:

(a) There was an occurrence which could not have been foreseen at the time the budget for the current budget year was prepared; and

(b) that from the time of such unforeseen occurrence to the end of the current budget year it will be impossible to reduce the expenditures of the adopted budget to the extent the total expenditure for the current budget year, including the unforeseen expense, will not exceed the adopted budget, the board is empowered to authorize the issuance of warrants for the payment of that portion, in dollars, of such unforeseen expense which must be in excess of the adopted budget. The amount of such warrants for a public utility fund shall not exceed the amount of money on hand in the utility fund not required for budgeted expenses. The amount of such warrants for any fund, excepting public utility funds, of any such city shall not exceed 50% of the amount of money that could have been raised by levy for such fund under the individual fund limit for the payment of expenses of the current budget year nor shall the amount of such warrants for any fund, of any such city exceed 50% of the amount of money that could have been raised by levy for such fund under the limitation placed upon such fund by reason of the aggregate limit. In no case shall the total amount of such warrants for all such tax funds exceed 50% of the amount of money that could have been raised by levy within the aggregate limit prescribed by law for such city for the payment of expenses of the current budget year.

No order for the issuance of such warrants shall be made without a public hearing before the board conducted in accordance with the provisions of the Kansas administrative procedure act. In addition to notice to the parties, notice of such hearing shall be published in two issues of a paper of general circulation within the city applying for such authority at least 10 days prior to such hearing. The notice shall be in such form as the board shall prescribe, and the expense of such application shall be borne by the taxing district making application. Any taxpayer interested may file a written protest against such application. All records and findings of such hearings shall be subject to public inspection. That whenever the authority to issue warrants under this section is granted, the governing body of such city shall make a tax levy, except as to any public utility funds, at the first tax levying period after such authority is granted, sufficient to pay such warrants, and such tax levy may be levied outside of the aggregate tax levy limit prescribed by law. If there is money in the fund over and above the amount needed for the adopted budget such money shall be used and the tax levy shall be only for the difference, if any, between the money available and the amount of warrants issued. Any such city having a surplus in any public utility fund may use such surplus to pay the warrants authorized by the board under this section. When the money must be raised by a tax levy such city may issue and sell at par no-fund warrants in multiples of $100 as hereinafter provided and place the money in the fund and issue regular warrants in the usual manner. Whenever any such city receives insurance money in payment of damage occasioned by the unforeseen occurrence, and authority to issue warrants is authorized by the board under this section, such insurance money shall be deposited with the county treasurer immediately and used by the county treasurer in lieu of ad valorem taxes as provided in K.S.A. 79-2940, and amendments thereto. This section shall not require a deposit of insurance money in excess of the total amount of such warrants and interest thereon.

History: L. 1951, ch. 181, § 1; L. 1988, ch. 356, § 328; L. 2008, ch. 109, § 110; L. 2014, ch. 141, § 117; July 1.

§ 79-2952 Same; application of K.S.A. 79-2940

No-fund warrants issued under the authority conferred by K.S.A. 79-2951 shall be issued, registered, redeemed, and bear interest in the manner and in the form prescribed by K.S.A. 79-2940. Any surplus existing after the redemption of such warrants shall be handled in the manner prescribed by said K.S.A. 79-2940. None of the provisions of the budget law shall apply to any expenditures made, the payment of which has been provided for by the issuance of warrants under this act.

History: L. 1951, ch. 181, § 2; March 26.

§ 79-2953 Repealed

History: L. 1955, ch. 428, § 1; L. 1959, ch. 386, § 1; Repealed, L. 1970, ch. 387, § 6; L. 1970, ch. 402, § 28; L. 1970, ch. 388, § 1; July 1.

§§ 79-2954, 79-2955 Repealed

History: L. 1955, ch. 428, §§ 2, 3; Repealed, L. 1970, ch. 387, § 6; L. 1970, ch. 402, § 28; L. 1970, ch. 388, § 1; July 1.

§§ 79-2956, 79-2957 Repealed

History: L. 1959, ch. 286, §§ 1, 2; Repealed, L. 1970, ch. 387, § 6; L. 1970, ch. 402, § 28; L. 1970, ch. 388, § 1; July 1.

§ 79-2958 Transfer of certain unexpended balances of tax funds to general fund

Whenever there shall remain in any fund of any taxing subdivision of the state moneys received from the levy of a tax and belonging to such fund, after all indebtedness and obligations of such fund have been fully paid and cancelled, it shall be the duty of the treasurer of such taxing subdivision to report such fact to the governing body thereof. If such governing body shall find and determine that the unexpended balance stating the amount in such fund is not presently and will not in the future be required for the purpose for which it was levied due to the fact that all indebtedness and obligations of such fund have been fully paid and cancelled and such purpose has been discontinued or for any reason no longer exists, such money shall belong to such taxing subdivision the same as if it had been levied and collected for general purposes. The clerk of the taxing subdivision shall, at the time of certifying the next budget and tax levies to the county clerk, certify a copy of the action of the governing body to the county clerk and the county clerk shall deduct the levy equivalent of the amount shown in the certification from the tax levy for general purposes of the taxing subdivision and the maximum levy for the general purposes fund and the aggregate limit of the taxing subdivision shall be reduced accordingly, and said amount shall be considered and used as revenue in lieu of ad valorem taxes for such taxing subdivision. The treasurer of the taxing subdivision shall, at the beginning of the budget year for which the levy was reduced, credit the fund for general purposes the amount as stated in the determination and close out the fund for which the discontinued levy had been made. Should any back taxes for such levy afterwards be received by the taxing subdivision, it shall be credited to the fund for general purposes.

History: L. 1965, ch. 162, § 1; June 30.

§ 79-2959 Repealed

Revisor's Note: Section was amended twice in 1992 session, see also 79-2959a.

History: L. 1965, ch. 530, § 6; L. 1970, ch. 389, § 5; L. 1971, ch. 306, § 1; L. 1973, ch. 292, § 53; L. 1974, ch. 436, § 1; L. 1976, ch. 311, § 16; L. 1978, ch. 401, § 6; L. 1983, ch. 322, § 1; L. 1983, ch. 323, § 1; L. 1987, ch. 383, § 1; L. 1988, ch. 380, § 3; L. 1990, ch. 350, § 8; L. 1992, ch. 280, § 62; L. 1993, ch. 292, § 72; L. 1995, ch. 222, § 17; L. 1996, ch. 191, § 152; L. 1997, ch. 123, § 113; L. 2000, ch. 130, § 103; L. 2001, ch. 144, § 167; L. 2001, ch. 216, § 65; L. 2002, ch. 204, § 161; L. 2003, ch. 3, § 21; L. 2003, ch. 138, § 126; L. 2004, ch. 123, § 172; L. 2005, ch. 174, § 182; L. 2006, ch. 142, § 160; L. 2006, ch. 205, § 12; L. 2007, ch. 167, § 196; L. 2008, ch. 131, § 168; L. 2009, ch. 124, § 140; L. 2010, ch. 165, § 150; L. 2011, ch. 118, § 185; L. 2013, ch. 136, § 274; L. 2015, ch. 104, § 244; L. 2017, ch. 104, § 238; L. 2019, ch. 68, § 177; L. 2020, ch. 5, § 167; L. 2021, ch. 98, § 185; L. 2022, ch. 81, § 185; L. 2023, ch. 82, § 182; L. 2024, ch. 88, § 189; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2959a Repealed

History: L. 1965, ch. 530, § 6; L. 1970, ch. 389, § 5; L. 1971, ch. 306, § 1; L. 1973, ch. 292, § 53; L. 1974, ch. 436, § 1; L. 1976, ch. 311, § 16; L. 1978, ch. 401, § 6; L. 1983, ch. 322, § 1; L. 1983, ch. 323, § 1; L. 1987, ch. 383, § 1; L. 1988, ch. 380, § 3; L. 1990, ch. 350, § 8; L. 1992, ch. 327, § 83; Repealed, L. 1993, ch. 292, § 88; June 10.

§ 79-2959b Abolishment of fund; transfer of moneys and liabilities to state general fund

On July 1, 2024, the director of accounts and reports shall transfer all moneys in the local ad valorem tax reduction fund to the state general fund. On July 1, 2024, all liabilities of the local ad valorem tax reduction fund are hereby transferred to and imposed on the state general fund, and the local ad valorem tax reduction fund is hereby abolished.

History: L. 2024, ch. 1, § 1 (Special Session); June 27.

§ 79-2960 Repealed

History: L. 1965, ch. 530, § 7; L. 1974, ch. 436, § 2; L. 1983, ch. 322, § 2; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2961 Repealed

History: L. 1965, ch. 530, § 8; L. 1973, ch. 292, § 54; L. 1974, ch. 436, § 3; L. 1982, ch. 65, § 2; L. 1983, ch. 323, § 2; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2962 Repealed

History: L. 1965, ch. 530, § 9; L. 1974, ch. 436, § 4; L. 1991, ch. 281, § 1; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2963 Notice of amount of tax levies to be expressed in dollars

In addition to all other requirements now provided by law, whenever the amount of any ad valorem tax levy is required by law to be stated in any notice, upon any ballot, in any proposed budget or in any other form for the purpose of giving notice of the amount thereof to the electors or taxpayers of any taxing subdivision of the state of Kansas, the amount of such levy shall be expressed at a rate in dollars or fraction thereof upon each $1,000 of assessed valuation.

History: L. 1972, ch. 370, § 1; L. 1984, ch. 354, § 2; July 1.

§ 79-2964 Repealed

Revisor's Note: Section was amended twice in 1992 session, see also 79-2964a.

History: L. 1978, ch. 401, § 1; L. 1983, ch. 324, § 1; L. 1983, ch. 325, § 2; L. 1987, ch. 383, § 2; L. 1988, ch. 380, § 4; L. 1990, ch. 350, § 9; L. 1992, ch. 280, § 63; L. 1993, ch. 292, § 73; L. 1995, ch. 222, § 18; L. 1996, ch. 191, § 153; L. 1997, ch. 123, § 114; L. 1998, ch. 203, § 164; L. 1999, ch. 132, § 94; L. 1999, ch. 160, § 53; L. 2000, ch. 130, § 104; L. 2001, ch. 144, § 168; L. 2001, ch. 216, § 66; L. 2002, ch. 204, § 162; L. 2003, ch. 3, § 22; L. 2003, ch. 138, § 127; L. 2004, ch. 123, § 173; L. 2005, ch. 174, § 183; L. 2006, ch. 142, § 161; L. 2007, ch. 167, § 197; L. 2008, ch. 131, § 169; L. 2009, ch. 124, § 141; L. 2010, ch. 165, § 151; L. 2011, ch. 118, § 186; L. 2012, ch. 175, § 161; L. 2013, ch. 136, § 275; L. 2015, ch. 104, § 245; L. 2017, ch. 104, § 239; L. 2019, ch. 68, § 178; L. 2020, ch. 5, § 168; L. 2021, ch. 98, § 186; L. 2022, ch. 81, § 186; L. 2023, ch. 82, § 183; L. 2024, ch. 88, § 190; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2964a Repealed

History: L. 1978, ch. 401, § 1; L. 1983, ch. 324, § 1; L. 1983, ch. 325, § 2; L. 1987, ch. 383, § 2; L. 1988, ch. 380, § 4; L. 1990, ch. 350, § 9; L. 1992, ch. 327, § 84; Repealed, L. 1993, ch. 292, § 88; June 10.

§ 79-2964b Abolishment of fund; transfer of moneys and liabilities to state general fund

On July 1, 2024, the director of accounts and reports shall transfer all moneys in the county and city revenue sharing fund to the state general fund. On July 1, 2024, all liabilities of the county and city revenue sharing fund are hereby transferred to and imposed on the state general fund, and the county and city revenue sharing fund is hereby abolished.

History: L. 2024, ch. 1, § 2 (Special Session); June 27.

§ 79-2965 Repealed

History: L. 1978, ch. 401, § 2; L. 1983, ch. 325, § 1; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2966 Repealed

History: L. 1978, ch. 401, § 3; L. 1982, ch. 65, § 3; L. 1983, ch. 324, § 2; L. 1991, ch. 281, § 2; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2967 Repealed

History: L. 1978, ch. 401, § 4; Repealed, L. 2024, ch. 1, § 22 (Special Session); July 1.

§ 79-2968 Rate of interest on delinquent or unpaid taxes and overpayments of taxes

Except as otherwise specifically provided by law, whenever interest is charged under any law of this state upon any delinquent or unpaid taxes levied or imposed by the state of Kansas or any taxing subdivision thereof, or whenever interest is allowed under any law of this state upon any overpayment of taxes levied or imposed by the state of Kansas or any taxing subdivision thereof, the rate thereof shall be the underpayment rate per annum prescribed and determined under paragraph (2) of subsection (a) of section 6621, without regard to subsection (c) thereof, of the federal internal revenue code, as in effect on September 1, 1996, and which rate is in effect thereunder on July 1 of the year immediately preceding the calendar year for which the rate is being annually fixed hereunder, plus one percentage point, if computed annually. Beginning on January 1, 2012, the rate for property tax delinquencies or underpayments of $10,000 or more shall be as provided for under this section or 10% per annum, whichever is greater.

In the event the interest rate prescribed under this section cannot be determined by reference to section 6621 of the federal internal revenue code, as in effect on September 1, 1996, the rate at which interest shall be collected on underpayments shall be the rate prescribed by K.S.A. 16-204, and amendments thereto, for interest on judgments for the applicable period.

History: L. 1980, ch. 308, § 1; L. 1994, ch. 85, § 1; L. 1997, ch. 126, § 1; L. 2011, ch. 88, § 5; July 1.

§ 79-2969 Presumption of timely remittance of excise or income tax, when; allowance of delivery by private delivery services

From and after July 1, 1997, whenever any statute requiring the remittance of an excise or income tax prescribes a due date therefor, such due date shall be deemed to be complied with, and no penalties shall be imposed for late payment, if such payment is mailed on the statutorily prescribed due date as reflected by the postmark on the envelope containing the payment. The use of private delivery services shall be allowed by the secretary of revenue, and the determination of timely filing regarding such services shall be made, in the same manner and to the same extent as provided by section 7502 of the federal internal revenue code of 1986, as in effect on September 1, 1996.

History: L. 1984, ch. 351, § 26; L. 1997, ch. 126, § 15; July 1.

§ 79-2970 Interest tolled after hearings held by director of taxation

No interest shall accrue on the amount of the assessment of tax subject to a hearing held by the director of taxation pursuant to chapter 79 of the Kansas Statutes Annotated beyond 120 days after the date the matter was fully submitted, except that, if a final order is issued within such time period, interest shall continue to accrue until such time as the tax liability is fully satisfied, and if a final order is issued beyond such time period, interest shall recommence to accrue from the date of such order until such time as the tax liability is fully satisfied.

History: L. 1987, ch. 293, § 2; July 1.

§ 79-2971 Responsibility for collection of certain excise taxes; personal liability imposed

(a) Any individual who is responsible for collection or payment of excise taxes imposed under the provisions of K.S.A. 12-1692 et seq., 12-1696 et seq., 41-501 et seq., 79-3301 et seq., 79-3370 et seq., 79-3401 et seq., 79-3490 et seq., 79-34,108 et seq., 79-3817 et seq., 79-4101 et seq. or 79-41a01, and amendments thereto, or for control, receipt, custody or disposal of funds due and owing under such acts who willfully fails to collect such tax, or account for and pay over such tax, or attempts in any manner to evade or defeat such tax or the payment thereof shall be personally liable for the total amount of the tax evaded, or not collected, or not accounted for and paid over, together with any interest and penalty imposed thereon. The provisions of this section shall apply regardless of the: (1) Relationship with the taxpayer held by such individual; (2) form under which the taxpayer conducts business, whether a sole proprietorship, partnership or corporation; or (3) dissolution of the business. As used in this section, "willfully" has the same meaning as such term has for federal tax purposes in 26 U.S.C. § 6672.

(b) A notice of assessment issued to a responsible individual shall be considered to be a proceeding for the collection of the tax liability of the business. If the liability of the business is determined in a proceeding that has become final, any notice of assessment to a responsible individual must be issued within three years after the proceeding against the business became final.

(c) Within 60 days after the mailing of a notice of assessment to a responsible individual, the person assessed may request an informal conference with the secretary of revenue under K.S.A. 79-3226, and amendments thereto, for a determination of whether such person is a responsible individual under subsection (a), and for a determination of the tax liability of the business.

(d) If a notice of assessment and a warrant are issued to a responsible individual pursuant to a jeopardy provision of chapter 79 of the Kansas Statutes Annotated, the person assessed may request that the informal conference held pursuant to subsection (c) be expedited. When such a request is made, the secretary shall schedule the conference to be held within 21 days after receipt of the request and shall issue a written final determination within 21 days after the close of the conference.

History: L. 1989, ch. 284, § 1; L. 1992, ch. 106, § 4; L. 1999, ch. 94, § 9; L. 2010, ch. 123, § 7; April 29.

§ 79-2972 Expired

History: L. 1989, ch. 2, § 6 (Special Session); December 14; Expired, December 31, 1990.

§ 79-2973 Payment of taxes and fees by credit card authorized

(a) The director of taxation, any county treasurer and any authorized employee or agent of the director or treasurer may accept credit cards in payment of any of the taxes or fees administered by the director or collected by the county treasurer. The type of credit cards accepted shall be at the discretion of the director or the county treasurer.

(b) The director and the county treasurer may set a fee to be added to each credit card transaction equal to the charge paid by the state, county treasurer or the taxpayer for the use of the credit card by the taxpayer. Except for the fees imposed under this section, no other fees may be imposed by the director or county treasurer.

(c) In no event shall the director or county treasurer discount or otherwise reduce the tax liability of a taxpayer who has elected to use a credit card for payment of the tax liability.

History: L. 1994, ch. 129, § 1; July 1.

§ 79-2974 Publication of administrative rulings of the department of revenue

The secretary of revenue shall make available in a medium readily accessible to taxpayers all administrative rulings of the department of revenue which affect the duties and responsibilities of taxpayers pursuant to any law administered by the department of revenue. Private letter rulings and written final determinations of the secretary or the designee of the secretary shall be provided in such a manner as to conceal the identity of the specific taxpayer for whom the private letter ruling was issued. The secretary shall cause to be published in the Kansas register a description of each such administrative ruling within 30 days of such ruling together with specific instructions as to how the complete text of the administrative ruling may be obtained. As used in this section, administrative rulings shall include revenue notices, revenue rulings, information guides, policy directives, private letter rulings, written final determinations of the secretary or the designee of the secretary and directives of the division of property valuation or its director.

History: L. 1997, ch. 126, § 4; L. 2000, ch. 184, § 23; July 1.

§ 79-2975 Pending appeals, date for final determination

The secretary of revenue or the secretary's designee shall issue a written final determination for any appeal which is pending before the director on the effective date of this act on or before October 1, 1998. In the event a taxpayer has timely requested a hearing before the director of taxation pursuant to K.S.A. 79-3226, as in effect prior to the effective date of this act, and whether or not such hearing was conducted, the taxpayer shall be deemed to have requested an informal conference pursuant to K.S.A. 79-3226, and amendments thereto.

History: L. 1997, ch. 126, § 14; July 1.

§ 79-2976 Property tax levied in 2003; state general fund; effective date

(a) There is hereby levied in the year 2003, a state tax of .6 mill upon all taxable tangible property in the state. Such tax levy shall be in addition to all other state tax levies authorized by law. Such tax levy shall be for the use and benefit of the state general fund.

(b) The county treasurer of each county shall make the proceeds of the tax levy provided for in this section available to the state treasurer immediately upon collection. When available the state treasurer shall withdraw from each county the proceeds of the taxes raised by such tax levy. Upon such withdrawal the state treasurer shall deposit the same in the state treasury.

(c) All moneys received by the state treasurer under this section shall be credited to the state general fund.

(d) The provisions of this section shall not take effect and no tax shall be levied under this section unless the notice prescribed by section 15 of this act has been published in the Kansas register on or before September 30, 2003. If the notice has been published as prescribed by section 15 of this act [L. 2003, ch. 146, § 15] in the Kansas register on or before September 30, 2003, then the provisions of this section shall take effect and be in force from and after October 1, 2003.

History: L. 2003, ch. 146, § 11; July 1.

§ 79-2977 Amnesty from assessment or payment of penalties and interest with respect to specified taxes; requirements and procedures

(a) (1) Notwithstanding the provisions of any other law to the contrary, with respect to the following taxes administered by the department of revenue, an amnesty from the assessment or payment of all penalties and interest with respect to unpaid taxes or taxes due and owing shall apply upon compliance with the provisions of this section and if such tax liability is paid in full within the amnesty period, from October 1, 2003, to November 30, 2003: (A) Privilege tax under K.S.A. 79-1106 et seq., and amendments thereto; (B) taxes under the Kansas estate tax act, K.S.A. 79-15,100 et seq., and amendments thereto; (C) taxes under the Kansas income tax act, K.S.A. 79-3201 et seq., and amendments thereto; (D) taxes under the Kansas withholding and declaration of estimated tax act, K.S.A. 79-3294 et seq., and amendments thereto; (E) taxes under the Kansas cigarette and tobacco products act, K.S.A. 79-3301 et seq., and amendments thereto; (F) taxes under the Kansas retailers' sales tax act, K.S.A. 79-3601 et seq., and amendments thereto and the Kansas compensating tax act, K.S.A. 79-3701 et seq., and amendments thereto; (G) local sales and use taxes under K.S.A. 12-187 et seq., and amendments thereto; (H) liquor enforcement tax under K.S.A. 79-4101 et seq., and amendments thereto; (I) liquor drink tax under K.S.A. 79-41a01 et seq., and amendments thereto; and (J) mineral severance tax under K.S.A. 79-4216 et seq., and amendments thereto.

(2) Except for the Kansas privilege tax and individual and corporate income tax, amnesty shall apply only to tax liabilities due and unpaid for tax periods ending on or before December 31, 2002. For the Kansas privilege tax and individual and corporate income tax, amnesty shall apply only to tax liabilities due and unpaid for tax periods ending on or before December 31, 2001. For the eligible taxes and tax periods, amnesty shall apply to the under-reporting of such tax liabilities, the nonpayment of such taxes and the nonreporting of such tax liabilities.

(3) Amnesty shall not apply to any matter or matters for which, on or after February 6, 2003, any one of the following circumstances exist: (A) The taxpayer has received notice of the commencement of an audit; (B) an audit is in progress; (C) the taxpayer has received notice of an assessment pursuant to K.S.A. 79-2971 or 79-3643, and amendments thereto; (D) as a result of an audit, the taxpayer has received notice of a proposed or estimated assessment or notice of an assessment; (E) the time to administratively appeal an issued assessment has not yet expired; or (F) an assessment resulting from an audit, or any portion of such assessment, is pending in the administrative appeals process before the secretary or secretary's designee pursuant to K.S.A. 79-3226 or 79-3610, and amendments thereto, or the state board of tax appeals, or is pending in the judicial review process before any state or federal district or appellate court. Amnesty shall not apply to any matter that is the subject of an assessment, or any portion of an assessment, which has been affirmed by a reviewing state or federal district or appellate court. Amnesty shall not apply to any party to any criminal investigation or to any civil or criminal litigation that is pending in any court of the United States or this state for nonpayment, delinquency or fraud in relation to any tax imposed by the state of Kansas.

(b) Upon written application by the taxpayer, on forms prescribed by the secretary of revenue, and upon compliance with the provisions of this section, the department of revenue shall not seek to collect any penalty or interest which may be applicable with respect to taxes eligible for amnesty.

(c) Amnesty for penalties and interest shall be granted only to those eligible taxpayers who, within the amnesty period of October 1, 2003, to November 30, 2003, and in accordance with rules and regulations established by the secretary of revenue, have properly filed a tax return for each taxable period for which amnesty is requested, paid the entire balance of tax due and obtained approval of such amnesty by the department of revenue.

(d) If a taxpayer elects to participate in the amnesty program established pursuant to this section as evidenced by full payment of the tax due as established by the secretary of revenue, that election shall constitute an express and absolute relinquishment of all administrative and judicial rights of appeal with respect to such tax liability. No tax payment received pursuant to this section shall be eligible for refund or credit. No payment of penalties or interest made prior to October 1, 2003, shall be eligible for amnesty.

(e) For tax returns for which amnesty has been requested, nothing in this section shall be interpreted to prohibit the department from adjusting such tax return as a result of a federal, department or other state agency audit.

(f) Fraud or intentional misrepresentation of a material fact in connection with an application for amnesty shall void such application and any waiver of penalties and interest from amnesty.

(g) Discovery of fraud relating to the underlying tax liability shall void the abatement of any liability as a result of any amnesty.

(h) The department may promulgate such rules and regulations or issue administrative guidelines as are necessary to administer the provisions of this section.

(i) The provisions of this section shall be effective on and after July 1, 2003.

History: L. 2003, ch. 147, § 68; L. 2008, ch. 109, § 111; L. 2014, ch. 141, § 118; July 1.

§ 79-2977a Repealed

History: L. 2003, ch. 159, § 1; Repealed, L. 2004, ch. 180, § 18; July 1.

§ 79-2978 Business machinery and equipment tax reduction assistance fund; distributions, procedures; duties of secretary of revenue

(a) There is hereby established in the state treasury the business machinery and equipment tax reduction assistance fund which shall be administered by the state treasurer. All expenditures from the business machinery and equipment tax reduction assistance fund shall be for the payments to counties for distribution to taxing subdivisions levying ad valorem taxes within the county in accordance with this section.

(b) The secretary of revenue shall adopt a policy using the most current information that is available, and that is determined to be practicable by the secretary for this purpose and shall calculate the following:

(1) On January 31, 2008, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2007 not including any such ad valorem taxes on commercial and industrial machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2008, subject to the provisions of subsection (d), the state treasurer shall pay to the county treasurer of each county an amount equal to 90% of such difference for distribution as provided in subsection (e).

(2) On January 31, 2009, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2008 not including any such ad valorem taxes on commercial and industrial machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On March 2, 2009, subject to the provisions of subsection (d) and subsection (g), the state treasurer shall pay to the county treasurer of each county an amount equal to 70% of such difference for distribution as provided in subsection (e).

(3) On January 31, 2010, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2009 not including any such ad valorem taxes on commercial and industrial machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2010, subject to the provisions of subsection (d), the state treasurer shall pay to the county treasurer of each county an amount equal to 50% of such difference for distribution as provided in subsection (e).

(4) On January 31, 2011, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2010 not including any such ad valorem taxes on commercial and industrial machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2011, subject to the provisions of subsection (d), the state treasurer shall pay to the county treasurer of each county an amount equal to 30% of such difference for distribution as provided in subsection (e).

(5) On January 31, 2012, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2011 not including any such ad valorem taxes on commercial and industrial machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2012, subject to the provisions of subsection (d), the state treasurer shall pay to the county treasurer of each county an amount equal to 10% of such difference for distribution as provided in subsection (e).

(6) There shall be no payments made pursuant to this section after the payments made by the state treasurer on or before February 15, 2012, and the provisions of this section shall expire at such time.

(c) The calculations required by subsection (b) shall be based upon a certification made by the county clerk on or before November 15 of the tax year and submitted to the director of property valuation. Such certification shall be in a format devised and prescribed by the director of property valuation. Such certification shall report the total ad valorem taxes levied by the county on commercial and industrial machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on commercial and industrial machinery and equipment. The county clerk shall provide a copy of such certification to the county treasurer for the purpose of determining the distribution of moneys pursuant to the provisions of subsection (e)(2) paid to the county pursuant to subsection (b) by the state treasurer.

(d) If the amount calculated for the difference in subsections (b)(1) through (b)(5) is negative, the amount calculated for such county for such year shall be deemed to be zero and no amount shall be paid to the county treasurer of such county as otherwise provided in subsection (b). Nothing in this section shall be construed to require the county to make any payments to the state in such event that the amount calculated for the difference is negative for the county for such year.

(e) (1) On January 31 of each year specified in this section, the secretary of revenue shall certify to the director of accounts and reports the aggregate of all amounts determined for counties pursuant to subsection (b). Upon receipt of such certification, the director of accounts and reports shall transfer the amount certified from the state general fund to the business machinery and equipment tax reduction assistance fund, except that (A) the aggregate amount of moneys transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2009, pursuant to this section shall not exceed the maximum amount determined pursuant to subsection (g), (B) an amount equal to 50% of the maximum amount determined pursuant to subsection (g) shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund on March 2, 2009, (C) no moneys shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2010, pursuant to this section, (D) no moneys shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2011, pursuant to this section, (E) no moneys shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2012, pursuant to this section, (F) no moneys shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2013, pursuant to this section, and (G) no moneys shall be transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2014, pursuant to this section.

(2) The state treasurer shall apportion and distribute the moneys credited to the business machinery and equipment tax reduction assistance fund to the county treasurers in accordance with subsection (b). Upon receipt of each such amount, each county treasurer shall apportion such amount among the ad valorem taxing subdivisions imposing ad valorem taxes on commercial and industrial machinery and equipment in an amount equal to the difference between the total ad valorem taxes on commercial and industrial machinery and equipment levied by each such ad valorem taxing subdivision for the tax year 2005 and the total ad valorem taxes on commercial and industrial machinery and equipment levied by each such ad valorem taxing subdivision for the tax year of the apportionment, subject to the percentage reduction set forth in subsection (b) for the tax year of the apportionment of such moneys to that county. The county treasurer shall pay such amounts to the taxing subdivisions at the same time or times as their regular operating tax rate mill levy is paid to them.

(f) Before January 31 of 2007 through 2013, the secretary of revenue shall make a detailed report of amounts calculated as required pursuant to subsection (b) for each individual county and in aggregate for all the counties for the current year along with any projections for future years, amounts distributed to the counties pursuant to this section, the amount of ad valorem taxes on commercial and industrial machinery and equipment not included in the total ad valorem taxes for each tax year due to the fact that the tax liability of such machinery and equipment was abated or exempted prior to July 1, 2006, and such abatement or exemption expired after July 1, 2006, for each individual county and in aggregate for all counties and all other relevant information related to the provisions of this section, and shall present such report before such date to the house committee on taxation of the house of representatives and the senate committee on assessment and taxation of the senate for consideration by the legislature in making any appropriate adjustments to the provisions of this section.

(g) (1) The maximum amount that may be transferred during the fiscal year ending June 30, 2009, from the state general fund to the business machinery and equipment tax reduction assistance fund pursuant to this section shall be equal to (A) the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) plus the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) of K.S.A. 79-2979, and amendments thereto, multiplied by (B) the result obtained by dividing the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) by the aggregate of the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) plus the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) of K.S.A. 79-2979, and amendments thereto.

(2) If a maximum amount is imposed under this subsection and the aggregate amount transferred from the state general fund to the business machinery and equipment tax reduction assistance fund during state fiscal year 2009 pursuant to this section is reduced, then the amount allocated to each county by the state treasurer under subsection (b)(2) shall be reduced proportionately with respect to aggregate reduction in the amount of such transfer from the state general fund to the business machinery and equipment tax reduction assistance fund during state fiscal year 2009.

History: L. 2006, ch. 205, § 2; L. 2007, ch. 152, § 2; L. 2009, ch. 2, § 88; L. 2009, ch. 144, § 84; L. 2010, ch. 165, § 152; L. 2012, ch. 175, § 162; July 1.

§ 79-2979 Telecommunications and railroad machinery and equipment tax reduction assistance fund; distributions, procedures; duties of secretary of revenue

(a) There is hereby established in the state treasury the telecommunications and railroad machinery and equipment tax reduction assistance fund which shall be administered by the state treasurer. All expenditures from the telecommunications and railroad machinery and equipment tax reduction assistance fund shall be for the payments to counties for distribution to taxing subdivisions levying ad valorem taxes within the county in accordance with this section.

(b) The secretary of revenue shall adopt a policy using the most current information that is available, and that is determined to be practicable by the secretary for this purpose and shall calculate the following:

(1) On January 31, 2008, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on telecommunications machinery and equipment and railroad machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2007 not including any such ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2008, subject to the provisions of subsection (c), the state treasurer shall pay to the county treasurer of each county an amount equal to 90% of such difference for distribution as provided in subsection (d).

(2) On January 31, 2009, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on telecommunications machinery and equipment and railroad machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2008 not including any such ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On March 2, 2009, subject to the provisions of subsection (c) and subsection (f), the state treasurer shall pay to the county treasurer of each county an amount equal to 70% of such difference for distribution as provided in subsection (d).

(3) On January 31, 2010, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on telecommunications machinery and equipment and railroad machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2009 not including any such ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2010, subject to the provisions of subsection (c), the state treasurer shall pay to the county treasurer of each county an amount equal to 50% of such difference for distribution as provided in subsection (d).

(4) On January 31, 2011, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on telecommunications machinery and equipment and railroad machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2010 not including any such ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2011, subject to the provisions of subsection (c), the state treasurer shall pay to the county treasurer of each county an amount equal to 30% of such difference for distribution as provided in subsection (d).

(5) On January 31, 2012, the secretary shall calculate for each county an amount equal to the difference in total ad valorem taxes levied by the county on telecommunications machinery and equipment and railroad machinery and equipment for all taxing subdivisions within the county imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment for tax year 2005, and the total of such ad valorem taxes levied for tax year 2011 not including any such ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment that were abated or exempted prior to July 1, 2006, and which such abatement or exemption expired after July 1, 2006. On or before February 15, 2012, subject to the provisions of subsection (c), the state treasurer shall pay to the county treasurer of each county an amount equal to 10% of such difference for distribution as provided in subsection (d).

(6) There shall be no payments made pursuant to this section after the payments made by the state treasurer on or before February 15, 2012, and the provisions of this section shall expire at such time.

(c) If the amount calculated for the difference in subsections (b)(1) through (b)(5) is negative, the amount calculated for such county for such year shall be deemed to be zero and no amount shall be paid to the county treasurer of such county as otherwise provided in subsection (b). Nothing in this section shall be construed to require the county to make any payments to the state in such event that the amount calculated for the difference is negative for the county for such year.

(d) (1) On January 31 of each year specified in this section, the secretary of revenue shall certify to the director of accounts and reports the aggregate of all amounts determined for counties pursuant to subsection (b). Upon receipt of such certification, the director of accounts and reports shall transfer the amount certified from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund, except that (A) the aggregate amount of moneys transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2009, pursuant to this section shall not exceed the maximum amount determined pursuant to subsection (f), (B) an amount equal to 50% of the maximum amount determined pursuant to subsection (f) shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund on March 2, 2009, (C) no moneys shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2010, pursuant to this section, (D) no moneys shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2011, pursuant to this section, (E) no moneys shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2012, pursuant to this section, (F) no moneys shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2013, pursuant to this section, and (G) no moneys shall be transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during the state fiscal year ending June 30, 2014, pursuant to this section.

(2) The state treasurer shall apportion and distribute the moneys credited to the telecommunications and railroad machinery and equipment tax reduction assistance fund to the county treasurers in accordance with subsection (b). Upon receipt of each such amount, each county treasurer shall apportion such amount among the ad valorem taxing subdivisions imposing ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment in an amount equal to the difference between the total ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment levied by each such ad valorem taxing subdivision for the tax year 2005 and the total ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment levied by each such ad valorem taxing subdivision for the tax year of the apportionment, subject to the percentage reduction set forth in subsection (b) for the tax year of the apportionment of such moneys to that county. The county treasurer shall pay such amounts to the taxing subdivisions at the same time or times as their regular operating tax rate mill levy is paid to them.

(e) Before January 31 of 2007 through 2013, the secretary of revenue shall make a detailed report of amounts calculated as required pursuant to subsection (b) for each individual county and in aggregate for all the counties for the current year along with any projections for future years, amounts distributed to the counties pursuant to this section, the amount of ad valorem taxes on telecommunications machinery and equipment and railroad machinery and equipment not included in the total of ad valorem taxes for each tax year due to the fact that the tax liability of such machinery and equipment was abated or exempted prior to July 1, 2006, and the abatement or exemption expired after July 1, 2006, for each individual county and in aggregate for all counties and all other relevant information related to the provisions of this section, and shall present such report before such date to the house committee on taxation of the house of representatives and the senate committee on assessment and taxation of the senate for consideration by the legislature in making any appropriate adjustments to the provisions of this section.

(f) (1) The maximum amount that may be transferred during the fiscal year ending June 30, 2009, from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund pursuant to this section shall be equal to (A) the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) plus the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) of K.S.A. 79-2978, and amendments thereto, multiplied by (B) the result obtained by dividing the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) by the aggregate of the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) plus the amount equal to 93.5% of the aggregate amount determined under subsection (b)(2) of K.S.A. 79-2978, and amendments thereto.

(2) If a maximum amount is imposed under this subsection and the aggregate amount transferred from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during state fiscal year 2009 pursuant to this section is reduced, then the amount allocated to each county by the state treasurer under subsection (b)(2) shall be reduced proportionately with respect to aggregate reduction in the amount of such transfer from the state general fund to the telecommunications and railroad machinery and equipment tax reduction assistance fund during state fiscal year 2009.

History: L. 2006, ch. 205, § 4; L. 2007, ch. 152, § 3; L. 2009, ch. 2, § 89; L. 2009, ch. 144, § 85; L. 2010, ch. 165, § 153; L. 2012, ch. 175, § 163; July 1.

§ 79-2980 Credit towards payment of taxes on certain property of television broadcasters; determination of amount of credit; limitations

(a) Television broadcasters shall receive a credit from the county treasurer of the county in which digital television equipment is located, to apply only towards payment of the broadcaster's personal property taxes, in an amount equal to the broadcaster's personal property taxes on digital television equipment acquired prior to July 1, 2006, multiplied by one minus the digital television fraction. The digital television fraction shall be a fraction the numerator of which is the total number of digital television sets in the United States and the denominator of which is an amount representing the total television sets in the United States as of the assessment date. The digital television fraction will be determined on an annual basis based upon sales data reported by the consumer electronics association or other national organization acceptable to the department of revenue. The Kansas association of broadcasters shall provide, by July 1 of each year, to the department an estimate of the digital television fraction as of the preceding January 1. The department shall communicate such estimate to each county appraiser. The credit shall not be applicable to years after the federal communications commission has ended the broadcast of analog television signals by all full power commercial television stations in Kansas.

(b) As used in this section, "digital television equipment" means all items of tangible personal property that are used directly or indirectly in broadcasting television shows or commercials through the use of digital technology including studio broadcast equipment, transmitter and antenna equipment and broadcast towers.

History: L. 2006, ch. 205, § 5; July 1.

§ 79-2981 Credit towards payment of taxes on certain property of radio broadcasters; determination of amount of credit; limitations

(a) Radio broadcasters shall receive a credit from the county treasurer of the county in which digital radio equipment is located, to apply only towards payment of the radio broadcaster's personal property taxes in an amount equal to the personal property taxes on the radio broadcaster's digital radio equipment acquired prior to July 1, 2006, multiplied by one minus the digital radio fraction. The digital radio fraction shall be a fraction, the numerator of which is the total number of digital radio sets in the United States and the denominator of which is an amount representing the total radio sets in the United States as of the assessment date. The digital radio fraction shall be determined on an annual basis based upon sales data reported by the consumer electronics association or other national organization acceptable to the department of revenue. The Kansas association of broadcasters shall provide, by July 1 of each year, to the department an estimate of the digital radio fraction as of the preceding January 1. The department shall communicate such estimate to each county appraiser. The credit shall not be applicable to years after December 31, 2013, or until more than 50% of the radio sets in the United States are capable of receiving the digital radio signal, whichever comes first.

(b) As used in this section, "digital radio equipment" means all items of tangible personal property that are used directly or indirectly in broadcasting radio shows or commercials through the use of digital technology including studio broadcast equipment, transmitter and antenna equipment and broadcast towers.

History: L. 2006, ch. 205, § 6; July 1.

§ 79-2982 Report to legislature on certain income tax credits and sales tax exemptions

Prior to January 1, 2017, the standing committee on assessment and taxation of the senate and the standing committee on taxation of the house of representatives shall review the income tax credit cost effectiveness report prepared by the department of revenue as required pursuant to K.S.A. 74-99b35, and amendments thereto, and other relevant information to determine whether the credits provided in K.S.A. 74-50,132 and subsection (e) of K.S.A. 79-32,160a, and amendments thereto, and the exemption provided in subsection (cc) of K.S.A. 79-3606, and amendments thereto, shall continue in effect or be repealed.

History: L. 2011, ch. 116, § 13; July 1.

§ 79-2983 Amnesty from assessment or payment of penalties and interest with respect to specified taxes; requirements and procedures

(a) (1) Notwithstanding the provisions of any other law to the contrary, with respect to the following taxes administered by the department of revenue, an amnesty from the assessment or payment of all penalties and interest with respect to unpaid taxes or taxes due and owing shall apply upon compliance with the provisions of this section and if such tax liability is paid in full within the amnesty period, from September 1, 2015, to October 15, 2015: (A) Privilege tax under K.S.A. 79-1106 et seq., and amendments thereto; (B) taxes under the Kansas estate tax act, K.S.A. 2006 Supp. 79-15,100 et seq., prior to their repeal; (C) taxes under the Kansas income tax act, K.S.A. 79-3201 et seq., and amendments thereto; (D) taxes under the Kansas withholding and declaration of estimated tax act, K.S.A. 79-3294 et seq., and amendments thereto; (E) taxes under the Kansas cigarette and tobacco products act, K.S.A. 79-3301 et seq., and amendments thereto; (F) taxes under the Kansas retailers' sales tax act, K.S.A. 79-3601 et seq., and amendments thereto, and the Kansas compensating tax act, K.S.A. 79-3701 et seq., and amendments thereto; (G) local sales and use taxes under K.S.A. 12-187 et seq., and amendments thereto; (H) liquor enforcement tax under K.S.A. 79-4101 et seq., and amendments thereto; (I) liquor drink tax under K.S.A. 79-74a01 [79-41a01] et seq., and amendments thereto; and (J) mineral severance tax under K.S.A. 79-4216 et seq., and amendments thereto.

(2) Amnesty under this section shall apply only to tax liabilities due and unpaid for tax periods ending on or before December 31, 2013. For the eligible taxes and tax periods, amnesty shall apply to the under-reporting of such tax liabilities, the nonpayment of such taxes and the nonreporting of such tax liabilities.

(3) Amnesty shall not apply to any matter or matters for which, on or after September 1, 2015, any one of the following circumstances exist: (A) The taxpayer has received notice of the commencement of an audit; (B) an audit is in progress; (C) the taxpayer has received notice of an assessment pursuant to K.S.A. 79-2971 or 79-3643, and amendments thereto; (D) as a result of an audit, the taxpayer has received notice of a proposed or estimated assessment or notice of an assessment; (E) the time to administratively appeal an issued assessment has not yet expired; or (F) an assessment resulting from an audit, or any portion of such assessment, is pending in the administrative appeals process before the secretary or the secretary's designee pursuant to K.S.A. 79-3226 or 79-3610, and amendments thereto, or the state board of tax appeals, or is pending in the judicial review process before any state or federal district or appellate court. Amnesty shall not apply to any matter that is the subject of an assessment, or any portion of an assessment, which has been affirmed by a reviewing state or federal district or appellate court. Amnesty shall not apply to any party to any criminal investigation or to any civil or criminal litigation that is pending in any court of the United States or this state for nonpayment, delinquency or fraud in relation to any tax imposed by the state of Kansas. Amnesty shall not apply to any matter involving individual or corporate income tax liability resulting from an audit or adjustment by the federal internal revenue service and reported to the Kansas department of revenue pursuant to K.S.A. 79-3230(f), and amendments thereto.

(b) Upon written application by the taxpayer, on forms prescribed by the secretary of revenue, and upon compliance with the provisions of this section, the department of revenue may waive the imposition and collection of any penalty or interest which may be applicable with respect to taxes eligible for amnesty. The department of revenue may require all applications for amnesty pursuant to this section be submitted electronically.

(c) Amnesty for penalties and interest shall be granted only to those eligible taxpayers who, within the amnesty period of September 1, 2015, to October 15, 2015, and in accordance with rules and regulations established by the secretary of revenue, have properly filed a tax return for each taxable period for which amnesty is requested, paid the entire balance of tax due and obtained approval of such amnesty by the department of revenue.

(d) If a taxpayer elects to participate in the amnesty program established pursuant to this section as evidenced by full payment of the tax due as established by the secretary of revenue, that election shall constitute an express and absolute relinquishment of all administrative and judicial rights of appeal with respect to such tax liability. No tax payment received pursuant to this section shall be eligible for refund or credit. No payment of penalties or interest made prior to September 1, 2015, shall be eligible for amnesty.

(e) For such tax returns for which amnesty has been requested, nothing in this section shall be interpreted to prohibit the department from adjusting such tax return as a result of a federal, department or other state agency audit.

(f) Fraud or intentional misrepresentation of a material fact in connection with an application for amnesty shall void such application and any waiver of penalties and interest from amnesty.

(g) The department may promulgate such rules and regulations or issue administrative guidelines as are necessary to administer the provisions of this section.

History: L. 2015, ch. 99, § 1; July 1.

§ 79-2984 Tax compact with the Prairie Band Potawatomi Nation

(a) The compact relating to cigarette and tobacco sales, taxation and escrow collection between the Prairie Band Potawatomi Nation and the state of Kansas submitted by the governor to the senate and house of representatives of the state of Kansas and received and printed in the journal of the senate and the journal of the house of representatives on March 2, 2016, is hereby approved and adopted by reference as the law of this state.

(b) The secretary of the senate is directed to send a copy of such compact to the secretary of state. The secretary of state shall cause such compact to be published in the Kansas register.

History: L. 2016, ch. 38, § 1; April 21.

§ 79-2985 Tax compact with the Iowa Tribe of Kansas and Nebraska

(a) The compact relating to cigarette and tobacco sales and taxation between the Iowa Tribe of Kansas and Nebraska and the state of Kansas submitted by the governor to the senate and the house of representatives of the state of Kansas and received and printed in the journal of the senate and the journal of the house of representatives on March 2, 2016, is hereby approved and adopted by reference as the law of this state.

(b) The secretary of the senate is directed to send a copy of such compact to the secretary of state. The secretary of state shall cause such compact to be published in the Kansas register.

History: L. 2016, ch. 39, § 1; Apr 21.

§ 79-2986 Tax compact with the Kickapoo Tribe in Kansas

(a) The compact relating to cigarette and tobacco sales, taxation and escrow collection between the Kickapoo Tribe in Kansas and the state of Kansas submitted by the governor to the senate and house of representatives of the state of Kansas and received and printed in the journal of the senate and the journal of the house of representatives on January 27, 2017, is hereby approved and adopted by reference as the law of this state.

(b) The secretary of the senate is directed to send a copy of such compact to the secretary of state. The secretary of state shall cause such compact to be published in the Kansas register.

History: L. 2017, ch. 59, § 1; May 4.

§ 79-2987 Tax compact with the Sac and Fox Nation of Missouri in Kansas and Nebraska

(a) The compact relating to cigarette sales, taxation and escrow collection between the Sac and Fox Nation of Missouri in Kansas and Nebraska and the state of Kansas submitted by the governor to the senate and house of representatives of the state of Kansas and received and printed in the journal of the senate on March 16, 2017, and the journal of the house of representatives on March 15, 2017, is hereby approved and adopted by reference as the law of this state.

(b) The secretary of the senate is directed to send a copy of such compact to the secretary of state. The secretary of state shall cause such compact to be published in the Kansas register.

History: L. 2017, ch. 59, § 2; May 4.

§ 79-2988 Tax levy; approval to exceed revenue neutral rate by taxing subdivisions; requirements; notices and contents; public hearing; majority vote of governing body; requirements; duties of county clerk; costs; complaints; posting of budgets

(a) On or before June 15 each year, the county clerk shall calculate the revenue neutral rate for each taxing subdivision and include such revenue neutral rate on the notice of the estimated assessed valuation provided to each taxing subdivision for budget purposes, except that for tax year 2024, the deadline shall be extended to July 1, 2024. The director of accounts and reports shall modify the prescribed budget information form to show the revenue neutral rate.

(b) Except as otherwise provided in this section, no tax rate in excess of the revenue neutral rate shall be levied by the governing body of any taxing subdivision unless a resolution or ordinance has been approved by the governing body according to the following procedure:

(1) At least 10 days in advance of the public hearing, the governing body shall publish notice of its proposed intent to exceed the revenue neutral rate by publishing notice:

(A) On the website of the governing body, if the governing body maintains a website; and

(B) in a weekly or daily newspaper of the county having a general circulation therein. The notice shall include, but not be limited to, its proposed tax rate, its revenue neutral rate and the date, time and location of the public hearing.

(2) On or before July 20, the governing body shall notify the county clerk of its proposed intent to exceed the revenue neutral rate and provide the date, time and location of the public hearing and its proposed tax rate. For all tax years commencing after December 31, 2021, the county clerk shall notify each taxpayer with property in the taxing subdivision, by mail directed to the taxpayer's last known address, of the proposed intent to exceed the revenue neutral rate at least 10 days in advance of the public hearing. Alternatively, the county clerk may transmit the notice to the taxpayer by electronic means at least 10 days in advance of the public hearing, if such taxpayer and county clerk have consented in writing to service by electronic means. The county clerk is not required to send a notice to a property owner of property that is exempt from ad valorem taxation. The county clerk shall consolidate the required information for all taxing subdivisions relevant to the taxpayer's property on one notice. The notice shall be in a format prescribed by the director of accounts and reports. The notice shall include, but not be limited to:

(A) The following heading:

"NOTICE OF PROPOSED PROPERTY TAX INCREASE AND PUBLIC HEARINGS

[Current year] [County name] County Revenue Neutral Rate Notice

This is NOT a bill. Do not remit payment.";

(B) the following statement:

"This notice contains estimates of the tax on your property and proposed property tax increases. THE ACTUAL TAX ON YOUR PROPERTY MAY INCREASE OR DECREASE FROM THESE ESTIMATES. Governing bodies of taxing subdivisions must vote in order to exceed the Revenue Neutral Rate to increase the total property taxes collected. Governing bodies will vote at public hearings at the dates, times and locations listed. Taxpayers may attend and comment at the hearings. Property tax statements will be issued after mill rates are finalized and taxes are calculated.";

(C) the appraised value and assessed value of the taxpayer's property for the current year and the previous year;

(D) the mill levy and amount of property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement in a column titled: "[Previous year] Tax";

(E) the revenue neutral rate in mills and estimated amount of property tax for the current year of each taxing subdivision on the taxpayer's property based on the revenue neutral rate of each taxing subdivision in a column titled: "[Current year] Tax at Revenue Neutral Rate";

(F) the estimated amount of property tax for the current year of each taxing subdivision on the taxpayer's property based on either: (i) The revenue neutral rate for a taxing subdivision that does not intend to exceed its revenue neutral rate; or (ii) the proposed tax rate provided by the taxing subdivision, if the taxing subdivision notified the county clerk of its proposed intent to exceed its revenue neutral rate, and such mill levy used in the calculation, in a column titled: "[Current year] Proposed Tax";

(G) the difference between the amount of the current year's proposed tax and the previous year's tax, reflected in dollars and a percentage, for each taxing subdivision in a column titled: "[Current year] Proposed Tax Exceeding [Previous year] Tax"; and

(H) the date, time and location of the public hearing of each taxing subdivision that notified the county clerk of its proposed intent to exceed its revenue neutral rate in a column titled: "Date, Time and Location of Public Hearing".

The columns described in subparagraphs (D) through (G) shall include a total of the amounts at the end of each column. For each taxing subdivision, the notice shall include the total amount of revenue from the property tax levy for the previous year, the proposed total amount of revenue from the property tax levy for the current year and the difference or change between such amounts, reflected in dollars and a percentage. Although the state of Kansas is not a taxing subdivision for purposes of this section, the notice shall include the previous year's tax amount and the estimate of the tax for the current year on the taxpayer's property based on the statutory mill levies.

(3) The public hearing to consider exceeding the revenue neutral rate shall be held not sooner than August 20 and not later than September 20. The governing body shall provide interested taxpayers desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment. The public hearing may be conducted in conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929, and amendments thereto, if the governing body otherwise complies with all requirements of this section. Nothing in this section shall be construed to prohibit additional public hearings that provide additional opportunities to present testimony or public comment prior to the public hearing required by this section.

(4) A majority vote of the governing body, by the adoption of a resolution or ordinance to approve exceeding the revenue neutral rate, shall be required prior to adoption of a proposed budget that will result in a tax rate in excess of the revenue neutral rate. Such vote of the governing body shall be conducted at the public hearing and on the same day as the commencement of the public hearing after the governing body has heard from interested taxpayers and shall be a roll call vote. If the governing body approves exceeding the revenue neutral rate, the governing body shall not adopt a budget that results in a tax rate in excess of its proposed tax rate as stated in the notice provided pursuant to this section. A copy of the resolution or ordinance to approve exceeding the revenue neutral rate and a certified copy of any roll call vote reporting, at a minimum, the name and vote of each member of the governing body related to exceeding the revenue neutral rate, whether approved or not, shall be included with the adopted budget, budget certificate and other budget forms filed with the county clerk and the director of accounts and reports and shall be published on the website of the department of administration.

(c) (1) Any governing body subject to the provisions of this section that does not comply with subsection (b) shall refund to taxpayers any property taxes over-collected based on the amount of the levy that was in excess of the revenue neutral rate.

(2) Any taxpayer of the taxing subdivision that is the subject of the complaint or such taxpayer's duly authorized representative may file a complaint with the state board of tax appeals by filing a written complaint, on a form prescribed by the board, that contains the facts that the complaining party believes show that a governing body of a taxing subdivision did not comply with the provisions of subsection (b) and that a reduction or refund of taxes is appropriate. The complaining party shall provide a copy of such complaint to the governing body of the taxing subdivision making the levy that is the subject of the complaint. Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee shall be charged by the executive director of the state board of tax appeals for a complaint filed pursuant to this paragraph. The governing body of the taxing subdivision making the levy that is the subject of the complaint shall be a party to the proceeding. Notice of any summary proceeding or hearing shall be served upon such governing body, the county clerk, the director of accounts and reports and the complaining party. It shall be the duty of the governing body to initiate the production of evidence to demonstrate, by a preponderance of the evidence, the validity of such levy. If upon a summary proceeding or hearing, it shall be made to appear to the satisfaction of the board that the governing body of the taxing subdivision did not comply with subsection (b), the state board of tax appeals shall order such governing body to refund to taxpayers the amount of property taxes over collected or reduce the taxes levied, if uncollected. The provisions of this paragraph shall not be construed as prohibiting any other remedies available under the law.

(d) On and after January 1, 2022, in the event that the tax levied by a school district pursuant to K.S.A. 72-5142, and amendments thereto, increases the property tax revenue generated for the purpose of calculating the revenue neutral rate from the previous tax year and such amount of increase in revenue generated from such tax levied is the only reason that the school district would exceed the total property tax revenue from the prior year, the school district shall be deemed to not have exceeded the revenue neutral rate in levying a tax rate in excess of the revenue neutral rate to take into account the increase in revenue from only such tax levied.

(e) (1) Notwithstanding any other provision of law to the contrary, if the governing body of a taxing subdivision must conduct a public hearing to approve exceeding the revenue neutral rate under this section, the governing body of the taxing subdivision shall certify, on or before October 1, to the proper county clerk the amount of ad valorem tax to be levied.

(2) If a governing body of a taxing subdivision did not comply with the provisions of subsection (b) and certifies to the county clerk an amount of ad valorem tax to be levied that would result in a tax rate in excess of its revenue neutral rate, the county clerk shall reduce the ad valorem tax to be levied to the amount resulting from such taxing subdivision's revenue neutral rate.

(f) As used in this section:

(1) "Taxing subdivision" means any political subdivision of the state that levies an ad valorem tax on property.

(2) "Revenue neutral rate" means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. To calculate the revenue neutral rate, the county clerk shall divide the property tax revenue for such taxing subdivision levied for the previous tax year by the total of all taxable assessed valuation in such taxing subdivision for the current tax year, and then multiply the quotient by 1,000 to express the rate in mills. The revenue neutral rate shall be expressed to the third decimal place.

(g) In the event that a county clerk incurred costs of printing and postage that were not reimbursed pursuant to K.S.A. 2025 Supp. 79-2989, and amendments thereto, such county clerk may seek reimbursement from all taxing subdivisions required to send the notice. Such costs shall be shared proportionately by all taxing subdivisions that were included on the same notice based on the total property tax levied by each taxing subdivision. Payment of such costs shall be due to the county clerk by December 31.

(h) The department of administration or the director of accounts and reports shall make copies of adopted budgets, budget certificates, other budget documents and revenue neutral rate documents available to the public on the department of administration's website on a permanently accessible web page that may be accessed via a conspicuous link to that web page placed on the front page of the department's website. The department of administration or the director of accounts and reports shall also make the following information for each tax year available on such website:

(1) A list of taxing subdivisions by county;

(2) whether each taxing subdivision conducted a hearing to consider exceeding its revenue neutral rate;

(3) the revenue neutral rate of each taxing subdivision;

(4) the tax rate resulting from the adopted budget of each taxing subdivision; and

(5) the percent change between the revenue neutral rate and the tax rate for each taxing subdivision.

(i) Notwithstanding any provisions to the contrary, in the event any governing body does not comply with the provisions of subsection (b) because such governing body did not intend to exceed its revenue neutral rate but the final taxable assessed valuation of such taxing subdivision used to calculate the actual tax levy is less than the estimated assessed valuation used to calculate the revenue neutral rate, such governing body shall be permitted to levy a tax rate that generates the same amount of property tax revenue as levied the previous year or less.

History: L. 2021, ch. 9, § 1; L. 2021, ch. 58, § 11; L. 2022, ch. 63, § 37; L. 2024, ch. 81, § 15; L. 2024, ch. 1, § 15 (Special Session); L. 2025, ch. 128, § 6; May 8.

§ 79-2989 Taxpayer notification costs fund; notice of intent to exceed revenue neutral rate by taxing subdivisions; duties of county clerk; transfers from state general fund; administered by secretary of revenue

(a) For calendar years 2024, 2025 and 2026, if a county clerk has printing or postage costs pursuant to K.S.A. 2025 Supp. 79-2988, and amendments thereto, the county clerk shall notify and provide documentation of such costs to the secretary of revenue. The secretary of revenue shall certify the amount of moneys attributable to such costs and shall transmit a copy of such certification to the director of accounts and reports. Upon such receipt of such certification, the director of accounts and reports shall transfer an amount of moneys equal to such certified amount from the state general fund to the taxpayer notification costs fund of the department of revenue. The secretary of revenue shall transmit a copy of each such certification to the director of legislative research and the director of the budget.

(b) There is hereby established in the state treasury the taxpayer notification costs fund that shall be administered by the secretary of revenue. All expenditures from the taxpayer notification costs fund shall be for the purpose of paying county printing and postage costs pursuant to K.S.A. 2025 Supp. 79-2988, and amendments thereto. All expenditures from such fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or the secretary's designee.

History: L. 2021, ch. 9, § 7; L. 2024, ch. 81, § 16; L. 2025, ch. 117, § 204; L. 2025, ch. 128, § 7; May 8, 2025.

§ 79-2990 Report to legislature; division of post audit; study related to non-profit organizations and governmental entities competing against for-profit businesses

The legislative post audit committee shall direct the legislative division of post audit to conduct a study of the economic impact of taxation and exemption issues relating to non-profit organizations and governmental entities competing against for-profit businesses. The study shall be conducted during calendar year 2021, and the final study report shall be submitted to the legislature on or before January 15, 2022.

History: L. 2021, ch. 115, § 2; July 1.

Article 30 Excise and Sales Taxes

§§ 79-3001 through 79-3003 Repealed

History: L. 1929, ch. 287, §§ 1 to 3; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3004 Repealed

History: L. 1929, ch. 287, § 4; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3005 Repealed

History: L. 1929, ch. 287, § 5; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3006 Repealed

History: L. 1929, ch. 287, § 6; Repealed, L. 1933, ch. 317, § 29; May 1.

§§ 79-3007 through 79-3009 Repealed

History: L. 1929, ch. 287, §§ 7 to 9; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3010 Repealed

History: L. 1929, ch. 287, § 10; L. 1931, ch. 307, § 1; Repealed, L. 1933, ch. 317, § 29; May 1.

§§ 79-3010a, 79-3010b Repealed

History: L. 1931, ch. 307, §§ 2, 3; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3011 Repealed

History: L. 1929, ch. 287, § 11; L. 1931, ch. 307, § 4; Repealed, L. 1933, ch. 317, § 29; May 1.

§ 79-3012 Repealed

History: L. 1929, ch. 287, § 12; Repealed, L. 1931, ch. 308, § 1; July 1.

§§ 79-3013, 79-3014 Repealed

History: L. 1927, ch. 171, §§ 1, 2; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3015 Repealed

History: L. 1927, ch. 171, § 3; L. 1927, ch. 172, § 1; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§§ 79-3016 through 79-3018 Repealed

History: L. 1927, ch. 171, §§ 4 to 6; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3019 Repealed

History: L. 1927, ch. 171, § 7; L. 1927, ch. 173, § 1; L. 1933, ch. 318, § 1; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3020 Repealed

History: L. 1927, ch. 171, § 8; L. 1933, ch. 318, § 2; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3021 Repealed

History: L. 1927, ch. 171, § 9; L. 1931, ch. 309, § 1; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3022 Repealed

History: L. 1927, ch. 171, § 10; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3023 Repealed

History: L. 1927, ch. 171, § 11; L. 1933, ch. 318, § 3; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3024 Repealed

History: L. 1927, ch. 171, § 12; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3025 Repealed

History: L. 1927, ch. 171, § 13; L. 1931, ch. 309, § 2; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§§ 79-3025a, 79-3025b Repealed

History: L. 1931, ch. 309, §§ 3, 7; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3026 Repealed

History: L. 1927, ch. 171, § 14; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3027 Repealed

History: L. 1927, ch. 171, § 15; L. 1931, ch. 309, § 4; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§§ 79-3027a, 79-3027b Repealed

History: L. 1931, ch. 309, §§ 5, 6; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§§ 79-3028, 79-3029 Repealed

History: L. 1927, ch. 171, §§ 16, 17; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3030 Repealed

History: L. 1927, ch. 171, § 18; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§§ 79-3031 through 79-3033 Repealed

History: L. 1927, ch. 171, §§ 19 to 21; Repealed, L. 1933, ch. 122, § 28 (Special Session); January 1, 1934.

§ 79-3034 Transferred

Revisor's Note: Sections transferred to chapter 79, article 33.

§ 79-3061 Transferred

Revisor's Note: Sections transferred to chapter 79, article 34.

§ 79-3089 Transferred

Revisor's Note: Sections transferred to chapter 79, article 35.

§ 79-3093 Act supplemental to motor fuel or special fuel tax laws

The terms and provisions of this act shall be wholly supplemental and in addition to any motor fuel or special fuel tax which has been heretofore or may hereafter be enacted, and said act shall and is hereby declared to be wholly self-contained and effective in all matters, except as may be specifically provided herein.

History: L. 1953, ch. 444, § 1; June 30.

§ 79-3094 Same; rate of tax; computation; allowances; exempt transactions; reports; extent and effective date of tax

There is hereby levied upon all motor fuels used, sold or delivered in this state for any purpose whatsoever a tax of two cents (2¢) per gallon or fraction thereof. Said tax shall be paid but once. Said tax shall be computed on all motor fuels received by each distributor, manufacturer or importer in this state and paid in the manner provided for herein: Provided, That an allowance of three and one-half percentum (3½%) of the total gallonage received during each calendar month shall be made and deducted by the distributor to cover all ordinary losses in handling such motor fuels: Provided, however, That no allowance shall be made on any motor vehicle fuel exported from the state or sold to the United States of America or any of its agencies or instrumentalities as are now or hereinafter exempt by law from liability to state taxation: Provided further, That a distributor shall not be entitled to such allowance unless the principal business in which he or she is engaged is the business of marketing motor-vehicle fuels or petroleum products: And provided further, That no such allowance shall be made for any motor-vehicle fuel sold or disposed of to a consumer in tank car, transport, or pipe-line lots. No tax is hereby imposed upon or with respect to the following transactions:

(a) The sale or delivery of motor-vehicle fuel by a duly licensed distributor, manufacturer or importer to another duly licensed distributor, manufacturer or importer.

(b) The sale or delivery of motor-vehicle fuel for export from the state of Kansas to any other state or territory or to any foreign country.

(c) The sale or delivery of motor-vehicle fuel to the United States of America and such of its agencies as are now or hereafter exempt by law from liability to state taxation.

(d) The sale or delivery of motor-vehicle fuel to a contractor for use in performing work for the United States or those agencies of the United States above mentioned, provided such contractor has in effect with the United States or any such agency a cost-plus-a-fixed-fee contract covering the work.

Each distributor, manufacturer or importer shall make full reports and furnish such further information as the director may require with reference to all transactions upon which no tax is to be paid. Each distributor, manufacturer or importer shall make full reports and furnish such further information as the director of taxation, or his or her duly authorized deputy, agent or representative may require with reference to all transactions upon which no tax is to be paid: Provided further, That the effective date and total extent of the tax herein levied shall be as follows: In the event the existing tax of two cents (2¢) per gallon now levied on gasoline (motor fuel) by the federal government as set out and provided in 26 U.S.C., section 3412, or any amendment thereto, shall expire, be reduced or otherwise be determined at a rate of less than two cents (2¢) per gallon, then the tax here levied shall, at the time of said expiration, reduction or other determination, and upon the issuance by the governor of a proclamation stating the fact of said expiration, reduction or other determination and the date thereof, said proclamation to be published, filed and recorded as provided by law, become effective and in full force only to the extent said federal tax may expire or be reduced: Provided further, That said tax shall not become in force and effect in an amount less than one-half cent (½¢) per gallon or multiples thereof.

History: L. 1953, ch. 444, § 2; June 30.

§ 79-3095 Same; disposition of tax collected

All of the tax collected under the provisions of this act shall be remitted by the director of taxation to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury, and the state treasurer shall credit 2% of all taxes so collected in the revenue administration fee fund. The remainder of such tax so collected shall be credited to the highway fund. All proper expenses of the enforcement and administration of this act by the director of taxation shall be paid out of such revenue administration fee fund upon vouchers as provided by law.

History: L. 1953, ch. 444, § 3; L. 2001, ch. 5, § 447; July 1.

§ 79-3096 Same; allocations to counties from highway fund, when; limitations

In the event of and as of the date of the discontinuance by the federal government of the distribution of moneys to the state of Kansas for use, after matching, upon federal aid secondary roads, then and to the extent such moneys may be discontinued up to but not to exceeding three million five hundred thousand dollars ($3,500,000) per year, the state treasurer shall allocate to the various counties of the state moneys from the highway fund to guarantee to said counties either from federal aid secondary funds or from the tax here levied, or both, the total sum of three million five hundred thousand dollars ($3,500,000) per year, said moneys from said allocation to be made, used and expended by said counties in the manner provided by section 79-3425b of the General Statutes Supplement of 1961, and amendments thereto. In the event the moneys provided said counties by said section 79-3425b shall cease to be available to said counties, then this section shall be of no force or effect, it being the purpose of this section to provide continuity of what is now known as the county federal aid secondary road program at a rate of seven million dollars ($7,000,000) per year, so long as section 79-3425b is in effect.

History: L. 1953, ch. 444, § 4; L. 1963, ch. 481, § 1; June 30.

§ 79-3097 Same; administration and enforcement; application of ch. 79, art. 34

For the purposes of administration and enforcement of this act the law as set out in sections 79-3401 to 79-3407, inclusive; 79-3409 to 79-3424, inclusive; 79-3426 and 79-3453 to 79-3463, inclusive, of the General Statutes of 1949, or amendments thereto, shall be applicable hereto.

History: L. 1953, ch. 444, § 5; June 30.

Article 31 Mortgage Registration and Intangibles

§ 79-3101 Repealed

History: L. 1925, ch. 273, § 1; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3102 Repealed

History: L. 1925, ch. 273, § 2; L. 1973, ch. 395, § 1; L. 1979, ch. 317, § 1; L. 1985, ch. 322, § 1; L. 1990, ch. 351, § 3; L. 1992, ch. 265, § 4; L. 1994, ch. 250, § 3; L. 2014, ch. 140, § 15; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3103 Repealed

History: L. 1925, ch. 273, § 3; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3104 Repealed

History: L. 1925, ch. 273, § 4; L. 1927, ch. 335, § 1; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3105 Repealed

History: L. 1925, ch. 273, § 5; L. 1992, ch. 265, § 1; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3106 Repealed

History: L. 1925, ch. 273, § 6; L. 1992, ch. 265, § 2; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3107 Repealed

History: L. 1925, ch. 273, § 7; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3107a Repealed

History: L. 1925, ch. 273, § 8; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3107b Repealed

History: L. 1990, ch. 351, § 1; Repealed, L. 2014, ch. 140, § 21; January 1, 2015.

§ 79-3107c Repealed

History: L. 1993, ch. 178, § 1; L. 2008, ch. 109, § 112; L. 2014, ch. 141, § 119; Repealed, L. 2014, ch. 140, § 22; January 1, 2019.

§ 79-3108 Repealed

History: L. 1931, ch. 311, § 1; L. 1931, ch. 312, § 1; L. 1939, ch. 327, § 1; L. 1955, ch. 416, § 1; L. 1971, ch. 297, § 1; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3108a Repealed

History: L. 1976, ch. 419, § 1; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3109 Repealed

History: L. 1931, ch. 311, § 2; L. 1931, ch. 312, § 2; L. 1958, ch. 23, § 2 (Special Session); L. 1959, ch. 388, § 1; L. 1970, ch. 390, § 1; L. 1972, ch. 372, § 1; L. 1974, ch. 437, § 1; L. 1975, ch. 500, § 1; L. 1976, ch. 425, § 1; L. 1979, ch. 318, § 1; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3109a Repealed

History: L. 1971, ch. 297, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3109b Purpose for intangible property tax exemption

In recognition that relief from the burden of property taxation upon money, notes and other evidence of debt will promote saving and encourage the development of individual initiative in providing for one's own current and long-term means of support, and that such savings will provide investment capital which is vital to agriculture, commerce and industry and to the general economic welfare and prosperity of the state, the legislature hereby determines that such relief from property taxation is for a public purpose and will promote the general welfare of the state.

History: L. 1982, ch. 407, § 1; May 13.

§ 79-3109c Property exempt from taxation; money, notes and other evidence of debt

Money, notes and other evidence of debt are hereby exempt from all ad valorem and other property taxes levied under the laws of the state of Kansas.

History: L. 1982, ch. 407, § 2; May 13.

§ 79-3109d Definitions

When used in this act the following terms shall have the meanings ascribed to them in this section:

(a) "Money" means gold and silver coin, United States treasury notes, and other forms of currency in common use;

(b) "notes and other evidence of debt" means certificates evidencing shares of stock otherwise taxable to the owner or holder, notes, bonds, debentures, claims secured by deed, liquidated claims and demands for money, accounts receivable, and all written instruments, contracts or other writings evidencing, calling for, fixing or showing a fixed obligation, determined or determinable, at present or in the future, in favor of the holder thereof. Notes and other evidence of debt shall not mean oil or gas leases or any interests created thereby or arising therefrom, any royalty interests in oil or gas or notes secured by mortgages on real estate.

History: L. 1982, ch. 407, § 3; May 13.

§ 79-3109e Application of K.S.A. 79-3109b through 79-3109e, inclusive

The provisions of this act shall apply to all taxable years commencing after December 31, 1981.

History: L. 1982, ch. 407, § 4; May 13.

§ 79-3110 Repealed

History: L. 1931, ch. 312, § 4; L. 1958, ch. 23, § 3 (Special Session); Repealed, L. 1970, ch. 390, § 9; July 1.

§ 79-3110a Repealed

History: L. 1970, ch. 390, § 8; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3110b Repealed

History: L. 1971, ch. 297, § 6; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3110c Repealed

History: L. 1972, ch. 372, § 3; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3111 Repealed

History: L. 1931, ch. 311, § 3; L. 1957, ch. 488, § 2; L. 1958, ch. 23, § 5 (Special Session); L. 1959, ch. 388, § 2; L. 1970, ch. 390, § 3; L. 1972, ch. 372, § 2; L. 1973, ch. 391, § 2; L. 1974, ch. 438, § 1; Repealed, L. 1982, ch. 407, 5; May 13.

§ 79-3112 Repealed

History: L. 1931, ch. 311, § 4; L. 1965, ch. 514, § 3; L. 1968, ch. 124, § 1; L. 1970, ch. 390, § 4; L. 1971, ch. 297, § 3; L. 1972, ch. 373, § 1; L. 1976, ch. 425, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3112a Repealed

History: L. 1981, ch. 367, § 1; L. 1981, ch. 369, § 1; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3113 Repealed

History: L. 1931, ch. 311, § 5; L. 1958, ch. 23, § 4 (Special Session); Repealed, L. 1959, ch. 388, § 7; March 12.

§ 79-3113a Repealed

History: L. 1957, ch. 488, § 3; L. 1958, ch. 23, § 6 (Special Session); L. 1959, ch. 388, § 3; L. 1970, ch. 390, § 5; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3113b Repealed

History: L. 1958, ch. 23, § 7 (Special Session); L. 1972, ch. 342, § 93; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3114 Repealed

History: L. 1931, ch. 311, § 6; L. 1967, ch. 495, § 1; L. 1974, ch. 438, § 2; L. 1976, ch. 425, § 3; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3115 Repealed

History: L. 1931, ch. 311, § 7; L. 1963, ch. 482, § 1; L. 1968, ch. 307, § 1; L. 1970, ch. 390, § 6; L. 1971, ch. 297, § 4; L. 1975, ch. 501, § 2; L. 1976, ch. 425, § 4; L. 1977, ch. 349, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§§ 79-3116, 79-3117 Repealed

History: L. 1931, ch. 311, §§ 8, 9; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3118 Repealed

History: L. 1931, ch. 311, § 10; Repealed, L. 1959, ch. 388, § 7; March 12.

§ 79-3118a Repealed

History: L. 1959, ch. 388, § 4; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3118b Repealed

History: L. 1959, ch. 388, § 5; L. 1970, ch. 390, § 7; Repealed, L. 1982, ch. 407, § 5; May 13.

§§ 79-3119, 79-3120 Repealed

History: L. 1931, ch. 311, §§ 11, 12; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120a Repealed

History: L. 1974, ch. 437, § 2; L. 1975, ch. 501, § 1; L. 1976, ch. 425, § 5; L. 1978, ch. 403, § 1; L. 1978, ch. 392, § 1; L. 1979, ch. 318, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120b Repealed

History: L. 1974, ch. 437, § 3; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120c Repealed

History: L. 1975, ch. 500, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120d Repealed

History: L. 1976, ch. 419, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120e Repealed

History: L. 1976, ch. 425, § 7; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120f Repealed

History: L. 1978, ch. 403, § 3; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3120g Repealed

History: L. 1978, ch. 392, § 2; Repealed, L. 1982, ch. 407, § 5; May 13.

§ 79-3121 Exemption of refunded stamped secured debts from further taxation

Any and all bonds, debentures or obligations for the payment of money issued by any state, foreign government, or political subdivision thereof, which have heretofore been stamped and rendered exempt from taxation under the provisions of chapter 327 [*], Laws of Kansas 1927, which have been or may be refunded, shall be entitled to be made exempt from further taxation for the period for which the tax was paid on the original secured debts stamped under the provisions of said act, regardless of such refunding, as hereinafter provided.

History: L. 1933, ch. 324, § 1; March 27.

§ 79-3122 Certification and registration by county treasurer

Any person owning or holding as trustee, agent or other legal representative any such secured debt, which has heretofore been stamped under the provisions of said chapter 327, Laws of Kansas 1927, may present in person, or send to the office of the county treasurer of the county in the state of Kansas wherein such original debt was registered and stamped, a statement on oath to the effect that such secured debt has been refunded, together with the fee hereinafter provided, and the county treasurer of such county shall certify on the back or on the margin thereof, under the seal of his or her office, a legend substantially as follows: "All taxes on this refunded secured debt have been paid to the ____ day of _________ 19__ (indicating the date of the maturity of the original secured debt which was stamped) and thereafter said secured debt shall not be subject to further taxation to the date named in such certificate by any taxing power under the laws of the state of Kansas: Provided, That nothing in this act shall be construed to be a limitation upon or in any manner to affect the power of the state to levy and collect estate taxes or taxes upon income.

History: L. 1933, ch. 324, § 2; L. 2010, ch. 44, § 35; July 1.

§ 79-3123 Notation; certification and registration fee

At the time of such certification and registration such county treasurer shall thereupon make a notation in the proper place in the book in his or her office which shows the original registration of such secured debt, to the effect that the same has been refunded and that such refunded secured debt has been registered by him or her. The county treasurer shall charge and collect a certification and registration fee of fifty cents for every such refunded secured debt so certified and registered.

History: L. 1933, ch. 324, § 3; March 27.

§ 79-3124 "Refunded" defined

The term "refunded" as used in this act shall be construed to include refunding, refinancing, extending the time of payment, or the issuance of securities in lieu of or in substitution of the original bond, debenture or obligation for the payment of money for any person heretofore stamped.

History: L. 1933, ch. 324, § 4; March 27.

§ 79-3125 Perjury, penalty

Any person who shall file with any county treasurer any false statement for the purpose of obtaining the registration of any secured debt not entitled to registration as provided by the above act shall be guilty of perjury, and upon conviction thereof shall be punished by the criminal laws of the state of Kansas.

History: L. 1933, ch. 324, § 5; March 27.

Article 32 Income Tax

§ 79-3201 Title

The title of this act shall be "Kansas income tax act."

History: L. 1933, ch. 320, § 1; March 29.

§ 79-3202 Repealed

History: L. 1933, ch. 320, § 2; L. 1945, ch. 364, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3203 Repealed

History: L. 1933, ch. 320, § 3; L. 1957, ch. 504, § 1; L. 1958, ch. 30, § 1 (Special Session); L. 1965, ch. 521, § 1; Repealed, L. 1967, ch. 497, § 40; May 12.

§ 79-3204 Repealed

History: L. 1933, ch. 320, § 4; L. 1959, ch. 390, § 1; L. 1966, ch. 42, § 1 (Budget Session); Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3205 Repealed

History: L. 1933, ch. 320, § 5; L. 1935, ch. 312, § 2; L. 1939, ch. 328, § 1; L. 1945, ch. 364, § 2; L. 1949, ch. 480, § 1; L. 1951, ch. 493, § 1; L. 1955, ch. 417, § 1; L. 1959, ch. 391, § 1; L. 1961, ch. 453, § 1; L. 1963, ch. 483, § 1; L. 1964, ch. 36, § 1 (Budget Session); L. 1965, ch. 523, § 1; L. 1966, ch. 43, § 1 (Budget Session); Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3206 Repealed

History: L. 1933, ch. 320, § 6; L. 1935, ch. 312, § 3; L. 1937, ch. 370, § 2; L. 1949, ch. 480, § 2; L. 1953, ch. 434, § 1; L. 1955, ch. 417, § 2; L. 1958, ch. 63, § 1 (Budget Session); L. 1960, ch. 59, § 1; L. 1963, ch. 484, § 1; L. 1965, ch. 523, § 2; L. 1966, ch. 44, § 1 (Budget Session); Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3206a Repealed

History: L. 1959, ch. 392, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3207 Repealed

History: L. 1933, ch. 320, § 7; L. 1935, ch. 312, § 4; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3208 Repealed

History: L. 1933, ch. 320, § 8; L. 1949, ch. 480, § 3; L. 1953, ch. 435, § 1; L. 1959, ch. 393, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3209 Repealed

History: L. 1933, ch. 320, § 9; L. 1935, ch. 312, § 5; L. 1949, ch. 481, § 1; L. 1965, ch. 524, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3210 Repealed

History: L. 1933, ch. 320, § 10; L. 1935, ch. 312, § 6; L. 1955, ch. 417, § 3; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3211 Repealed

History: L. 1933, ch. 320, § 11; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3212 Repealed

History: L. 1933, ch. 320, § 12; L. 1935, ch. 312, § 7; L. 1953, ch. 436, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3213 Repealed

History: L. 1933, ch. 320, § 13; L. 1935, ch. 312, § 8; L. 1945, ch. 365, § 1; L. 1953, ch. 437, § 1; L. 1955, ch. 417, § 4; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3214 Repealed

History: L. 1933, ch. 320, § 14; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3215 Repealed

History: L. 1933, ch. 320, § 15; L. 1935, ch. 312, § 9; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3216 Repealed

History: L. 1933, ch. 320, § 16; L. 1935, ch. 312, § 10; L. 1945, ch. 365, § 2; L. 1955, ch. 417, § 5; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3217 Repealed

Revisor's Note: Later act providing for uniform division of income, see 79-3271 through 79-3292.

History: L. 1933, ch. 320, § 17; Repealed, L. 1963, ch. 485, § 24; April 25.

§ 79-3218 Repealed

Revisor's Note: Later act providing for uniform division of income, see 79-3271 through 79-3292.

History: L. 1933, ch. 320, § 18; L. 1937, ch. 370, § 3; L. 1947, ch. 457, § 2; L. 1955, ch. 417, § 6; Repealed, L. 1963, ch. 485, § 24; April 25.

§ 79-3219 Repealed

History: L. 1933, ch. 320, § 19; Repealed, L. 1963, ch. 485, § 24; April 25.

§ 79-3220 Requirements for individuals, corporations, fiduciaries and partnerships with regard to returns

(a) (1) Each individual required to file a federal income tax return and any other individual whose gross income exceeds the sum of such individual's applicable Kansas standard deduction amount and Kansas personal exemption amount shall each make and sign a return or statement stating specifically such items as are required by the forms and rules and regulations of the secretary of revenue. If any individual is unable to make a return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer. Notwithstanding any provision of the Kansas income tax act to the contrary, all individuals not required to file a Kansas income tax return hereunder shall not be liable for any tax imposed pursuant to such act.

(2) In accordance with the provisions of K.S.A. 75-5151a, and amendments thereto, an individual who is required to file a return may file such return by electronic means in a manner approved by the secretary of revenue. A paid preparer who prepares 50 or more returns per year shall file by electronic means not less than 90% of such returns eligible for electronic filing. The requirements of this subsection may be waived by the secretary of revenue for a paid preparer if the paid preparer demonstrates a hardship in complying with the requirements of this subsection.

(3) For purposes of this subsection, a nonresident individual or fiduciary whose only source of income from this state is income from an electing pass-through entity under the salt parity act shall not be required to file a return.

(b) Every corporation subject to taxation under this act, including, but not limited to, all farmers, fruit growers, or like associations organized and operated on a cooperative basis, except electric cooperative exclusively engaged in the manufacture or distribution of electric power for their members, shall make a return, or statement stating specifically such items as may be required by the forms and regulations of the secretary of revenue. The return shall be signed by the president, vice-president, treasurer, assistant treasurer, chief accounting officer or any other officer so authorized to act. The fact that an individual's name is signed on a return shall be prima facie evidence that such individual is authorized to sign such return on behalf of such corporation. In cases where receivers, trustees in bankruptcy or assignees are operating the property or business of corporations, such receivers, trustees, or assignees shall make returns for such corporations in the same manner and form as corporations are required to make returns. Any tax due on the basis of such returns shall be collected in the same manner as if collected from the corporation for which the return is made.

(c) Every fiduciary, except a receiver appointed by authority of law in possession of part only of the property of an individual shall make and sign a return for each of the individuals, estates, or trusts for which the fiduciary acts, when such returns are required by the provisions of this act, stating specifically such items as may be required by the forms and regulations of the secretary of revenue. In the case of joint fiduciaries, whether residents or nonresidents, a return may be made by any one and shall be sufficient compliance with the above requirements. Any fiduciary required to make a return under this act shall be subject to all of the provisions of law which apply to individuals.

(d) Every partnership shall make a return for each taxable year, stating specifically such items as may be required by the forms and regulations of the secretary of revenue. The returns shall be signed by any one of the partners.

History: L. 1933, ch. 320, § 20; L. 1935, ch. 312, § 11; L. 1937, ch. 370, § 4; L. 1943, ch. 304, § 1; L. 1947, ch. 458, § 1; L. 1949, ch. 480, § 4; L. 1958, ch. 64, § 1 (Budget Session); L. 1963, ch. 486, § 1; L. 1968, ch. 233, § 1; L. 1971, ch. 307, § 1; L. 1978, ch. 405, § 1; L. 1980, ch. 316, § 1; L. 1988, ch. 381, § 1; L. 1992, ch. 113, § 1; L. 2008, ch. 182, § 19; L. 2022, ch. 63, § 38; July 1.

§ 79-3221 Returns; form, place and time of filing; identifying number, social security numbers; tentative returns; extension of time; certain actions or proceedings authorized; definitions

(a) All returns required by this act shall be made as nearly as practical in the same form as the corresponding form of income tax return by the United States. Unless another identifying number has been assigned to an individual by the internal revenue service for purposes of filing such individual's federal income tax return, the social security number issued to an individual, the individual's spouse, and all dependents of such individual for purposes of section 205(c)(2)(A) of the social security act shall be used as the identifying number and included on the return when filing such return.

(b) All returns shall be filed in the office of the director of taxation on or before the 15th day of the fourth month following the close of the taxable year, except as provided in subsection (c). Tentative returns may be filed before the close of the taxable year and the estimated tax computed on such return, paid, but no interest will be paid on any overpayment of tax liability, computed on such tentative return.

(c) (1) The director of taxation may grant a reasonable extension of time for filing returns in accordance with rules and regulations of the secretary of revenue. Whenever any such extension of time to file is requested by a taxpayer and granted by the director with respect to any tax year commencing after December 31, 1992, no penalty authorized by K.S.A.

79-3228, and amendments thereto, shall be imposed if 90% of the liability is paid on or before the original due date.

(2) For any tax year commencing after December 31, 2019, any taxpayer filing a corporate tax return shall file the return in the office of the director of taxation:

(A) No later than one month after the due date established under the federal internal revenue code, including any applicable extensions granted by the internal revenue service; and

(B) no penalty authorized by K.S.A.

79-3228, and amendments thereto, shall be imposed if the return is filed within one month after receiving an extension to file a tax return with the internal revenue service. The taxpayer shall not be required to file an extension request with the director pursuant to this subparagraph.

(3) For any tax year commencing after December 31, 2019, any taxpayer filing a return, other than a corporate tax return, shall file the return in the office of the director of taxation not later than the due date established under the federal internal revenue code, including any applicable extensions granted by the internal revenue service. No penalty authorized by K.S.A.

79-3228, and amendments thereto, shall be imposed if the return is filed not later than the deadline established by the internal revenue service. The taxpayer shall not be required to file an extension request with the director pursuant to this paragraph.

(d) In the case of an individual serving in the armed forces of the United States, or serving in support of such armed forces, in an area designated by the president of the United States by executive order as a "combat zone" as defined under 26 U.S.C. § 112 at any time during the period designated by the president by executive order as the period of combatant activities in such zone for the purposes of such section, or hospitalized as a result of injury received or sickness incurred while serving in such an area during such time, the period of service in such area, plus the period of continuous qualified hospitalization attributable to such injury or sickness, and the next 180 days thereafter, shall be disregarded in determining, under article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, in respect to any tax liability, including any interest, penalty, additional amount, or addition to the tax, of such individual:

(1) Whether any of the following acts was performed within the time prescribed therefor: (A) Filing any return of income tax; (B) payment of any income tax or installment thereof; (C) filing a notice of appeal with the director of taxation or the state board of tax appeals for redetermination of a deficiency or for a review of a decision rendered by either the director or the state board of tax appeals; (D) allowance of a credit or refund of any income tax; (E) filing a claim for credit or refund of any income tax; (F) bringing suit upon any such claim for credit or refund; (G) assessment of any income tax; (H) giving or making any notice or demand for the payment of any income tax, or with respect to any liability to the state of Kansas in respect of any income tax; (I) collection, by the director of taxation or the director's agent, by warrant, levy or otherwise, of the amount of any liability in respect to any income tax; (J) bringing suit by the state of Kansas, or any officer on its behalf, in respect to any liability in respect of any income tax; and (K) any other act required or permitted under the Kansas income tax act specified in rules and regulations adopted by the secretary of revenue under this section;

(2) the amount of any credit or refund.

(e) (1) Subsection (d) shall not apply for purposes of determining the amount of interest on any overpayment of tax.

(2) If an individual is entitled to the benefits of subsection (d) with respect to any return and such return is timely filed, determined after the application of subsection (d), K.S.A.

79-32,105(e)(5) and (e)(7), and amendments thereto, shall not apply.

(f) The provisions of subsections (d) through (j) shall apply to the spouse of any individual entitled to the benefits of subsection (d). Except in the case of the combat zone designated for purposes of the Vietnam conflict, this subsection shall not cause subsections (d) through (j) to apply for any spouse for any taxable year beginning more than two years after the date designated under 26 U.S.C. § 112, and amendments thereto, as the date of termination of combatant activities in a combat zone.

(g) The period of service in the area referred to in subsection (d) shall include the period during which an individual entitled to benefits under subsection (d) is in a missing status, within the meaning of 26 U.S.C. § 6013(f)(3).

(h) (1) Notwithstanding the provisions of subsection (d), any action or proceeding authorized by K.S.A.

79-3229, and amendments thereto, as well as any other action or proceeding authorized by law in connection therewith, may be taken, begun or prosecuted. In any other case in which the secretary determines that collection of the amount of any assessment would be jeopardized by delay, the provisions of subsection (d) shall not operate to stay collection of such amount by levy or otherwise as authorized by law. There shall be excluded from any amount assessed or collected pursuant to this subsection the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period disregarded under subsection (d). In any case to which this subsection relates, if the secretary is required to give any notice to or make any demand upon any person, such requirement shall be deemed to be satisfied if the notice or demand is prepared and signed, in any case in which the address of such person last known to the secretary is in an area for which United States post offices under instructions of the postmaster general are not, by reason of the combatant activities, accepting mail for delivery at the time the notice or demand is signed. In such case the notice or demand shall be deemed to have been given or made upon the date it is signed.

(2) The assessment or collection of any tax under the provisions of article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or any action or proceeding by or on behalf of the state in connection therewith, may be made, taken, begun or prosecuted in accordance with law, without regard to the provisions of subsection (d), unless prior to such assessment, collection, action or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (d).

(i) (1) Any individual who performed Desert Shield services, and the spouse of such individual, shall be entitled to the benefits of subsections (d) through (j) in the same manner as if such services were services referred to in subsection (d).

(2) For purposes of this subsection, the term "Desert Shield services" means any services in the armed forces of the United States or in support of such armed forces if:

(A) Such services are performed in the area designated by the president as the "Persian Gulf Desert Shield area"; and

(B) such services are performed during the period beginning on August 2, 1990, and ending on the date on which any portion of the area referred to in subsection (i)(2)(A) is designated by the president as a combat zone pursuant to 26 U.S.C. § 112.

(j) For purposes of subsection (d), the term "qualified hospitalization" means:

(1) Any hospitalization outside the United States; and

(2) any hospitalization inside the United States, except that not more than five years of hospitalization may be taken into account under this subsection. This subsection shall not apply for purposes of applying subsections (d) through (j) with respect to the spouse of an individual entitled to the benefits of subsection (d).

History: L. 1933, ch. 320, § 21; L. 1945, ch. 364, § 3; L. 1951, ch. 493, § 2; L. 1966, ch. 43, § 2 (Budget Session); L. 1972, ch. 342, § 94; L. 1991, ch. 282, § 7; L. 1994, ch. 95, § 9; L. 2008, ch. 109, § 113; L. 2011, ch. 115, § 2; L. 2014, ch. 141, § 120; L. 2021, ch. 101, § 13; May 27.

§§ 79-3221a through 79-3221c Repealed

Revisor's Note: Later act, see 79-32,112.

History: L. 1959, ch. 389, §§ 1 to 3; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3221d Designation of income tax refund for nongame wildlife improvement program; form

Each Kansas state individual income tax return form shall contain a designation as follows:

Kansas nongame wildlife improvement program. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ☐[] $1, ☐[] $5, ☐[] $10 or ☐[] $ ____.

History: L. 1980, ch. 305, § 1; L. 1984, ch. 351, § 8; July 1.

§ 79-3221e Disposition of moneys received pursuant to K.S.A. 79-3221d; limitation on expenditures

(a) The director of taxation of the department of revenue shall determine annually the total amount designated for use in the Kansas nongame wildlife improvement program pursuant to K.S.A. 79-3221d, and amendments thereto, and shall report such amount to the state treasurer who shall credit the entire amount thereof to the nongame wildlife improvement fund that is hereby established in the state treasury. In the case where donations are made pursuant to K.S.A. 79-3221d, and amendments thereto, the director shall remit the entire amount thereof to the state treasurer who shall credit the same to such fund. All moneys deposited in such fund shall be used solely for the purpose of preserving, protecting, perpetuating and enhancing nongame wildlife in this state. All expenditures from such fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of wildlife and parks or the secretary's designee.

(b) As used in K.S.A. 79-3221d, and amendments thereto, and this section, "nongame wildlife" means any species of wildlife not legally classified as a game species or furbearer by statute or by rules and regulations adopted pursuant to statute.

History: L. 1980, ch. 305, § 2; L. 1989, ch. 118, § 191; L. 2012, ch. 47, § 125; L. 2023, ch. 7, § 139; July 1.

§ 79-3221f Kansas World War II Memorial Fund income tax checkoff; disposition of proceeds

(a) For tax years 2000 and 2001, each Kansas state individual income tax return form shall contain a designation as follows:

Kansas World War II Memorial Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$1, _$5, $10, or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas World War II Memorial Fund pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the Kansas World War II Memorial Fund which fund is hereby established in the state treasury. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer who shall credit the same to such fund. All moneys deposited in such fund shall be used solely for the purpose of providing contributions to the World War II Memorial Society on behalf of Kansas for the benefit of the World War II memorial to be located in Washington, D.C. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports payable to the World War II Memorial Society issued pursuant to vouchers approved by the state treasurer.

History: L. 2000, ch. 184, § 28; July 1.

§ 79-3221g Senior Citizens Meals on Wheels Contribution Program income tax check-off; disposition of proceeds

(a) For all tax years commencing after December 31, 2001, each Kansas state individual income tax return form shall contain a designation as follows:

Senior Citizen Meals on Wheels Contribution Program. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$1, _$5, $10, or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the senior citizen meals on wheels contribution program pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the senior citizen nutrition check-off fund to be administered by the Kansas department for aging and disability services to provide financial assistance under the senior nutritional program. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer who shall credit the same to such fund. All expenditures from such fund shall be made in accordance with appropriation acts.

History: L. 2001, ch. 176, § 15; L. 2014, ch. 115, § 432; July 1.

§ 79-3221h Plant and animal disease and pest control fund; interest earnings; expenditures

(a) All federal moneys received pursuant to federal assistance, federal-aid funds and federal-aid grant reimbursements related to the nongame wildlife improvement fund under the control, authorities and duties of the Kansas department of wildlife and parks, shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of the remittance, the state treasurer shall deposit the entire amount in the state treasury and credit it to the plant and animal disease and pest control fund.

(b) No moneys derived from sources described in subsection (a) shall be used for any purpose other than the administration of matters that relate to purposes authorized under K.S.A. 79-3221e, and amendments thereto, and which are under the control, authorities and duties of the secretary of wildlife and parks and the Kansas department of wildlife and parks as provided by law.

(c) On or before the 10th of each month, the director of accounts and reports shall transfer from the state general fund to the plant and animal disease and pest control fund, interest earnings based on:

(1) The average daily balance of moneys in the plant and animal disease and pest control fund; and

(2) the net earnings rate of the pooled money investment portfolio for the preceding month.

(d) All expenditures from the plant and animal disease and pest control fund, shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of wildlife and parks.

History: L. 2005, ch. 181, § 4; L. 2012, ch. 47, § 126; L. 2023, ch. 7, § 140; July 1.

§ 79-3221i Kansas military emergency relief fund checkoff; disposition of moneys

(a) For all tax years commencing after December 31, 2005, each Kansas state individual income tax return form shall contain a designation as follows:

Kansas Military Emergency Relief Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$1, _$5, $10 or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas military emergency relief fund pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the Kansas military emergency relief fund which fund is hereby established in the state treasury. All moneys deposited in such fund shall be used for the purpose of helping military families defray the costs of food, housing, utilities and medical services incurred while a member of the family is on active military duty or for other services associated with support of Kansas military personnel and military families. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer who shall credit the same to such fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the adjutant general's office.

History: L. 2006, ch. 203, § 1; July 1.

§ 79-3221j Kansas breast cancer research fund checkoff; disposition of moneys; required report

(a) For all tax years commencing after December 31, 2005, each Kansas individual income tax return form shall contain a designation as follows:

Kansas Breast Cancer Research Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$1, _$5, $10 or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas breast cancer research fund pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the Kansas breast cancer research fund. Such fund is hereby established in the state treasury and shall be administered by the university of Kansas cancer center. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of such remittance the state treasurer shall deposit the entire amount in the state treasury to the credit of such fund. All expenditures from such fund shall be for the university of Kansas cancer center.

(c) The instructions accompanying the individual income tax return shall include a description of the Kansas breast cancer research fund, the purpose for which the fund was created and a statement specifying that such moneys shall be used to conduct research relating to the prevention, treatment and cure of breast cancer. Such description and statement shall be approved by the university of Kansas cancer center.

(d) All moneys deposited in such fund shall be used by the university of Kansas cancer center to conduct research relating to the prevention, treatment and cure of breast cancer. Moneys in such fund shall not be used for the funding of administrative personnel or positions. Moneys deposited in such fund shall be used in collaboration with other research institutions including, but not limited to, members of the midwest cancer alliance and faculty at state educational institutions. Contributions to the Kansas breast cancer research fund shall be deemed in addition and supplemental to any funding that would otherwise be appropriated to the university of Kansas cancer center for the purposes specified in this act.

(e) On or before February 1 of each year, the university of Kansas cancer center shall submit a report to the committee on assessment and taxation and committee on ways and means of the senate of the state of Kansas and the committee on taxation and committee on appropriations of the house of representatives of the state of Kansas reviewing and evaluating all expended moneys expended from the Kansas breast cancer research fund to conduct research relating to the purposes specified in this act. Representatives of the cancer center shall appear before the committees specified in this section if so requested.

History: L. 2006, ch. 203, § 2; July 1.

§ 79-3221k Kansas hometown heroes fund checkoff; disposition of moneys

(a) For all tax years commencing after December 31, 2011, each Kansas state individual income tax return form shall contain a designation as follows:

Kansas Hometown Heroes Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ______$1, ______$5, $10 or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas hometown heroes fund pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the Kansas hometown heroes fund which fund is hereby established in the state treasury. All moneys deposited in such fund shall be used solely for the purpose of funding the continued operations of the veteran services program of the Kansas office of veterans services. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of such fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the director of the Kansas office of veterans services.

History: L. 2011, ch. 116, § 4; L. 2014, ch. 83, § 59; L. 2024, ch. 84, § 73; July 1.

§ 79-3221m Kansas creative arts industries commission checkoff fund; disposition of moneys

(a) For the taxable years commencing after December 31, 2012, each Kansas state individual income tax return form shall contain a designation as follows:

Kansas Creative Arts Industries Commission Checkoff Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, _____$1, _____$5, $10 or $.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas creative arts industries commission checkoff fund pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the Kansas creative arts industries commission checkoff fund which fund is hereby established in the state treasury. All moneys deposited in such fund shall be used solely for the purpose of funding the Kansas creative arts industries commission. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of such fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the chairperson of the Kansas creative arts industries commission.

History: L. 2012, ch. 111, § 1; July 1.

§ 79-3221n Local school district contribution program checkoff; disposition of moneys

(a) For the tax years commencing after December 31, 2016, each Kansas state individual income tax return form shall contain a designation as follows:

Local School District Contribution Program. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$10, ___$25, $50, $, or ___ entire refund to unified school district No. _____.

(b) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the local school district contribution program pursuant to subsection (a) and shall report such amount to the state treasurer who shall credit the entire amount thereof to the local school district contribution program checkoff fund which is hereby established in the state treasury. All moneys deposited in such fund shall be used for the purpose of financing education in the school district of the taxpayer's choice. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of such fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the state board of education. Such moneys shall be treated as a donation by the school district in accordance with K.S.A.

72-1142, and amendments thereto, and shall be reported as gifts for the purposes of the Kansas uniform financial and reporting act.

History: L. 2016, ch. 84, § 1; July 1.

§ 79-3221o Individual tax returns; preclusion from including line for reporting compensating use tax

The director of taxation is hereby directed to not include a line for the remittance of sales tax on out-of-state and internet purchases on individual tax returns for tax years beginning on or after January 1, 2022.

History: L. 2016, ch. 84, § 2; L. 2021, ch. 93, § 7; July 1.

§ 79-3221p Repealed

History: L. 1933, ch. 320, § 21; L. 1945, ch. 364, § 3; L. 1951, ch. 493, § 2; L. 1966, ch. 43, § 2 (Budget Session); L. 1972, ch. 342, § 94; L. 1991, ch. 282, § 7; L. 1994, ch. 95, § 9; L. 2008, ch. 109, § 113; L. 2011, ch. 115, § 2; L. 2014, ch. 141, § 120; L. 2021, ch. 93, § 6; Repealed, L. 2022, ch. 88, § 5; July 1.

§ 79-3221q Kansas historic site fund checkoff; disposition of moneys

(a) For all tax years commencing after December 31, 2022, each Kansas state individual income tax return form shall contain a designation as follows:

Kansas Historic Site Fund. Check if you wish to donate, in addition to your tax liability, or designate from your refund, ___$1, _$5, $10 or $ to historic site number ____.

(b) For purposes of administration of this section, the director of taxation of the department of revenue shall assign a historic site number to all state-owned historic sites administered by the Kansas state historical society in order for a taxpayer to choose the historic site that will receive the donation. The instructions accompanying the individual income tax return shall include a brief description of all state-owned historic sites administered by the Kansas state historical society and identify each historic site number assigned for purposes of a contribution pursuant to this section.

(c) The director of taxation of the department of revenue shall determine annually the total amount designated for contribution to the Kansas historic site fund pursuant to subsection (a) and shall report such amount to the state treasurer, who shall credit the entire amount thereof to the Kansas historic site fund. Such fund is hereby established in the state treasury and shall be administered by the department of revenue. In the case where donations are made pursuant to subsection (a), the director shall remit the entire amount thereof to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the Kansas historic site fund. All moneys deposited in such fund shall be distributed to the historic sites in accordance with the selections of taxpayers and shall be used for the purpose of the operation, maintenance and preservation of such sites. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or the secretary's designee.

History: L. 2022, ch. 63, § 7; July 1.

§ 79-3222 Report of moneys paid or payable during taxable year; who to make return; failure to report, penalties

Every individual, partnership, corporation, joint stock company or association, or any other entity which does business in this state, which makes payments of income to any residents of this state or other persons and entities subject to taxation under the Kansas income tax act, and which is required to file an information return with respect to such payment with the internal revenue service, shall file a copy of such information return with the director of taxation at or before the time such return is required to be filed with the internal revenue service. Unless such income is so reported, the director may disallow the payments as deductions or credits in computing the tax of the payer or impose a penalty of $50 for each such failure.

History: L. 1933, ch. 320, § 22; L. 1953, ch. 437, § 2; L. 1972, ch. 342, § 95; L. 1973, ch. 396, § 1; L. 1984, ch. 351, § 9; July 1.

§ 79-3222a Mining production payment reports required; withholding of production payments, procedures; penalties

(a) In addition to the reporting requirement prescribed by K.S.A. 79-3222, and amendments thereto, complete reports shall be required to be filed with the director of taxation for all oil, gas or mining production payments paid or payable during any year to any person or entity subject to taxation under the Kansas income tax act. Such reports shall be filed at or before the time the information returns prescribed by K.S.A. 79-3222, and amendments thereto, are required to be filed with the director. The director may require any person or entity making such production payments to report the total production payments made to any person during any calendar year, in addition to any other information necessary to calculate Kansas income tax upon such production payments. The director may require such reports from any person or entity making production payments for any time period prior to the effective date of this act based on payment records that such person or entity is required to maintain by state or federal law. For purposes of this section, the term "production payment" means payments of proceeds generated from mineral interests in this state including, but not limited to, a lease bonus, delay rental, royalty and working interest payment and overriding royalty interest payment.

(b) The director is authorized and empowered to issue orders to withhold all production payments to any person upon a determination that the person has failed to file a state income tax return as required by law reporting production payment income or has failed to pay state income tax. The order to withhold production payments shall be directed to the person or entity making production payments and shall apply to all production payments that the person named within such order is entitled to until the return is filed and the income tax, penalty and interest are paid. Release of the order to withhold shall be mailed by the director to the person or entity withholding production payments upon the filing of the return and payment of the tax, penalty and interest by the person named within such order or upon payment of the tax, penalty and interest by the person or entity withholding the production payment.

(c) Upon receipt of the order of the director to withhold production payments, the person or entity making production payments, within 60 days of receiving such order, shall:

(1) Withhold payments for all production of the person named within such order until such order is released by the director;

(2) hold in suspense all production payments subject to such order to withhold; and

(3) in the case of established delinquent income tax, upon receiving such order from the director of such established delinquency, pay the tax, penalty and interest out of the withheld production payments and receipt such tax payment to the taxpayer in lieu of cash in settlement for such production.

The order to withhold shall apply to production payments in any case where a successor person or entity is required to make production payments and to production payments of subsequent production of minerals in this state. Any person or corporation that withholds production payments or pays same to the director pursuant to such order is hereby relieved of all liability for such acts.

(d) The director shall mail notice to each delinquent taxpayer at the last known address reported by the person or entity making production payments prior to issuance of an order to withhold production payments. The notice shall contain a statement that the taxpayer has failed to file an income tax return as required by law or has failed to pay delinquent income tax. Within 15 days after the mailing of such notice, the taxpayer may request a hearing of the director relating to taxpayer's failure to file an income tax return as required by law or failure to pay delinquent income tax. Based on the evidence presented at such hearing, the director shall make a final determination and shall notify the taxpayer of such decision. An order to withhold production payments may be issued by the director for collection of any delinquent income tax, penalty and interest owed by the taxpayer entitled to production payments.

(e) Any person or entity making production payments who refuses or fails to file the reports required by this section, in the manner and at the time prescribed by the director, shall be subject to a penalty in the amount of $50 for each such refusal or failure. Any person or entity making production payments who refuses to withhold payments shall be subject to a penalty in the amount of $100 for each payment made which was ordered to be withheld.

History: L. 1987, ch. 364, § 1; July 1.

§ 79-3223 Records and special returns

If, in the judgment of the director, any taxpayer has failed to make returns and comply with such rules and regulations, as may from time to time be prescribed, the director may require such taxpayer to make return or keep such records as the director may deem sufficient to show, whether or not, such person is liable to tax under this act.

History: L. 1933, ch. 320, § 23; March 29.

§ 79-3224 Repealed

Revisor's Note: Later act, see 79-32,114.

History: L. 1933, ch. 320, § 24; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3225 Time for payment of tax; cancellation of tax; extension of time; interest

(a) All taxes imposed under the provisions of the "Kansas income tax act" shall be paid on the 15th day of the fourth month following the close of the taxable year. When the tax as shown to be due on a return is less than $5, such tax shall be canceled and no payment need be remitted by the taxpayer.

(b) The director of taxation may extend the time for payment of the tax, or any installment thereof, for a reasonable period of time not to exceed six months from the date fixed for payment thereof. Such extension may exceed six months in the case of a taxpayer who is abroad. Interest shall be charged at the rate prescribed by K.S.A. 79-2968(a) and amendments thereto for the period of such extension.

History: L. 1933, ch. 320, § 25; L. 1945, ch. 364, § 4; L. 1951, ch. 493, § 3; L. 1958, ch. 65, § 1 (Budget Session); L. 1965, ch. 525, § 15; L. 1968, ch. 107, § 1; L. 1980, ch. 316, § 2; L. 1980, ch. 308, § 16; L. 1984, ch. 351, § 10; January 1, 1985.

§ 79-3226 Examination of returns; notice of additional tax; informal conference; final determination and notice; appeals; tax and interest due and payable, when

(a) As soon as practicable after the return is filed, the director of taxation shall examine it and shall determine the correct amount of the tax. If the tax found due shall be greater than the amount theretofore paid, or if a claim for a refund is denied, notice shall be mailed to the taxpayer. Within 60 days after the mailing of such notice the taxpayer may request an informal conference with the secretary of revenue or the secretary's designee relating to the tax liability or denial of refund by filing a written request with the secretary of revenue or the secretary's designee which sets forth the objections to the proposed liability or proposed denial of refund. The purpose of such conference shall be to review and reconsider all facts and issues that underlie the proposed liability or proposed denial of refund. The secretary of revenue or the secretary's designee shall hold an informal conference with the taxpayer and shall issue a written final determination thereon. The informal conference shall not constitute an adjudicative proceeding under the Kansas administrative procedure act. Informal conferences held pursuant to this section may be conducted by the secretary of revenue or the secretary's designee. The rules of evidence shall not apply to an informal conference and no record shall be made, except at the request and expense of the secretary of revenue or the secretary's designee or taxpayer. The taxpayer may bring to the informal conference an attorney, certified public accountant and any other person to represent the taxpayer or to provide information. Because the purpose of the department staff is to aid the secretary or secretary's designee in the proper discharge of the secretary's or secretary's designee's duties, the secretary or secretary's designee may confer at any time with any staff member with respect to the case under reconsideration. The secretary of revenue or the secretary's designee shall issue a written final determination within 270 days of the date of the request for informal conference unless the parties agree in writing to extend the time for issuing such final determination. A final determination issued within or after 270 days, with or without extension, constitutes final agency action subject to administrative review by the state board of tax appeals. In the event that a written final determination is not rendered within 270 days, the taxpayer may appeal to the state board of tax appeals at any time provided that a written extension of time is not in effect.

(b) A final determination finding additional tax shall be accompanied by a notice and demand for payment. Notice under this section shall be sent by first-class mail in the case of individual taxpayers and by registered or certified mail in the case of all other taxpayers. The tax shall be paid within 20 days thereafter, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, on the additional tax from the date the tax was due unless an appeal is taken in the manner provided by K.S.A. 74-2438, and amendments thereto, but no additional tax shall be assessed for less than $5 unless the secretary or the secretary's designee determines the administration and collection cost involved in collecting an amount over $5 but less than $100 would not warrant collection of the amount due. Interest at such rate shall continue to accrue on any additional tax liability during the course of any appeal.

History: L. 1933, ch. 320, § 26; L. 1943, ch. 290, § 3; L. 1957, ch. 429, § 18; L. 1980, ch. 316, § 3; L. 1980, ch. 308, § 17; L. 1984, ch. 351, § 11; L. 1988, ch. 356, § 329; L. 1992, ch. 65, § 1; L. 1997, ch. 126, § 10; L. 2002, ch. 186, § 4; L. 2008, ch. 109, § 114; L. 2014, ch. 141, § 121; July 1.

§ 79-3226a Repealed

History: L. 1945, ch. 364, § 5; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3226b Repealed

History: L. 1951, ch. 493, § 4; L. 1969, ch. 449, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3226c Repealed

History: L. 1933, ch. 320, § 26; L. 1943, ch. 290, § 3; L. 1957, ch. 429, § 18; L. 1980, ch. 316, § 3; L. 1980, ch. 308, § 7; L. 1984, ch. 351, § 11; L. 1988, ch. 356, § 329; L. 1992, ch. 65, § 1; L. 1997, ch. 126, § 10; L. 2002, ch. 185, § 28; Repealed, L. 2003, ch. 158, § 11; July 1.

§ 79-3227 Repealed

Revisor's Note: Later act, see 74-2426, 74-2427.

History: L. 1933, ch. 320, § 27; Repealed, L. 1943, ch. 290, § 15; June 28.

§ 79-3228 Penalties and interest

(a) For all taxable years ending prior to January 1, 2002, if any taxpayer, without intent to evade the tax imposed by this act, shall fail to file a return or pay the tax, if one is due, at the time required by or under the provisions of this act, but shall voluntarily file a correct return of income or pay the tax due within six months thereafter, there shall be added to the tax an additional amount equal to 10% of the unpaid balance of tax due plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(b) For all taxable years ending prior to January 1, 2002, if any taxpayer fails voluntarily to file a return or pay the tax, if one is due, within six months after the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to 25% of the unpaid balance of tax due plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in the amount of 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(c) For all taxable years ending after December 31, 2001, if any taxpayer fails to file a return or pay the tax if one is due, at the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to 1% of the unpaid balance of the tax due for each month or fraction thereof during which such failure continues, not exceeding 24% in the aggregate, plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in an amount of 1% per month not exceeding 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(d) For all taxable years ending after December 31, 2013, if any taxpayer who has failed to file a return, and after notice from the director refuses or neglects within 20 days to file a proper return, the director shall determine the income of such taxpayer according to the best available information and assess the tax together with a penalty of 50% of the unpaid balance of tax due plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was originally due to the date of payment. If, at any time, a taxpayer filed a return and paid in full the tax due as stated on the return, at the time required by or under the provisions of this act and subsequently is adjusted by the director, and a notice of liability is sent to the taxpayer, no penalty shall be assessed under the provisions of this subsection with respect to any underpayment of income tax liability due to the adjustment if any such tax is paid within 30 days of such notice of liability. If any such tax is not paid within 30 days of original notice, the penalty provided under the provisions of this subsection shall apply.

(e) Any person, who with fraudulent intent, fails to pay any tax or to make, render or sign any return, or to supply any information, within the time required by or under the provisions of this act, shall be assessed a penalty equal to the amount of the unpaid balance of tax due plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was originally due to the date of payment. Such person shall also be guilty of a misdemeanor and shall, upon conviction, be fined not more than $1,000 or be imprisoned in the county jail not less than 30 days nor more than one year, or both such fine and imprisonment.

(f) Any person who willfully signs a fraudulent return shall be guilty of a felony, and upon conviction thereof shall be punished by imprisonment for a term not exceeding five years. The term "person" as used in this section includes any agent of the taxpayer, and officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee or member is under a duty to perform the act in respect of which the violation occurs.

(g) (1) Whenever the secretary or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsections (a), (b), (c) and (d) of this section was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

(2) No penalty shall be assessed hereunder with respect to any underpayment of income tax liability reported on any amended return filed by any taxpayer who at the time of filing pays such underpayment and whose return is not being examined at the time of filing.

(3) No penalty assessed hereunder shall be collected if the taxpayer has had the tax abated on appeal, and any penalty collected upon such tax shall be refunded.

(h) In case of a nonresident or any officer or employee of a corporation, the failure to do any act required by or under the provisions of this act shall be deemed an act committed in part at the office of the director.

(i) In the case of a nonresident individual, partnership or corporation, the failure to do any act required by or under the provision of this act shall prohibit such nonresident from being awarded any contract for construction, reconstruction or maintenance or for the sale of materials and supplies to the state of Kansas or any political subdivision thereof until such time as such nonresident has fully complied with this act.

History: L. 1933, ch. 320, § 28; L. 1937, ch. 370, § 5; L. 1943, ch. 304, § 2; L. 1968, ch. 338, § 1; L. 1970, ch. 391, § 1; L. 1980, ch. 316, § 4; L. 1980, ch. 308, § 18; L. 1984, ch. 351, § 12; L. 1988, ch. 383, § 1; L. 1994, ch. 95, § 1; L. 2000, ch. 184, § 18; L. 2014, ch. 140, § 18; July 1.

§ 79-3228a Failure to file or filing of insufficient return, mandamus action permitted

If any taxpayer fails to file a return or files an insufficient return under the provisions of the Kansas income tax act, and after notice from the director of taxation, refuses or neglects within 20 days to file a proper return, the director may file an application for a writ of mandamus in the district court of Shawnee county to require such taxpayer to file a proper return. If the court finds that the taxpayer has unreasonably failed to file a return or has filed an insufficient return, the court shall order the taxpayer to file a proper return and shall assess all costs of the action against the taxpayer. In the event the court finds that the failure to file a return or that the insufficiency of a return was reasonable, costs of the action, including taxpayer's reasonable attorney fees, shall be assessed against the department of revenue. Failure to obey the order of the court shall be punishable by the court as contempt.

History: L. 1983, ch. 310, § 1; July 1.

§ 79-3229 Jeopardy assessments, when; procedures; closing of taxable period

Whenever the director of taxation has reason to believe that a taxpayer liable for tax under any provisions of article 32 of chapter 79 of the Kansas Statutes Annotated is about to depart from the state or to remove such taxpayer's property therefrom, or to conceal oneself or such taxpayer's property therein, or to do any other act tending to prejudice, jeopardize or render wholly or partly ineffectual the collection of such tax unless proceedings are brought without delay, the director shall immediately make an assessment for all such taxes due from such taxpayer, noting such finding on the assessment. Thereupon a warrant shall be issued for the collection of the tax as provided in K.S.A. 79-3235 and amendments thereto. The taxpayer may within 15 days from the date of filing of such warrant request a hearing by the director on the correctness of the jeopardy assessment. If the director finds that in certain cases, collection of the tax for the current year will be jeopardized by delay, the director may, in the exercise of discretion, declare the taxable period closed, and immediately issue notice and demand for payment of the tax found to be due. In such cases, collection may be stayed by giving such security as the director may consider adequate.

Orders under this section shall be rendered in accordance with the procedures for emergency adjudicative proceedings contained in K.S.A. 77-536 and amendments thereto. Hearings required under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.

History: L. 1933, ch. 320, § 29; L. 1980, ch. 317, § 1; L. 1988, ch. 356, § 330; July 1, 1989.

§ 79-3230 Periods of limitation; extension agreements; notice of agreement with internal revenue service

(a) The amount of income taxes imposed by this act shall be assessed within three years after the original return was filed, the tax as shown to be due on the return was paid or within one year after an amended return is filed, whichever is the later date, and no proceedings in court for the collection of such taxes shall be begun after the expiration of such period. For purposes of this act any return filed before the 15th day of the fourth month following the close of the taxable year shall be considered as being filed on the 15th day of the fourth month following the close of the taxable year, and any tax shown to be due on the return and paid before the 15th day of the fourth month following the close of the taxable year shall be deemed to have been paid on the 15th day of the fourth month following the close of the taxable year.

(b) In the case of a false or fraudulent return with intent to evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun at any time.

(c) No claim shall be allowed for credit or refund of overpayment of any tax imposed by this act unless filed by the taxpayer within three years from the date the original return was due, including any extension allowed pursuant to law, or two years from the date the tax claimed to be refunded or against which the credit is claimed was paid, whichever of such periods expires later.

(d) In case a taxpayer has made claim for a refund, the taxpayer shall have the right to commence a suit for the recovery of the refund at the expiration of six months after the filing of the claim for refund, if no action has been taken by the director of taxation.

(e) Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for a refund, the director of taxation is authorized to enter into an agreement in writing with the taxpayer consenting to the extension of the periods of limitations as defined in this act for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the period of limitations. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. A copy of all such agreements and extensions thereof shall be filed with the director of taxation within 30 days after their execution.

(f) Any taxpayer whose income has been adjusted by the federal internal revenue service or by the income tax collection agency of another state is required to report such adjustments to the Kansas department of revenue by mail within 180 days of the date the federal or other state adjustments are paid, agreed to or become final, whichever is earlier. Such adjustments shall be reported by filing an amended return for the applicable taxable year and a copy of the federal or state revenue agent's report detailing such adjustments. In the event such taxpayer is a corporation, such report shall be by certified or registered mail.

Notwithstanding the provisions of subsection (a) or (c) of this section, additional income taxes may be assessed and proceedings in court for collection of such taxes may be commenced and any refund or credit may be allowed by the director of taxation within 180 days following receipt of any such report of adjustments by the Kansas department of revenue, or within two years from the date the tax claimed to be refunded or, against which the credit is claimed was paid, whichever period expires later. No assessment shall be made nor any refund or credit shall be allowable under the provisions of this subsection except to the extent the same is attributable to changes in the taxpayer's income due to adjustments indicated by such report. Failure by the taxpayer to comply with the provisions of this subsection shall not bar the Kansas department of revenue from assessing additional taxes or proceeding in court to collect such taxes.

(g) Failure by the taxpayer to comply with the requirements for filing returns shall toll the periods of limitation for the Kansas department of revenue to assess or collect taxes.

History: L. 1933, ch. 320, § 30; L. 1935, ch. 312, § 12; L. 1949, ch. 480, § 5; L. 1953, ch. 437, § 3; L. 1961, ch. 454, § 1; L. 1965, ch. 523, § 3; L. 1980, ch. 316, § 5; L. 1981, ch. 384, § 1; L. 1984, ch. 351, § 13; L. 1989, ch. 296, § 1; L. 1997, ch. 126, § 17; L. 1998, ch. 188, § 8; L. 2001, ch. 176, § 8; L. 2009, ch. 142, § 5; May 28.

§ 79-3231 Repealed

History: L. 1933, ch. 320, § 31; L. 1945, ch. 366, § 1; Repealed, L. 1965, ch. 525, § 17; January 1, 1966.

§ 79-3232 Repealed

Revisor's Note: Later act, see 79-32,111.

History: L. 1933, ch. 320, § 32; L. 1937, ch. 370, § 6; L. 1961, ch. 455, § 1; Repealed, L. 1967, ch. 497, § 42; January 1, 1968.

§ 79-3233 Powers of secretary or designee

(a) This act shall be administered by the secretary of revenue. For the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxable income of any taxpayer, the secretary shall have power to examine, or cause to be examined by any agent or representative designated by the secretary for that purpose, any books, papers, records or memoranda, bearing upon the matters required to be included in the return, and may require the attendance of the taxpayer in the county where the taxpayer resides, or where the source of the major portion of the taxpayer's income in question is derived, or of any person having knowledge in the premises, and may take testimony and require proof of such person or persons.

The secretary may issue subpoenas to compel access to or for the production of such books, papers, records or memoranda in the custody of or to which the taxpayer has access, or to compel the appearance of such persons, and may issue interrogatories to any such person to the same extent and subject to the same limitations as would apply if the subpoena or interrogatories were issued or served in aid of a civil action in the district court. The secretary may administer oaths and take depositions to the same extent and subject to the same limitations as would apply if the deposition was in aid of a civil action in the district court. In case of the refusal of any person to comply with any subpoena or interrogatory or to testify to any matter regarding which such person may be lawfully questioned, the district court of any county may, upon application of the secretary, order such person to comply with such subpoena or interrogatory or to testify. Failure to obey the court's order may be punished by the court as contempt. Subpoenas or interrogatories issued under the provisions of this section may be served upon individuals and corporations in the manner provided in K.S.A. 60-304, and amendments thereto, for the service of process by any officer authorized to serve subpoenas in civil actions or by the secretary.

(b) As used in this section and in K.S.A. 79-3233a, 79-3233b, 79-3233g, 79-3233h and 79-3233i, and amendments thereto, "secretary" means the secretary of revenue or the designee of such secretary.

History: L. 1933, ch. 320, § 33; L. 1980, ch. 317, § 2; L. 1989, ch. 291, § 2; L. 1999, ch. 94, § 1; July 1.

§ 79-3233a Compromise of delinquent income taxes of taxpayers; procedure; rules and regulations

(a) (1) Any taxpayer, such taxpayer's heirs, or legal representative may petition the secretary to abate all or part of any final income tax liability of the taxpayer. As used in this section, "tax liability," "tax," or "liability" shall include the amount of tax due and the penalties and interest thereon. The petition shall be in writing and shall set forth: (A) The reasons why all or part of the liability should be abated; (B) the facts that support such an abatement; and (C) a waiver of the taxpayer's right to confidentiality under the confidentiality provisions of chapter 79 of the Kansas Statutes Annotated, conditioned on the secretary's abatement of all or part of the liability. A petition shall be accompanied by a sworn statement of the taxpayer's assets and liabilities, whenever the petition is based on insolvency or inability to pay. The petition shall be signed under penalty of perjury by the petitioner and by the taxpayer, if available. A petition for the abatement of a final liability shall not operate to stay the collection of any tax.

(2) The secretary shall review each petition and may: (A) Issue a determination that rejects the petition without further comment; (B) require the petitioner to submit additional verified documentation in support of the abatement; or (C) require the petitioner and the taxpayer to appear and testify under oath concerning the abatement. If the secretary finds that there is serious doubt as to the either the collectability of the tax due or the taxpayer's liability, the secretary may abate all or part of the tax liability. If the secretary abates any tax liability, the secretary shall make a written finding that determines the tax amount the taxpayer should reasonably be required to pay, and sets forth the reasons for the abatement being made. Such a finding may require payment to be made as directed within 30 days as a condition for the abatement. If at any time within four years following the entry of such a finding, the secretary finds that the petition is fraudulent, the matter may be reopened by the secretary and the taxpayer shall be subject to the tax liability to the same extent as if such abatement had not been made.

(3) No taxpayer shall have a right to the abatement of any tax liability under this section. Any decision by the secretary regarding the abatement of a final tax liability shall be discretionary and may only be made upon finding there is serious doubt either as to the collectability of the tax due or the taxpayer's liability. Any order or finding shall be final and conclusive and shall not be subject to review under K.S.A. 74-2438, K.S.A. 77-501 et seq., or K.S.A. 79-3226, and amendments thereto.

(b) This section shall be construed as a part of and supplemental to the Kansas income tax act.

History: L. 1965, ch. 527, § 1; L. 1972, ch. 342, § 96; L. 1988, ch. 383, § 2; L. 1999, ch. 94, § 2; July 1.

§ 79-3233b Compromise of delinquent income taxes of taxpayer; annual report by director; filing with the attorney general

(a) The secretary shall maintain a record of each abatement that reduces a final tax liability by $5,000 or more. Such record shall contain:

(1) The name and address of the taxpayer, and the petitioner if different;

(2) the disputed tax liability including penalty and interest;

(3) the taxpayer's grounds for contesting the liability together with all supporting evidence;

(4) all staff recommendations, reports and audits;

(5) the reasons for, conditions to and the amount of the abatement; and

(6) the payment made, if any.

(b) Such records shall be maintained by the department for nine years.

(c) The secretary shall make an annual report that identifies the taxpayer, summarizes the issues and the reasons for abatement and states the amount of liability that was abated pursuant to this section for each abatement that reduced a final tax liability by $5,000 or more. The secretary shall file the report with the attorney general on or before September 30 of each year. Any other law notwithstanding, the secretary shall make the annual report available for public inspection upon written request.

History: L. 1965, ch. 527, § 2; L. 1967, ch. 496, § 1; L. 1974, ch. 439, § 1; L. 1999, ch. 94, § 3; L. 2005, ch. 37, § 1; L. 2011, ch. 20, § 1; L. 2021, ch. 36, § 4; L. 2025, ch. 29, § 9; July 1.

§ 79-3233c Repealed

History: L. 1965, ch. 528, § 1; Repealed, L. 1969, ch. 450, § 7; July 1.

§ 79-3233d Repealed

History: L. 1969, ch. 450, § 1; Repealed, L. 1999, ch. 94, § 11; July 1.

§ 79-3233e Abatement of certain income tax liabilities

Delinquent individual or corporate tax indebtedness, including the penalty and interest thereon, arising under the Kansas income tax act, may be abated and removed from the accounts receivable file of the division of taxation in the manner hereinafter provided in this act.

History: L. 1969, ch. 450, § 2; July 1.

§ 79-3233f Repealed

History: L. 1969, ch. 450, § 3; Repealed, L. 1999, ch. 94, § 11; July 1.

§ 79-3233g Same; petition to state board of tax appeals for approval or disapproval of abatement; abatement by director; list of indebtedness abated preserved as a public record

(a) In all cases where the income tax liability exceeds the sum of $100 including penalties and interest, the secretary shall petition the state board of tax appeals to abate such income tax liability and include the name of the debtor, the year in which the tax is due and the grounds for abatement as prescribed in K.S.A. 79-3233i, and amendments thereto.

(b) The state board of tax appeals may, within 60 days after the petition is filed by the secretary, approve or disapprove the requested abatement. The secretary shall prepare an order abating any tax indebtedness that has been approved by the board or has been submitted to and not specifically disapproved by the board within 60 days of the filing of the petition. Notwithstanding any other contrary law, a list of all tax indebtedness abated under this section shall be preserved as a public record.

History: L. 1969, ch. 450, § 4; L. 1999, ch. 94, § 4; L. 2008, ch. 109, § 115; L. 2014, ch. 141, § 122; L. 2025, ch. 29, § 10; July 1.

§ 79-3233h Same; uncollectible accounts; death of individual or dissolution of corporation

Any individual and corporate tax indebtedness, including the penalty and interest thereon which is determined by the secretary to be an uncollectible account by reason of the death of the person owing the tax and leaving no estate or by the dissolution of a corporation may be abated in the manner and subject to the limitations prescribed by K.S.A. 79-3233g.

History: L. 1969, ch. 450, § 5; L. 1999, ch. 94, § 5; July 1.

§ 79-3233i Same; uncollectible accounts; account $25 or less or delinquent more than 7 years; basis for determination

Any individual and corporate tax indebtedness, including the penalty and interest thereon which has: (a) Been delinquent for more than five years, or (b) is in the amount of $100 or less, and is determined by the secretary to be an uncollectible account after all reasonable efforts have been made to effect collection, may be abated in the manner and subject to the limitations prescribed by K.S.A. 79-3233g for any one of the following reasons:

(1) The statute of limitations bars collection;

(2) lack of jurisdiction;

(3) the domicile of the taxpayer is located outside of the state, and the taxpayer has no assets within the state of Kansas upon which the division of taxation may levy;

(4) insolvency of taxpayer;

(5) the taxpayer cannot be located;

(6) the taxpayer is receiving social security benefits, or social welfare payments and the taxpayer has no other assets upon which the division of taxation may levy;

(7) the taxpayer is mentally ill or physically incapacitated and circumstances indicate that the taxpayer will not be economically productive in the foreseeable future;

(8) the administration and collection cost involved would not warrant collection of the amount due, and it will be to the advantage of the state to grant abatement of taxpayer's indebtedness.

History: L. 1969, ch. 450, § 6; L. 1999, ch. 94, § 6; July 1.

§ 79-3233j Offset of tax overpayments against tax underpayments

If the amount of any tax payment, estimated or otherwise, made during any calendar year or other taxable period exceeds the taxpayer's liability for which such payment was made, any excess shall be applied to any other tax then owed the state of Kansas by such taxpayer, including fines, penalties and interests, if any, and the balance of such excess, if any, shall be refunded to the taxpayer.

History: L. 2002, ch. 186, § 7; July 1.

§ 79-3234 Tax information, report and returns; preservation; limits on dissemination and use; penalty for violations

(a) All reports and returns required by this act shall be preserved for three years and thereafter until the director orders them to be destroyed.

(b) Except in accordance with proper judicial order, or as provided in subsection (c) or K.S.A. 46-1106(e), 46-1114 or 79-32,153a, and amendments thereto, it shall be unlawful for the secretary, the director, any deputy, agent, clerk or other officer, employee or former employee of the department of revenue or any other state officer or employee or former state officer or employee to divulge, or to make known in any way, the amount of income or any particulars set forth or disclosed in any report, return, federal return or federal return information required under this act; and it shall be unlawful for the secretary, the director, any deputy, agent, clerk or other officer or employee engaged in the administration of this act to engage in the business or profession of tax accounting or to accept employment, with or without consideration, from any person, firm or corporation for the purpose, directly or indirectly, of preparing tax returns or reports required by the laws of the state of Kansas, by any other state or by the United States government, or to accept any employment for the purpose of advising, preparing material or data, or the auditing of books or records to be used in an effort to defeat or cancel any tax or part thereof that has been assessed by the state of Kansas, any other state or by the United States government.

(c) The secretary or the secretary's designee may:

(1) Publish statistics, so classified as to prevent the identification of particular reports or returns and the items thereof;

(2) allow the inspection of returns by the attorney general or other legal representatives of the state;

(3) provide the post auditor access to all income tax reports or returns in accordance with and subject to the provisions of K.S.A. 46-1106(e) or 46-1114, and amendments thereto;

(4) disclose taxpayer information from income tax returns to persons or entities contracting with the secretary of revenue where the secretary has determined disclosure of such information is essential for completion of the contract and has taken appropriate steps to preserve confidentiality;

(5) disclose to the secretary of commerce the following: (A) Specific taxpayer information related to financial information previously submitted by the taxpayer to the secretary of commerce concerning or relevant to any income tax credits, for purposes of verification of such information or evaluating the effectiveness of any tax credit or economic incentive program administered by the secretary of commerce; (B) the amount of payroll withholding taxes an employer is retaining pursuant to K.S.A. 74-50,212, and amendments thereto; (C) information received from businesses completing the form required by K.S.A. 74-50,217, and amendments thereto; and (D) findings related to a compliance audit conducted by the department of revenue upon the request of the secretary of commerce pursuant to K.S.A. 74-50,215, and amendments thereto;

(6) disclose income tax returns to the state gaming agency to be used solely for the purpose of determining qualifications of licensees of and applicants for licensure in tribal gaming. Any information received by the state gaming agency shall be confidential and shall not be disclosed except to the executive director, employees of the state gaming agency and members and employees of the tribal gaming commission;

(7) disclose the taxpayer's name, last known address and residency status to the Kansas department of wildlife and parks to be used solely in its license fraud investigations;

(8) disclose the name, residence address, employer or Kansas adjusted gross income of a taxpayer who may have a duty of support in a title IV-D case to the secretary of the Kansas department for children and families for use solely in administrative or judicial proceedings to establish, modify or enforce such support obligation in a title IV-D case. In addition to any other limits on use, such use shall be allowed only where subject to a protective order which prohibits disclosure outside of the title IV-D proceeding. As used in this section, "title IV-D case" means a case being administered pursuant to part D of title IV of the federal social security act, 42 U.S.C. § 651 et seq., and amendments thereto. Any person receiving any information under the provisions of this subsection shall be subject to the confidentiality provisions of subsection (b) and to the penalty provisions of subsection (e);

(9) permit the commissioner of internal revenue of the United States, or the proper official of any state imposing an income tax, or the authorized representative of either, to inspect the income tax returns made under this act and the secretary of revenue may make available or furnish to the taxing officials of any other state or the commissioner of internal revenue of the United States or other taxing officials of the federal government, or their authorized representatives, information contained in income tax reports or returns or any audit thereof or the report of any investigation made with respect thereto, filed pursuant to the income tax laws, as the secretary may consider proper, but such information shall not be used for any other purpose than that of the administration of tax laws of such state, the state of Kansas or of the United States;

(10) communicate to the executive director of the Kansas lottery information as to whether a person, partnership or corporation is current in the filing of all applicable tax returns and in the payment of all taxes, interest and penalties to the state of Kansas, excluding items under formal appeal, for the purpose of determining whether such person, partnership or corporation is eligible to be selected as a lottery retailer;

(11) communicate to the executive director of the Kansas racing commission as to whether a person, partnership or corporation has failed to meet any tax obligation to the state of Kansas for the purpose of determining whether such person, partnership or corporation is eligible for a facility owner license or facility manager license pursuant to the Kansas parimutuel racing act;

(12) provide such information to the executive director of the Kansas public employees retirement system for the purpose of determining that certain individuals' reported compensation is in compliance with the Kansas public employees retirement act, K.S.A. 74-4901 et seq., and amendments thereto;

(13) (A) provide taxpayer information of persons suspected of violating K.S.A. 44-766, and amendments thereto, to the secretary of labor or such secretary's designee for the purpose of determining compliance by any person with the provisions of K.S.A. 44-703(i)(3)(D) and 44-766, and amendments thereto. The information to be provided shall include all relevant information in the possession of the department of revenue necessary for the secretary of labor to make a proper determination of compliance with the provisions of K.S.A. 44-703(i)(3)(D) and 44-766, and amendments thereto, and to calculate any unemployment contribution taxes due. Such information to be provided by the department of revenue shall include, but not be limited to, withholding tax and payroll information, the identity of any person that has been or is currently being audited or investigated in connection with the administration and enforcement of the withholding and declaration of estimated tax act, K.S.A. 79-3294 et seq., and amendments thereto, and the results or status of such audit or investigation;

(B) any person receiving tax information under the provisions of this paragraph shall be subject to the same duty of confidentiality imposed by law upon the personnel of the department of revenue and shall be subject to any civil or criminal penalties imposed by law for violations of such duty of confidentiality; and

(C) each of the secretary of labor and the secretary of revenue may adopt rules and regulations necessary to effect the provisions of this paragraph;

(14) provide such information to the state treasurer for the sole purpose of carrying out the provisions of K.S.A. 58-3934, and amendments thereto. Such information shall be limited to current and prior addresses of taxpayers or associated persons who may have knowledge as to the location of an owner of unclaimed property. For the purposes of this paragraph, "associated persons" includes spouses or dependents listed on income tax returns;

(15) after receipt of information pursuant to subsection (f), forward such information and provide the following reported Kansas individual income tax information for each listed defendant, if available, to the state board of indigents' defense services in an electronic format and in the manner determined by the secretary: (A) The defendant's name; (B) social security number; (C) Kansas adjusted gross income; (D) number of exemptions claimed; and (E) the relevant tax year of such records. Any social security number provided to the secretary and the state board of indigents' defense services pursuant to this section shall remain confidential; and

(16) disclose taxpayer information that is received from income tax returns to the department of commerce that may be disclosed pursuant to the provisions of K.S.A. 2025 Supp. 74-50,227, and amendments thereto, for the purpose of including such information in the database required by K.S.A. 2025 Supp. 74-50,227, and amendments thereto.

(d) Any person receiving information under the provisions of subsection (c) shall be subject to the confidentiality provisions of subsection (b) and to the penalty provisions of subsection (e).

(e) Any violation of subsection (b) or (c) is a class A nonperson misdemeanor and, if the offender is an officer or employee of the state, such officer or employee shall be dismissed from office.

(f) For the purpose of determining whether a defendant is financially able to employ legal counsel under the provisions of K.S.A. 22-4504, and amendments thereto, in all felony cases with appointed counsel where the defendant's social security number is accessible from the records of the district court, the court shall electronically provide the defendant's name, social security number, district court case number and county to the secretary of revenue in the manner and format agreed to by the office of judicial administration and the secretary.

(g) Nothing in this section shall be construed to allow disclosure of the amount of income or any particulars set forth or disclosed in any report, return, federal return or federal return information, where such disclosure is prohibited by the federal internal revenue code as in effect on September 1, 1996, and amendments thereto, related federal internal revenue rules or regulations, or other federal law.

History: L. 1933, ch. 320, § 34; L. 1935, ch. 312, § 13; L. 1943, ch. 307, § 2; L. 1972, ch. 342, § 97; L. 1977, ch. 186, § 9; L. 1978, ch. 406, § 1; L. 1979, ch. 319, § 1; L. 1983, ch. 289, § 13; L. 1984, ch. 192, § 3; L. 1987, ch. 292, § 30; L. 1987, ch. 112, § 40; L. 1989, ch. 297, § 3; L. 1992, ch. 202, § 14; L. 1993, ch. 192, § 2; L. 1994, ch. 188, § 3; L. 1997, ch. 126, § 46; L. 1998, ch. 188, § 6; L. 2000, ch. 184, § 27; L. 2005, ch. 110, § 4; L. 2006, ch. 118, § 3; L. 2009, ch. 104, § 8; L. 2010, ch. 144, § 8; L. 2011, ch. 81, § 5; L. 2012, ch. 146, § 1; L. 2013, ch. 133, § 34; L. 2014, ch. 115, § 433; L. 2019, ch. 60, § 6; L. 2021, ch. 113, § 8; L. 2023, ch. 66, § 72; L. 2023, ch. 91, § 8; July 1.

§ 79-3234a Repealed

Revisor's Note: Section was amended twice in the 1997 session, see also 79-3234.

History: L. 1933, ch. 320, § 34; L. 1935, ch. 312, § 13; L. 1943, ch. 307, § 2; L. 1972, ch. 342, § 97; L. 1977, ch. 186, § 9; L. 1978, ch. 406, § 1; L. 1979, ch. 319, § 1; L. 1983, ch. 289, § 13; L. 1984, ch. 192, § 3; L. 1987, ch. 292, § 30; L. 1987, ch. 112, § 40; L. 1989, ch. 297, § 3; L. 1992, ch. 202, § 14; L. 1993, ch. 192, § 2; L. 1994, ch. 188, § 3; L. 1997, ch. 182, § 78; Repealed, L. 1998, ch. 188, § 11; July 1.

§ 79-3234b Repealed

History: L. 1933, ch. 320, § 34; L. 1935, ch. 312, § 13; L. 1943, ch. 307, § 2; L. 1972, ch. 342, § 97; L. 1977, ch. 186, § 9; L. 1978, ch. 406, § 1; L. 1979, ch. 319, § 1; L. 1983, ch. 289, § 13; L. 1984, ch. 192, § 3; L. 1987, ch. 292, § 30; L. 1987, ch. 112, § 40; L. 1989, ch. 297, § 3; L. 1992, ch. 202, § 14; L. 1993, ch. 192, § 2; L. 1994, ch. 188, § 3; L. 1997, ch. 126, § 46; L. 1998, ch. 188, § 6; L. 2000, ch. 184, § 27; L. 2005, ch. 110, § 4; L. 2006, ch. 118, § 3; L. 2009, ch. 104, § 8; L. 2010, ch. 144, § 8; L. 2011, ch. 99, § 2; L. 2012, ch. 47, § 128; Repealed, L. 2012, ch. 166, § 24; July 1.

§ 79-3234c Repealed

History: L. 1933, ch. 320, § 34; L. 1935, ch. 312, § 13; L. 1943, ch. 307, § 2; L. 1972, ch. 342, § 97; L. 1977, ch. 186, § 9; L. 1978, ch. 406, § 1; L. 1979, ch. 319, § 1; L. 1983, ch. 289, § 13; L. 1984, ch. 192, § 3; L. 1987, ch. 292, § 30; L. 1987, ch. 112, § 40; L. 1989, ch. 297, § 3; L. 1992, ch. 202, § 14; L. 1993, ch. 192, § 2; L. 1994, ch. 188, § 3; L. 1997, ch. 126, § 46; L. 1998, ch. 188, § 6; L. 2000, ch. 184, § 27; L. 2005, ch. 110, § 4; L. 2006, ch. 118, § 3; L. 2009, ch. 104, § 8; L. 2010, ch. 144, § 8; L. 2011, ch. 81, § 5; L. 2012, ch. 47, § 127; L. 2012, ch. 166, § 23; Repealed, L. 2013, ch. 133, § 37; July 1.

§ 79-3234d Repealed

Revisor's Note: Section was amended twice, once in the 2018 session and once in the 2019 session, see 79-3234.

History: L. 1933, ch. 320, § 34; L. 1935, ch. 312, § 13; L. 1943, ch. 307, § 2; L. 1972, ch. 342, § 97; L. 1977, ch. 186, § 9; L. 1978, ch. 406, § 1; L. 1979, ch. 319, § 1; L. 1983, ch. 289, § 13; L. 1984, ch. 192, § 3; L. 1987, ch. 292, § 30; L. 1987, ch. 112, § 40; L. 1989, ch. 297, § 3; L. 1992, ch. 202, § 14; L. 1993, ch. 192, § 2; L. 1994, ch. 188, § 3; L. 1997, ch. 126, § 46; L. 1998, ch. 188, § 6; L. 2000, ch. 184, § 27; L. 2005, ch. 110, § 4; L. 2006, ch. 118, § 3; L. 2009, ch. 104, § 8; L. 2010, ch. 144, § 8; L. 2011, ch. 81, § 5; L. 2012, ch. 146, § 1; L. 2013, ch. 133, § 34; L. 2014, ch. 115, § 433; L. 2018, ch. 89, § 38; Repealed, L. 2021, ch. 113, § 9; July 1.

§ 79-3235 Collection of delinquent taxes; tax lien

If any tax imposed by this act or any portion of such tax is not paid within 60 days after it becomes due, the secretary or the secretary's designee shall issue a warrant under the secretary's or the secretary's designee's hand and official seal, directed to the sheriff of any county of the state, commanding the sheriff to levy upon and sell the real and personal property of the taxpayer found within the sheriff's county for the payment of the amount thereof, with the added penalties, interest and the cost of executing the warrant and to return the warrant to the secretary or the secretary's designee and pay to the secretary or the secretary's designee the money collected by virtue of it not more than 60 days from the date of the warrant. Firearms seized may be appraised and disposed of in the same manner prescribed in K.S.A. 79-5212, and amendments thereto. The sheriff, within five days after the receipt of the warrant, shall file with the clerk of the district court of the county a copy thereof, and thereupon the clerk shall either enter in the appearance docket the name of the taxpayer mentioned in the warrant, the amount of the tax or portion of it, interest and penalties for which the warrant is issued and the date such copy is filed and note the taxpayer's name in the general index. No fee shall be charged for either entry. The amount of such warrant so docketed shall thereupon become a lien upon the title to and interest in the real property of the taxpayer against whom it is issued. The sheriff shall proceed in the same manner and with the same effect as prescribed by law with respect to executions issued against property upon judgments of a court of record and shall be entitled to the same fees for services to be collected in the same manner.

The court in which the warrant is docketed shall have jurisdiction over all subsequent proceedings as fully as though a judgment had been rendered in the court. In the discretion of the secretary or the secretary's designee a warrant of like terms, force and effect may be issued and directed to any officer or employee of the secretary, and in the execution thereof such officer or employee shall have all the powers conferred by law upon sheriffs, and the subsequent proceedings thereunder shall be the same as provided where the warrant is issued directly to the sheriff. The taxpayer shall have the right to redeem the real estate within a period of 18 months from the date of such sale. If a warrant is returned, unsatisfied in full, the secretary or the secretary's designee shall have the same remedies to enforce the claim for taxes as if the state of Kansas had recovered judgment against the taxpayer for the amount of the tax. No law exempting any goods and chattels, lands and tenements from forced sale under execution shall apply to a levy and sale under any such warrant or upon any execution issued upon any judgment rendered in any action for income taxes. Except as provided further, the secretary or the secretary's designee shall have the right after a warrant has been returned unsatisfied or satisfied only in part, to issue alias warrants until the full amount of the tax is collected.

If execution is not issued within 10 years from the date of the docketing of any such warrant, or if 10 years shall have intervened between the date of the last execution issued on such warrant, and the time of issuing another writ of execution thereon, such warrant shall become dormant, and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such dormant warrant may be revived in like manner as dormant judgment under the code of civil procedure.

History: L. 1933, ch. 320, § 35; L. 1937, ch. 370, § 7; L. 1976, ch. 145, § 244; L. 1977, ch. 109, § 41; L. 1984, ch. 147, § 22; L. 1988, ch. 383, § 3; L. 1998, ch. 130, § 34; L. 2005, ch. 141, § 5; July 1.

§ 79-3235a Procedures for the issuance of warrants and the levy upon property resulting from tax delinquency

(a) Notwithstanding any provision of K.S.A. 79-3235, and amendments thereto, to the contrary, the procedures set forth by this section shall apply to the issuance of any warrant and the levy upon property pursuant to such provisions.

(b) The secretary or the secretary's designee shall notify in writing the person who is the subject of the warrant of the filing of a warrant under K.S.A. 79-3235, and amendments thereto. The notice required shall be given in person, left at the dwelling or usual place of business of such person or sent by certified or registered mail to such person's last known dwelling address, not more than five business days after the day of the filing of the notice of lien. The notice shall include in simple and nontechnical terms the amount of unpaid taxes, the administrative appeals available to the taxpayer with respect to such warrant and the procedures relating to such appeals, and the provisions of law and procedures relating to the release of warrants on property.

History: L. 2002, ch. 186, § 17; July 1.

§ 79-3235b Procedures for the issuance of warrants and the levy upon property resulting from tax delinquency

(a) Notwithstanding any provision of K.S.A. 79-3235, and amendments thereto, to the contrary, the procedures set forth by this section shall apply to the issuance of any warrant and the levy upon property pursuant to such provisions.

(b) The secretary or the secretary's designee shall notify in writing the person who is the subject of the warrant of the filing of a warrant under K.S.A. 79-3235, and amendments thereto. The notice required shall be given in person, left at the dwelling or usual place of business of such person or sent by certified or registered mail to such person's last known dwelling address, not more than five business days after the day of the filing of the notice of lien. The notice shall include in simple and nontechnical terms the amount of unpaid taxes, the administrative appeals available to the taxpayer with respect to such warrant and the procedures relating to such appeals, and the provisions of law and procedures relating to the release of warrants on property.

History: L. 2002, ch. 185, § 27; June 6.

§ 79-3236 Rules and regulations

The secretary of revenue shall adopt rules and regulations not inconsistent with the provisions of this act, as necessary.

History: L. 1933, ch. 320, § 36; L. 1972, ch. 342, § 98; July 1.

§ 79-3237 Repealed

History: L. 1933, ch. 320, § 37; Repealed, L. 1937, ch. 370, § 8; June 30.

§ 79-3238 Repealed

History: L. 1933, ch. 320, § 38; Repealed, L. 1965, ch. 525, § 17; January 1, 1966.

§ 79-3239 Severability

If any section, subsection or clause of this act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its operation to the section, subsection or clause involved in the controversy in which such judgment shall have been rendered, and it shall be presumed that the legislature would have enacted this law with the section, subsection or clause held to be invalid omitted. No caption of any section or set of sections shall in any way affect the interpretation of this act or any part thereof.

History: L. 1933, ch. 320, § 39; March 29.

§ 79-3240 Application of act

This act shall apply to all incomes received on and after January 1, 1933, and shall take effect and be in force from and after its publication in the official state paper.

History: L. 1933, ch. 320, § 40; March 29.

§ 79-3241 Repealed

History: L. 1935, ch. 312, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3242 Repealed

History: L. 1937, ch. 370, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3243 Repealed

History: L. 1939, ch. 328, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3244 Repealed

History: L. 1945, ch. 365, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3245 Repealed

History: L. 1947, ch. 457, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3246 Repealed

History: L. 1949, ch. 480, § 6; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3247 Repealed

History: L. 1949, ch. 481, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3248 Repealed

History: L. 1953, ch. 434, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3249 Repealed

History: L. 1953, ch. 435, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3250 Repealed

History: L. 1953, ch. 436, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3251 Repealed

History: L. 1953, ch. 437, § 4; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3252 Repealed

History: L. 1955, ch. 417, § 7; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3253 Repealed

History: L. 1958, ch. 63, § 3 (Budget Session); Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3254 Repealed

History: L. 1958, ch. 30, § 3 (Special Session); Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3255 Repealed

History: L. 1959, ch. 392, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3256 Repealed

History: L. 1961, ch. 453, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3257 Repealed

History: L. 1961, ch. 454, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3258 Repealed

History: L. 1963, ch. 486, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3259 Repealed

History: L. 1963, ch. 484, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3260 Repealed

History: L. 1963, ch. 483, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3261 Repealed

History: L. 1965, ch. 521, § 2; L. 1965, ch. 522, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3262 Repealed

History: L. 1965, ch. 523, § 4; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3263 Repealed

History: L. 1965, ch. 524, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3264 Repealed

History: L. 1966, ch. 42, § 2 (Budget Session); Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3265 Repealed

History: L. 1966, ch. 43, § 3 (Budget Session); Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3266 Repealed

History: L. 1966, ch. 44, § 2 (Budget Session); Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3267 Repealed

History: L. 1971, ch. 307, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-3268 Taxpayer bill of rights and privileges

Any taxpayer subject to the provisions of Chapter 79 of the Kansas Statutes Annotated shall be afforded the rights and privileges set forth in this section. Unless specifically provided otherwise, the provisions of this section shall apply to all taxes administered by the director of taxation.

(a) The director shall inform all taxpayers against whom an assessment of additional tax has been issued of the taxpayer's right to appeal. Such written notification shall accompany each notice of assessment and shall set forth the time period within which the taxpayer must file an appeal.

(b) Any taxpayer who has received written advice from the department of revenue concerning the taxability of transactions shall be allowed to rely on such advice when filing tax returns. The department shall not maintain a position against a taxpayer which is inconsistent with a prior written opinion issued to the same taxpayer which has not been rescinded.

(c) It shall be unlawful to base a performance evaluation for any employee of the department of revenue on a production quota system based on the total amount of assessments issued by such employee or on the total amount or percentage of taxes collected from a taxpayer through settlements or other means made by such employee prior to final judgment.

(d) The director shall waive any interest assessed against a taxpayer when it is determined by the director that the negligence of an employee of the department resulted in undue delay in either assessing tax or notifying the taxpayer of the liability owed.

(e) The department shall release any lien upon the property of a taxpayer upon payment of all tax, penalty and interest within 30 days of payment. Liens filed in error shall be so noted on the satisfaction of judgment. The department shall be liable for any court costs associated with the release of such erroneous liens.

(f) Attorney fees and related expenses may be awarded to a taxpayer if it can be proved that an assessment or claim asserted by the department is without a reasonable basis in law or fact. A taxpayer must first exhaust its administrative remedies before an award of attorney fees may be made under this section.

History: L. 1989, ch. 286, § 1; L. 1997, ch. 126, § 16; July 1.

§ 79-3268a Taxpayer bill of rights; department of revenue correspondence with taxpayer; requirements

(a) Any correspondence issued by the department of revenue to a taxpayer or the taxpayer's representative demanding payment of an assessment of any tax the imposition and collection of which is administered by the department shall consist of a detailed, clear and accurate explanation of the assessment demand including, but not limited to, the specific tax and tax year to which such assessment applies and penalties and interest which apply thereto. If the department proposes to change the tax or refund due on a return filed by a taxpayer, correspondence detailing the change shall be sent to the taxpayer. The correspondence shall specifically identify the proposed change and explain in simple and nontechnical terms the reasons for the change.

(b) Any such correspondence demanding the payment of an assessment of tax, penalties and interest in an amount in excess of $750 for individual accounts and in excess of $2,000 for business accounts shall be reviewed prior to issuance for accuracy by an employee of the department and shall provide the employer identification number and contact telephone number of the employee performing any such review.

History: L. 2002, ch. 186, § 13; July 1.

§ 79-3268b Same; duty of department to comply with taxpayer's designation of representative

In the event a taxpayer has designated a third party or other representative to discuss an income tax return upon the taxpayer's Kansas return, the department shall adhere and comply with such designation, and shall discuss or correspond with such designee or representative regarding matters concerning the return, including collection matters.

History: L. 2002, ch. 186, § 14; July 1.

§ 79-3268c Same; waiver of penalties

In addition to the authority to waive any civil penalty imposed by law for the violation of any law pertaining to any tax administered by the department of revenue, the secretary or the secretary's designee shall waive any such penalty upon the finding of any circumstance allowing waiver of civil penalties pursuant to the federal internal revenue code, as in effect on January 1, 2002.

History: L. 2002, ch. 186, § 15; July 1.

§ 79-3268d Same; closing letters

Upon a resolution of any assessment of tax, penalties and interest of any tax the imposition and collection of which is administered by the department, a closing letter evidencing such resolution shall be issued to the affected taxpayer or the taxpayer's representative, as the case may require, within 30 days of the date upon which such resolution is agreed to. The taxpayer shall be entitled to rely on such closing letter as it relates to the issues resolved.

History: L. 2002, ch. 186, § 16; July 1.

§ 79-3268e Same; department of revenue correspondence with taxpayer; requirements

(a) Any correspondence issued by the department of revenue to a taxpayer or the taxpayer's representative demanding payment of an assessment of any tax the imposition and collection of which is administered by the department shall consist of a detailed, clear and accurate explanation of the assessment demand including, but not limited to, the specific tax and tax year to which such assessment applies and penalties and interest which apply thereto. If the department proposes to change the tax or refund due on a return filed by a taxpayer, correspondence detailing the change shall be sent to the taxpayer. The correspondence shall specifically identify the proposed change and explain in simple and nontechnical terms the reasons for the change.

(b) Any such correspondence demanding the payment of an assessment of tax, penalties and interest in an amount in excess of $750 for individual accounts and in excess of $2,000 for business accounts shall be reviewed prior to issuance for accuracy by an employee of the department and shall provide the employer identification number and contact telephone number of the employee performing any such review.

History: L. 2002, ch. 185, § 23; June 6.

§ 79-3268f Same; duty of department to comply with taxpayer's designation of representative

In the event a taxpayer has designated a third party or other representative to discuss an income tax return upon the taxpayer's Kansas return, the department shall adhere and comply with such designation, and shall discuss or correspond with such designee or representative regarding matters concerning the return, including collection matters.

History: L. 2002, ch. 185, § 24; June 6.

§ 79-3268g Same; waiver of penalties

In addition to the authority to waive any civil penalty imposed by law for the violation of any law pertaining to any tax administered by the department of revenue, the secretary or the secretary's designee shall waive any such penalty upon the finding of any circumstance allowing waiver of civil penalties pursuant to the federal internal revenue code, as in effect on January 1, 2002.

History: L. 2002, ch. 185, § 25; June 6.

§ 79-3268h Same; closing letters

Upon a resolution of any assessment of tax, penalties and interest of any tax the imposition and collection of which is administered by the department, a closing letter evidencing such resolution shall be issued to the affected taxpayer or the taxpayer's representative, as the case may require, within 30 days of the date upon which such resolution is agreed to. The taxpayer shall be entitled to rely on such closing letter as it relates to the issues resolved.

History: L. 2002, ch. 185, § 26; June 6.

§ 79-3269 Tax treatment of professional employer organizations; definitions

(a) As used in this section:

(1) "Administrative fee" means those amounts charged by the professional employer organization to the client over and above amounts applied to the mandatory state and federal taxes, wages of assigned workers and amounts applied to premiums or contributions for benefits provided for assigned workers.

(2) "Assigned worker" means a person having an employment relationship with both the professional employer organization and the client.

(3) "Client" means a person who contracts with a professional employer organization to obtain employer services from another person through a professional employer arrangement.

(4) "Person" means an individual, an association, a company, a firm, a partnership, a corporation or any other form of legally recognized entity.

(5) "Professional employer arrangement" means an arrangement, under contract or whereby:

(A) A professional employer organization agrees to employ all or a majority of a client's workforce;

(B) the arrangement is intended to be, or is, ongoing rather than temporary in nature;

(C) employer responsibilities for workers under the arrangement are in fact shared by the professional employer organization and the client; and

(D) for the purposes of this act, a professional employer arrangement shall not include:

(i) Arrangements wherein a person, whose principal business activity is not entering into professional employer arrangements, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the federal internal revenue code of 1986, as amended, and which does not hold itself out as a professional employer organization.

(ii) Arrangements in which a person assumes full responsibility for the product or service performed by such person or such person's agents and retains and exercises, both legally and in fact, a right of direction and control over the individuals whose services are supplied under such contractual arrangements, and such person and such person's agents perform a specified function for the client which is separate and divisible from the primary business or operations of the client.

(iii) Any person otherwise subject to this act if, during any fiscal year of the person commencing after July 1, 2000, the person pays total gross wages to employees employed by the person in the state under one or more professional employer arrangements which do not exceed 5% of the total gross wages paid to all employees employed by the person in the state during the same fiscal year under all arrangements described in paragraph (4) and that each person does not advertise or hold itself out to the public as providing services as a professional employer organization.

(6) "Professional employer organization" means any person engaged in providing the services of employees pursuant to one or more professional employer arrangements or any person that represents itself to the public as providing services pursuant to a professional employer arrangement.

(b) A professional employer organization shall be considered an employer for the purposes of withholding state income tax of the assigned workers pursuant to the Kansas income tax act. Commencing after December 31, 1999, the client shall be considered as the employer of an assigned worker under the terms of the professional employer arrangement between the client and the professional employer organization, for purposes of: (1) subsection (d) of K.S.A. 79-32,154, subsection (d) of K.S.A. 74-50,114, K.S.A. 79-32,160a or K.S.A. 74-50,131, and amendments thereto; and (2) calculating the client's payroll factor under K.S.A. 79-3283. The client shall provide to the department of revenue the payroll information for assigned workers needed for purposes of administering the above provisions.

History: L. 2002, ch. 185, § 32; June 6.

§ 79-3270 Reserved

§ 79-3271 Apportionment of net income; definitions

As used in this act, unless the context otherwise requires: (a) For tax years commencing prior to January 1, 2008, "business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations, except that a taxpayer may elect that all income constitutes business income. For tax years commencing after December 31, 2007, "business income" means: (1) Income arising from transactions and activity in the regular course of the taxpayer's trade or business; (2) income arising from transactions and activity involving tangible and intangible property or assets used in the operation of the taxpayer's trade or business; or (3) income of the taxpayer that may be apportioned to this state under the provisions of the Constitution of the United States and laws thereof, except that a taxpayer may elect that all income constitutes business income. Any election made under this subsection shall be effective and irrevocable for the tax year in which the election is made and the following nine tax years and shall be binding on all members of a unitary group of corporations.

(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

(c) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.

(d) "Financial organization" means any bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, or any type of insurance company, but such term shall not be deemed to include any business entity, other than those hereinbefore enumerated, whose primary business activity is making consumer loans or purchasing retail installment contracts from one or more sellers.

(e) "Nonbusiness income" means all income other than business income.

(f) "Public utility" means any business entity which owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products or gas.

(g) "Original return" means the first return filed to report the income of a taxpayer for a taxable year or period, irrespective of whether such return is filed on a single entity basis or a combined basis.

(h) "Sales" means, except as otherwise provided in K.S.A. 79-3285, and amendments thereto, all gross receipts of the taxpayer not allocated under K.S.A. 79-3274 through 79-3278, and amendments thereto.

(i) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.

(j) "Telecommunications company" means any business entity or unitary group of entities whose primary business activity is the transmission of communications in the form of voice, data, signals or facsimile communications by wire or fiber optic cable.

(k) "Distressed area taxpayer" means a corporation which: (1) Is located in a county which has a population of not more than 45,000 persons and which, as certified by the department of commerce, has sustained an adverse economic impact due to the closure of a state hospital in such county pursuant to the recommendations of the hospital closure commission; and (2) which has a total annual payroll of $20,000,000 or more for employees employed within such county.

(l) For the purposes of this subsection and subsection (b)(5) of K.S.A. 79-3279, and amendments thereto, the following terms are defined:

(1) "Administration services" include clerical, fund or shareholder accounting, participant record keeping, transfer agency, bookkeeping, data processing, custodial, internal auditing, legal and tax services performed for an investment company;

(2) "distribution services" include the services of advertising, servicing, marketing, underwriting or selling shares of an investment company, but, in the case of advertising, servicing or marketing shares, only where such service is performed by a person who is, or in the case of a closed end company, was, either engaged in the services of underwriting or selling investment company shares or affiliated with a person who is engaged in the service of underwriting or selling investment company shares. In the case of an open end company, such service of underwriting or selling shares must be performed pursuant to a contract entered into pursuant to 15 U.S.C. § 80a-15(b), as in effect on the effective date of this act;

(3) "investment company", means any person registered under the federal Investment Company Act of 1940, as in effect on the effective date of this act, or a company which would be required to register as an investment company under such act except that such person is exempt to such registration pursuant to § 80a-3(c)(1) of such act;

(4) "investment funds service corporation" includes any corporation or S corporation headquartered in and doing business in this state which derives more than 50% of its gross income from the provision of management, distribution or administration services to or on behalf of an investment company or from trustees, sponsors and participants of employee benefit plans which have accounts in an investment company;

(5) "management services" include the rendering of investment advice to an investment company making determinations as to when sales and purchases of securities are to be made on behalf of the investment company, or the selling or purchasing of securities constituting assets of an investment company, and related activities, but only where such activity or activities are performed:

(A) Pursuant to a contract with the investment company entered into pursuant to 15 U.S.C. § 80a-15(a), in effect on the effective date of this act; or

(B) for a person that has entered into such contract with the investment company;

(6) "qualifying business income" is business income derived from the provision of management, distribution or administration services to or on behalf of an investment company or from trustees, sponsors and participants of employee benefit plans which have accounts in an investment company; and

(7) "residence" is the fund shareholder's primary residence address.

History: L. 1963, ch. 485, § 1; L. 1980, ch. 316, § 6; L. 1991, ch. 283, § 1; L. 1996, ch. 264, § 1; L. 2002, ch. 185, § 12; L. 2003, ch. 158, § 10; L. 2004, ch. 180, § 14; L. 2008, ch. 182, § 20; July 1.

§ 79-3271a Repealed

History: L. 1963, ch. 485, § 1; L. 1980, ch. 316, § 6; L. 1991, ch. 283, § 1; L. 1996, ch. 264, § 1; L. 2002, ch. 186, § 6; L. 2003, ch. 154, § 94; Repealed, L. 2004, ch. 180, § 18; July 1.

§ 79-3271b Repealed

History: L. 1963, ch. 485, § 1; L. 1980, ch. 316, § 6; L. 1991, ch. 283, § 1; L. 1996, ch. 264, § 1; L. 2002, ch. 185, § 12; L. 2003, ch. 154, § 93; Repealed, L. 2004, ch. 180, § 18; July 1.

§ 79-3272 Same; allocation and apportionment

Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a financial organization or the rendering of purely personal services by an individual, shall allocate and apportion net income as provided in this act.

History: L. 1963, ch. 485, § 2; L. 1980, ch. 318, § 1; July 1.

§ 79-3273 Same; taxpayer taxable in another state

For purposes of allocation and apportionment of income under this act, a taxpayer is taxable in another state if (1) in that state he or she is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

History: L. 1963, ch. 485, § 3; April 25.

§ 79-3274 Apportionment of net income; nonbusiness income allocation

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in K.S.A. 79-3275 to 79-3278, inclusive, and amendments thereto. Allocable nonbusiness income shall be limited to the total nonbusiness income received which is in excess of any related expenses which have been allowed as a deduction during the income year.

History: L. 1963, ch. 485, § 4; L. 1984, ch. 351, § 14; July 1.

§ 79-3275 Same; rents and royalties; extent of utilization of tangible personal property

(a) Net rents and royalties from real property located in this state are allocable to this state.

(b) Net rents and royalties from tangible personal property are allocable to this state:

(1) if and to the extent that the property is utilized in this state, or

(2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

History: L. 1963, ch. 485, § 5; April 25.

§ 79-3276 Same; capital gains and losses from sales of property

(a) Capital gains and losses from sales of real property located in this state are allocable to this state.

(b) Capital gains and losses from sales of tangible personal property are allocable to this state if

(1) the property had a situs in this state at the time of the sale, or

(2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.

History: L. 1963, ch. 485, § 6; April 25.

§ 79-3277 Same; interest and dividends

Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

History: L. 1963, ch. 485, § 7; April 25.

§ 79-3278 Same; patent and copyright royalties

(a) Patent and copyright royalties are allocable to this state:

(1) if and to the extent that the patent or copyright is utilized by the payer in this state, or

(2) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.

(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.

History: L. 1963, ch. 485, § 8; April 25.

§ 79-3279 Apportionment of net income; apportionment of business income; requirements; procedure; use of single sales factor; computation of certain deductions from income; filing of certain statements with secretary

(a) For tax years commencing before January 1, 2027, all business income of railroads and interstate motor carriers of persons or property for hire shall be apportioned to this state by multiplying the business income by a fraction, in the case of railroads, the numerator of which is the freight car miles in this state and the denominator of which is the freight car miles everywhere, and, in the case of interstate motor carriers, the numerator of which is the total number of miles operated in this state and the denominator of which is the total number of miles operated everywhere.

(b) For tax years commencing before January 1, 2027, all business income of any other taxpayer shall be apportioned to this state by one of the following methods:

(1) By multiplying the business income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three; or

(2) at the election of a qualifying taxpayer, by multiplying the business income by a fraction, the numerator of which is the property factor plus the sales factor, and the denominator of which is two.

(A) For purposes of this subsection (b)(2), a qualifying taxpayer is any taxpayer whose payroll factor for a taxable year exceeds 200% of the average of the property factor and the sales factor. Whenever two or more corporations are engaged in a unitary business and required to file a combined report, the fraction comparison provided by this subsection (b)(2) shall be calculated by using the payroll factor, property factor and sales factor of the combined group of unitary corporations.

(B) An election under this subsection (b)(2) shall be made by including a statement with the original tax return indicating that the taxpayer elects to apply the apportionment method under this subsection (b)(2). The election shall be effective and irrevocable for the taxable year of the election and the following nine taxable years. The election shall be binding on all members of a unitary group of corporations. Notwithstanding the above, the secretary of revenue may upon the request of the taxpayer, grant permission to terminate the election under this subsection (b)(2) prior to expiration of the ten-year period.

(3) At the election of a qualifying telecommunications company, by multiplying the business income by a fraction, the numerator of which is the information carrying capacity of wire and fiber optic cable available for use in this state, and the denominator of which is the information carrying capacity of wire and fiber optic cable available for use everywhere during the tax year.

(A) For purposes of this subsection (b)(3), a qualifying telecommunications company is a telecommunications company that is a qualifying taxpayer under subsection (b)(2)(A).

(B) A qualifying telecommunications company shall make the election under this paragraph in the same manner as provided under subsection (b)(2)(B).

(4) At the election of a distressed area taxpayer, by multiplying the business income by the sales factor. The election shall be made by including a statement with the original tax return indicating that the taxpayer elects to apply this apportionment method. The election may be made only once, it must be made on or before December 31, 1999 and it shall be effective for the taxable year of the election and the following nine taxable years for so long as the taxpayer maintains the payroll amount prescribed by K.S.A. 79-3271(j), and amendments thereto.

(5) At the election of the taxpayer made at the time of filing of the original return, the qualifying business income of any investment funds service corporation organized as a corporation or S corporation which maintains its primary headquarters and operations or is a branch facility that employs at least 100 individuals on a full-time equivalent basis in this state and has any investment company fund shareholders residenced in this state shall be apportioned to this state as provided in this subsection, as follows:

(A) By multiplying the investment funds service corporation's qualifying business income from administration, distribution and management services provided to each investment company by a fraction, the numerator of which shall be the average of the number of shares owned by the investment company's fund shareholders residenced in this state at the beginning of and at the end of the investment company's taxable year that ends with or within the investment funds service corporation's taxable year, and the denominator of which shall be the average of the number of shares owned by the investment company's fund shareholders everywhere at the beginning of and at the end of the investment company's taxable year that ends with or within the investment funds service corporation's taxable year.

(B) A separate computation shall be made to determine the qualifying business income from each fund of each investment company. The qualifying business income from each investment company shall be multiplied by the fraction calculated pursuant to paragraph (A) for each fund of such investment company.

(C) The qualifying portion of total business income of an investment funds service corporation shall be determined by multiplying such total business income by a fraction, the numerator of which is the gross receipts from the provision of management, distribution and administration services to or on behalf of an investment company, and the denominator of which is the gross receipts of the investment funds service company. To the extent an investment funds service corporation has business income that is not qualifying business income, such business income shall be apportioned to this state pursuant to subsection (b)(1).

(D) For tax year 2002, the tax liability of an investment funds service corporation that has elected to apportion its business income pursuant to paragraph (5) shall be increased by an amount equal to 50% of the difference of the amount of such tax liability if determined pursuant to subsection (b)(1) less the amount of such tax liability determined with regard to paragraph (5).

(E) When an investment funds service corporation is part of a unitary group, the business income of the unitary group attributable to the investment funds service corporation shall be determined by multiplying the business income of the unitary group by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. The property factor is a fraction, the numerator of which is the average value of the investment funds service corporation's real and tangible personal property owned or rented and used during the tax period and the denominator of which is the average value of the unitary group's real and tangible personal property owned or rented and used during the tax period. The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the investment funds service corporation for compensation, and the denominator of which is the total compensation paid by the unitary group during the tax period. The sales factor is a fraction, the numerator of which is the total sales of the investment funds service corporation during the tax period, and the denominator of which is the total sales of the unitary group during the tax period.

(F) A taxpayer seeking to make the election available pursuant to subsection (b)(5) shall only be eligible to continue to make such election if the taxpayer maintains at least 95% of the Kansas employees in existence at the time the taxpayer first makes such an election.

(6) At the election of a qualifying taxpayer, by multiplying such taxpayer's business income by the sales factor. The election shall be made by including a statement with the original tax return indicating that the taxpayer elects to apply this apportionment method. The election may be made only once and must be made on or before the last day of the taxable year during which the investment described in paragraph (A) is placed in service, but not later than December 31, 2009, and it shall be effective for the taxable year of the election and the following nine taxable years or for so long as the taxpayer maintains the wage requirements set forth in paragraph (A). If the qualifying taxpayer is a member of a unitary group of corporations, all other members of the unitary group doing business within this state shall apportion their business income to this state pursuant to subsection (b)(1).

(A) For purposes of this subsection, a qualifying taxpayer is any taxpayer making an investment of $100,000,000 for construction in Kansas of a new business facility identified under the North American industry classification system (NAICS) subsectors of 31-33, as assigned by the secretary of the department of labor, employing 100 or more new employees at such facility after July 1, 2007, and prior to December 31, 2009, and meeting the following requirements for paying such employees higher-than-average wages within the wage region for such facility:

(i) The taxpayer's new Kansas business facility with 500 or fewer full-time equivalent employees will provide an average wage that is above the average wage paid by all Kansas business facilities that share the same assigned NAICS category used to develop wage thresholds and that have reported 500 or fewer employees to the Kansas department of labor on the quarterly wage reports;

(ii) the taxpayer's new Kansas business facility with 500 or fewer full-time equivalent employees is the sole facility within its assigned NAICS category that has reported wages for 500 or fewer employees to the Kansas department of labor on the quarterly wage reports;

(iii) the taxpayer's new Kansas business facility with more than 500 full-time equivalent employees will provide an average wage that is above the average wage paid by all Kansas business facilities that share the same assigned NAICS category used to develop wage thresholds and that have reported more than 500 employees to the Kansas department of labor on the quarterly wage reports;

(iv) the taxpayer's new Kansas business facility with more than 500 full-time equivalent employees is the sole facility within its assigned NAICS category that has reported wages for more than 500 employees to the Kansas department of labor on the quarterly wage reports, in which event it shall either provide an average wage that is above the average wage paid by all Kansas business facilities that share the same assigned NAICS category and that have reported wages for 500 or fewer employees to the Kansas department of labor on the quarterly wage reports, or be the sole Kansas business facility within its assigned NAICS category that has reported wages to the Kansas department of labor on the quarterly wage reports;

(v) the number of NAICS digits to use in developing each set of wage thresholds for comparison purposes shall be determined by the secretary of commerce;

(vi) the composition of wage regions used in connection with each set of wage thresholds shall be determined by the secretary of commerce; and

(vii) alternatively, a taxpayer may wage-qualify its new Kansas business facility if, after excluding the headcount and wages reported on the quarterly wage reports to the Kansas department of labor for employees at that new Kansas business facility who own five percent or more equity in the taxpayer, the average wage calculated for the taxpayer's new Kansas business facility is greater than or equal to 1.5 times the aggregate state-wide average wage paid by industries covered by the employment security law based on data maintained by the secretary of labor.

(B) For the purposes of the wage requirements in paragraph (A), the number of full-time equivalent employees shall be determined by dividing the number of hours worked by part-time employees during the pertinent measurement interval by an amount equal to the corresponding multiple of a 40-hour work week and adding the quotient to the average number of full-time employees.

(C) When the qualifying taxpayer is part of a unitary group, the business income of the unitary group attributable to the qualifying taxpayer shall be determined by multiplying the business income of the unitary group by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. The property factor is a fraction, the numerator of which is the average value of the qualifying taxpayer's real and tangible personal property owned or rented and used during the tax period and the denominator of which is the average value of the unitary group's real and tangible personal property owned or rented and used during the tax period. The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the qualifying taxpayer for compensation, and the denominator of which is the total compensation paid by the unitary group during the tax period. The sales factor is a fraction, the numerator of which is the total sales of the qualifying taxpayer during the tax period, and the denominator of which is the total sales of the unitary group during the tax period.

(D) For purposes of this subsection, the secretary of revenue, upon a showing of good cause and after receiving a certification by the secretary of commerce of substantial compliance with provisions of this subsection (b)(6), may extend any required performance date provided in this subsection (b)(6) for a period not to exceed six months.

(c) For tax years commencing on or after January 1, 2027, all business income shall be apportioned to this state by multiplying the business income by the sales factor.

(d) Any taxpayer having previously made an election pursuant to subsection (b)(2) shall be permitted to apportion income through the use of the single sales factor.

(e) (1) There shall be allowed as a deduction an amount computed in accordance with this subsection.

(2) As of July 1, 2025, only publicly traded companies, including affiliated corporations participating in the filing of a publicly traded company's financial statements prepared in accordance with generally accepted accounting principles, shall be eligible for this deduction.

(3) If the provisions of this section result in an aggregate increase in the taxpayer's net deferred tax liability or an aggregate decrease in the taxpayer's net deferred tax asset, or an aggregate change from a net deferred tax asset to a net deferred tax liability, the taxpayer shall be entitled to a deduction, as determined in this subsection. For the purposes of this section, the term "taxpayer" includes a unitary group of businesses that is required to file a combined report. The deferred tax impact deduction provided under this section for a unitary group of businesses that is required to file a combined report shall be calculated using unitary net deferred tax assets and liabilities and deducted against unitary group income.

(4) A taxpayer shall be entitled to a deferred tax impact deduction from the taxpayer's net business income before apportionment equal to the amount necessary to offset the increase in the net deferred tax liability or decrease in the net deferred tax asset, or aggregate change from a net deferred tax asset to a net deferred tax liability. Such increase in the net deferred tax liability, decrease in the net deferred tax asset or the aggregate change from a net deferred tax asset to a net deferred tax liability shall be computed based on the change that would result from the imposition of the single sales factor requirements pursuant to this section, excluding the deduction provided under this paragraph, as of the end of the tax year prior to tax year 2025. The amount of the deduction shall equal the annual deferred tax deduction amount set forth in paragraph (5).

(5) The annual deferred tax deduction amount shall be calculated as follows:

(A) The deferred tax impact determined in paragraph (4) shall be divided by the income tax rate for corporations in effect for the tax year pursuant to K.S.A. 79-32,110, and amendments thereto;

(B) the resulting amount shall be further divided by the Kansas apportionment factor that was used by the taxpayer in the calculation of the deferred tax assets and deferred tax liabilities as provided in this subsection; and

(C) the result multiplied by 1/10 shall represent the total net deferred tax deduction available for the first tax year beginning on or after January 1, 2035, and the next nine successive tax years.

(6) The deduction calculated under paragraph (5) shall not be adjusted as a result of any events subsequent to such calculation, including, but not limited to, any disposition or abandonment of assets. Such deduction shall be calculated without regard to any tax liabilities under the federal internal revenue code and shall not alter the tax basis of any asset. If the deduction under this section is greater than the taxpayer's net business income before apportionment, any excess deduction shall be carried forward and applied as a deduction for future tax years until fully utilized.

(7) At the discretion of the taxpayer, the taxpayer shall be allowed to claim other available tax credits before claiming the deferred tax deduction calculated under this section. Any deferred tax deduction calculated under this section not claimed on a return shall be carried forward and applied as a deduction for future tax years until fully utilized.

(8) Any taxpayer intending to claim a deduction under this subsection shall file a statement with the secretary on or before July 1, 2027, specifying the total amount of the deduction that the taxpayer claims on such form and in such manner as prescribed by the secretary and shall contain such information or calculations as the secretary may specify. No deduction shall be allowed under this section for any taxable year except to the extent claimed in the manner prescribed on or before July 1, 2027.

(9) For purposes of this subsection:

(A) "Net deferred tax liability" means deferred tax liabilities that exceed the deferred tax assets of the taxpayer, as computed in accordance with generally accepted accounting principles.

(B) "Net deferred tax asset" means that deferred tax assets exceed the deferred tax liabilities of the taxpayer, as computed in accordance with generally accepted accounting principles.

(f) Any manufacturer of alcoholic liquor as defined in K.S.A. 41-102, and amendments thereto, who sells to a distributor as defined in K.S.A. 41-102, and amendments thereto, shall be apportioned to this state by multiplying the business income by a fraction, the numerator of which is the property factor plus the payroll factor and the sales factor, and the denominator of which is three.

History: L. 1963, ch. 485, § 9; L. 1980, ch. 318, § 2; L. 1988, ch. 381, § 9; L. 1991, ch. 283, § 2; L. 1996, ch. 264, § 2; L. 2002, ch. 185, § 13; L. 2007, ch. 21, § 1; L. 2009, ch. 39, § 1; L. 2025, ch. 123, § 5; July 1.

§ 79-3280 Same; property factor defined

The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.

History: L. 1963, ch. 485, § 10; April 25.

§ 79-3281 Same; property owned or rented, value; net annual rate

Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals.

History: L. 1963, ch. 485, § 11; April 25.

§ 79-3282 Same; average value of property

The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the director of taxation may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.

History: L. 1963, ch. 485, § 12; April 25.

§ 79-3283 Same; payroll factor

The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.

History: L. 1963, ch. 485, § 13; April 25.

§ 79-3284 Same; compensation for services; when payment in state

Compensation is paid in this state if:

(a) the individual's service is performed entirely within the state; or

(b) the individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or

(c) some of the service is performed in the state and (1) the base of operations or, the place from which the service is directed or controlled is in the state, or (2) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

History: L. 1963, ch. 485, § 14; April 25.

§ 79-3285 Same; sales factor

The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period. For taxable years commencing after December 31, 2007, in the case of sales of business assets, other than sales of tangible personal property sold in the ordinary course of the taxpayer's trade or business, only the net gain from such sales shall be included in the sales factor.

History: L. 1963, ch. 485, § 15; L. 2008, ch. 182, § 21; July 1.

§ 79-3286 Same; sales of tangible personal property in state

Sales of tangible personal property are in this state if:

(a) the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the f.o.b. point or other conditions of the sale; or

(b) the property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (1) the purchaser is the United States government or (2) the taxpayer is not taxable in the state of the purchaser.

History: L. 1963, ch. 485, § 16; April 25.

§ 79-3287 Apportionment of net income; sales in state; income-producing activity

Sales, other than sales of tangible personal property, are in this state if:

(a) For tax years commencing before January 1, 2027:

(1) The income-producing activity is performed in this state; or

(2) the income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance; and

(b) for tax years commencing after December 31, 2026, the taxpayer's market for the sales is in this state. The taxpayer's market for the sales is in this state if:

(1) In the case of sale of a service, if and to the extent that the service is delivered to a location in this state;

(2) in the case of intangible property, such property is:

(A) Rented, leased or licensed, if and to the extent that the property is used in this state, if that intangible property utilized in marketing a good or service to a consumer is used in this state, provided that such good or service is purchased by a consumer who is in this state; or

(B) that is sold, if and to the extent the property is used in this state, if:

(i) A contract right, government license or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is used in this state if the geographic area includes all or part of this state; or

(ii) net gains from intangible property sales that are contingent on the productivity, use or disposition of the intangible property shall be treated as receipts from the rental, lease or licensing of such intangible property under paragraph (2)(A);

(3) in the case of interest from a loan:

(A) Secured by real property, if and to the extent the property is located in this state; or

(B) not secured by real property, if and to the extent the borrower is located in this state; or

(c) in the case of dividends, if and to the extent the payor's commercial domicile is located in this state.

(d) If the state or states of assignment of receipts under subsection (a)(1) or (2) cannot be determined, the state or states of assignment shall be reasonably approximated. If the state or states of assignment of receipts or net gains cannot be reasonably approximated, such assignment of receipts shall be excluded from the denominator of the sales factor.

(e) Notwithstanding the provisions of this section, a communications service provider may assign sales, other than sales of tangible personal property, to this state pursuant to this section as it applied to tax years commencing before January 1, 2027.

(f) For purposes of this subsection:

(A) "Communications service" means telecommunications service as defined in K.S.A. 79-3602, and amendments thereto, internet access as defined in section 1105(5) of the internet tax freedom act, 47 U.S.C. § 151, note, and cable service as defined in 47 U.S.C. § 522(6), or any combination thereof.

(B) "Communications service provider" means any person, corporation, partnership or other entity that provides communications service in this state.

History: L. 1963, ch. 485, § 17; L. 2025, ch. 123, § 6; July 1.

§ 79-3288 Procedure where allocation does not fairly represent taxpayer's business activity; burden of proof of tax evasion

If the allocation and apportionment provisions of this act including the provisions of K.S.A. 79-3279, do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the secretary of revenue may require, in respect to all or any part of the taxpayer's business activity, if reasonable:

(a) Separate accounting;

(b) the exclusion of any one or more of the factors;

(c) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or

(d) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income; or

(e) in the case of two or more businesses, whether or not incorporated and whether or not organized in Kansas, owned or controlled directly or indirectly by the same interests, which contrive through inter-company transactions to evade taxes imposed under this act, the secretary of revenue may distribute or allocate the gross income and deductions between or among such businesses or may require returns on a consolidated basis. The burden of proof of any contrivance to evade taxes under this act shall rest upon the director of taxation or secretary of revenue.

History: L. 1963, ch. 485, § 18; L. 1965, ch. 526, § 1; L. 1972, ch. 342, § 99; L. 1980, ch. 318, § 3; July 1.

§ 79-3288a Procedure for transitional adjustment for change of accounting methods of certain taxpayers

(a) The secretary of revenue shall allow a transitional adjustment for change of methods of determining Kansas net income that shall apply only for those years a taxpayer determined Kansas net income in accordance with K.S.A. 79-3290 or 79-3291 as in effect on December 31, 1979. In computing taxable income for any year when such computation is under a method different from the method prescribed under K.S.A. 79-3290 or 79-3291 as in effect on December 31, 1979, there shall be taken into account those adjustments which are determined to be necessary solely by reason of the change in such method of computation in order to prevent amounts from being duplicated or omitted. Adjustments shall be made ratably over a period not less than five years nor more than ten years commencing with the year of change of method of computing Kansas net income, except that if the net adjustments result in a tax amount of fifty thousand dollars or less, the total amount of adjustments shall be made in the year of change of method of computing Kansas net income. The taxpayer shall make an election in the year of change of method of determining Kansas net income of the number of years in the period over which said adjustments will be claimed subject to the provisions of the preceding sentence. Adjustments shall not be allowed for differences arising under a change in methods of computing Kansas net income for any years the taxpayer did not compute Kansas net income under the provisions of K.S.A. 79-3290 or 79-3291 as in effect on December 31, 1979.

(b) No assessment of additional tax for any taxable years, or penalties or interest thereon, shall be made against any taxpayer required to compute Kansas net income for such years under the provisions of K.S.A. 79-3290 or 79-3291, as in effect on December 31, 1979 when, in the determination of the secretary of revenue, the amount of such assessment would be substantially offset by application of the transitional adjustment authorized by subsection (a) of this section if net income for such taxable years had been computed in compliance with the provisions of K.S.A. 79-3290 or 79-3291 as in effect on December 31, 1979.

History: L. 1980, ch. 318, § 4; July 1.

§ 79-3288b Election of treatment of income; timing; duration

(a) Except as otherwise provided by subsections (b) and (c), the election allowed by subsection (a) of K.S.A. 79-3271, and amendments thereto, shall be filed by the taxpayer on or before the last day of the tax year immediately preceding the tax year for which such election is made.

(b) Any taxpayer currently doing business in the state which has a tax year commencing during calendar year 1996, and which intends to make the election allowed by subsection (a) of K.S.A. 79-3271, and amendments thereto, for such taxable year shall file such election within 60 days after the effective date of this act or on or before the last day of the tax year immediately preceding, whichever date is later.

(c) Any taxpayer which is a domestic or foreign corporation doing business in the state for the first time and which intends to make the election allowed by subsection (a) of K.S.A. 79-3271, and amendments thereto, for its initial tax year shall file such election within 60 days after filing the taxpayer's articles of incorporation or application for authority to engage in business as a foreign corporation with the secretary of state or otherwise becomes subject to taxation under article 32 of chapter 79 of the Kansas Statutes Annotated.

(d) The election allowed by subsection (a) of K.S.A. 79-3271, and amendments thereto, shall be made by filing a written statement with the director clearly identifying the tax year for which such election is made.

History: L. 1996, ch. 264, § 3; July 1.

§ 79-3289 Same; construction of act

This act shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

History: L. 1963, ch. 485, § 19; April 25.

§ 79-3290 Repealed

History: L. 1963, ch. 485, § 20; L. 1972, ch. 374, § 2; Repealed, L. 1980, ch. 318, § 6; July 1.

§ 79-3291 Repealed

History: L. 1963, ch. 485, § 21; L. 1972, ch. 342, § 100; Repealed, L. 1980, ch. 318, § 6; July 1.

§ 79-3292 Same; act supplemental to income tax act

This act shall be and constitute a part of and shall be supplemental to the Kansas income tax act.

History: L. 1963, ch. 485, § 22; April 25.

§ 79-3293 Same; application of K.S.A. 79-3271 through 79-3292

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1962.

History: L. 1963, ch. 485, § 23; April 25.

§ 79-3293a Application of K.S.A. 79-3271, 79-3279 and 79-3288b

The provisions of K.S.A. 79-3271, 79-3279 and 79-3288b shall be applicable to all taxable years beginning after December 31, 1995.

History: L. 1996, ch. 264, § 25; July 1.

§ 79-3293b Application of K.S.A. 79-3271 and 79-3279

The provisions of K.S.A. 79-3271 and 79-3279, and amendments thereto shall be applicable to all taxable years commencing after December 31, 2001.

History: L. 2002, ch. 185, § 14; June 6.

§ 79-3294 Withholding tax; title; relationship to Kansas income tax act

The title of this act shall be the "Kansas withholding and declaration of estimated tax act." All of the provisions of the Kansas income tax act shall apply to and be effective to the provisions of this act to the extent to which they are not inconsistent herewith, and all remedies available to the secretary of revenue or the secretary's designee for the administration, assessment, enforcement and collection of tax under the Kansas income tax act shall be available to the secretary or the secretary's designee and shall apply to the amounts to be deducted and withheld under the provisions of this act.

History: L. 1965, ch. 525, § 1; L. 1989, ch. 291, § 3; April 27.

§ 79-3294a Withholding tax; injunctions

The secretary of revenue or the secretary's designee is hereby authorized to bring an action to enjoin any employer from engaging in business who, in violation of any of the provisions of K.S.A. 79-3294 et seq. and amendments thereto, fails to truthfully account for and pay over withholding tax or attempts in any manner to evade or defeat such tax or the payment thereof, and the secretary or the secretary's designee, upon proof thereof, shall be entitled in any proceeding brought for such purpose to have an order restraining such employer from engaging in such business. No bond shall be required for any such restraining order nor for any temporary or permanent injunction issued in such proceedings. The secretary or the secretary's designee shall move to dismiss any such injunction where an employer has become current in payments of withholding tax liability, including penalties and interest thereon, or has entered into an agreement with the secretary or the secretary's designee for the payment thereof.

History: L. 1980, ch. 316, § 10; L. 1989, ch. 291, § 4; April 27.

§ 79-3294b Same; bond to secure collection

The director may require a bond to secure the collection of any withholding tax, penalties or interest due or to become due under the provisions of K.S.A. 79-3294 et seq. and amendments thereto, whenever any employer has failed to pay over withholding tax, including penalties and interest thereon, due for more than one reporting period. Such bond shall be in an amount determined by the director to be necessary to secure the collection of withholding tax for not to exceed the tax estimated to be due and payable for two quarterly payment periods.

History: L. 1980, ch. 316, § 11; July 15.

§ 79-3295 Withholding tax; definitions

(a) The term "employee" means a resident of this state as defined by subsection (b) of K.S.A. 79-32,109, and amendments thereto, performing services for an employer either within or without the state and a nonresident performing services within this state, and includes an officer, employee or elected official of the United States, a state, territory, or any political subdivision thereof or any agency or instrumentality thereof, and an officer of a corporation.

(b) The term "employer" means any person, firm, partnership, limited liability company, corporation, association, trust or fiduciary of any kind or other type organization qualifying as an employer for federal income tax withholding purposes and who maintains an office, transacts business in or derives any income from sources within the state of Kansas for whom an individual performs or performed any services, of whatever nature, as the employee of such employer, and who has control of the payment of wages for such services, or is the officer, agent or employee of the person having control of the payment of wages. It also includes the United States, the state and all political subdivisions thereof, and all agencies or instrumentalities of any of them.

(c) The term "distributee" means any person or organization who receives a distribution which is subject to withholding of income tax pursuant to this act.

(d) The term "distribution" means a distribution from a corporation for which an election as an S corporation under subchapter S of the federal internal revenue code is in effect, from a limited liability company formed under the laws of the state of Kansas, or from a partnership.

(e) The term "nonresident" means an individual domiciled outside of this state and an entity whose commercial domicile is outside of this state. For corporations, commercial domicile is as defined in K.S.A. 79-3271, and amendments thereto.

(f) The term "payee" means any person or organization who receives a payment other than wages, or a payment of a pension, annuity or deferred income, which is subject to withholding of income tax pursuant to this act.

(g) The term "payer" means any person or organization, other than an employer, who makes a payment other than wages, or a payment of a pension, annuity or deferred income, which is subject to withholding of income tax pursuant to this act.

(h) The term "payment other than wages" means a payment that is taxable under the Kansas income tax act, and that is a payment:

(1) For any supplemental unemployment compensation, annuity, or sick pay;

(2) pursuant to a voluntary withholding agreement;

(3) of gambling winnings;

(4) of taxable payments of Indian casino profits;

(5) for any vehicle fringe benefit; or

(6) of a management or consulting fee paid in the ordinary course of a trade, business or other for profit venture.

(i) The term "pension, annuity or other deferred income" means a payment that is taxable under the Kansas income tax act, and that is a payment:

(1) Of periodic payments of pensions, annuities and other deferred income;

(2) of nonperiodic distributions of pensions, annuities and other deferred income; or

(3) of eligible rollover distributions of pensions, annuities and other deferred income.

(j) The term "wages" means wages as defined by section 3401(a) of the federal internal revenue code which are taxable under the Kansas income tax act.

History: L. 1965, ch. 525, § 2; L. 1967, ch. 497, § 37; L. 1987, ch. 384, § 1; L. 2000, ch. 184, § 8; L. 2002, ch. 185, § 29; L. 2003, ch. 147, § 37; July 1.

§ 79-3296 Withholding tax; employer's requirement to withhold; agreements of the secretary

(a) Every employer who is required under federal law to withhold upon wages pursuant to the federal internal revenue code shall, whenever the wage recipient is a resident of Kansas or the wages shall be paid on account of personal service performed in Kansas, withhold and deduct from such wages an amount to be determined in accordance with K.S.A. 79-32,100d, and amendments thereto.

(b) Notwithstanding the requirements of subsection (a), an employer shall not withhold from the wages of an individual who performs services as an extra in connection with any phase of motion picture or television production or television commercials for less than 14 days during any calendar year. As used in this subsection, the term "extra" means an individual who pantomimes in the background, adds atmosphere to the set and performs such actions without speaking.

(c) A determination by the internal revenue service which relieves an employer or payor from withholding responsibility with respect to payments to an employee or payee shall also apply for Kansas income tax withholding purposes. Where an employer or payor is required to reinstate withholding for federal income tax with regard to any employee or payee, such obligation shall be equally applicable for Kansas withholding purposes.

History: L. 1965, ch. 525, § 3; L. 1967, ch. 497, § 38; L. 1971, ch. 309, § 1; L. 1985, ch. 323, § 2; L. 1987, ch. 385, § 2; L. 2000, ch. 184, § 9; July 1.

§ 79-3297 Repealed

History: L. 1965, ch. 525, § 4; Repealed, L. 1967, ch. 497, § 40; May 12.

§ 79-3297a Repealed

History: L. 1968, ch. 355, § 1; L. 1972, ch. 342, § 101; L. 1977, ch. 344, § 6; L. 1988, ch. 366, § 45; Repealed, L. 2000, ch. 184, § 34; July 1.

§ 79-3298 Withholding tax from wages; employers' return filing requirements; remittance of tax, when

(a) Every employer, payer, person or organization deducting and withholding tax shall remit the taxes and file returns in accordance with the following provisions:

(1) Whenever the total amount withheld exceeds $100,000 in any calendar year, the employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld in accordance with the following schedule: Each calendar month shall be divided into four remittance periods that end on the 7th, 15th, 21st and the last day of such month. If at the end of any one or all of such remittance periods the total undeposited taxes equal or exceed $667, the taxes shall be remitted within three banking days. Saturdays, Sundays and legal holidays shall not be treated as banking days.

(2) Whenever the total amount withheld exceeds $8,000 but does not exceed $100,000 in any calendar year, the employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld for wages paid during the first 15 days of any month on or before the 25th day of the month. The employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld for wages paid during the remainder of that month on or before the 10th day of the following month.

(3) Whenever the total amount withheld exceeds $1,200 but does not exceed $8,000 in any calendar year, the employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld during any month on or before the 15th day of the following month.

(4) Whenever the total amount withheld exceeds $200 but does not exceed $1,200 in any calendar year, the employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld in any calendar quarter on or before the 25th day of the first month following the end of that calendar quarter.

(5) Whenever the total amount withheld does not exceed $200 in any calendar year, the employer, payer, person or organization deducting and withholding tax shall remit the taxes withheld during that year on or before January 25 of the following year.

(b) Each remittance required under the provisions of subsection (a) shall be accompanied by a Kansas withholding tax remittance form and shall be filed in the manner prescribed by the director, including electronic filing.

(c) Every employer, payer, person or organization deducting and withholding tax and making remittances pursuant to subsection (a) shall file a return on a form or in the format and shall file in the manner prescribed by the director, including electronic filing, for each calendar year on or before January 31 of the following year.

(d) The excess of any remittance over the actual taxes withheld in any withholding period shall be credited against the liability for following withholding periods until exhausted. A refund shall be allowed in accordance with K.S.A. 79-32,105, and amendments thereto, where an overpayment cannot be adjusted by an offset against the liability for a subsequent withholding period.

(e) For purposes of determining filing requirements, determinations of amounts withheld during a calendar year by employers, payers, persons or organizations deducting and withholding tax shall be made by the director upon the basis of amounts withheld by those employers, payers, persons or organizations during the preceding calendar year or by estimates in cases of employers, payers, persons or organizations having no previous withholding histories. The director is hereby authorized to modify the filing schedule for any employer, payer, person or organization deducting and withholding tax when it is apparent that the original determination was inaccurate.

(f) Whenever the director has cause to believe that money withheld by an employer, payer, person or organization deducting and withholding tax pursuant to this act may be converted, diverted, lost, or otherwise not timely paid in accordance with this section, the director shall have the power to require returns and payment from any such employer, payer, person or organization at any time at more frequent intervals than prescribed by this section in order to secure full payment to the state of all amounts withheld by such employer, payer, person or organization in accordance with this act.

History: L. 1965, ch. 525, § 5; L. 1982, ch. 408, § 1; L. 1983, ch. 326, § 1; L. 1985, ch. 323, § 1; L. 1992, ch. 295, § 1; L. 2000, ch. 184, § 14; L. 2003, ch. 147, § 38; L. 2010, ch. 123, § 8; L. 2017, ch. 99, § 6; July 1.

§ 79-3299 Same; employers' annual statement; furnishing to employee; penalty for failure to furnish such statement

(a) Every employer, payer, person or organization deducting and withholding tax, on or before January 31 of each year, shall prepare a statement for each employee or payee on a form prescribed by the director stating the amount of wages or payments other than wages subject to Kansas income tax paid during the preceding year, the total amount of tax withheld, if any, from such wages or payments other than wages by the employer, payer, person or organization pursuant to this act and such other information as may be prescribed by the director. One copy of such statement shall be filed by the employer, payer, person or organization with the division of taxation on or before January 31 of each year. Except as otherwise provided, if the employer, payer, person or organization files statements which report such withholding information for 51 or more employees or payees, the statements shall be filed by electronic means. If filing such statements by electronic means would be a hardship for any such employer, payer, person or organization, the secretary may permit such statements to be filed other than by electronic means. Two copies of such statement shall be given to the employee or payee concerned, one of which will be filed by the employee or payee with the tax return required by this chapter.

(b) In the case of an employee whose employment is terminated before the end of a calendar year, the statement required by subsection (a) may be mailed at the time provided in that subsection to the last known address of the employee, or issued at the time of the last payment to the employee, at the employer's option.

(c) Any employer, payer, person or organization deducting and withholding tax who intentionally fails to furnish a statement to an employee or payee as required under the provisions of subsections (a) and (b) shall be guilty of a nonperson misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $100 for each such offense.

(d) The annual statement of wages and salaries paid and amount withheld required by this section shall be in lieu of the annual information return required under K.S.A. 79-3222, and amendments thereto.

History: L. 1965, ch. 525, § 6; L. 1982, ch. 408, § 2; L. 2000, ch. 184, § 15; L. 2003, ch. 147, § 39; L. 2006, ch. 203, § 7; L. 2007, ch. 154, § 1; L. 2017, ch. 99, § 7; July 1.

§§ 79-32,100 Same; nondeductibility of withholding; credit allowed; refunds

(a) The tax deducted and withheld under this act shall not be allowed as a deduction to the employer, payer, person or organization deducting and withholding tax or to the employee or payee in computing taxable income under the "Kansas income tax act."

(b) The full amount of wages and salaries or payments other than wages from which an amount was withheld in accordance with this act shall be included in the gross income of the employee or payee unless such wages and salaries or payments other than wages or a portion thereof are otherwise excludable under the provisions of the "Kansas income tax act."

(c) The amount deducted and withheld under this act during any calendar year from the wages or payments other than wages of an individual taxpayer shall be allowed as a credit against the income tax otherwise imposed on such taxpayer by the "Kansas income tax act," whether or not such amount was remitted to the division of taxation by the employer, payer, person or organization deducting and withholding tax in accordance with the terms of this act.

(d) If the amount withheld under this act during any calendar year exceeds the individual income tax liability of the employee-payee-taxpayer any excess shall be applied to any other income tax owed the state of Kansas by such individual, including fines, penalties and interest, if any, and the balance of such excess, if any, refunded to the taxpayer as provided in subsection (c) of K.S.A. 79-32,105, and amendments thereto.

History: L. 1965, ch. 525, § 7; L. 1966, ch. 45, § 1 (Budget Session); L. 2000, ch. 184, § 16; L. 2003, ch. 147, § 40; July 1.

§§ 79-32,100a Withholding tax; deduction by payer required

(a) Every payer who is required under federal law to withhold upon payments other than wages as defined by K.S.A. 79-3295, and amendments thereto, shall deduct and withhold an amount to be determined in accordance with K.S.A. 79-32,100d, and amendments thereto.

(b) A determination by the internal revenue service that relieves a payer from withholding responsibility with respect to payments other than wages to a payee shall also apply for Kansas income tax withholding purposes. Whenever a payer is required to reinstate withholding for federal income tax with regard to any payee, such obligation shall be equally applicable for Kansas withholding purposes.

(c) Every payer who is required under federal law to withhold upon payments of a pension, annuity or other deferred income, as defined by K.S.A. 79-3295, and amendments thereto, shall deduct and withhold an amount to be determined in accordance with K.S.A. 79-32,100d, and amendments thereto, whenever the payee is a resident of the state of Kansas.

(d) Every payer who makes a payment of a management fee or a consulting fee to a nonresident shall deduct and withhold an amount to be determined in accordance with K.S.A. 79-32,100d, and amendments thereto.

History: L. 2000, ch. 184, § 10; L. 2002, ch. 185, § 30; L. 2003, ch. 147, § 41; July 1.

§§ 79-32,100b Same; liability of employer or payer for payment; employee action prohibited

(a) Every employer, payer, person or organization required to deduct and withhold tax from wages of an employee, payments other than wages of a payee or from a distribution, under this act shall be liable for the payment of such tax whether or not it is collected from the employee, payee or distributee by the employer, payer, person or organization. For purposes of assessment and collection, any amount required to be withheld and paid over to the department of revenue, and any additions to tax, penalties and interest with respect thereto, shall be considered the tax of the employer.

(b) Any amount of tax withheld shall constitute a special fund in trust for the department of revenue.

(c) No employee, payee or distributee shall have any right of action against their employer, payer, person or organization deducting and withholding tax in respect to any moneys deducted and withheld from wages, payments other than wages or distributions and paid over to the department of revenue in compliance or in intended compliance with this act.

History: L. 2000, ch. 184, § 11; L. 2003, ch. 147, § 43; July 1.

§§ 79-32,100c Same; failure to withhold, consequences; persons designated as employers

(a) If an employer, payer, person or organization deducting and withholding tax fails to deduct and withhold the tax as required under this act, and thereafter, the income tax against which the tax may be credited is paid, the tax required to be deducted and withheld shall not be collected from the employer, payer, person or organization. The payment of such tax does not, however, operate to relieve the employer, payer, person or organization from liability for penalties, interest or additions to the tax applicable with respect to such failure to deduct and withhold. The employer, payer, person or organization shall not be relieved under this provision from liability for payment of the tax required to be withheld unless it can be shown that the income tax against which the tax required to be withheld under this act may be credited has been paid.

(b) Every agent or other person having control, receipt, custody or disposal of, or paying the wages of an employee or group of employees employed by one or more employers, is for the purpose of this act designated to be an employer. In the case of the corporation, the officers and board of directors are likewise considered employers. Employers of classes named in this section shall be subject to all the provisions of law including penalties as is their principal. Any employer who willfully fails to collect the tax imposed by the Kansas withholding tax act or truthfully account for any pay over such tax, or willfully attempts in any manner to evade or defeat any tax or the payment thereof, shall be subject to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over in addition to other penalties provided by law. As used in this section, "willfully" has the same meaning as such term has for federal tax purposes in 26 U.S.C. § 6672.

History: L. 2000, ch. 184, § 12; L. 2003, ch. 147, § 44; L. 2010, ch. 123, § 9; April 29.

§§ 79-32,100d Same; withholding amounts method of calculation; agreements with other states and the federal government

(a) The amount to be withheld from wages as required by K.S.A. 79-3296, and amendments thereto, or from payments other than wages as required by K.S.A. 79-32,100a, and amendments thereto, shall be an amount which will approximate the employee's or payee's annual tax liability on a calendar year basis, calculated on the basis of tables to be prepared by the secretary, and schedules or percentage rates to be prescribed by the secretary, based on the wages, payments other than wages, or adjusted gross income of the taxpayer.

(b) The state withholding rate shall be in proper proportion to the tax rates imposed under K.S.A. 79-32,110, and amendments thereto, and the tax base, so that the withholding rate corresponds to the employee's or payee's expected income tax liability. Such rate may be fixed for all adjusted gross income classes, or variable rates may be established, based upon adjusted gross income class, to insure proper withholding consistent with the taxpayer's expected tax liability.

(c) In the event a resident individual of this state is employed in another state, and such other state requires a withholding of income tax on wages earned by such resident in such other state, the secretary may enter into an agreement with such other state or the employer of such resident as to the manner and amount of withholding required by this act on the wages of such resident earned in such other state.

(d) The secretary is hereby authorized to enter into an agreement pursuant to 10 U.S.C. § 1045 providing for the withholding of state income tax from monthly retired or retainer pay of any member or former member of the United States armed forces.

History: L. 2000, ch. 184, § 13; July 1.

§§ 79-32,100e Repealed

History: L. 2003, ch. 147, § 42; L. 2007, ch. 154, § 2; Repealed, L. 2014, ch. 86, § 9; July 1.

§§ 79-32,100f Withholding tax; temporarily teleworking employees during COVID-19 pandemic

For the period of January 1, 2021, through December 31, 2022, for wages paid to employees who are temporarily teleworking in a state other than their primary work location, employers shall have the option to continue to withhold income taxes based on the state of the employee's primary work location and not based on the state in which the employee is teleworking or otherwise working during the COVID-19 pandemic. If any provisions of K.S.A. 79-3296, and amendments thereto, are in conflict with the provisions of this section, the provisions of this section shall control.

History: L. 2021, ch. 101, § 9; May 27.

§§ 79-32,101 Declaration of estimated tax, when; procedure

(a) At the time prescribed in this section: (1) Every individual shall pay estimated tax who can reasonably expect to owe, after withholding and credits, tax of at least $500 and who expects their withholding and credits to be less than (A) 90% of the tax shown on the return for the current year or (B) 100% of the tax shown for the preceding tax year; and

(2) every corporation shall pay estimated tax if its Kansas income tax liability can reasonably be expected to exceed $500.

(b) In the case of a husband and wife, single payments under this section may be made by them jointly. If a joint payment is made, but a joint return is not made for the taxable year, the estimated tax for such year may be divided between them. Notification of the division of such payments shall be made at such time and in such manner as the director of taxation may provide, on forms issued by the director of taxation.

(c) If on or before January 31, or March 1, in the case of an individual referred to in subsection (b) of K.S.A. 79-32,102, and amendments thereto, relating to income from farming or fishing, of the succeeding year, the taxpayer files a return for the taxable year, and pays in full the amount of tax computed on the return, then, under rules and regulations of the secretary of revenue no payment otherwise required to be made under this section on January 15, or at any time during the preceding year, in the case of an individual referred to in subsection (b) of K.S.A. 79-32,102, and amendments thereto, relating to income from farming or fishing, is required to be made.

(d) An individual or corporation with a taxable year of less than 12 months shall make a declaration for less than 12 months as prescribed by rules and regulations of the secretary of revenue.

(e) The provisions of this section shall not apply to an estate or trust.

History: L. 1965, ch. 525, § 8; L. 1968, ch. 192, § 1; L. 1969, ch. 451, § 1; L. 1970, ch. 392, § 1; L. 1972, ch. 342, § 102; L. 1980, ch. 316, § 7; L. 1981, ch. 385, § 1; L. 1989, ch. 296, § 2; L. 2000, ch. 184, § 7; L. 2004, ch. 171, § 5; July 1.

§§ 79-32,102 Same; time of filing of certain declarations

(a) "Corporations or individuals other than farmers or fishermen." Declarations of estimated tax required by K.S.A. 79-32,101 from corporations or individuals regarded as neither farmers nor fishermen for the purpose of that section shall be filed on or before April 15 of the taxable year except that if the requirements of K.S.A. 79-32,101 are first met, (1) after April 1 and before June 2 of the taxable year, the declaration shall be filed on or before June 15 of the taxable year, or (2) after June 1 and before September 2 of the taxable year, the declaration shall be filed on or before September 15, or (3) after September 1 of the taxable year the declaration shall be filed on or before January 15 of the subsequent taxable year, except corporations meeting the requirements after September 1 and before December 1 shall file their declaration on or before December 15 of the taxable year.

(b) "Farmers or fishermen." Declarations of estimated tax required by K.S.A. 79-32,101 from individuals whose estimated gross income from farming or fishing for the taxable year is at least 2/3 of the total estimated gross income from all sources for the taxable year may, in lieu of the time prescribed in subsection (a), be filed at any time on or before January 15 of the succeeding taxable year.

(c) "Amendment." Amendment of a declaration may be filed at any interval between installment dates prescribed for that taxable year.

(d) "Short taxable years." The applicability of this section of taxable years of less than 12 months shall be in accordance with regulations prescribed by the secretary of revenue.

(e) "Fiscal years." In application of this section to the case of the taxable year beginning on a date other than January 1, there shall be substituted for the months specified in this section the months which correspond thereto.

History: L. 1965, ch. 525, § 9; L. 1966, ch. 45, § 2 (Budget Session); L. 1971, ch. 310, § 1; L. 1981, ch. 385, § 2; January 1, 1982.

§§ 79-32,103 Time of payment of estimated tax

(a) "General rule." The amount of estimated tax (as defined in K.S.A. 79-32,101(c)) with respect to a declaration required under K.S.A. 79-32,101 shall be paid, without any regard to an extension of time to file the prior year income tax return, as follows:

(1) If the declaration is filed on or before April 15 of the taxable year, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of filing the declaration, the second and third on June 15 and September 15, respectively, of the taxable year, and the fourth on January 15 of the succeeding taxable year, except corporations, who shall pay the fourth installment on December 15 of the taxable year.

(2) If the declaration is filed after April 15 and not after June 15 of the taxable year, and is not required by K.S.A. 79-32,102(a) to be filed on or before April 15 of the taxable year, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time of filing the declaration, the second on September 15 of the taxable year, and the third on January 15 of the succeeding taxable year except corporations, who shall pay the third installment on December 15 of the taxable year.

(3) If the declaration is filed after June 15 and not after September 15 of the taxable year, and is not required by K.S.A. 79-32,102(a) to be filed on or before June 15 of the taxable year, the estimated tax shall be paid in two equal installments. The first installment shall be paid at the time of the filing of the declaration, and the second on January 15 of the succeeding taxable year, except corporations, who shall pay the second installment on December 15 of the taxable year.

(4) If the declaration is filed after September 15 of the taxable year, and is not required by K.S.A. 79-32,102(a) to be filed on or before September 15 of the taxable year, the estimated tax shall be paid in full at the time of filing the declaration.

(5) If the declaration is filed after the time prescribed by K.S.A. 79-32,102(a) paragraphs (2), (3) and (4) of this subsection shall not apply and there shall be paid at the time of such filing all installments of estimated tax which would have been payable on or before such time if the declaration had been filed within the time prescribed by K.S.A. 79-32,102(a) and the remaining installments shall be paid at the times at which, and in the amounts in which, they would have been payable if the declaration had so been filed.

(b) "Farmers and fishermen." If an individual referred to in K.S.A. 79-32,102(b) (relating to income from farming or fishing) makes a declaration of estimated tax after September 15 of the taxable year and on or before January 15 of the succeeding taxable year, the estimated tax shall be paid in full at the time of filing the declaration.

(c) "Amendments of declaration." If any amendment of declaration is filed, the remaining installments, if any, shall be ratably increased or decreased as the case may be, to reflect the increase or decrease, as the case may be, in the estimated tax by reason of such amendment, and if any amendment is made after the 15th day of the ninth month of the taxable year, any increase in the estimated tax by reason thereof shall be paid at the time of making such amendment. Amendment of a declaration shall not preclude imposition of a penalty due on any installment.

(d) "Short taxable years." The applicability of this section of taxable years of less than 12 months shall be in accordance with regulations prescribed by the secretary of revenue.

(e) "Fiscal years." In application of this section to the case of the taxable year beginning on a date other than January 1, there shall be substituted for the months specified in this section the months which correspond thereto.

(f) "Installments paid in advance." At the election of the individual or corporation, an installment of estimated tax may be paid prior to the date prescribed for its payment.

History: L. 1965, ch. 525, § 10; L. 1966, ch. 45, § 3 (Budget Session); L. 1969, ch. 452, § 1; L. 1981, ch. 385, § 3; January 1, 1982.

§§ 79-32,104 Amount paid upon declarations of estimated tax; payments as credit against income tax

(a) The amount paid upon declarations of estimated tax under this act during any calendar year shall be allowed as a credit against the income tax otherwise imposed on the taxpayer by the "Kansas income tax act."

(b) If the amount paid on the declaration of estimated tax during any calendar year exceeds the income tax liability of the taxpayer, any excess shall be applied to any other tax then owed the state of Kansas by such taxpayer, including fines, penalties and interest, if any, as provided by K.S.A. 79-3233j, and amendments thereto, and the balance of such excess, if any, refunded to the taxpayer as provided in K.S.A. 79-32,105 (c), and amendments thereto, or at the taxpayer's option credited to the taxpayer's declaration of estimated tax liability for the succeeding year.

History: L. 1965, ch. 525, § 11; L. 1966, ch. 45, § 4 (Budget Session); L. 2002, ch. 186, § 9; July 1.

§§ 79-32,105 Withholding tax; moneys paid to state treasurer; amounts credited to IMPACT program funds, income tax refund fund and state general fund; refunds, payment; interest, computation

(a) The director shall remit the entire amount collected under the provisions of this act and from the income tax imposed upon individuals, corporations, estates or trusts pursuant to the "Kansas income tax act" less amounts withheld as provided in subsection (b) and any amounts credited to the IMPACT program repayment fund or the IMPACT program services fund under K.S.A. 74-50,107, and amendments thereto, to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

(b) A revolving fund, designated as "income tax refund fund" not to exceed $4,000,000 shall be set apart and maintained by the director from income tax collections, franchise tax collections, withholding tax collections, and estimated tax collections and held by the state treasurer for prompt payment of all income tax refunds and franchise tax refunds, for the payment of interest as provided in subsection (e), for payment of homestead property tax refunds in accordance with the homestead property tax refund act and for payment of property tax refunds allowed pursuant to the provisions of K.S.A. 79-255, and amendments thereto. The fund shall be in such amount, within the limit set by this section, as the director determines is necessary to meet current refunding requirements under this act.

(c) If the director discovers from the examination of the return, or upon claim duly filed by the taxpayer or upon final judgment of the court that the income tax, withholding tax, declaration of estimated tax or any penalty or interest paid by or credited to any taxpayer is in excess of the amount legally due for such tax or any other tax owed the state of Kansas, the director shall certify to the director of accounts and reports the name of the taxpayer, the amount of refund and such other information as the director may require. Upon receipt of such certification the director of accounts and reports shall issue a warrant on the state treasurer for the payment to the taxpayer out of the fund provided in subsection (b), except that no refund shall be made for a sum less than $5, but such amount may be claimed by the taxpayer as a credit against the taxpayer's tax liability in the taxpayer's next succeeding taxable year.

(d) When a resident taxpayer dies, and the director determines that a refund is due the claimant not in excess of $100, the director shall certify to the director of accounts and reports the name and address of the claimant entitled to the refund and the amount of the refund. A refund may be made upon a claim duly made on behalf of the estate of the deceased or in the absence of any such claim upon a claim by a surviving spouse and if none upon the claim by any heir at law. Upon receipt of such certification the director of accounts and reports shall issue a warrant on the state treasurer for the payment to the claimant out of the fund provided in subsection (b).

(e) Interest shall be allowed and paid at the rate of 12% per annum upon any overpayment of the income tax imposed upon individuals, corporations, estates or trusts pursuant to the Kansas income tax act for any period prior to January 1, 1995, 6% per annum for the period commencing on January 1, 1995, and ending on December 31, 1997, and at the rate prescribed and determined pursuant to K.S.A. 79-2968, and amendments thereto, for any period thereafter.

For the purposes of this subsection:

(1) Any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day, determined without regard to any extension of time granted the taxpayer;

(2) any tax paid by the taxpayer before the last day prescribed for its payment, any income tax withheld from the taxpayer during any calendar year and any amount paid by the taxpayer as estimated income tax for a taxable year shall be deemed to have been paid on the last day prescribed for filing the return for the taxable year to which such amount constitutes a credit or payment, determined without regard to any extension of time granted the taxpayer;

(3) if any overpayment of tax results from a carryback of a net operating loss or net capital loss, such overpayment shall be deemed not to have been made prior to the close of the taxable year in which such net operating loss or net capital loss arises. For purposes of this paragraph, the return for the loss year shall not be deemed to be filed before claim for such overpayment is filed;

(4) in the case of a credit, interest shall be allowed and paid from the date of the overpayment to the due date of the amount against which the credit is taken, except that if any overpayment of income tax is claimed as a credit against estimated tax for the succeeding taxable year, such amount shall be considered as a payment of the income tax for the succeeding taxable year, whether or not claimed as a credit in the return of estimated tax for such succeeding taxable year, and no interest shall be allowed or paid in such overpayment for the taxable year in which the overpayment arises;

(5) in the case of a tax return which is filed after the last date prescribed for filing such return, determined with regard to extensions, no interest shall be allowed or paid for any period before the date on which the return is filed;

(6) in the case of a refund, interest shall be allowed and paid from the date of the overpayment to a date preceding the date of the refund check by not more than 30 days, as determined by the director, whether or not such refund check is accepted by the taxpayer after tender of such check to the taxpayer, but acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon; and

(7) if any overpayment is refunded within two months after the last date prescribed, or permitted by extension of time, for filing the return of such tax, or within two months after the return was filed, whichever is later, no interest shall be allowed or paid. For the purposes of this section, an overpayment shall be deemed to have been refunded at the time the refund check in the amount of the overpayment, plus any interest due thereon, is deposited in the United States mail.

History: L. 1965, ch. 525, § 12; L. 1968, ch. 302, § 1; L. 1974, ch. 440, § 1; L. 1980, ch. 316, § 8; L. 1984, ch. 351, § 15; L. 1985, ch. 324, § 1; L. 1991, ch. 284, § 12; L. 1994, ch. 85, § 2; L. 1996, ch. 206, § 10; L. 1997, ch. 126, § 3; L. 2001, ch. 57, § 4; L. 2001, ch. 167, § 8; L. 2002, ch. 186, § 10; L. 2004, ch. 171, § 38; July 1.

§§ 79-32,106 Employers' and fiduciaries' liability for tax required to be withheld

(a) The employer shall be liable to the state for the payment of the amount required to be deducted and withheld under this act but shall not be otherwise liable for the amount of any such payments.

(b) If the employer is the United States or any agency or instrumentality thereof, the return of the amount deducted and withheld upon any wages or payments other than wages may be made by any officer or employee of the United States or of such agency or instrumentality, as the case may be, having control of the payment of such wages or payments other than wages, or appropriately designated for that purpose. Such withholding shall, in accordance with 5 U.S.C. § 84c, be exempt from penalties otherwise provided by law for noncompliance with this act.

(c) In case a fiduciary, agent, or other person has the control, receipt, custody or disposal of, or pays the wages of an employee or group of employees, employed by one or more employers, the director, under rules and regulations of the secretary of revenue, is authorized to designate such fiduciary, agent, or other person to perform such acts as are required of employers under this act and as the director may specify. Except as may be otherwise prescribed by the director, all provisions of law (including penalties) applicable in respect of any employer shall be applicable to a fiduciary, agent, or other person so designated, but, except as so provided, the employer for whom such fiduciary, agent, or other persons acts shall remain subject to the provisions of law (including penalties) applicable in respect of employers.

History: L. 1965, ch. 525, § 13; L. 1972, ch. 342, § 103; L. 2000, ch. 184, § 17; July 1.

§§ 79-32,107 Penalties and interest for noncompliance, exception to penalty imposition for certain underpayments; failure of employer to deduct and withhold; failure to collect, account for and pay tax; attempts to evade or defeat tax

(a) All penalties and interest prescribed by K.S.A. 79-3228, and amendments thereto, for noncompliance with the income tax laws of Kansas shall be applicable for noncompliance with the provisions of the Kansas withholding and declaration of estimated tax act relating to withholding tax which shall be enforced in the same manner as the Kansas income tax act. A penalty at the same rate per annum prescribed by K.S.A. 79-2968(b), and amendments thereto, for interest upon delinquent or unpaid taxes shall be applied and added to a taxpayer's amount of underpayment of estimated tax due from the date the estimated tax payment was due until the same is paid or until the 15th day of the fourth month following the close of the taxable year for which such estimated tax is a credit, whichever date is earlier, but such penalty shall not be added if the total amount thereof does not exceed $1. For purposes of this subsection, the amount of underpayment of estimated tax shall be the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to 90% of the tax shown on the return for the taxable year or, if no return was filed, 90% of the tax for such year, over the amount, if any, of the installment paid on or before the last date prescribed for payment. Amounts due from any employer on account of withholding or from any taxpayer for estimated tax may be collected by the director in the manner provided for the collection of state income tax in K.S.A. 79-3235, and amendments thereto. For purposes of this subsection, "underpayment of tax" means the difference between the amount of tax actually paid and the amount of tax which would have been required to be paid to avoid penalty pursuant to subsection (b) or (c).

(b) No penalty or interest shall be imposed upon any individual with respect to any underpayment of any installment if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is the least:

(1) The tax shown on the return of the individual for the preceding taxable year, if a return showing a liability for tax was filed by the individual for the preceding taxable year;

(2) zero if no return was required to be filed or if the tax liability on the individual's return was less than $200 for the preceding taxable year;

(3) an amount equal to 662/3%, in the case of individuals referred to in K.S.A. 79-32,102(b), and amendments thereto, and 90%, in the case of all other individuals, of the tax for the taxable year computed by placing on an annualized basis, pursuant to rules and regulations adopted by the secretary of revenue, the taxable income for the months in the taxable year ending before the month in which the installment is required to be made.

(c) No penalty or interest shall be imposed upon any corporation with respect to any underpayment of any installment of estimated tax if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is the least:

(1) The tax shown on the return of the corporation for the preceding taxable year, if a return showing a liability for tax was filed by the corporation for the preceding taxable year, or zero if no return was required to be filed, or if the tax liability on the corporation's return was less than $500 for the preceding taxable year; or

(2) (A) an amount equal to 90% of the tax for the taxable year computed by placing on an annualized basis the taxable income:

(i) For the first three months of the taxable year, in the case of the installment required to be paid in the fourth month;

(ii) for the first three months or for the first five months of the taxable year, in the case of the installment required to be paid in the sixth month;

(iii) for the first six months or for the first eight months of the taxable year in the case of the installment required to be paid in the ninth month; and

(iv) for the first nine months or for the first 11 months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year.

(B) For purposes of this paragraph (2), the taxable income shall be placed on an annualized basis by:

(i) Multiplying by 12 the taxable income referred to in subparagraph (A); and

(ii) dividing the resulting amount by the number of months in the taxable year (three, five, six, eight, nine, or 11, as the case may be) referred to in subparagraph (A).

(d) If the employer, in violation of the provisions of this act, fails to deduct and withhold under this chapter, and thereafter the tax against which such withholding may be credited is paid, the amount otherwise required to be deducted and withheld shall not be collected from the employer. This subsection shall in no case relieve the employer from liability for any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold.

(e) Any person required to collect, truthfully account for, and pay over any tax imposed by this act, who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall in addition to the other penalties of this section be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. As used in this section, "willfully" has the same meaning as such term has for federal tax purposes in 26 U.S.C. § 6672.

(f) (1) In case of failure by any employer required by K.S.A. 79-3298(b), and amendments thereto, to remit any amount of withheld taxes by the date prescribed therefor, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon such person a penalty of:

(A) 2% of the amount of the underpayment if remitted within one to five days;

(B) 5% of the amount of the underpayment if remitted within six to 15 days;

(C) 10% of the amount of the underpayment if remitted after 15 days; and

(D) 15% of the amount of the underpayment if remitted after 15 days and the department has issued a notice to the person regarding the underpayment but the amount of the underpayment was not remitted within 10 days of issuance of the notice.

(2) For purposes of this subsection, the term "underpayment" means the excess of the amount of the tax required to be withheld and remitted over the amount, if any, remitted on or before the date prescribed therefor. The failure to remit for any withholding period shall be deemed not to continue beyond the last date prescribed for filing the annual return as required by K.S.A. 79-3298(d), and amendments thereto. Penalty and interest as prescribed by K.S.A. 79-3228, and amendments thereto, shall not begin to accrue under subsection (a) on the amount of any such underpayment until the due date of the annual return for the calendar year in which such failure to remit occurs.

(g) Whenever the secretary or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsections (a), (e) or (f) was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of such penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

History: L. 1965, ch. 525, § 14; L. 1977, ch. 343, § 1; L. 1979, ch. 320, § 1; L. 1980, ch. 316, § 9; L. 1981, ch. 385, § 4; L. 1983, ch. 326, § 2; L. 1984, ch. 351, § 16; L. 1989, ch. 296, § 3; L. 1993, ch. 22, § 1; L. 1994, ch. 95, § 2; L. 1997, ch. 126, § 27; L. 2010, ch. 123, § 10; L. 2024, ch. 81, § 17; July 1.

§§ 79-32,107a Application of K.S.A. 79-32,107

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1979.

History: L. 1979, ch. 320, § 2; January 1, 1980.

§§ 79-32,107b Application of K.S.A. 79-32,101, 79-32,102, 79-32,103 and 79-32,107

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1981.

History: L. 1981, ch. 385, § 5; January 1, 1982.

§§ 79-32,108 Severability; captions

If any section, subsection or clause of this act shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this act, but shall be confined in its operation to the section, subsection or clause involved in the controversy in which such judgment shall have been rendered, and it shall be presumed that the legislature would have enacted this law with the section, subsection or clause held to be invalid omitted. No caption of any section or set of sections shall in any way affect the interpretation of this act, or any part thereof.

History: L. 1965, ch. 525, § 16; January 1, 1966.

§§ 79-32,108a Withholding registration certificate required; procedure

It shall be unlawful for any employer to engage in business in this state without an income tax withholding registration certificate issued by the director of taxation. Application for such certificate shall be made upon forms furnished by the director. Upon approval of the application, the director shall issue an income tax withholding registration certificate to engage in the business for which application is made. If the applicant does at the time of making the application owe any withholding tax, interest or penalty, then before an income tax withholding registration certificate is issued the director shall require the applicant to pay the amount owed.

History: L. 1989, ch. 296, § 5; July 1.

§§ 79-32,109 Definitions

As used in this act, unless the context otherwise requires:

(a) (1) Any term used in this act shall have the same meaning as when used in a comparable context in the federal internal revenue code. Any reference in this act to the "federal internal revenue code" shall mean the provisions of the federal internal revenue code of 1986, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as the same may be or become effective at any time, or from time to time, for the taxable year.

(2) Any reference in this act to a federal form or schedule, or to a line number on a federal form or schedule, shall be to such form, schedule and line number as they existed for tax year 2011 and as revised thereafter by the internal revenue service. Any such reference shall include comparable federal forms, schedules, and line numbers used by non-United States residents when filing their federal income tax return with the internal revenue service.

(b) "Resident individual" means a natural person who is domiciled in this state. A natural person who spends in the aggregate more than six months of the taxable year within this state shall be presumed to be a resident for purposes of this act in absence of proof to the contrary. A nonresident individual means an individual other than a resident individual.

(c) "Resident estate" means the estate of a deceased person whose domicile was in this state at the time of such person's death. "Nonresident estate" means an estate other than a resident estate.

(d) "Resident trust" means a trust that:

(1) Is administered in this state;

(2) was created by or consists of property owned by a person domiciled in this state on the date the trust or portion of the trust became irrevocable; and

(3) has at least one income beneficiary who, on the last day of the taxable year, was a resident of this state.

(e) (1) "Resident partner" means a partner who is a resident individual, a resident estate, or a resident trust.

(2) "Nonresident partner" means a partner other than a resident partner.

(f) (1) "Resident beneficiary" means a beneficiary of an estate or trust which beneficiary is a resident individual, a resident estate, or a resident trust.

(2) "Nonresident beneficiary" means a beneficiary other than a resident beneficiary.

(g) "Director" means the director of taxation.

(h) (1) "Modified Kansas source income" means that part of a nonresident individual's Kansas adjusted gross income as set forth in K.S.A. 79-32,117, and amendments thereto, derived from sources in Kansas. Items of income including unemployment compensation, gain, loss or deduction reflected in Kansas adjusted gross income shall be considered derived from sources in Kansas to the extent that they are attributable to:

(A) The ownership of any interest in real or tangible personal property in this state;

(B) a business, trade, profession or occupation carried on in this state;

(C) a business, trade, profession or occupation carried on partly within and partly without this state as determined by the uniform division of income for tax purposes act as set forth in K.S.A. 79-3271 through 79-3293, and amendments thereto;

(D) the distributive share of partnership income, gain, loss and deduction determined under this section as if the partnership were a nonresident individual;

(E) the share of estate or trust income, gain, loss and deduction determined under K.S.A. 79-32,137, and amendments thereto;

(F) prizes won from lottery games conducted by the Kansas lottery;

(G) any winnings from parimutuel wagering derived from the conduct of parimutuel activities within this state; or

(H) income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property to the extent that such income is from property employed in a trade, business, profession or occupation carried on in Kansas. A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of such dealer's trade or business, shall not be deemed to carry on a business, trade, profession or occupation in Kansas solely by reason of the purchase and sale of property for such nonresident's own account.

(2) "Modified Kansas source income" does not include:

(A) Compensation paid by the United States for service in the armed forces of the United States, performed during an induction period by an individual not domiciled in this state; or

(B) such individual's share of distributed or undistributed taxable income or net operating loss of a corporation which is an electing small business corporation unless an agreement is filed as provided in K.S.A. 79-32,139, and amendments thereto, in which event, the "modified Kansas source income" of such nonresident individual shall include such individual's share of such corporation's distributed and undistributed taxable income or net operating loss as such share is determined under the internal revenue code only to the extent, however, that such income, gain or loss is at the corporate level, derived from sources within Kansas.

History: L. 1967, ch. 497, § 2; L. 1968, ch. 233, § 2; L. 1969, ch. 453, § 1; L. 1970, ch. 393, § 1; L. 1971, ch. 311, § 1; L. 1977, ch. 105, § 43; L. 1978, ch. 407, § 1; L. 1984, ch. 351, § 17; L. 1987, ch. 385, § 1; L. 1988, ch. 381, § 16; L. 1989, ch. 296, § 4; L. 2013, ch. 87, § 2; L. 2022, ch. 12, § 3; L. 2023, ch. 48, § 33; July 1.

§§ 79-32,109a Repealed

History: L. 1970, ch. 393, § 4; Repealed, L. 1971, ch. 311, § 3; April 30.

§§ 79-32,109b Repealed

History: L. 1967, ch. 497, § 2; L. 1968, ch. 233, § 2; L. 1969, ch. 453, § 1; L. 1970, ch. 393, § 1; L. 1971, ch. 311, § 1; L. 1977, ch. 105, § 43; L. 1978, ch. 407, § 1; L. 1984, ch. 351, § 17; L. 1987, ch. 292, § 31; Repealed, L. 1988, ch. 381, § 21; July 1.

§§ 79-32,110 Tax imposed; classes of taxpayers; schedules of tax rates. [See Revisor's Note]

(a)

Resident individuals.

Except as otherwise provided by K.S.A. 79-3220(a), and amendments thereto, a tax is hereby imposed upon the Kansas taxable income of every resident individual, which tax shall be computed in accordance with the following tax schedules unless otherwise modified pursuant to K.S.A. 2025 Supp. 79-32,110c, and amendments thereto:

(1)

Married individuals filing joint returns.

(A) For tax years 2018 through 2023:

• If the taxable income is:The tax is:
• Not over $30,0003.1% of Kansas taxable income
• Over $30,000 but not over $60,000$930 plus 5.25% of excess over $30,000
• Over $60,000$2,505 plus 5.7% of excess over $60,000

(B) For tax year 2024, and all tax years thereafter:

• If the taxable income is:The tax is:
• Not over $46,0005.2% of Kansas taxable income
• Over $46,000$2,392 plus 5.58% of excess over $46,000

(2) All other individuals.

(A) For tax years 2018 through 2023:

• If the taxable income is:The tax is:
• Not over $15,0003.1% of Kansas taxable income
• Over $15,000 but not over $30,000$465 plus 5.25% of excess over $15,000
• Over $30,000$1,252.50 plus 5.7% of excess over $30,000

(B) For tax year 2024, and all tax years thereafter:

• If the taxable income is:The tax is:
• Not over $23,0005.2% of Kansas taxable income
• Over $23,000$1,196 plus 5.58% of excess over $23,000

(b)

Nonresident individuals.

A tax is hereby imposed upon the Kansas taxable income of every nonresident individual, which tax shall be an amount equal to the tax computed under subsection (a) as if the nonresident were a resident multiplied by the ratio of modified Kansas source income to Kansas adjusted gross income.

(c)

Corporations.

A tax is hereby imposed upon the Kansas taxable income of every corporation doing business within this state or deriving income from sources within this state. Such tax shall consist of a normal tax and a surtax and shall be computed as follows unless otherwise modified pursuant to K.S.A. 2025 Supp. 74-50,321 or 79-32,110c, and amendments thereto:

(1) The normal tax shall be in an amount equal to 4% of the Kansas taxable income of such corporation; and

(2) the surtax shall be in an amount equal to 3% of the Kansas taxable income of such corporation in excess of $50,000.

(d)

Fiduciaries.

A tax is hereby imposed upon the Kansas taxable income of estates and trusts at the rates provided in subsection (a)(2).

(e) Notwithstanding the provisions of subsections (a) and (b), for tax years 2018 through 2023, married individuals filing joint returns with taxable income of $5,000 or less and all other individuals with taxable income of $2,500 or less shall have a tax liability of zero.

History: L. 1967, ch. 497, § 3; L. 1969, ch. 454, § 1; L. 1970, ch. 394, § 1; L. 1977, ch. 344, § 3; L. 1978, ch. 407, § 2; L. 1979, ch. 321, § 1; L. 1988, ch. 381, § 2; L. 1989, ch. 303, § 1; L. 1992, ch. 280, § 55; L. 1997, ch. 41, § 13; L. 1998, ch. 130, § 19; L. 2008, ch. 182, § 22; L. 2012, ch. 135, § 10; L. 2013, ch. 135, § 1; L. 2015, ch. 99, § 25; L. 2015, ch. 102, § 3; L. 2017, ch. 84, § 4; L. 2022, ch. 3, § 15; L. 2024, ch. 1, § 16 (Special Session); L. 2025, ch. 116, § 4; July 1.

§§ 79-32,110a Tax imposed on ordinary income portions of lump sum distributions from pension and other plans

In addition to the tax imposed by K.S.A. 79-32,110, and amendments thereto, there is hereby imposed for each taxable year, with respect to the income of every taxpayer, a tax equal to thirteen percent (13%) of the tax liability imposed upon said taxpayer for said taxable year under 26 U.S.C. 402(e). Any taxpayer filing a nonresident return shall be liable for said tax only on that portion of the income allocable to the state of Kansas.

History: L. 1978, ch. 405, § 7; July 1.

§§ 79-32,110b Tax imposed; classes of taxpayers; schedules of tax rates. [See Revisor's Note]

(a)

Resident individuals.

Except as otherwise provided by K.S.A. 79-3220(a), and amendments thereto, a tax is hereby imposed upon the Kansas taxable income of every resident individual, which tax shall be computed in accordance with the following tax schedules:

(1) Married individuals filing joint returns.

(A) For tax years 2018 through 2023:

• If the taxable income is:The tax is:
• Not over $30,0003.1% of Kansas taxable income
• Over $30,000 but not over $60,000$930 plus 5.25% of excess over $30,000
• Over $60,000$2,505 plus 5.7% of excess over $60,000

(B) For tax year 2024, and all tax years thereafter:

• If the taxable income is:The tax is:
• Not over $46,0005.2% of Kansas taxable income
• Over $46,000$2,392 plus 5.58% of excess over $46,000

(2) All other individuals.

(A) For tax years 2018 through 2023:

• If the taxable income is:The tax is:
• Not over $15,0003.1% of Kansas taxable income
• Over $15,000 but not over $30,000$465 plus 5.25% of excess over $15,000
• Over $30,000$1,252.50 plus 5.7% of excess over $30,000

(B) For tax year 2024, and all tax years thereafter:

• If the taxable income is:The tax is:
• Not over $23,0005.2% of Kansas taxable income
• Over $23,000$1,196 plus 5.58% of excess over $23,000

(b)

Nonresident individuals.

A tax is hereby imposed upon the Kansas taxable income of every nonresident individual, which tax shall be an amount equal to the tax computed under subsection (a) as if the nonresident were a resident multiplied by the ratio of modified Kansas source income to Kansas adjusted gross income.

(c)

Corporations.

A tax is hereby imposed upon the Kansas taxable income of every corporation doing business within this state or deriving income from sources within this state. Such tax shall consist of a normal tax and a surtax and shall be computed as follows unless otherwise modified pursuant to K.S.A. 2025 Supp. 74-50,321 and 79-32,110d, and amendments thereto:

(1) The normal tax shall be in an amount equal to 4% of the Kansas taxable income of such corporation; and

(2) the surtax shall be in an amount equal to 3% of the Kansas taxable income of such corporation in excess of $50,000.

(d)

Fiduciaries.

A tax is hereby imposed upon the Kansas taxable income of estates and trusts at the rates provided in subsection (a)(2).

(e) Notwithstanding the provisions of subsections (a) and (b), for tax years 2018 through 2023, married individuals filing joint returns with taxable income of $5,000 or less, and all other individuals with taxable income of $2,500 or less, shall have a tax liability of zero.

History: L. 1967, ch. 497, § 3; L. 1969, ch. 454, § 1; L. 1970, ch. 394, § 1; L. 1977, ch. 344, § 3; L. 1978, ch. 407, § 2; L. 1979, ch. 321, § 1; L. 1988, ch. 381, § 2; L. 1989, ch. 303, § 1; L. 1992, ch. 280, § 55; L. 1997, ch. 41, § 13; L. 1998, ch. 130, § 19; L. 2008, ch. 182, § 22; L. 2012, ch. 135, § 10; L. 2013, ch. 135, § 1; L. 2015, ch. 99, § 25; L. 2015, ch. 102, § 3; L. 2017, ch. 84, § 4; L. 2022, ch. 3, § 15; L. 2024, ch. 1, § 16 (Special Session); L. 2025, ch. 123, § 7; July 1.

§§ 79-32,110c Adjustment of tax rates; modification of income tax and privilege tax rates; calculation and publication of rate reductions by secretary of revenue

(a) As used in this section:

(1) "Adjusted consumer price ratio" means the fiscal year consumer price index divided by the base year consumer price index.

(2) "Adjusted general revenue fund collections" means actual tax receipt revenues to the state general fund from the Kansas income tax act and the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto.

(3) "Base year revenues" means actual tax receipt revenues to the state general fund for fiscal year 2024 in the amount of $5,969,395,529 from the Kansas income tax act and the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto.

(4) "Base year consumer price index" means a 12-month average of the not seasonally adjusted consumer price index for all urban consumers for fiscal year 2024.

(5) "Excess fiscal year general revenue fund collections" means the positive difference from subtracting the inflation adjusted base year revenues from the adjusted general revenue fund collections from the immediately preceding fiscal year.

(6) "Fiscal year consumer price index" means a 12-month average of the not seasonally adjusted consumer price index for all urban consumers for the immediately preceding fiscal year.

(7) "Inflation adjusted base year revenues" means the base year revenues multiplied by the adjusted consumer price ratio.

(b) Commencing on August 15, 2025, and every August 15 thereafter, the director of the budget, in consultation with the director of legislative research, shall determine whether the total fiscal year adjusted general revenue fund collections from the immediately preceding fiscal year are in excess of the inflation adjusted base year revenues and if the amount of moneys in the budget stabilization fund established pursuant to K.S.A. 75-6706, and amendments thereto, is equal to or exceeds 15% of the prior fiscal year's state tax receipt revenues to the state general fund. If the total fiscal year adjusted general revenue fund collections from the immediately preceding fiscal year are in excess of the inflation adjusted base year revenues and the amount of moneys in the budget stabilization fund is equal to or exceeds 15% of the prior fiscal year's state tax receipt revenues to the state general fund, the director of the budget shall certify to the secretary of revenue the existence of such excess and the amount of the excess.

(c) In the event that the secretary of revenue certifies that the adjusted general revenue fund collections from the immediately preceding fiscal year are in excess of the inflation adjusted base year revenues and the amount of moneys in the budget stabilization fund is equal to or exceeds 15% of the prior fiscal year's state tax receipt revenues to the state general fund, the secretary shall calculate and publish the income tax and privilege tax rate reduction as a result of the excess. In calculating the income tax rate reduction, the excess fiscal year general revenue fund collections shall be computed that would result in the reduction of the income tax rates pursuant to subsection (d) in an amount approximately equal to the rate reductions down to the nearest 0.01% to go into effect for the next tax year. In calculating the privilege tax rate reduction pursuant to subsection (d), the reduction shall be a corresponding rate reduction that is equal to the total percentage adjustment to the corporate income tax. Such rate reductions shall remain in effect unless further reduced pursuant to this section. The income tax brackets and taxable income thresholds prescribed in K.S.A. 79-32,110(a), and amendments thereto, shall be adjusted to reflect the changes in income tax rates.

(d) The secretary shall first compute the reduction of the income tax rates pursuant to K.S.A. 79-32,110(a), and amendments thereto, that decreases proportionally all tax rates in effect. Once the lower income tax rate is decreased to 4%, there shall be no further reductions to the lower income tax rate and further reductions shall only be applied to reduce the higher income tax rate in effect. Upon the higher income tax rate being decreased to 4%, no further reductions shall occur to K.S.A. 79-32,110(a), and amendments thereto. The secretary shall then compute decreases to:

(1) The surtax imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto. The surtax shall be decreased until the combined normal and surtax rates equal 4% that are imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto. Once the combined normal and surtax rates pursuant to K.S.A. 79-32,110(c), and amendments thereto, equal 4%, no further reductions shall occur;

(2) the normal tax imposed pursuant to K.S.A. 79-1107, and amendments thereto. The normal tax shall be decreased until the combined normal and surtax rates equal 2.6% that are imposed pursuant to K.S.A. 79-1107, and amendments thereto. Once the combined normal and surtax rates pursuant to K.S.A. 79-1107, and amendments thereto, equal 2.6%, no further reductions shall occur; and

(3) the normal tax imposed pursuant to K.S.A. 79-1108, and amendments thereto. The normal tax shall be decreased until the combined normal and surtax rates equal 2.62% that are imposed pursuant to K.S.A. 79-1108, and amendments thereto. Once the combined normal and surtax rates pursuant to K.S.A. 79-1108, and amendments thereto, equal 2.62%, no further reductions shall occur.

History: L. 2025, ch. 116, § 1; July 1.

§§ 79-32,110d Certification of excess corporate income tax receipts; reduction of corporate income tax rate; publication of income tax rates

(a) At the end of fiscal year 2028, the director of the budget, in consultation with the director of legislative research, shall certify the amount of actual corporate income tax receipt revenues generated pursuant to K.S.A. 79-32,110(c), and amendments thereto, that is in excess of the prior fiscal year's corporate income tax receipts. The director of the budget shall transmit such certification to the secretary of revenue. Upon receipt of such certification, the secretary shall compute the reduction of the corporate income tax rate pursuant to K.S.A. 79-32,110(c), and amendments thereto. The certified amount shall be computed in dollars by the secretary for a reduction rounded down to the nearest 0.1% in the corporate income tax rate, if any, to go into effect for the next tax year that would reduce the corporate income tax rate in an amount approximately equal to the amount computed by the secretary. The secretary shall reduce the normal tax on corporations. Such rate reductions shall remain in effect unless further reduced pursuant to law.

(b) The secretary shall publish by October 1, 2028, the new income tax rates to take effect for all taxable years commencing after December 31, 2028.

History: L. 2025, ch. 123, § 1; July 1.

§§ 79-32,111 Credits against tax

(a) The amount of income tax paid to another state by a resident individual, resident estate or resident trust on income derived from sources in another state, and included in Kansas adjusted gross income, shall be allowed as a credit against the tax computed under the provisions of this act. Such credit shall not be greater in proportion to the tax computed under this act than the Kansas adjusted gross income for such year derived in another state while such taxpayer is a resident of this state is to the total Kansas adjusted gross income of the taxpayer. As used in this subsection, "state" means the same as defined by K.S.A. 79-3271(i), and amendments thereto. The credit allowable hereunder for income tax paid to a foreign country or political subdivision thereof shall not exceed the difference of such income tax paid less the credit allowable for such income tax paid by the federal internal revenue code. No redetermination of income tax paid for the purposes of determining the credit allowed by this subsection shall be required for the taxable year for which an income tax refund payment pursuant to the provisions of section 18 of article 10 of the Missouri constitution is made, but the income tax paid allowable for credit in the next following taxable year shall be reduced by the amount of such refund amount, except that, for tax year 1998, the income tax paid allowable for credit shall be reduced by the amount of such refunds made for all taxable years prior to tax year 1998.

(b) There shall be allowed as a credit against the tax computed under the provisions of the Kansas income tax act, and amendments thereto, on the Kansas taxable income of an individual, corporation or fiduciary the amount determined under the provisions of K.S.A. 79-32,153 to 79-32,158, and amendments thereto.

(c) For purposes of subsection (a), the amount of income tax paid to another state by an S corporation or partnership that is included in Kansas adjusted gross income of a resident individual, resident estate or resident trust who is a member, shareholder or partner of such S corporation or partnership shall be considered income tax paid to another state by such resident individual, resident estate or resident trust.

History: L. 1967, ch. 497, § 4; L. 1976, ch. 431, § 7; L. 1997, ch. 126, § 48; L. 1998, ch. 181, § 4; L. 2012, ch. 135, § 11; L. 2022, ch. 63, § 39; July 1.

§§ 79-32,111a Repealed

History: L. 1978, ch. 405, § 6; L. 1988, ch. 381, § 3; L. 2011, ch. 115, § 3; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,111b Repealed

History: L. 1982, ch. 409, § 2; L. 1984, ch. 351, § 18; Repealed, L. 1992, ch. 247, § 3; July 1.

§§ 79-32,111c Credit against tax for household and dependent care expenses; limitation

(a) There shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to 25% for tax years 2020 through 2023 and an amount equal to 50% for tax year 2024, and all tax years thereafter, of the amount of the credit allowed against such taxpayer's federal income tax liability pursuant to 26 U.S.C. § 21 for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability.

(b) The credit allowed by subsection (a) shall not exceed the amount of the tax imposed by K.S.A. 79-32,110, and amendments thereto, reduced by the sum of any other credits allowable pursuant to law.

(c) No credit provided under this section shall be allowed to any individual who fails to provide a valid social security number issued by the social security administration, to such individual, the individual's spouse and every dependent of the individual.

History: L. 2017, ch. 84, § 1; L. 2024, ch. 1, § 17 (Special Session); June 27.

§§ 79-32,112 Repealed

History: L. 1967, ch. 497, § 5; L. 1971, ch. 312, § 1; L. 1972, ch. 342, § 104; L. 1975, ch. 502, § 1; Repealed, L. 1977, ch. 344, § 8; May 18.

§§ 79-32,112a Secretary of revenue authorized to promulgate tax tables for use by individuals; use of tables optional

(a) The secretary of revenue is hereby authorized to promulgate tax tables for use by resident individuals or resident husbands and wives filing joint Kansas returns in computing Kansas income tax liability. Such tables may be limited to classes of taxpayers upon the basis of the particular federal income tax return filed by such taxpayers, Kansas adjusted gross income of such taxpayers or any other standard determined applicable by the secretary of revenue.

(b) Any tables promulgated under this section shall set forth the tax consistent with K.S.A. 79-32,110, and amendments thereto, to the nearest $5, or such smaller amount as the secretary may establish.

(c) The use of the tables promulgated by the secretary of revenue pursuant to this section shall be at the sole option of the taxpayer, and no deficiency in Kansas income tax may be assessed against such individual solely by reason of the fact that the use of such tables produces a smaller Kansas tax liability than the liability which would have resulted from an actual computation of Kansas taxable income. A taxpayer's election to compute Kansas income tax liability by use of the tax tables shall be irrevocable upon the filing of a return computing tax by use of such tables, and no refund may be claimed or granted to any taxpayer solely by reason of the fact that such tables produce a greater Kansas tax liability than the liability which would have resulted from an actual computation of Kansas taxable income. In the event it is subsequently determined that a taxpayer underreported or overreported Kansas adjusted gross income, number of exemptions or misstated marital status or made any other error which would affect the computation of the Kansas income tax liability, the taxpayer shall have a new election to either use the tax tables for computing the deficiency or refund or to compute tax liability by computation of Kansas taxable income as provided otherwise. If the taxpayer makes no affirmative election, the deficiency or refund shall be computed on the basis of the tax tables if such taxpayer is still eligible to use the same.

History: L. 1978, ch. 405, § 8; L. 1985, ch. 325, § 1; July 1.

§§ 79-32,113 Exempted organizations; requirements and restrictions; electric and natural gas public utilities requirements

(a) A person or organization exempt from federal income taxation under the provisions of the federal internal revenue code shall also be exempt from the tax imposed by this act in each year in which such person or organization satisfies the requirements of the federal internal revenue code for exemption from federal income taxation. If the exemption applicable to any person or organization under the provisions of the federal internal revenue code is limited or qualified in any manner, the exemption from taxes imposed by this article shall be limited or qualified in a similar manner.

(b) Notwithstanding the provisions of subsection (a), the unrelated business taxable income, as computed under the provisions of the federal internal revenue code, of any person or organization otherwise exempt from the tax imposed by this act and subject to the tax imposed on unrelated business income by the federal internal revenue code shall be subject to the tax which would have been imposed by this act but for the provisions of subsection (a).

(c) In addition to the persons or organizations exempt from federal income taxation under the provision of the federal internal revenue code, there shall also be exempt from the tax imposed by this act, insurance companies, banks, trust companies, savings and loan associations, credit unions and any other organizations, entities or persons specifically exempt from Kansas income taxation under the laws of the state of Kansas.

(d) Notwithstanding the provisions of K.S.A. 79-32,110, and amendments thereto, the following entities shall be exempt from the tax imposed by the Kansas income tax act pursuant to K.S.A. 79-32,110, and amendments thereto:

(1) Any utility that is a cooperative as defined in K.S.A. 66-104d, and amendments thereto, or owned by one or more such cooperatives; and

(2) effective for tax years ending on or after January 1, 2021, every electric and natural gas public utility as defined in K.S.A. 66-104, and amendments thereto, that is subject to rate regulation by the state corporation commission.

(e) Every electric and natural gas public utility as defined in K.S.A. 66-104, and amendments thereto, not including any such utility that is a cooperative as defined in K.S.A. 66-104d, and amendments thereto, or owned by one or more such cooperatives shall:

(1) Not be permitted to be included in a consolidated or unitary combined return;

(2) except as provided in K.S.A. 2025 Supp. 66-1,239, and amendments thereto, not collect, as a component of such utility's retail rates, Kansas income tax expenses; and

(3) exclude sales from the sales factor from sales to the affiliated utility by members in a unitary business group.

History: L. 1967, ch. 497, § 6; L. 1978, ch. 403, § 2; L. 1988, ch. 381, § 17; L. 2020, ch. 13, § 4; L. 2025, ch. 123, § 8; July 1.

§§ 79-32,114 Accounting periods and methods

(a) The taxpayer's taxable year under this act shall be the same as his or her taxable year for federal income tax purposes. If, on the effective date of this act, the taxpayer's taxable year for Kansas income tax purposes is different than his or her taxable year for federal income tax purposes, the taxpayer shall file a return for the short period ending on the day for which his or her taxable year for federal income tax purposes ends. If such taxpayer's taxable year for federal income tax purposes ends after his or her taxable year for Kansas income tax purposes, then the taxpayer shall also file a return for such taxable year for Kansas income tax purposes. Exemptions shall be prorated for such short period return under regulations of the director. The taxable income of such short period, at the option of the taxpayer, may be determined:

(i) By taking inventories as of the beginning of such period and as of the end of such period, or using such other accounting methods as will clearly reflect the actual taxable income realized during such short period, with all computations under this option being made under the provisions of the laws of the state of Kansas pertaining to taxation of income in effect prior to the effective date of this act; or

(ii) By computing the taxable income for the taxpayer's federal accounting period ending on the date on which such short period ends under the provisions of this act, and allocating the portion of such taxable income subject to tax for such short period as being such portion of the total taxable income for the entire federal taxable year then ended as the number of months within such short period is of the total months in the federal accounting period.

(b) If a taxpayer's taxable year is changed for federal income tax purposes, his or her taxable year for purposes of this act shall be similarly changed. If a taxable year of less than twelve (12) months results from a change of taxable year, the Kansas standard deduction and the Kansas personal exemption shall be prorated under regulations of the director.

(c) The taxpayer's method of accounting under this act shall be the same as his or her method of accounting for federal income tax purposes.

(d) (i) If a taxpayer's method of accounting is changed for federal income tax purposes, his or her method of accounting for purposes of this act shall be similarly changed.

(ii) If a taxpayer's method of accounting is changed in compliance with subsections (c) and (d) (i) of this section, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made.

(iii) If the taxpayer's method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the director.

History: L. 1967, ch. 497, § 7; May 12.

§§ 79-32,115 Rules pertaining to husbands and wives

(a) In all cases where husband and wife file a joint Kansas income tax return, the determination of Kansas taxable income shall, unless otherwise provided, be made as if husband and wife were one individual taxpayer.

(b) If the federal taxable income of a husband and wife are determined on separate federal returns, their Kansas taxable income shall be separately reported and taxed.

(c) If both husband and wife are residents, and if their federal taxable income is determined on a joint federal return, their Kansas taxable income shall be reported and taxed on the basis of a joint Kansas income tax return.

(d) If both husband and wife are nonresidents, and if their federal taxable income is determined on a joint federal return, their Kansas taxable income shall be reported and taxed on the basis of a joint Kansas income tax return.

(e) If either husband or wife is a resident and the other is a nonresident, and if their federal taxable income is determined on a joint federal return, their Kansas taxable income shall be reported and taxed on the basis of a joint Kansas return as provided under K.S.A. 79-32,110(b).

(f) If neither husband or wife files a federal return, their Kansas taxable income shall be determined on a separate basis unless both elect to have their Kansas taxable income determined on the basis of a joint Kansas tax return.

(g) If Kansas taxable income of a husband and wife is determined on a separate basis, and if both are required to file returns under the provisions of this act, neither spouse shall be allowed to use any tax table promulgated by the secretary pursuant to K.S.A. 79-32,112a unless both use such tax table, and neither shall be allowed the Kansas itemized deductions authorized by K.S.A. 79-32,120, unless both itemize their deductions.

History: L. 1967, ch. 497, § 8; L. 1977, ch. 344, § 4; L. 1978, ch. 405, § 2; L. 1979, ch. 321, § 2; July 1.

§§ 79-32,116 Kansas taxable income of an individual

The Kansas taxable income of an individual shall be his or her Kansas adjusted gross income less his or her Kansas deductions and Kansas personal exemptions.

History: L. 1967, ch. 497, § 9; L. 1978, ch. 407, § 4; July 1.

§§ 79-32,117 Kansas adjusted gross income of an individual; addition and subtraction modifications

(a) The Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for the taxable year, with the modifications specified in this section.

(b) There shall be added to federal adjusted gross income:

(i) Interest income less any related expenses directly incurred in the purchase of state or political subdivision obligations, to the extent that the same is not included in federal adjusted gross income, on obligations of any state or political subdivision thereof, but to the extent that interest income on obligations of this state or a political subdivision thereof issued prior to January 1, 1988, is specifically exempt from income tax under the laws of this state authorizing the issuance of such obligations, it shall be excluded from computation of Kansas adjusted gross income whether or not included in federal adjusted gross income. Interest income on obligations of this state or a political subdivision thereof issued after December 31, 1987, shall be excluded from computation of Kansas adjusted gross income whether or not included in federal adjusted gross income.

(ii) Taxes on or measured by income or fees or payments in lieu of income taxes imposed by this state or any other taxing jurisdiction to the extent deductible in determining federal adjusted gross income and not credited against federal income tax. This paragraph shall not apply to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108, and amendments thereto, for privilege tax year 1995, and all such years thereafter.

(iii) The federal net operating loss deduction, except that the federal net operating loss deduction shall not be added to an individual's federal adjusted gross income for tax years beginning after December 31, 2016.

(iv) Federal income tax refunds received by the taxpayer if the deduction of the taxes being refunded resulted in a tax benefit for Kansas income tax purposes during a prior taxable year. Such refunds shall be included in income in the year actually received regardless of the method of accounting used by the taxpayer. For purposes hereof, a tax benefit shall be deemed to have resulted if the amount of the tax had been deducted in determining income subject to a Kansas income tax for a prior year regardless of the rate of taxation applied in such prior year to the Kansas taxable income, but only that portion of the refund shall be included as bears the same proportion to the total refund received as the federal taxes deducted in the year to which such refund is attributable bears to the total federal income taxes paid for such year. For purposes of the foregoing sentence, federal taxes shall be considered to have been deducted only to the extent such deduction does not reduce Kansas taxable income below zero.

(v) The amount of any depreciation deduction or business expense deduction claimed on the taxpayer's federal income tax return for any capital expenditure in making any building or facility accessible to the handicapped, for which expenditure the taxpayer claimed the credit allowed by K.S.A. 79-32,177, and amendments thereto.

(vi) Any amount of designated employee contributions picked up by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965, and amendments thereto.

(vii) The amount of any charitable contribution made to the extent the same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto.

(viii) The amount of any costs incurred for improvements to a swine facility, claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.

(ix) The amount of any ad valorem taxes and assessments paid and the amount of any costs incurred for habitat management or construction and maintenance of improvements on real property, claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203, and amendments thereto.

(x) Amounts received as nonqualified withdrawals, as defined by K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a family postsecondary education savings account, such amounts were subtracted from the federal adjusted gross income pursuant to subsection (c)(xv) or if such amounts are not already included in the federal adjusted gross income.

(xi) The amount of any contribution made to the same extent the same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-50,154, and amendments thereto.

(xii) For taxable years commencing after December 31, 2004, amounts received as withdrawals not in accordance with the provisions of K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution to an individual development account, such amounts were subtracted from the federal adjusted gross income pursuant to subsection (c)(xiii), or if such amounts are not already included in the federal adjusted gross income.

(xiii) The amount of any expenditures claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217 through 79-32,220 or 79-32,222, and amendments thereto.

(xiv) The amount of any amortization deduction claimed in determining federal adjusted gross income to the extent the same is claimed for deduction pursuant to K.S.A. 79-32,221, and amendments thereto.

(xv) The amount of any expenditures claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.

(xvi) The amount of any amortization deduction claimed in determining federal adjusted gross income to the extent the same is claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.

(xvii) The amount of any amortization deduction claimed in determining federal adjusted gross income to the extent the same is claimed for deduction pursuant to K.S.A. 79-32,256, and amendments thereto.

(xviii) For taxable years commencing after December 31, 2006, the amount of any ad valorem or property taxes and assessments paid to a state other than Kansas or local government located in a state other than Kansas by a taxpayer who resides in a state other than Kansas, when the law of such state does not allow a resident of Kansas who earns income in such other state to claim a deduction for ad valorem or property taxes or assessments paid to a political subdivision of the state of Kansas in determining taxable income for income tax purposes in such other state, to the extent that such taxes and assessments are claimed as an itemized deduction for federal income tax purposes.

(xix) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any: (1) Loss from business as determined under the federal internal revenue code and reported from schedule C and on line 12 of the taxpayer's form 1040 federal individual income tax return; (2) loss from rental real estate, royalties, partnerships, S corporations, except those with wholly owned subsidiaries subject to the Kansas privilege tax, estates, trusts, residual interest in real estate mortgage investment conduits and net farm rental as determined under the federal internal revenue code and reported from schedule E and on line 17 of the taxpayer's form 1040 federal individual income tax return; and (3) farm loss as determined under the federal internal revenue code and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return; all to the extent deducted or subtracted in determining the taxpayer's federal adjusted gross income. For purposes of this subsection, references to the federal form 1040 and federal schedule C, schedule E, and schedule F, shall be to such form and schedules as they existed for tax year 2011, and as revised thereafter by the internal revenue service.

(xx) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for self-employment taxes under section 164(f) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer, to the extent the deduction is attributable to income reported on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income tax return.

(xxi) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for pension, profit sharing, and annuity plans of self-employed individuals under section 62(a)(6) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer.

(xxii) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for health insurance under section 162(l) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer.

(xxiii) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for domestic production activities under section 199 of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer.

(xxiv) For taxable years commencing after December 31, 2013, that portion of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid for medical care of the taxpayer or the taxpayer's spouse or dependents when such expenses were paid or incurred for an abortion, or for a health benefit plan, as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of an optional rider for coverage of abortion in accordance with K.S.A. 40-2,190, and amendments thereto, to the extent that such taxes and assessments are claimed as an itemized deduction for federal income tax purposes.

(xxv) For taxable years commencing after December 31, 2013, that portion of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid by a taxpayer for health care when such expenses were paid or incurred for abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731, and amendments thereto, when such expenses were paid or incurred for abortion coverage or amounts contributed to health savings accounts for such taxpayer's employees for the purchase of an optional rider for coverage of abortion in accordance with K.S.A. 40-2,190, and amendments thereto, to the extent that such taxes and assessments are claimed as a deduction for federal income tax purposes.

(xxvi) For all taxable years beginning after December 31, 2016, the amount of any charitable contribution made to the extent the same is claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and amendments thereto, and is also claimed as an itemized deduction for federal income tax purposes.

(xxvii) For all taxable years commencing after December 31, 2020, the amount of any interest expense paid or accrued in a previous taxable year but allowed as a deduction pursuant to section 163 of the federal internal revenue code in the current taxable year by reason of the carryforward of disallowed business interest pursuant to section 163(j) of the federal internal revenue code. For purposes of this paragraph, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable pursuant to section 163 of the federal internal revenue code if the limitation pursuant to section 163(j) of the federal internal revenue code did not exist.

(xxviii) For all taxable years beginning after December 31, 2021, the amount of any contributions to, or earnings from, a first-time home buyer savings account if distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A. 58-4904, and amendments thereto, or were not held for the minimum length of time required pursuant to K.S.A. 58-4904, and amendments thereto. Contributions to, or earnings from, such account shall also include any amount resulting from the account holder not designating a surviving payable on death beneficiary pursuant to K.S.A. 58-4904(e), and amendments thereto.

(xxix) For all taxable years beginning after December 31, 2024, the amount of any contributions to, or earnings from, an adoption savings account if distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A. 2025 Supp. 38-2504, and amendments thereto, or were not held for the minimum length of time required pursuant to K.S.A. 2025 Supp. 38-2504, and amendments thereto. Contributions to, or earnings from, such account shall also include any amount resulting from the account holder not designating a surviving payable on death beneficiary pursuant to K.S.A. 2025 Supp. 38-2504(e), and amendments thereto.

(c) There shall be subtracted from federal adjusted gross income:

(i) Interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States and its possessions less any related expenses directly incurred in the purchase of such obligations or securities, to the extent included in federal adjusted gross income but exempt from state income taxes under the laws of the United States.

(ii) Any amounts received which are included in federal adjusted gross income but which are specifically exempt from Kansas income taxation under the laws of the state of Kansas.

(iii) The portion of any gain or loss from the sale or other disposition of property having a higher adjusted basis for Kansas income tax purposes than for federal income tax purposes on the date such property was sold or disposed of in a transaction in which gain or loss was recognized for purposes of federal income tax that does not exceed such difference in basis, but if a gain is considered a long-term capital gain for federal income tax purposes, the modification shall be limited to that portion of such gain which is included in federal adjusted gross income.

(iv) The amount necessary to prevent the taxation under this act of any annuity or other amount of income or gain which was properly included in income or gain and was taxed under the laws of this state for a taxable year prior to the effective date of this act, as amended, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain.

(v) The amount of any refund or credit for overpayment of taxes on or measured by income or fees or payments in lieu of income taxes imposed by this state, or any taxing jurisdiction, to the extent included in gross income for federal income tax purposes.

(vi) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the extent that the same are included in federal adjusted gross income.

(vii) Amounts received as annuities under the federal civil service retirement system from the civil service retirement and disability fund and other amounts received as retirement benefits in whatever form which were earned for being employed by the federal government or for service in the armed forces of the United States.

(viii) Amounts received by retired railroad employees as a supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and 228c(a)(1) et seq.

(ix) Amounts received by retired employees of a city and by retired employees of any board of such city as retirement allowances pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter ordinance exempting a city from the provisions of K.S.A. 13-14,106, and amendments thereto.

(x) (1) For taxable years beginning after December 31, 2021, the amount of any federal credit disallowance under the provisions of 26 U.S.C. § 280C(a).

(2) For taxable years beginning after December 31, 2019, and ending before January 1, 2022, 50% of the amount of the federal employee retention credit disallowance under rules similar to the rules of 26 U.S.C. § 280C(a). The taxpayer shall be required to prove that such taxpayer previously filed Kansas income tax returns and paid Kansas income tax on the disallowed amount. Notwithstanding any other provision of law to the contrary, any claim for refund or amended return relating to this subparagraph shall be allowed to be filed on or before April 15, 2025, and no claim for refund or amended return shall be allowed or filed after April 15, 2025.

(xi) For taxable years beginning after December 31, 1986, dividend income on stock issued by Kansas venture capital, inc.

(xii) For taxable years beginning after December 31, 1989, amounts received by retired employees of a board of public utilities as pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249, and amendments thereto.

(xiii) For taxable years beginning after December 31, 2004, amounts contributed to and the amount of income earned on contributions deposited to an individual development account under K.S.A. 74-50,201 et seq., and amendments thereto.

(xiv) For all taxable years commencing after December 31, 1996, that portion of any income of a bank organized under the laws of this state or any other state, a national banking association organized under the laws of the United States, an association organized under the savings and loan code of this state or any other state, or a federal savings association organized under the laws of the United States, for which an election as an S corporation under subchapter S of the federal internal revenue code is in effect, which accrues to the taxpayer who is a stockholder of such corporation and which is not distributed to the stockholders as dividends of the corporation. For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or loss reported on schedule E and included on line 17 of the taxpayer's form 1040 federal individual income tax return.

(xv) The cumulative amounts not exceeding $3,000, or $6,000 for a married couple filing a joint return, for each designated beneficiary that are contributed to: (1) A family postsecondary education savings account established under the Kansas postsecondary education savings program or a qualified tuition program established and maintained by another state or agency or instrumentality thereof pursuant to section 529 of the internal revenue code of 1986, as amended, for the purpose of paying the qualified higher education expenses of a designated beneficiary; or (2) an achieving a better life experience (ABLE) account established under the Kansas ABLE savings program or a qualified ABLE program established and maintained by another state or agency or instrumentality thereof pursuant to section 529A of the internal revenue code of 1986, as amended, for the purpose of saving private funds to support an individual with a disability. The terms and phrases used in this paragraph shall have the meaning respectively ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and amendments thereto, and the provisions of such sections are hereby incorporated by reference for all purposes thereof. For all taxable years beginning after December 31, 2022, contributions made to a qualified tuition program account or a qualified ABLE program account pursuant to this paragraph on and after January 1 but prior to the date required for filing a return pursuant to K.S.A. 79-3221, and amendments thereto, of the successive taxable year may be elected by the taxpayer to apply to the prior taxable year if such election is made at the time of filing the return. No contribution shall be used as a modification pursuant to this paragraph in more than one taxable year.

(xvi) For all taxable years beginning after December 31, 2004, amounts received by taxpayers who are or were members of the armed forces of the United States, including service in the Kansas army and air national guard, as a recruitment, sign up or retention bonus received by such taxpayer as an incentive to join, enlist or remain in the armed services of the United States, including service in the Kansas army and air national guard, and amounts received for repayment of educational or student loans incurred by or obligated to such taxpayer and received by such taxpayer as a result of such taxpayer's service in the armed forces of the United States, including service in the Kansas army and air national guard.

(xvii) For all taxable years beginning after December 31, 2004, amounts received by taxpayers who are eligible members of the Kansas army and air national guard as a reimbursement pursuant to K.S.A. 48-281, and amendments thereto, and amounts received for death benefits pursuant to K.S.A. 48-282, and amendments thereto, to the extent that such death benefits are included in federal adjusted gross income of the taxpayer.

(xviii) (A) For all taxable years beginning after December 31, 2007, and ending before January 1, 2024, amounts received as benefits under the federal social security act which are included in federal adjusted gross income of a taxpayer with federal adjusted gross income of $75,000 or less, whether such taxpayer's filing status is single, head of household, married filing separate or married filing jointly.

(B) For all taxable years beginning after December 31, 2023, amounts received as benefits under the federal social security act that are included in federal adjusted gross income of a taxpayer.

(xix) Amounts received by retired employees of Washburn university as retirement and pension benefits under the university's retirement plan.

(xx) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any: (1) Net profit from business as determined under the federal internal revenue code and reported from schedule C and on line 12 of the taxpayer's form 1040 federal individual income tax return; (2) net income, not including guaranteed payments as defined in section 707(c) of the federal internal revenue code and as reported to the taxpayer from federal schedule K-1, (form 1065-B), in box 9, code F or as reported to the taxpayer from federal schedule K-1, (form 1065) in box 4, from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual interest in real estate mortgage investment conduits and net farm rental as determined under the federal internal revenue code and reported from schedule E and on line 17 of the taxpayer's form 1040 federal individual income tax return; and (3) net farm profit as determined under the federal internal revenue code and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return; all to the extent included in the taxpayer's federal adjusted gross income. For purposes of this subsection, references to the federal form 1040 and federal schedule C, schedule E, and schedule F, shall be to such form and schedules as they existed for tax year 2011 and as revised thereafter by the internal revenue service.

(xxi) For all taxable years beginning after December 31, 2013, amounts equal to the unreimbursed travel, lodging and medical expenditures directly incurred by a taxpayer while living, or a dependent of the taxpayer while living, for the donation of one or more human organs of the taxpayer, or a dependent of the taxpayer, to another person for human organ transplantation. The expenses may be claimed as a subtraction modification provided for in this section to the extent the expenses are not already subtracted from the taxpayer's federal adjusted gross income. In no circumstances shall the subtraction modification provided for in this section for any individual, or a dependent, exceed $5,000. As used in this section, "human organ" means all or part of a liver, pancreas, kidney, intestine, lung or bone marrow. The provisions of this paragraph shall take effect on the day the secretary of revenue certifies to the director of the budget that the cost for the department of revenue of modifications to the automated tax system for the purpose of implementing this paragraph will not exceed $20,000.

(xxii) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of net gain from the sale of: (1) Cattle and horses, regardless of age, held by the taxpayer for draft, breeding, dairy or sporting purposes, and held by such taxpayer for 24 months or more from the date of acquisition; and (2) other livestock, regardless of age, held by the taxpayer for draft, breeding, dairy or sporting purposes, and held by such taxpayer for 12 months or more from the date of acquisition. The subtraction from federal adjusted gross income shall be limited to the amount of the additions recognized under the provisions of subsection (b)(xix) attributable to the business in which the livestock sold had been used. As used in this paragraph, the term "livestock" shall not include poultry.

(xxiii) For all taxable years beginning after December 31, 2012, amounts received under either the Overland Park, Kansas police department retirement plan or the Overland Park, Kansas fire department retirement plan, both as established by the city of Overland Park, pursuant to the city's home rule authority.

(xxiv) For taxable years beginning after December 31, 2013, and ending before January 1, 2017, the net gain from the sale from Christmas trees grown in Kansas and held by the taxpayer for six years or more.

(xxv) For all taxable years commencing after December 31, 2020, 100% of global intangible low-taxed income under section 951A of the federal internal revenue code of 1986, before any deductions allowed under section 250(a)(1)(B) of such code.

(xxvi) (1) For all taxable years commencing after December 31, 2020, the amount of any interest expense paid or accrued in the current taxable year and disallowed as a deduction pursuant to section 163(j) of the federal internal revenue code.

(2) For purposes of this paragraph, an interest expense is considered paid or accrued only in the first taxable year the deduction would have been allowable pursuant to section 163 of the federal internal revenue code if the limitation pursuant to section 163(j) of the federal internal revenue code did not exist.

(3) For tax year 2021, an amount equal to the sum of any interest expenses paid or accrued in tax years 2018, 2019 and 2020 less the sum of amounts allowed as a deduction pursuant to section 163 of the federal internal revenue code in tax years 2018, 2019 and 2020.

(xxvii) For taxable years commencing after December 31, 2020, the amount disallowed as a deduction pursuant to section 274 of the federal internal revenue code of 1986 for meal expenditures shall be allowed to the extent such expense was deductible for determining federal income tax and was allowed and in effect on December 31, 2017.

(xxviii) For all taxable years beginning after December 31, 2021: (1) The amount contributed to a first-time home buyer savings account pursuant to K.S.A. 58-4903, and amendments thereto, in an amount not to exceed $3,000 for an individual or $6,000 for a married couple filing a joint return; or (2) amounts received as income earned from assets in a first-time home buyer savings account. For all taxable years beginning after December 31, 2022, contributions made to a first-time home buyer savings account pursuant to subparagraph (1) on and after January 1 but prior to the date required for filing a return pursuant to K.S.A. 79-3221, and amendments thereto, of the successive taxable year may be elected by the taxpayer to apply to the prior taxable year if such election is made at the time of filing the return. No contribution shall be used as a modification pursuant to subparagraph (1) in more than one taxable year.

(xxix) For taxable years beginning after December 31, 2017, for an individual taxpayer who carried back federal net operating losses arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, pursuant to section 172(b)(1) of the federal internal revenue code as amended by the coronavirus aid, relief, and economic security act (CARES act), the amount of such federal net operating loss carryback for each applicable year. If the amount of such federal net operating loss carryback exceeds the taxpayer's Kansas adjusted gross income for such taxable year, the amount thereof that exceeds such Kansas adjusted gross income may be carried forward as a subtraction modification in the following taxable year or years until the total amount of such federal net operating loss carryback has been deducted, except that no such unused amount shall be carried forward for deduction as a subtraction modification after the 20th taxable year following the taxable year of the net operating loss. Notwithstanding any other provision of law to the contrary, an extension of time shall be allowed for a claim for refund or amended return for tax years 2018, 2019 or 2020 limited to the application of the provisions of this paragraph and such claim for refund or amended return must be filed on or before April 15, 2025.

(xxx) For all taxable years beginning after December 31, 2024: (1) The amount contributed to an adoption savings account pursuant to K.S.A. 2025 Supp. 38-2503, and amendments thereto, in an amount not to exceed $6,000 for an individual or $12,000 for a married couple filing a joint return; or (2) amounts received as income earned from assets in an adoption savings account.

(d) There shall be added to or subtracted from federal adjusted gross income the taxpayer's share, as beneficiary of an estate or trust, of the Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and amendments thereto.

(e) The amount of modifications required to be made under this section by a partner which relates to items of income, gain, loss, deduction or credit of a partnership shall be determined under K.S.A. 79-32,131, and amendments thereto, to the extent that such items affect federal adjusted gross income of the partner.

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 209, § 28; L. 2007, ch. 113, § 21; L. 2007, ch. 195, § 55; L. 2008, ch. 182, § 23; L. 2009, ch. 143, § 34; L. 2012, ch. 135, § 12; L. 2013, ch. 87, § 3; L. 2013, ch. 133, § 35; L. 2014, ch. 86, § 3; L. 2014, ch. 117, § 9; L. 2015, ch. 99, § 3; L. 2017, ch. 84, § 5; L. 2018, ch. 102, § 6; L. 2019, ch. 65, § 8; L. 2021, ch. 93, § 8; L. 2022, ch. 88, § 4; L. 2023, ch. 5, § 5; L. 2024, ch. 25, § 2; L. 2024, ch. 100, § 14; L. 2024, ch. 1, § 18 (Special Session); July 1.

§§ 79-32,117a Compensation of persons missing in action or prisoners of war during Vietnam conflict exempt from Kansas income tax

Notwithstanding any other section of the Kansas income tax act, any individual who was or is presently in active service as a member of the armed forces of the United States or as an employee in a support capacity to the armed forces of the United States in the geographical area of the Vietnam conflict, and for any month or part of a month on or after February 28, 1961, missing in action or prisoner of war during the Vietnam conflict as a result of such conflict, any compensation without any limitation received during this period or compensation received on account of such missing in action or prisoner of war shall not be considered gross income and shall not be taxable for Kansas income tax purposes.

History: L. 1973, ch. 397, § 1; April 16.

§§ 79-32,117b Same; abatement and refund of taxes paid; claims

Whenever any of the above stated compensation has been included in a Kansas income tax return or whenever an assessment was made based upon any of the compensation set out above, said assessment shall be abated by the division of taxation and any payment that has been made shall be credited or refunded by the division of taxation out of the income tax refund fund established by K.S.A. 79-32,105. The division of taxation shall immediately review the official listing of individuals as missing in action or prisoners of war and all income tax returns of said individuals and their spouses or their estates for all years covered by this act and if it is determined that a tax has been paid by a Kansas resident on any compensation received as a result of being missing in action or a prisoner of war the division of taxation shall allow a credit or refund to those eligible individuals: Provided, however, Nothing hereinbefore shall prevent any claim for credit or refund being filed. The division of taxation shall make available suitable forms with instructions for claims for credit or refund hereunder. If a credit or refund of any overpayment for a taxable year, resulting from the application of this act, is barred by any statute of limitations at any time before the expiration of one (1) year after the date of enactment of this act, or two (2) years after the date on which the individual's status of missing in action or prisoner of war is terminated (whichever is later) a credit or refund shall nevertheless be made by the division of taxation. The above tolling of the statute of limitations is applicable to the division of taxation and to any claim which may be filed pursuant to this act.

History: L. 1973, ch. 397, § 2; April 16.

§§ 79-32,117c Same; compensation defined

The term "compensation" as used in this act shall include but not be limited to all pay, allowances, bonuses, any accrued interest earned from any special account opened for the benefit of an individual missing in action or a prisoner of war, or any compensation of any kind from any source which is received by any individual as a result of being missing in action or a prisoner of war.

History: L. 1973, ch. 397, § 3; April 16.

§§ 79-32,117d Compensation of persons missing in action or prisoners of war; tax exemption; liberal construction of act; meaning of terms

A liberal construction shall be given to this act and any term used in the act shall have the same meaning as when used in a comparable context in the federal internal revenue code.

History: L. 1973, ch. 397, § 4; L. 1987, ch. 385, § 3; July 1.

§§ 79-32,117e Federal income tax rebate exempt from Kansas income tax

Any payment, which may be authorized by enactment of the federal congress as a measure to stimulate the general economy of the United States, made to any resident or nonresident individual as a refund or rebate of federal income tax levied for the calendar year 1974, or for any fiscal year beginning in 1974, shall not be added to federal adjusted gross income to arrive at Kansas adjusted gross income, pursuant to K.S.A. 79-32,117(b)(iv), for the year in which the payment is received, and any such payment is hereby declared to be exempt from taxation under the provisions of article 32 of chapter 79 of the Kansas Statutes Annotated.

History: L. 1975, ch. 492, § 1; July 1.

§§ 79-32,117f Repealed

History: L. 1978, ch. 410, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,117g Repealed

History: L. 1984, ch. 289, § 27; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,117h Repealed

History: L. 1994, ch. 265, § 6; Repealed, L. 2005, ch. 104, § 11; April 21.

§§ 79-32,117i Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 113, § 7; Repealed, L. 1998, ch. 143, § 47; May 7.

§§ 79-32,117j Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 112, § 73; Repealed, L. 2005, ch. 104, § 11; April 21.

§§ 79-32,117k Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 185, § 27; Repealed, L. 2005, ch. 104, § 11; April 21.

§§ 79-32,117l Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 203, § 8; Repealed, L. 2007, ch. 73, § 11; Repealed, L. 2007, ch. 113, § 38; July 1.

§§ 79-32,117m Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 209, § 28; L. 2007, ch. 113, § 21; L. 2007, ch. 195, § 55; L. 2008, ch. 113, § 25; Repealed, L. 2009, ch. 143, § 37; July 1.

§§ 79-32,117n Repealed

History: L. 2012, ch. 135, § 37; Repealed, L. 2013, ch. 87, § 19; April 25.

§§ 79-32,117o Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 209, § 28; L. 2007, ch. 113, § 21; L. 2007, ch. 195, § 55; L. 2008, ch. 182, § 23; L. 2009, ch. 143, § 34; L. 2012, ch. 135, § 12; L. 2013, ch. 87, § 3; L. 2013, ch. 133, § 35; L. 2014, ch. 86, § 3; L. 2014, ch. 117, § 9; L. 2015, ch. 99, § 3; L. 2017, ch. 95, § 107; Repealed, L. 2018, ch. 102, § 7; July 1.

§§ 79-32,117p Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 209, § 28; L. 2007, ch. 113, § 21; L. 2007, ch. 195, § 55; L. 2008, ch. 182, § 23; L. 2009, ch. 143, § 34; L. 2012, ch. 135, § 12; L. 2013, ch. 87, § 3; L. 2013, ch. 133, § 35; L. 2014, ch. 86, § 3; L. 2014, ch. 117, § 9; L. 2015, ch. 99, § 3; L. 2017, ch. 84, § 5; L. 2018, ch. 114, § 2; Repealed, L. 2019, ch. 65, § 10; July 1.

§§ 79-32,117q Repealed

History: L. 1967, ch. 497, § 10; L. 1968, ch. 233, § 3; L. 1970, ch. 395, § 1; L. 1973, ch. 398, § 1; L. 1976, ch. 432, § 1; L. 1977, ch. 345, § 3; L. 1978, ch. 408, § 1; L. 1978, ch. 405, § 3; L. 1978, ch. 409, § 4; L. 1978, ch. 410, § 1; L. 1980, ch. 316, § 12; L. 1982, ch. 409, § 1; L. 1984, ch. 289, § 26; L. 1986, ch. 380, § 1; L. 1986, ch. 332, § 13; L. 1988, ch. 381, § 4; L. 1990, ch. 352, § 1; L. 1990, ch. 282, § 30; L. 1992, ch. 247, § 1; L. 1993, ch. 23, § 1; L. 1994, ch. 38, § 8; L. 1994, ch. 265, § 19; L. 1995, ch. 154, § 1; L. 1997, ch. 120, § 2; L. 1998, ch. 143, § 29; L. 1999, ch. 154, § 20; L. 2000, ch. 23, § 3; L. 2004, ch. 128, § 17; L. 2005, ch. 104, § 10; L. 2005, ch. 186, § 21; L. 2005, ch. 1, § 4 (Special Session); L. 2006, ch. 209, § 28; L. 2007, ch. 113, § 21; L. 2007, ch. 195, § 55; L. 2008, ch. 182, § 23; L. 2009, ch. 143, § 34; L. 2012, ch. 135, § 12; L. 2013, ch. 87, § 3; L. 2013, ch. 133, § 35; L. 2014, ch. 86, § 3; L. 2014, ch. 117, § 9; L. 2015, ch. 99, § 3; L. 2017, ch. 84, § 5; L. 2018, ch. 102, § 6; L. 2019, ch. 65, § 8; L. 2021, ch. 102, § 7; Repealed, L. 2022, ch. 88, § 5; July 1.

§§ 79-32,117r Unemployment compensation attributed to identity fraud exempt from Kansas income tax

Notwithstanding any other provision of law, for any individual whose identity was fraudulently used to secure unemployment compensation, if such individual never received such compensation, such compensation shall not be considered gross income and shall not be taxable for Kansas income tax purposes after determination by the department of labor that the benefits were obtained fraudulently by another individual.

History: L. 2021, ch. 93, § 5; July 1.

§§ 79-32,118 Kansas deduction of an individual

The Kansas deduction of an individual shall be such individual's Kansas standard deduction unless such individual elects to deduct such individual's Kansas itemized deductions under the conditions set forth in K.S.A. 79-32,120, and amendments thereto.

History: L. 1967, ch. 497, § 11; L. 1978, ch. 407, § 6; L. 2012, ch. 135, § 13; L. 2013, ch. 87, § 4; April 25.

§§ 79-32,119 Kansas standard deduction of an individual

(a) The Kansas standard deduction of an individual, including a husband and wife who are either both residents or who file a joint return as if both were residents, shall be equal to the sum of the standard deduction amount allowed pursuant to this section, and the additional standard deduction amount allowed pursuant to this section for each such deduction allowable to such individual or to such husband and wife under the federal internal revenue code.

(b) For tax year 1998, and all tax years thereafter, the additional standard deduction amount shall be as follows: Single individual and head of household filing status, $850; and married filing status, $700.

(c) (1) For tax years 2021 through 2023, the standard deduction amount of an individual, including husband and wife who are either both residents or who file a joint return as if both were residents, shall be as follows: Single individual filing status, $3,500; married filing status, $8,000; and head of household filing status, $6,000.

(2) For tax year 2024, and all tax years thereafter, the standard deduction amount of an individual, including husband and wife who are either both residents or who file a joint return as if both were residents, shall be as follows: Single individual filing status, $3,605; married filing status, $8,240; and head of household filing status, $6,180.

(d) For purposes of this section, the federal standard deduction allowable to a husband and wife filing separate Kansas income tax returns shall be determined on the basis that separate federal returns were filed, and the federal standard deduction of a husband and wife filing a joint Kansas income tax return shall be determined on the basis that a joint federal income tax return was filed.

History: L. 1967, ch. 497, § 12; L. 1977, ch. 344, § 1; L. 1978, ch. 405, § 4; L. 1988, ch. 381, § 5; L. 1989, ch. 303, § 2; L. 1992, ch. 280, § 56; L. 1998, ch. 130, § 20; L. 2012, ch. 135, § 14; L. 2013, ch. 135, § 11; L. 2021, ch. 93, § 9; L. 2024, ch. 1, § 19 (Special Session); June 27.

§§ 79-32,120 Kansas itemized deductions of an individual

(a) (1) (A) For all tax years prior to tax year 2021, if federal taxable income of an individual is determined by itemizing deductions from such individual's federal adjusted gross income, such individual may elect to deduct the Kansas itemized deduction in lieu of the Kansas standard deduction.

(B) For tax year 2021, and all tax years thereafter, an individual may elect to deduct the Kansas itemized deduction in lieu of the Kansas standard deduction, regardless of whether or not such individual's federal taxable income is determined by itemizing deductions from such individual's federal adjusted gross income.

(2) For the tax years commencing on and after January 1, 2015, and ending before January 1, 2018, the Kansas itemized deduction of an individual means the following deductions from federal adjusted gross income, other than federal deductions for personal exemptions, as provided in the federal internal revenue code with the modifications specified in this section: (A) 100% of charitable contributions that qualify as charitable contributions allowable as deductions in section 170 of the federal internal revenue code; (B) 50% of the amount of qualified residence interest as provided in section 163(h) of the federal internal revenue code; and (C) 50% of the amount of taxes on real and personal property as provided in section 164(a) of the federal internal revenue code.

(3) For the tax year commencing on and after January 1, 2018, and ending before January 1, 2019, the Kansas itemized deduction of an individual means the following deductions from federal adjusted gross income, other than federal deductions for personal exemptions, as provided in the federal internal revenue code with the modifications specified in this section: (A) 100% of charitable contributions that qualify as charitable contributions allowable as deductions in section 170 of the federal internal revenue code; (B) 50% of expenses for medical care allowable as deductions in section 213 of the federal internal revenue code; (C) 50% of the amount of qualified residence interest as provided in section 163(h) of the federal internal revenue code; and (D) 50% of the amount of taxes on real and personal property as provided in section 164(a) of the federal internal revenue code.

(4) For the tax year commencing on and after January 1, 2019, and ending before January 1, 2020, the Kansas itemized deduction of an individual means the following deductions from federal adjusted gross income, other than federal deductions for personal exemptions, as provided in the federal internal revenue code with the modifications specified in this section: (A) 100% of charitable contributions that qualify as charitable contributions allowable as deductions in section 170 of the federal internal revenue code; (B) 75% of expenses for medical care allowable as deductions in section 213 of the federal internal revenue code; (C) 75% of the amount of qualified residence interest as provided in section 163(h) of the federal internal revenue code; and (D) 75% of the amount of taxes on real and personal property as provided in section 164(a) of the federal internal revenue code.

(5) For the tax years commencing on and after January 1, 2020, the Kansas itemized deduction of an individual means the following deductions from federal adjusted gross income, other than federal deductions for personal exemptions, as provided in the federal internal revenue code with the modifications specified in this section: (A) 100% of charitable contributions that qualify as charitable contributions allowable as deductions in section 170 of the federal internal revenue code; (B) 100% of expenses for medical care allowable as deductions in section 213 of the federal internal revenue code; (C) 100% of the amount of qualified residence interest as provided in section 163(h) of the federal internal revenue code; and (D) 100% of the amount of taxes on real and personal property as provided in section 164(a) of the federal internal revenue code.

(b) The total amount of deductions from federal adjusted gross income shall be reduced by the total amount of income taxes imposed by or paid to this state or any other taxing jurisdiction to the extent that the same are deducted in determining the federal itemized deductions and by the amount of all depreciation deductions claimed for any real or tangible personal property upon which the deduction allowed by K.S.A.

79-32,221,

79-32,227,

79-32,232,

79-32,237,

79-32,249,

79-32,250,

79-32,255

or

79-32,256, and amendments thereto, is or has been claimed.

History: L. 1967, ch. 497, § 13; L. 1968, ch. 233, § 4; L. 1970, ch. 395, § 2; L. 1976, ch. 433, § 4; L. 1976, ch. 434, § 5; L. 1977, ch. 344, § 2; L. 1978, ch. 405, § 5; L. 1979, ch. 321, § 3; L. 1982, ch. 410, § 1; L. 1983, ch. 327, § 1; L. 1988, ch. 381, § 6; L. 1989, ch. 303, § 3; L. 1992, ch. 280, § 57; L. 2006, ch. 209, § 29; L. 2007, ch. 113, § 22; L. 2007, ch. 195, § 56; L. 2013, ch. 135, § 2; L. 2015, ch. 99, § 26; L. 2017, ch. 84, § 6; L. 2021, ch. 93, § 10; July 1.

§§ 79-32,121 Kansas personal exemptions. [See Revisor's Note]

(a) For tax year 2025, and all tax years thereafter, a taxpayer shall be allowed a Kansas exemption as follows:

(1) In the case of married individuals filing a joint return, a personal exemption of $18,320;

(2) in the case of all other individuals with a filing status of single, head of household or married filing separate, a personal exemption of $9,160;

(3) in addition to the amount allowed pursuant to paragraph (1) or (2), a personal exemption of $2,320 for each dependent for which such taxpayer is entitled to a deduction for the taxable year for federal income tax purposes; and

(4) in addition to the amount allowed pursuant to paragraphs (1), (2) and (3), an unborn child as defined in K.S.A. 23-3001, and amendments thereto, shall be recognized as a dependent and shall be allowed a personal exemption of $2,320 as follows:

(A) For live births, the unborn child personal exemption shall be an additional exemption for any qualifying dependent of the taxpayer pursuant to paragraph (3) who was born in the taxable year; and

(B) for an unborn child who does not result in a live birth known as a stillbirth as defined in K.S.A. 65-2401, and amendments thereto, and for whom a certificate of stillbirth is filed pursuant to law, a personal exemption may be allowed by the taxpayer who is a parent for the taxable year of the issuance of the certificate.

(b) In addition to the exemptions provided in subsection (a), any individual who has been honorably discharged from active service in any branch of the armed forces of the United States and who is certified by the United States department of veterans affairs or its successor to be in receipt of disability compensation at the 100% rate, if the disability is permanent and was sustained through military action or accident or resulted from disease contracted while in such active service, such individual shall be allowed an additional Kansas exemption of $2,250 for tax year 2023 and all tax years thereafter.

History: L. 1967, ch. 497, § 14; L. 1977, ch. 344, § 5; L. 1978, ch. 407, § 9; L. 1979, ch. 322, § 1; L. 1988, ch. 381, § 7; L. 1998, ch. 130, § 21; L. 2022, ch. 63, § 40; L. 2024, ch. 1, § 20 (Special Session); L. 2025, ch. 112, § 6; July 1.

§§ 79-32,121a Application of K.S.A. 79-32,121

The provisions of this act shall apply to all taxable years commencing after December 31, 1978.

History: L. 1979, ch. 322, § 2; July 1.

§§ 79-32,121b Kansas exemptions for an individual. [See Revisor's Note]

(a) A taxpayer shall be allowed a Kansas exemption as follows:

(1) In the case of married individuals filing a joint return, a personal exemption of $18,320;

(2) in the case of all other individuals with a filing status of single, head of household or married filing separate, a personal exemption of $9,160; and

(3) in addition to the amount allowed pursuant to paragraph (1) or (2), a personal exemption of $2,320 for each dependent for which such taxpayer is entitled to a deduction for the taxable year for federal income tax purposes.

(b) In addition to the exemptions provided in subsection (a):

(1) Any individual filing a federal income tax return under the status of head of household, as defined in 26 U.S.C. § 2(b), shall be allowed an additional Kansas exemption of $2,320 for tax year 2024 and all tax years thereafter; and

(2) any individual who has been honorably discharged from active service in any branch of the armed forces of the United States and who is certified by the United States department of veterans affairs or its successor to be in receipt of disability compensation at the 100% rate, if the disability is permanent and was sustained through military action or accident or resulted from disease contracted while in such active service, such individual shall be allowed an additional Kansas exemption of $2,320 for tax year 2025 and all tax years thereafter.

History: L. 1967, ch. 497, § 14; L. 1977, ch. 344, § 5; L. 1978, ch. 407, § 9; L. 1979, ch. 322, § 1; L. 1988, ch. 381, § 7; L. 1998, ch. 130, § 21; L. 2022, ch. 63, § 40; L. 2024, ch. 1, § 20 (Special Session); L. 2025, ch. 123, § 9; July 1.

§§ 79-32,122 through 79-32,127 Repealed

History: L. 1967, ch. 497, §§ 15 to 20; Repealed, L. 1978, ch. 407, § 17; July 1.

§§ 79-32,128 Individual who is Kansas resident for part of year, election; computation of tax; modifications

An individual who is a resident of Kansas for part of a year shall have the election to:

(a) Report and compute such individual's Kansas tax as if such individual was a resident for the entire year and take the applicable credit as provided in K.S.A. 79-32,111, and amendments thereto; or

(b) report and compute such individual's Kansas tax as if such individual was a nonresident for the entire year, except, however, that for purposes of this computation the following modifications shall be made: (i) Modified Kansas source income for that period during which such individual was a resident shall include all items of income, gain, loss or deductions as set forth in K.S.A. 79-32,117, and amendments thereto, whether or not derived from sources within Kansas; and (ii) the credit provided by K.S.A. 79-32,111, and amendments thereto, shall be allowed. For purposes of computing such credit, the amount of income taxes paid to another state shall be deemed to be limited by an amount which bears the same proportion to the total taxes paid to such other state for such year as the amount of Kansas adjusted gross income derived from sources within that state while such individual was a resident bears to the total Kansas adjusted gross income derived from sources within such state for such year.

History: L. 1967, ch. 497, § 21; L. 2012, ch. 135, § 15; January 1, 2013.

§§ 79-32,129 Partners, not partnership, subject to tax

(a) A partnership as such shall not be subject to tax under this act. Persons carrying on business as partners shall be liable for the tax under this act only in their separate or individual capacities.

(b) Any partnership which elects under the internal revenue code to be taxed as a corporation shall not be considered as a partnership for purposes of this act but shall be taxed under the provisions of this act relating to corporations and the partners thereof shall not be considered as partners for purposes of this act, but shall be taxed as shareholders.

History: L. 1967, ch. 497, § 22; May 12.

§§ 79-32,130 Partners and partnerships; federal income tax provisions applicable in determining Kansas taxable income; exceptions

The provisions of the internal revenue code relating to the determination of taxable income of partners and partnerships shall apply with equal force in determining Kansas taxable income of each partner except, however, for the modifications provided in K.S.A. 79-32,131.

History: L. 1967, ch. 497, § 23; L. 1978, ch. 407, § 11; July 1.

§§ 79-32,131 Partnership modification for a partner

The partnership modification referred to in K.S.A. 79-32,117 for a partner shall be the difference between such partner's distributive share of partnership income as determined under the internal revenue code for purposes of the federal income tax and the amount of such partner's distributive share of partnership income after the adjustments referred to in K.S.A. 79-32,117 are applied in computing partnership income the same as if the partnership were an individual. If the distributive share recomputed as aforesaid is more than the distributive share as determined under the internal revenue code, then the modification shall be an addition to federal adjusted gross income under K.S.A. 79-32,117. If the distributive share recomputed as aforesaid is less than the distributive share as determined under the internal revenue code, then the modification shall be a subtraction from federal adjusted gross income under K.S.A. 79-32,117. Where a partner's distributive share of any item of income, gain, loss or deduction is required to be taken into account separately for federal income tax purposes, the adjustments referred to in K.S.A. 79-32,117 shall be separately applied to such items in accordance with such partner's distributive share.

History: L. 1967, ch. 497, § 24; L. 1978, ch. 407, § 12; July 1.

§§ 79-32,132 Repealed

History: L. 1967, ch. 497, § 25; Repealed, L. 1978, ch. 407, § 17; July 1.

§§ 79-32,133 Determination of distributive share

For purposes of this act, a partner's distributive share of partnership income or of any item of income, gain, loss or deduction shall be determined in accordance with his or her distributive share of such item or items as determined for federal income tax purposes: Provided, however, That where a partner's distributive share of an item of partnership income, gain, loss, deduction, or credit is determined for federal income tax purposes by special provision of the partnership agreement with respect to such item, and where the principal purpose of such provision is the avoidance or evasion of tax under this act, the partner's distributive share of such item, and any modification required with respect thereto, shall be determined as if the partnership agreement made no special provision with respect to such item.

History: L. 1967, ch. 497, § 26; May 12.

§§ 79-32,134 Kansas taxable income of a resident estate or trust

The Kansas taxable income of a resident estate or trust means its federal taxable income as defined in the internal revenue code for the taxable year, with the following modifications:

(a) There shall be subtracted an amount equal to the Kansas exemption of the estate or trust, and there shall be added the amount of its federal deduction for a personal exemption. The Kansas exemption shall be an amount equal to the personal exemption allowable to such estate or trust for federal income tax purposes.

(b) There shall be added or subtracted, as the case may be, the modifications described in K.S.A. 79-32,117 (b), (c), (e), K.S.A. 79-32,120 (b) and (c), to the extent such items are excluded from federal distributable net income of the estate or trust.

(c) There shall be added or subtracted, as the case may be, the share of the estate or trust in the Kansas fiduciary adjustment determined under K.S.A. 79-32,135.

History: L. 1967, ch. 497, § 27; May 12.

§§ 79-32,135 Share of a resident estate, trust, or beneficiary in Kansas fiduciary adjustments

(a) An adjustment shall be made in determining the Kansas taxable income of a resident estate or trust under K.S.A. 79-32,134, or the Kansas adjusted gross income of a resident beneficiary or any estate or trust under K.S.A. 79-32,117 (d), in the amount of the share of each in the Kansas fiduciary adjustment as determined in this section.

(b) The Kansas fiduciary adjustment shall be the net amount of the modifications described in K.S.A. 79-32,117 (b), (c), (d), (if the estate or trust is a beneficiary of another estate or trust), and 79-32,117 (e), and in K.S.A. 79-32,120 (b) and (c). The net amount of such modifications shall not include any modification described in K.S.A. 79-32,117 or 79-32,120 to the extent such items are excluded from federal distributable net income of the estate or trust.

(c) (i) The respective shares of an estate or trust and its beneficiaries (including, solely for the purpose of this allocation, nonresident and charitable beneficiaries) in the Kansas fiduciary adjustment shall be in proportion to their respective shares of the sum of federal distributable net income of the estate or trust and the amount paid or required to be paid to a charitable organization to the extent such amount is attributable to income for the current year.

(ii) If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary in the Kansas fiduciary adjustment shall be in proportion to his or her share of the estate or trust income for such year, under local law or the governing instrument, which is required to be distributed currently and any other amounts of such income distributed in such year. Any balance of the Kansas fiduciary adjustment shall be allocated to the estate or trust.

(d) The director may, by regulation, establish such other method or methods of determining to whom the items comprising the fiduciary adjustment shall be attributed, as may be appropriate and equitable. Such method may be used by the fiduciary in his or her discretion whenever the allocation of the fiduciary adjustment, pursuant to K.S.A. 79-32,135 (c), would result in an inequity which is substantial both in amount and in relation to the amount of the fiduciary adjustment.

History: L. 1967, ch. 497, § 28; May 12.

§§ 79-32,136 Kansas taxable income of a nonresident estate or trust

The Kansas taxable income of a nonresident estate or trust shall be determined as follows:

(a) There shall be determined its share of income, gain, loss, deduction, and credit from sources within Kansas under K.S.A. 79-32,137 of items entering into the definition of federal distributable net income.

(b) There shall be added or subtracted, as the case may be, the amount derived from sources within Kansas of any income, gain, loss, deduction, and credit recognized for federal income tax purposes but excluded from the definition of federal distributable net income of the estate or trust. The source of such income, gain, loss, deduction, and credit shall be determined in accordance with the applicable rules of K.S.A. 79-32,109(h), as in the case of a nonresident individual.

(c) There shall be added or subtracted, as the case may be, the amount of any modifications described in K.S.A. 79-32,117(b), (c), (d), (e), 79-32,120(b) and (c) to the extent relating to income or gain referred to in subsection (b) of this section.

(d) There shall be subtracted a fractional share of the exemption to which such nonresident estate or trust is entitled the numerator of which shall be the amount determined under subsection (a) of this section and the denominator of which shall be the federal distributable net income.

History: L. 1967, ch. 497, § 29; L. 1978, ch. 407, § 13; July 1.

§§ 79-32,137 Share of a nonresident estate, trust or beneficiary in income from sources within Kansas

(a) The share of a nonresident estate or trust under K.S.A. 79-32,136(a) and the share of a nonresident beneficiary of any estate or trust under K.S.A. 79-32,109(h)(v) in estate or trust income, gain, loss, deduction, and credit from sources within Kansas shall be determined as follows:

(i) There shall be determined the items of income, gain, loss, deduction, and credit derived from sources within Kansas which enter into the definition of federal distributable net income of the estate or trust for the taxable year (including such items from another estate or trust of which the first estate or trust is a beneficiary). Such determination of source shall be made in accordance with the applicable rules of K.S.A. 79-32,109(h) as in the case of a nonresident individual.

(ii) There shall be added or subtracted, as the case may be, the modifications described in K.S.A. 79-32,117(b), (c), (d), (e), 79-32,120(b) and (c), to the extent relating to items of income, gain, loss, deduction, and credit derived from sources within Kansas, which enter into the definition of federal distributable net income (including such items from another estate or trust of which the first estate or trust is a beneficiary). No modification shall be made under this paragraph (ii) which has the effect of duplicating an item already reflected in the definition of federal distributable net income.

(iii) (A) The sum of the amounts determined under subsections (a) (i) and (a) (ii) of this section shall be allocated among the estate or trust and its beneficiaries (including, solely for the purpose of this allocation, resident and charitable beneficiaries) in proportion to their respective shares of the sum of federal distributable net income of the estate or trust and the amount paid or required to be paid to a charitable organization to the extent such amount is attributable to income for the current year.

(B) The amounts so allocated shall have the same character under this section as for federal income tax purposes. Where an item entering into the computation of such amounts is not characterized for federal income tax purposes, it shall have the same character as if realized directly from the source from which realized by the estate or trust, or incurred in the same manner as incurred by the estate or trust.

(b) (i) If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary (including, solely for the purpose of this allocation, resident beneficiaries) in the net amount, determined under subsections (a)(i) and (a)(ii) of this section, shall be in proportion to his or her share of the estate or trust income for such year, under local law or the governing instrument, which is required to be distributed currently and any other amounts of such income distributed in such year. Any balance of such net amount shall be allocated to the estate or trust.

(ii) The director may, by regulation, establish such other method or methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from sources within Kansas and in the modifications related thereto as may be appropriate and equitable. Such method may be used by the fiduciary in his or her discretion whenever the allocation of such respective shares under subsections (a) or (b)(i) of this section would result in an inequity which is substantial both in amount and in relation to the total amount of the amount of the modifications referred to in subsection (a)(ii) of this section.

(c) The fiduciary of a resident estate or trust shall withhold and deduct from amounts distributed or distributable to each nonresident beneficiary an amount equal to two and one-half percent

(2½%) of that portion of the Kansas nonresident adjusted gross income of such nonresident beneficiary which is derived from such estate or trust. Such fiduciary shall pay to the director the amounts so withheld and deducted concurrently with the filing of the Kansas income tax return of the estate or trust and shall furnish or mail to the last known address of each such nonresident beneficiary two copies of a statement on a form prescribed by the director showing the amount so withheld and deducted from the amounts distributed or distributable to such nonresident beneficiary and such other information as may be prescribed by the director. The amount withheld and deducted shall be allowed as a credit against the income tax otherwise imposed on such nonresident beneficiary under this act, and if the amount withheld and deducted exceeds the income tax liability of such nonresident beneficiary, any excess shall be applied to any other tax owed the state of Kansas by such nonresident beneficiary (including fines, penalties and interest, if any) and the balance of such excess, if any, refunded to such nonresident beneficiary as provided in K.S.A. 79-32,105(c).

History: L. 1967, ch. 497, § 30; L. 1978, ch. 407, § 14; July 1.

§§ 79-32,138 Kansas taxable income of corporations; addition and subtraction modifications

(a) Kansas taxable income of a corporation taxable under this act shall be the corporation's federal taxable income for the taxable year with the modifications specified in this section, except that in determination of such federal taxable income for all taxable years commencing after December 31, 2020, section 118 of the federal internal revenue code of 1986 shall be applied as in effect on December 21, 2017.

(b) There shall be added to federal taxable income:

(i) The same modifications as are set forth in K.S.A.

79-32,117(b), and amendments thereto, with respect to resident individuals, except subsections (b)(xix), (b)(xx), (b)(xxi), (b)(xxii) and (b)(xxiii);

(ii) the amount of all depreciation deductions claimed for any property upon which the deduction allowed by K.S.A.

79-32,221,

79-32,227,

79-32,232,

79-32,237,

79-32,249,

79-32,250,

79-32,255

or

79-32,256, and amendments thereto, is claimed;

(iii) the amount of any charitable contribution deduction claimed for any contribution or gift to or for the use of any racially segregated educational institution;

(iv) for taxable years commencing December 31, 2013, that portion of the amount of any expenditure deduction claimed in determining federal adjusted gross income for expenses paid by a taxpayer for health care when such expenses were paid or incurred for abortion coverage, a health benefit plan, as defined in K.S.A.

65-6731, and amendments thereto, when such expenses were paid or incurred for abortion coverage or amounts contributed to health savings accounts for such taxpayer's employees for the purchase of an optional rider for coverage of abortion in accordance with K.S.A.

40-2,190, and amendments thereto;

(v) the amount of any charitable contribution deduction claimed for any contribution or gift made to a scholarship granting organization to the extent the same is claimed as the basis for the credit allowed pursuant to K.S.A.

72-4357, and amendments thereto;

(vi) the federal net operating loss deduction; and

(vii) for all taxable years commencing after December 31, 2020, the amount of any deduction claimed under section 250(a)(1)(B) of the federal internal revenue code of 1986.

(c) There shall be subtracted from federal taxable income:

(i) The same modifications as are set forth in K.S.A.

79-32,117(c), and amendments thereto, with respect to resident individuals, except subsection (c)(xx);

(ii) the federal income tax liability for any taxable year commencing prior to December 31, 1971, for which a Kansas return was filed after reduction for all credits thereon, except credits for payments on estimates of federal income tax, credits for gasoline and lubricating oil tax, and for foreign tax credits if, on the Kansas income tax return for such prior year, the federal income tax deduction was computed on the basis of the federal income tax paid in such prior year, rather than as accrued. Notwithstanding the foregoing, the deduction for federal income tax liability for any year shall not exceed that portion of the total federal income tax liability for such year which bears the same ratio to the total federal income tax liability for such year as the Kansas taxable income, as computed before any deductions for federal income taxes and after application of subsections (d) and (e) as existing for such year, bears to the federal taxable income for the same year;

(iii) an amount for the amortization deduction allowed pursuant to K.S.A.

79-32,221,

79-32,227,

79-32,232,

79-32,237,

79-32,249,

79-32,250,

79-32,255

or

79-32,256, and amendments thereto;

(iv) for all taxable years commencing after December 31, 1987, the amount included in federal taxable income pursuant to the provisions of section 78 of the internal revenue code;

(v) 80% of dividends from corporations incorporated outside of the United States or the District of Columbia which are included in federal taxable income. As used in this paragraph, "dividends" includes amounts included in income under section 965 of the federal internal revenue code of 1986, net of the deduction permitted by section 965(c) of the federal internal revenue code of 1986. For all taxable years commencing after December 31, 2020, this paragraph does not apply to amounts excluded from income pursuant to K.S.A.

79-32,117(c)(xxv), and amendments thereto, or amounts added back pursuant to K.S.A. 79-32,138(b)(vii), and amendments thereto; and

(vi) for all taxable years commencing after December 31, 2020, the amount disallowed as a deduction pursuant to section 162(r) of the federal internal revenue code of 1986, as in effect on January 1, 2018.

(d) If any corporation derives all of its income from sources within Kansas in any taxable year commencing after December 31, 1979, its Kansas taxable income shall be the sum resulting after application of subsections (a) through (c). Otherwise, such corporation's Kansas taxable income in any such taxable year, after excluding any refunds of federal income tax and before the deduction of federal income taxes provided by subsection (c)(ii) shall be allocated as provided in K.S.A.

79-3271

through

79-3293, and amendments thereto, plus any refund of federal income tax as determined under K.S.A.

79-32,117(b)(iv), and amendments thereto, and minus the deduction for federal income taxes as provided by subsection (c)(ii) shall be such corporation's Kansas taxable income.

(e) A corporation may make an election with respect to its first taxable year commencing after December 31, 1982, whereby no addition modifications as provided for in subsection (b)(ii) and subtraction modifications as provided for in subsection (c)(iii) as those subsections existed prior to their amendment by this act, shall be required to be made for such taxable year.

History: L. 1967, ch. 497, § 31; L. 1972, ch. 374, § 1; L. 1973, ch. 399, § 1; L. 1976, ch. 433, § 5; L. 1976, ch. 434, § 6; L. 1978, ch. 408, § 2; L. 1980, ch. 316, § 13; L. 1981, ch. 386, § 1; L. 1982, ch. 411, § 1; L. 1982, ch. 410, § 2; L. 1984, ch. 351, § 19; L. 1987, ch. 386, § 1; L. 1988, ch. 381, § 18; L. 2006, ch. 209, § 30; L. 2007, ch. 113, § 23; L. 2007, ch. 195, § 57; L. 2012, ch. 135, § 16; L. 2013, ch. 119, § 18; L. 2014, ch. 93, § 62; L. 2017, ch. 84, § 7; L. 2021, ch. 93, § 11; July 1.

§§ 79-32,139 Taxation of subchapter S corporate income

A corporation having an election in effect under subchapter S of the internal revenue code shall not be subject to the Kansas income tax on corporations, and the shareholders of such corporation shall include in their taxable incomes their proportionate part of such corporation's federal taxable income, subject to the modifications as set forth in K.S.A. 79-32,117, and amendments thereto, in the same manner and to the same extent as provided by the internal revenue code.

History: L. 1967, ch. 497, § 32; L. 1978, ch. 407, § 15; L. 1984, ch. 351, § 20; July 1.

§§ 79-32,140 Credit for taxes paid in section 337 liquidation

(a) For corporate liquidations occurring in taxable years commencing prior to January 1, 1984, to the extent that a corporation incurs a Kansas income tax liability by reason of gains realized in a sale or sales which qualify as being exempt from federal income taxation under section 337 of the internal revenue code, such Kansas income tax liability so attributable to such gains shall be allowed as a credit against the Kansas income tax liability of each common stockholder of such corporation in an amount which bears the same ratio to such Kansas income tax liability as the liquidation distribution received or receivable by such common stockholder bears to the liquidation distribution received or receivable by all common stockholders.

(b) (1) Except as otherwise provided in paragraph (2) of this subsection, such credit shall be allowable only in the taxable year or years of each stockholder in which such liquidation distribution is received and taxable years in which payments are received on an installment obligation received by the stockholder as part of the liquidation distribution and shall be limited to the amount of Kansas income tax liability, if any, of such stockholder for such year or years as computed before application of the credit provided by this section and before any credits for withholding or estimated tax payments.

(2) For corporate liquidations occurring after December 31, 1979, such credit shall be deducted from the stockholder's income tax liability in the taxable year or years of each stockholder in which such liquidation distribution is received and taxable years in which payments are received on an installment obligation received by the stockholder as part of the liquidation distribution as computed before application of the credit allowed by this section and before any credits for withholding or estimated tax payments. If the amount of such tax credit exceeds the stockholder's income tax liability for any such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the stockholder's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability.

History: L. 1967, ch. 497, § 33; L. 1982, ch. 411, § 2; L. 1984, ch. 351, § 21; May 3.

§§ 79-32,140a Accrual of interest and penalties on underpayment or overpayment of income tax

(a) Whenever, as a result of the provisions of K.S.A. 79-32,138 or 79-32,140, an assessment of additional income tax is required to be made, no interest or penalties shall begin to accrue upon such assessment until July 1, 1984.

(b) Whenever, as a result of the provisions of K.S.A. 79-32,138 or 79-32,140, an overpayment of income tax was incurred, interest shall not accrue on such overpayment until 90 days after the date of receipt of the taxpayer's claim of overpayment of tax.

History: L. 1984, ch. 351, § 22; May 3.

§§ 79-32,141 Allocation of income and deductions

The director may allocate gross income, deductions, credits, or allowances between two or more organizations, trades or businesses (whether or not incorporated, or organized in the United States or affiliated) owned or controlled directly or indirectly by the same interests, if the director determines such allocation is necessary to prevent evasion of taxes or to clearly reflect income of the organizations, trades or businesses.

History: L. 1967, ch. 497, § 34; May 12.

§§ 79-32,142 Consolidated returns

(a) In the event two or more corporations file federal income tax returns on a consolidated basis, and in the event that all of such corporations derive all of their income and expenses from sources within Kansas, then, and in such events, such corporations shall file consolidated returns for purposes of determining their Kansas income tax liability the same as if such corporations were one corporation.

(b) The director may permit or require any group of affiliated corporations to file consolidated returns under regulations to be promulgated by the director where the director determines, that the filing of such consolidated returns is necessary to clearly reflect the Kansas taxable income of the affiliated group. For purposes hereof, any affiliated group means any group of corporations permitted to file a consolidated return for federal income tax purposes.

History: L. 1967, ch. 497, § 35; L. 1980, ch. 316, § 14; July 15.

§§ 79-32,143 Kansas net operating loss for corporations

(a) (1) (A) For net operating losses incurred in taxable years prior to January 1, 2018, a net operating loss deduction shall be allowed in the same manner that it is allowed under the federal internal revenue code, except that such net operating loss may only be carried forward to each of the 10 taxable years following the taxable year of the net operating loss.

(B) For net operating losses incurred in taxable years beginning after December 31, 2017, a net operating loss deduction shall be allowed in the same manner that it is allowed under the federal internal revenue code, except that such net operating loss deduction may only be carried forward.

(2) For net operating farm losses, as defined by section 172 of the federal internal revenue code, incurred in taxable years beginning after December 31, 1999, a net operating loss deduction shall be allowed in the same manner that it is allowed under the federal internal revenue code except that such net operating loss may be carried forward to each of the 10 taxable years following the taxable year of the net operating loss.

(3) The amount of the net operating loss that may be carried back or forward for Kansas income tax purposes shall be that portion of the federal net operating loss allocated to Kansas under this act in the taxable year that the net operating loss is sustained.

(b) The amount of the loss to be carried back or forward will be the federal net operating loss after: (1) All modifications required under this act applicable to the net loss in the year the loss was incurred; and (2) after apportionment as to source in the case of corporations, nonresident individuals for losses incurred in taxable years beginning prior to January 1, 1978, and nonresident estates and trusts in the same manner that income for such corporations, nonresident individuals, estates and trusts is required to be apportioned.

(c) If a net operating loss was incurred in a taxable year beginning prior to January 1, 1988, the amount of the net operating loss that may be carried back and carried forward and the period for which it may be carried back and carried forward shall be determined under the provisions of the Kansas income tax laws that were in effect during the year that such net operating loss was incurred.

(d) If any portion of a net operating loss described in subsections (a) and (b) is not utilized prior to the final year of the carryforward period provided in subsection (a), a refund shall be allowable in such final year in an amount equal to the refund which would have been allowable in the taxable year the loss was incurred by utilizing the three year carryback provided under K.S.A. 79-32,143, as in effect on December 31, 1987, multiplied by a fraction, the numerator of which is the unused portion of such net operating loss in the final year, and the denominator of which is the amount of such net operating loss that could have been carried back to the three years immediately preceding the year in which the loss was incurred. In no event may such fraction exceed one.

(e) Notwithstanding any other provisions of the Kansas income tax act, the net operating loss as computed under subsections (a), (b) and (c) shall be allowed in full in determining Kansas taxable income or at the option of the taxpayer allowed in full in determining Kansas adjusted gross income.

(f) No refund of income tax that results from a net operating farm loss carry back shall be allowed in an amount exceeding $1,500 in any year. Any overpayment in excess of $1,500 may be carried forward to any year or years after the year of the loss and may be claimed as a credit against the tax. The refundable portion of such credit shall not exceed $1,500 in any year.

(g) For tax year 2013, and all tax years thereafter, a net operating loss allowed by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to K.S.A.

79-32,110(c), and amendments thereto, and used only to determine such taxpayer's corporate income tax liability.

History: L. 1967, ch. 497, § 36; L. 1968, ch. 241, § 1; L. 1979, ch. 63, § 3; L. 1988, ch. 381, § 10; L. 2000, ch. 184, § 32; L. 2006, ch. 203, § 9; L. 2012, ch. 135, § 17; L. 2021, ch. 93, § 12; July 1.

§§ 79-32,143a Expense deduction for certain depreciable property; calculation of amount; sale of property, procedure; limitation on other credits

(a) For taxable years beginning after December 31, 2020, a taxpayer may elect to take an expense deduction from Kansas net income before expensing or recapture allocated or apportioned to this state for the cost of the following property placed in service in this state during the taxable year: (1) Tangible property eligible for depreciation under the modified accelerated cost recovery system in section 168 of the internal revenue code, as amended, but not including residential rental property, nonresidential real property, any railroad grading or tunnel bore or any other property with an applicable recovery period in excess of 25 years as defined under section 168(c) or (g) of the internal revenue code, as amended; and (2) computer software as defined in section 197(e)(3)(B) of the internal revenue code, as amended, and as described in section 197(e)(3)(A)(i) of the internal revenue code, as amended, to which section 167 of the internal revenue code, as amended, applies. If such election is made, the amount of expense deduction for such cost shall equal the difference between the depreciable cost of such property for federal income tax purposes and the sum of the amount of bonus depreciation being claimed for such property pursuant to section 168(k) and the amount of expensing deduction being claimed for such property pursuant to section 179 of the internal revenue code, as amended, for federal income tax purposes in such tax year, multiplied by the applicable factor, determined by using, the table provided in subsection (f), based on the method of depreciation selected pursuant to section 168(b)(1), (2), or (3) or (g) of the internal revenue code, as amended, and the applicable recovery period for such property as defined under section 168(c) or (g) of the internal revenue code, as amended. This election shall be made by the due date of the original return, including any extensions, and may be made only for the taxable year in which the property is placed in service, and once made, shall be irrevocable.

(b) If the amount of expense deduction calculated pursuant to subsection (a) exceeds the taxpayer's Kansas net income before expensing or recapture allocated or apportioned to this state, such excess amount shall be treated as a Kansas net operating loss as provided in K.S.A. 79-32,143, and amendments thereto.

(c) If the property for which an expense deduction is taken pursuant to subsection (a) is subsequently sold during the applicable recovery period for such property as defined under section 168(c) of the internal revenue code, as amended, and in a manner that would cause recapture of any previously taken expense or depreciation deductions for federal income tax purposes, or if the situs of such property is otherwise changed such that the property is relocated outside the state of Kansas during such applicable recovery period, then the expense deduction determined pursuant to subsection (a) shall be subject to recapture and treated as Kansas taxable income allocated to this state. The amount of recapture shall be the Kansas expense deduction determined pursuant to subsection (a) multiplied by a fraction, the numerator of which is the number of years remaining in the applicable recovery period for such property as defined under section 168(c) or (g) of the internal revenue code, as amended, after such property is sold or removed from the state including the year of such disposition, and the denominator of which is the total number of years in such applicable recovery period.

(d) The situs of tangible property for purposes of claiming and recapture of the expense deduction shall be the physical location of such property. If such property is mobile, the situs shall be the physical location of the business operations from where such property is used or based. The situs of computer software shall be apportioned to Kansas based on the fraction, the numerator of which is the number of the taxpayer's users located in Kansas of licenses for such computer software used in the active conduct of the taxpayer's business operations, and the denominator of which is the total number of the taxpayer's users of the licenses for such computer software used in the active conduct of the taxpayer's business operations everywhere.

(e) Any member of a unitary group filing a combined report may elect to take an expense deduction pursuant to subsection (a) for an investment in property made by any member of the combined group, provided that the amount calculated pursuant to subsection (a) may only be deducted from the Kansas net income before expensing or recapture allocated to or apportioned to this state by such member making the election.

(f) The following table shall be used in determining the expense deduction calculated pursuant to subsection (a):

| Factors | | | | | --- | --- | --- | --- | | IRC§168 Recover Period (year) | IRC§168(b)(1) Depreciation Method | IRC§168(b)(2) Depreciation Method | IRC§168(b)(3) or (g) Depreciation Method | | 2.5 | * | .077 | .092 | | 3 | .075 | .091 | .106 | | 3.5 | * | .102 | .116 | | 4 | * | .114 | .129 | | 5 | .116 | .135 | .150 | | 6 | * | .154 | .170 | | 6.5 | * | .163 | .179 | | 7 | .151 | .173 | .190 | | 7.5 | * | .181 | .199 | | 8 | * | .191 | .208 | | 8.5 | * | .199 | .217 | | 9 | * | .208 | .226 | | 9.5 | * | .216 | .235 | | 10 | .198 | .224 | .244 | | 10.5 | * | .232 | .252 | | 11 | * | .240 | .261 | | 11.5 | * | .248 | .269 | | 12 | * | .256 | .277 | | 12.5 | * | .263 | .285 | | 13 | * | .271 | .293 | | 13.5 | * | .278 | .300 | | 14 | * | .285 | .308 | | 15 | * | .299 | .323 | | 16 | * | .313 | .337 | | 16.5 | * | .319 | .344 | | 17 | * | .326 | .351 | | 18 | * | .339 | .365 | | 19 | * | .351 | .378 | | 20 | * | .363 | .391 | | 22 | * | .386 | .415 | | 24 | * | .408 | .438 | | 25 | * | .419 | .449 | | *Not Applicable | | | |

(g) If a taxpayer elects to expense any investment pursuant to subsection (a), such taxpayer shall not be eligible for any tax credit, accelerated depreciation, or deduction for such investment allowed pursuant to K.S.A. 79-32,160a(e), 79-32,182b, 79-32,201, 79-32,204, 79-32,211, 79-32,218, 79-32,221, 79-32,222, 79-32,224, 79-32,227, 79-32,229, 79-32,232, 79-32,234, 79-32,237, 79-32,239, 79-32,246, 79-32,249, 79-32,252, 79-32,255, 79-32,256 and 79-32,258, and amendments thereto.

(h) (1) For tax year 2013, the deduction allowed by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, and used only to determine such taxpayer's corporate income tax liability.

(2) For tax years 2014 through 2020, the deduction allowed by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, or the privilege tax imposed upon any national banking association, state bank, savings bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, and used only to determine such taxpayer's corporate income or privilege tax liability.

(i) For tax year 2021, and all tax years thereafter, the deduction allowed by this section shall be available to all taxpayers subject to the income tax imposed pursuant to K.S.A. 79-32,110, and amendments thereto, or the privilege tax imposed upon any national banking association, state bank, savings bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, and used only to determine such taxpayer's income or privilege tax liability.

History: L. 2011, ch. 116, § 2; L. 2012, ch. 135, § 18; L. 2014, ch. 81, § 7; L. 2021, ch. 93, § 13; July 1.

§§ 79-32,144 Repealed

History: L. 1967, ch. 497, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,145 Repealed

History: L. 1967, ch. 497, § 39; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,146 Repealed

History: L. 1968, ch. 233, § 5; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,147 Repealed

History: L. 1970, ch. 392, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,148 Repealed

History: L. 1970, ch. 393, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,149 Repealed

History: L. 1971, ch. 310, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,150 Repealed

History: L. 1971, ch. 309, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,151 Repealed

History: L. 1971, ch. 311, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152 Repealed

History: L. 1972, ch. 374, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152a Repealed

History: L. 1976, ch. 432, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152b Repealed

History: L. 1977, ch 345, § 4; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152c Repealed

History: L. 1979, ch. 321, § 4; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152d Repealed

History: L. 1980, ch. 316, § 15; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152e Repealed

History: L. 1980, ch. 316, § 16; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152f Repealed

History: L. 1980, ch. 318, § 5; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152g Repealed

History: L. 1982, ch. 409, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152h Repealed

History: L. 1982, ch. 412, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152i Repealed

History: L. 1982, ch. 410, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152j Repealed

History: L. 1982, ch. 411, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152k Repealed

History: L. 1984, ch. 351, § 27; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,152l Application of act

Except as otherwise more specifically provided, the provisions of this act shall be applicable to all taxable years commencing after December 31, 1987.

History: L. 1988, ch. 381, § 20; July 1.

§§ 79-32,152m Application of K.S.A. 79-3230, 79-32,101 and 79-32,107

The provisions of K.S.A. 79-3230, 79-32,101 and 79-32,107 shall be applicable to all taxable years commencing after December 31, 1988.

History: L. 1989, ch. 296, § 6; July 1.

§§ 79-32,152n Application of K.S.A. 79-32,176

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1988.

History: L. 1989, ch. 298, § 2; July 1.

§§ 79-32,152o Application of K.S.A. 79-32,117

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1989.

History: L. 1990, ch. 352, § 2; July 1.

§§ 79-32,152p Application of K.S.A. 79-32,110, 79-32,119 and 79-32,120

The provisions of the amendments to K.S.A. 79-32,110, 79-32,119 and 79-32,120 shall apply to all taxable years commencing after December 31, 1991.

History: L. 1992, ch. 280, § 65; May 28.

§§ 79-32,152q Application of K.S.A. 79-32,117

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1991.

History: L. 1992, ch. 247, § 2; July 1.

§§ 79-32,152r Application of K.S.A. 79-1117 and 79-32,176

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1993.

History: L. 1994, ch. 173, § 4; July 1.

§§ 79-32,153 Credit against tax for establishment of qualified business facility; conditions; amount; limitations

(a) For taxable years commencing after December 31, 1997, any taxpayer who shall invest in a qualified business facility, as defined in subsection (b) of K.S.A. 79-32,154, and amendments thereto, and effective for tax years commencing after December 31, 2010, located in an area other than a metropolitan county as defined in either K.S.A. 74-50,114 or 74-50,211, and amendments thereto, shall be allowed a credit for such investment, in an amount determined under subsection (b) against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated for the taxable year during which commencement of commercial operations, as defined in subsection (f) of K.S.A. 79-32,154, and amendments thereto, occurs at such qualified business facility, and for each of the nine succeeding taxable years. No credit shall be allowed under this section unless the number of qualified business facility employees, as determined under subsection (d) of K.S.A. 79-32,154, and amendments thereto, engaged or maintained in employment at the qualified business facility as a direct result of the investment by the taxpayer for the taxable year for which the credit is claimed equals or exceeds two. Where an employee performs services for the taxpayer outside the qualified business facility, the employee shall be considered engaged or maintained in employment at the qualified business facility if (1) the employee's service performed outside the qualified business facility is incidental to the employee's service inside the qualified business facility, or (2) the base of operations or, the place from which the service is directed or controlled, is at the qualified business facility.

(b) The credit allowed by subsection (a) for any taxpayer who invests in a qualified business facility shall be a portion of the tax, but not in excess of 50% of such tax, otherwise imposed on or measured by the taxpayer's qualified business facility income, as defined in subsection (g) of K.S.A. 79-32,154, and amendments thereto, for the taxable year for which such credit is allowed. Such portion shall be an amount equal to the sum of the following:

(1) One hundred dollars for each qualified business facility employee determined under K.S.A. 79-32,154, and amendments thereto; plus

(2) one hundred dollars for each $100,000, or major fraction thereof (which shall be deemed to be 51% or more), in qualified business facility investment as determined under K.S.A. 79-32,154, and amendments thereto.

(c) For tax years commencing after December 31, 2005, any taxpayer claiming credits pursuant to this section, as a condition for claiming and qualifying for such credits, shall provide information pursuant to K.S.A. 79-32,243, and amendments thereto, as part of the tax return in which such credits are claimed. Such credits shall not be denied solely on the basis of the contents of the information provided by the taxpayer pursuant to K.S.A. 79-32,243, and amendments thereto.

(d) No credit shall be allowed under this section for investment in a public utility, as such term is defined in K.S.A. 66-104, and amendments thereto.

History: L. 1976, ch. 431, § 1; L. 1978, ch. 411, § 1; L. 1982, ch. 412, § 1; L. 1982, ch. 75, § 12; L. 1983, ch. 67, § 3; L. 1986, ch. 385, § 1; L. 1992, ch. 202, § 12; L. 1996, ch. 207, § 2; L. 1998, ch. 136, § 4; L. 2006, ch. 203, § 10; L. 2010, ch. 144, § 9; July 1.

§§ 79-32,153a Repealed

History: L. 1989, ch. 297, § 1; Repealed, L. 1992, ch. 202, § 15; July 1.

§§ 79-32,154 Same; definitions

As used in this act, the following words and phrases shall have the meanings respectively ascribed to them herein:

(a) "Facility" shall mean any factory, mill, plant, refinery, warehouse, feedlot, building or complex of buildings located within the state, including the land on which such facility is located and all machinery, equipment and other real and tangible personal property located at or within such facility used in connection with the operation of such facility. The word "building" shall include only structures within which individuals are customarily employed or which are customarily used to house machinery, equipment or other property.

(b) "Qualified business facility" shall mean a facility which satisfies the requirements of paragraphs (1) and (2) of this subsection.

(1) Such facility is employed by the taxpayer in the operation of a revenue producing enterprise, as defined in subsection (c). Such facility shall not be considered a qualified business facility in the hands of the taxpayer if the taxpayer's only activity with respect to such facility is to lease it to another person or persons. If the taxpayer employs only a portion of such facility in the operation of a revenue producing enterprise, and leases another portion of such facility to another person or persons or does not otherwise use such other portions in the operation of a revenue producing enterprise, the portion employed by the taxpayer in the operation of a revenue producing enterprise shall be considered a qualified business facility, if the requirements of paragraph (2) of this subsection are satisfied.

(2) If such facility was acquired by the taxpayer from another person or persons, such facility was not employed, immediately prior to the transfer of title to such facility to the taxpayer, or to the commencement of the term of the lease of such facility to the taxpayer, by any other person or persons in the operation of a revenue producing enterprise and the taxpayer continues the operation of the same or substantially identical revenue producing enterprise, as defined in subsection (i), at such facility.

(c) "Revenue producing enterprise" shall mean:

(1) The assembly, fabrication, manufacture or processing of any agricultural, mineral or manufactured product;

(2) the storage, warehousing, distribution or sale of any products of agriculture, aquaculture, mining or manufacturing;

(3) the feeding of livestock at a feedlot;

(4) the operation of laboratories or other facilities for scientific, agricultural, aquacultural, animal husbandry or industrial research, development or testing;

(5) the performance of services of any type;

(6) the feeding of aquatic plants and animals at an aquaculture operation;

(7) the administrative management of any of the foregoing activities; or

(8) any combination of any of the foregoing activities.

"Revenue producing enterprise" shall not mean a swine production facility as defined in K.S.A. 17-5903, and amendments thereto, that is owned or leased by a corporation or limited liability company.

(d) "Qualified business facility employee" shall mean a person employed by the taxpayer in the operation of a qualified business facility during the taxable year for which the credit allowed by K.S.A. 79-32,153, and amendments thereto, is claimed:

(1) A person shall be deemed to be so engaged if such person performs duties in connection with the operation of the qualified business facility on: (A) A regular, full-time basis; (B) a part-time basis, provided such person is customarily performing such duties at least 20 hours per week throughout the taxable year; or (C) a seasonal basis, provided such person performs such duties for substantially all of the season customary for the position in which such person is employed. The number of qualified business facility employees during any taxable year shall be determined by dividing by 12 the sum of the number of qualified business facility employees on the last business day of each month of such taxable year. If the qualified business facility is in operation for less than the entire taxable year, the number of qualified business facility employees shall be determined by dividing the sum of the number of qualified business facility employees on the last business day of each full calendar month during the portion of such taxable year during which the qualified business facility was in operation by the number of full calendar months during such period. Notwithstanding the provisions of this subsection, for the purpose of computing the credit allowed by K.S.A. 79-32,153, and amendments thereto, in the case of an investment in a qualified business facility, which facility existed and was operated by the taxpayer or related taxpayer prior to such investment, the number of qualified business facility employees employed in the operation of such facility shall be reduced by the average number, computed as provided in this subsection, of individuals employed in the operation of the facility during the taxable year preceding the taxable year in which the qualified business facility investment was made at the facility.

(2) For taxable years commencing after December 31, 1997, in the case of a taxpayer claiming a credit against the premium tax and privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79 article 11 of the Kansas Statutes Annotated, "qualified business employee" shall not mean any person who is employed in the operation of a qualified business facility in the state due to the merger, acquisition or other reconfiguration of the taxpayer unless such employee's position represents a net gain of total positions created by the taxpayer and the employee's position was not in existence at the time of the merger acquisition or other reconfiguration of the taxpayer.

(e) "Qualified business facility investment" shall mean the value of the real and tangible personal property, except inventory or property held for sale to customers in the ordinary course of the taxpayer's business, which constitutes the qualified business facility, or which is used by the taxpayer in the operation of the qualified business facility, during the taxable year for which the credit allowed by K.S.A. 79-32,153, and amendments thereto, is claimed. The value of such property during such taxable year shall be: (1) Its original cost if owned by the taxpayer; or (2) eight times the net annual rental rate, if leased by the taxpayer. The net annual rental rate shall be the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. The qualified business facility investment shall be determined by dividing by 12 the sum of the total value of such property on the last business day of each calendar month of the taxable year. If the qualified business facility is in operation for less than an entire taxable year, the qualified business facility investment shall be determined by dividing the sum of the total value of such property on the last business day of each full calendar month during the portion of such taxable year during which the qualified business facility was in operation by the number of full calendar months during such period. Notwithstanding the provisions of this subsection, for the purpose of computing the credit allowed by K.S.A. 79-32,153, and amendments thereto, in the case of an investment in a qualified business facility, which facility existed and was operated by the taxpayer or related taxpayer prior to such investment the amount of the taxpayer's qualified business facility investment in such facility shall be reduced by the average amount, computed as provided in this subsection, of the investment of the taxpayer or a related taxpayer in the facility for the taxable year preceding the taxable year in which the qualified business facility investment was made at the facility.

(f) "Commencement of commercial operations" shall be deemed to occur during the first taxable year for which the qualified business facility is first available for use by the taxpayer, or first capable of being used by the taxpayer, in the revenue producing enterprise in which the taxpayer intends to use the qualified business facility.

(g) "Qualified business facility income" shall mean the Kansas taxable income derived by the taxpayer from the operation of the qualified business facility. If a taxpayer has income derived from the operation of a qualified business facility as well as from other activities conducted within this state, the Kansas taxable income derived by the taxpayer from the operation of the qualified business facility shall be determined by multiplying the taxpayer's Kansas taxable income by a fraction, the numerator of which is the property factor, as defined in paragraph (1), plus the payroll factor, as defined in paragraph (2), and the denominator of which is two. In the case of financial institutions, the property and payroll factors shall be computed utilizing the specific provisions of the apportionment method applicable to financial institutions, if enacted, and the qualified business facility income shall be based upon net income.

(1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in connection with the operation of the qualified business facility during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period. The average value of all such property shall be determined as provided in K.S.A. 79-3281 and 79-3282, and amendments thereto.

(2) The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the taxpayer for compensation to persons qualifying as qualified business facility employees, as determined under subsection (d), at the qualified business facility, and the denominator of which is the total amount paid in this state during the tax period by the taxpayer for compensation. The compensation paid in this state shall be determined as provided in K.S.A. 79-3283, and amendments thereto.

The formula set forth in this subsection (g) shall not be used for any purpose other than determining the qualified business facility income attributable to a qualified business facility.

(h) "Related taxpayer" shall mean: (1) A corporation, partnership, trust or association controlled by the taxpayer; (2) an individual, corporation, partnership, trust or association in control of the taxpayer; or (3) a corporation, partnership, trust or association controlled by an individual, corporation, partnership, trust or association in control of the taxpayer. For the purposes of this act, "control of a corporation" shall mean ownership, directly or indirectly, of stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of all other classes of stock of the corporation; "control of a partnership or association" shall mean ownership of at least 80% of the capital or profits interest in such partnership or association; and "control of a trust" shall mean ownership, directly or indirectly, of at least 80% of the beneficial interest in the principal or income of such trust.

(i) "Same or substantially identical revenue producing enterprise" shall mean a revenue producing enterprise in which the products produced or sold, services performed or activities conducted are the same in character and use, are produced, sold, performed or conducted in the same manner and to or for the same type of customers as the products, services or activities produced, sold, performed or conducted in another revenue producing enterprise.

History: L. 1976, ch. 431, § 2; L. 1978, ch. 411, § 2; L. 1982, ch. 412, § 2; L. 1986, ch. 385, § 2; L. 1988, ch. 99, § 60; L. 1992, ch. 102, § 6; L. 1994, ch. 130, § 6; L. 1996, ch. 207, § 3; L. 1998, ch. 136, § 5; L. 2012, ch. 141, § 5; July 1.

§§ 79-32,155 Same; election to defer credit

A taxpayer entitled to the credit allowed by K.S.A. 79-32,153, and amendments thereto, may elect to defer the commencement of the ten-year period during which such credit is allowed to any taxable year not later than the third taxable year following the taxable year in which commencement of commercial operations at the qualified business facility occurs. The taxpayer shall perfect such election by notifying the secretary of revenue, by a written statement attached to the return for the taxable year in which commencement of commercial operations at the qualified business facility occurs, of the intention to make such election. Once said election has been perfected, the credit shall be allowed for the taxable year specified in such election and for each of the nine succeeding taxable years.

History: L. 1976, ch. 431, § 3; L. 1986, ch. 385, § 3; July 1.

§§ 79-32,156 Same; claiming credit upon acquisition or lease of qualified business facility by related taxpayer; election; estate entitled to credit upon death of taxpayer

(a) If a taxpayer, hereafter referred to in this section as "transferor," shall have established a qualified business facility and, prior to the expiration of the ten-year period during which the credit allowed by K.S.A. 79-32,153, and amendments thereto, may be claimed by the transferor, all or a portion of such qualified business facility, is acquired by, or leased to, a related taxpayer, as defined in subsection (h) of K.S.A. 79-32,154, and amendments thereto, and hereafter referred to in this section as "transferee," the transferor shall elect either to allow the transferee to claim such credit as provided in subsection (b), or to retain such credit as provided in subsection (c).

(b) If all or a portion of the qualified business facility is acquired by, or leased to, the transferee, the portion thereof so acquired by, or leased to, the transferee shall be considered a qualified business facility in the hands of the transferee. In such event, the transferee shall be entitled to a credit, computed in accordance with K.S.A. 79-32,153, and amendments thereto, with respect to the portion of the qualified business facility held by it. Such credit shall be allowed for the remaining portion of the ten-year period during which the transferor could have claimed such credit if all or a portion of the qualified business facility had not been acquired by, or leased to, the transferee. The portion, if any, of the qualified business facility retained by the transferor shall continue to be a qualified business facility in the hands of the transferor and it shall be entitled to the credit allowed by K.S.A. 79-32,153, and amendments thereto, for the remaining portion of such ten-year period.

(c) If a portion of the qualified business facility is acquired by, or leased to, the transferee, the transferor may, notwithstanding such acquisition or lease, treat the portion of the qualified business facility acquired by, or leased to, the transferee as a qualified business facility held by the transferor. In such event, the transferor shall be entitled to the credit allowed by K.S.A. 79-32,153, and amendments thereto, for the remaining portion of such ten-year period, but the transferee shall not be entitled to any such credit. For the purpose of computing such credit, the transferor may take into account such number of employees of the transferee as would constitute qualified business facility employees, and such amount of the transferee's investment as would constitute qualified business facility investment, if the qualified business facility were considered held by the transferee, but shall not take into account the income of the transferee which would constitute qualified business facility income if the qualified business facility were considered held by the transferee.

(d) The transferor shall perfect the election authorized by subsection (a) by notifying the secretary of revenue, by a written statement attached to the return for the taxable year in which the qualified business facility is acquired by, or leased to, the transferee, of the election made and setting forth such other information as the secretary of revenue may, by rules and regulations, require. If the transferor fails to make such election, the transferee shall be deemed entitled to the credit in accordance with subsection (b) of this section.

(e) If an individual taxpayer entitled to the credit allowed by K.S.A. 79-32,153, and amendments thereto, shall die prior to the expiration of the ten-year period during which such taxpayer is entitled to such credit and the qualified business facility with respect to which such credit was claimed passes to the estate of the deceased taxpayer, such estate shall be entitled to a credit with respect to such qualified business facility. Upon distribution of the qualified business facility, or a portion thereof, to a distributee of such estate, the distributee shall be entitled to a credit with respect to such qualified business facility, or portion thereof, distributed to it. The amount and period of the credit to which such estate or distributee shall be entitled shall be determined in accordance with K.S.A. 79-32,153, and amendments thereto, but in no event shall: (1) The qualified business facility investment of the estate or distributee for the portion of the qualified business facility acquired by it from the deceased taxpayer exceed the deceased taxpayer's qualified business facility investment for such portion; and (2) the aggregate number of taxable years for which the estate and the distributee may claim such credit exceed 10 taxable years reduced by the number of taxable years for which the deceased taxpayer claimed the credit.

History: L. 1976, ch. 431, § 4; L. 1986, ch. 385, § 4; July 1.

§§ 79-32,157 Same; termination and resumption of operation of qualified business facility; credit allowable, when

If a taxpayer has terminated the operation of a revenue producing enterprise at a qualified business facility prior to the expiration of the ten-year period during which a credit is allowed under K.S.A. 79-32,153, 79-32,155 or 79-32,156, or amendments thereto, and later resumes the operation of the same or a different revenue producing enterprise at such qualified business facility, the taxpayer may, with the consent of the secretary of revenue, elect to claim a credit, upon resuming the operation of a revenue producing enterprise at such qualified business facility, computed in accordance with K.S.A. 79-32,153, or amendments thereto, but for a number of years following resumption of such operations equal to 10 reduced by the number of years for which the credit was claimed prior to termination of operation of such revenue producing enterprise. The secretary of revenue shall grant such consent if it is determined that the termination of operations was due to reasonable cause and that the resumption of operations of a revenue producing enterprise at such qualified business facility will provide increased opportunities for employment and result in a substantial contribution to the economy of the state.

History: L. 1976, ch. 431, § 5; L. 1986, ch. 385, § 5; July 1.

§§ 79-32,158 Same; rules and regulations

The secretary of revenue shall prescribe such rules and regulations as may be deemed necessary to carry out the purposes of this act.

History: L. 1976, ch. 431, § 6; July 1.

§§ 79-32,159 Application of K.S.A. 79-32,111 and 79-32,153 through 79-32,158

The provisions of this act shall apply to all taxable years commencing after December 31, 1975.

History: L. 1976, ch. 431, § 8; July 1.

§§ 79-32,159a Application of K.S.A. 79-32,153 and 79-32,154

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1977.

History: L. 1978, ch. 411, § 3; July 1.

§§ 79-32,159b Applicability of 1986 amendments

Any taxpayer who has invested in a qualified business facility and commenced commercial operations at such facility prior to the effective date of this act, shall be subject to the provisions of the acts of which this act is amendatory which were in effect at the time commercial operations commenced at such facility. Any taxpayer who has qualified for and claimed credits under the acts of which this act is amendatory prior to the effective date of this act shall continue to be subject to the provisions of the acts of which this act is amendatory which were in effect at the time the taxpayer qualified for such credits for the entire period for which the credits may be claimed.

History: L. 1986, ch. 385, § 7; July 1.

§§ 79-32,159c Application of K.S.A. 79-32,153, 79-32,154, 79-32,155, 79-32,156, 79-32,157 and 79-32,159b

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1985.

History: L. 1986, ch. 385, § 8; July 1.

§§ 79-32,160 Title of act

This act shall be known as and may be cited as "the job expansion and investment credit act of 1976."

History: L. 1976, ch. 431, § 9; July 1.

§§ 79-32,160a Tax credits for establishment of qualified business facility; conditions; amount; limitations; investment in certain counties; transferability

(a) For taxable years commencing after December 31, 1999, and before January 1, 2012, any taxpayer who shall invest in a qualified business facility, as defined in K.S.A.

79-32,154(b), and amendments thereto, and effective for tax years commencing after December 31, 2010, and before January 1, 2012, located in an area other than a metropolitan county as defined in either K.S.A.

74-50,114 or

74-50,211, and amendments thereto, and also meets the definition of a business in K.S.A.

74-50,114(b), and amendments thereto, shall be allowed a credit for such investment, in an amount determined under subsection (b) or (c), as the case requires, against the tax imposed by the Kansas income tax act or where the qualified business facility is the principal place from which the trade or business of the taxpayer is directed or managed and the facility has facilitated the creation of at least 20 new full-time positions, against the premium tax or privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year during which commencement of commercial operations, as defined in K.S.A.

79-32,154(f), and amendments thereto, occurs at such qualified business facility. In the case of a taxpayer who meets the definition of a manufacturing business in K.S.A.

74-50,114(d), and amendments thereto, no credit shall be allowed under this section unless the number of qualified business facility employees, as determined under K.S.A.

79-32,154(d), and amendments thereto, engaged or maintained in employment at the qualified business facility as a direct result of the investment by the taxpayer for the taxable year for which the credit is claimed equals or exceeds two. In the case of a taxpayer who meets the definition of a nonmanufacturing business in K.S.A.

74-50,114(f), and amendments thereto, no credit shall be allowed under this section unless the number of qualified business facility employees, as determined under K.S.A.

79-32,154(d), and amendments thereto, engaged or maintained in employment at the qualified business facility as a direct result of the investment by the taxpayer for the taxable year for which the credit is claimed equals or exceeds five. Where an employee performs services for the taxpayer outside the qualified business facility, the employee shall be considered engaged or maintained in employment at the qualified business facility if: (1) The employee's service performed outside the qualified business facility is incidental to the employee's service inside the qualified business facility; or (2) the base of operations or, the place from which the service is directed or controlled, is at the qualified business facility.

(b) The credit allowed by subsection (a) for any taxpayer who invests in a qualified business facility that is located in a designated nonmetropolitan region established under K.S.A.

74-50,116, and amendments thereto, on or after the effective date of this act, shall be a portion of the income tax imposed by the Kansas income tax act on the taxpayer's Kansas taxable income, the premium tax or privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or the privilege tax as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year for which such credit is allowed, but in the case where the qualified business facility investment was made prior to January 1, 1996, not in excess of 50% of such tax. Such portion shall be an amount equal to the sum of the following:

(1) $2,500 for each qualified business facility employee determined under K.S.A.

79-32,154, and amendments thereto; plus

(2) $1,000 for each $100,000, or major fraction thereof, which shall be deemed to be 51% or more, in qualified business facility investment, as determined under K.S.A.

79-32,154, and amendments thereto.

(c) The credit allowed by subsection (a) for any taxpayer who invests in a qualified business facility that is not located in a nonmetropolitan region established under K.S.A.

74-50,116, and amendments thereto, and effective for tax years commencing after December 31, 2010, and before January 1, 2012, located in an area other than a metropolitan county as defined in either K.S.A.

74-50,114 or

74-50,211, and amendments thereto, and that also meets the definition of business in K.S.A.

74-50,114(b), and amendments thereto, on or after the effective date of this act, shall be a portion of the income tax imposed by the Kansas income tax act on the taxpayer's Kansas taxable income, the premium tax or privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or the privilege tax as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year for which such credit is allowed, but in the case where the qualified business facility investment was made prior to January 1, 1996, not in excess of 50% of such tax. Such portion shall be an amount equal to the sum of the following:

(1) $1,500 for each qualified business facility employee as determined under K.S.A.

79-32,154, and amendments thereto; and

(2) $1,000 for each $100,000, or major fraction thereof, which shall be deemed to be 51% or more, in qualified business facility investment as determined under K.S.A.

79-32,154, and amendments thereto.

(d) The credit allowed by subsection (a) for each qualified business facility employee and for qualified business facility investment shall be a one-time credit. If the amount of the credit allowed under subsection (a) exceeds the tax imposed by the Kansas income tax act on the taxpayer's Kansas taxable income, the premium tax and privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or the privilege tax as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year, or in the case where the qualified business facility investment was made prior to January 1, 1996, 50% of such tax imposed upon the amount which exceeds such tax liability or such portion thereof may be carried over for credit in the same manner in the succeeding taxable years until the total amount of such credit is used. Except that, before the credit is allowed, a taxpayer, who meets the definition of a manufacturing business in K.S.A.

74-50,114(d), and amendments thereto, shall recertify annually that the net increase of a minimum of two qualified business facility employees has continued to be maintained and a taxpayer, who meets the definition of a nonmanufacturing business in K.S.A.

74-50,114(f), and amendments thereto, shall recertify annually that the net increase of a minimum of five qualified business employees has continued to be maintained.

(e) Notwithstanding the foregoing provisions of this section, and except as otherwise provided in this subsection, any taxpayer qualified and certified under the provisions of K.S.A.

74-50,131, and amendments thereto, that prior to making a commitment to invest in a qualified Kansas business, has filed a certificate of intent to invest in a qualified business facility in a form satisfactory to the secretary of commerce, shall be entitled to a credit in an amount equal to 10% of that portion of the qualified business facility investment that exceeds $50,000 in lieu of the credit provided in subsection (b)(2) or (c)(2) without regard to the number of qualified business facility employees engaged or maintained in employment at the qualified business facility. For tax years beginning on or after January 1, 2012, for a qualified business facility investment in Douglas, Johnson, Sedgwick, Shawnee or Wyandotte county, such credit shall be in an amount equal to 10% of that portion of the qualified business facility investment that exceeds $1,000,000. Any taxpayer who has filed a certificate of intent to invest in a qualified business facility pursuant to this subsection in Douglas, Johnson, Sedgwick, Shawnee or Wyandotte county prior to December 31, 2011, and commences investments in a qualified business facility prior to December 31, 2013, may claim credits under K.S.A.

74-50,131,

74-50,132

and 79-32,160a(e), and amendments thereto, in an amount equal to 10% of that portion of the qualified business facility investment that exceeds $50,000. Timing modifications may be authorized at the discretion of the secretary of commerce and the secretary of revenue during the transition period. The credit allowed by this subsection shall be a one-time credit. If the amount thereof exceeds the tax imposed by the Kansas income tax act on the taxpayer's Kansas taxable income or the premium tax or privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year, the amount thereof that exceeds such tax liability may be carried forward for credit in the succeeding taxable year or years until the total amount of the tax credit is used, except that no such tax credit shall be carried forward for deduction after the 16th taxable year succeeding the taxable year in which such credit initially was claimed, and no carryforward shall be allowed for deduction in any succeeding taxable year unless the taxpayer certifies under oath that the taxpayer continues to meet the requirements of K.S.A.

74-50,131, and amendments thereto, and this act. In no event shall any credit allowed under this section that expired during any taxable year prior to the taxable year commencing January 1, 2011, be revived under the provisions of this act.

(f) For projects placed into service on and after January 1, 2021, a taxpayer may transfer up to 50% of the tax credit allowed under subsection (e), as provided in this subsection. The taxpayer may make a transfer to one or more transferees, but the total of all transfers shall not exceed 50% of the taxpayer's tax credit. The taxpayer shall make the transfer or transfers within a single tax year. The credit may be transferred to any individual or entity and shall be claimed in the year the credit was transferred against the transferee's tax liability for the income tax under the Kansas income tax act or the premium tax or privilege fees imposed pursuant to K.S.A.

40-252, and amendments thereto, or the privilege tax as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. The amount of the credit that exceeds the transferee's tax liability for such year may be carried forward for credit in the succeeding taxable year or years until the total amount of the tax credit is used, except that no such credit shall be carried forward for deduction after the 16th taxable year succeeding the taxable year in which such credit was initially claimed. The taxpayer or transferee shall provide such documentation of the tax credit transfer to the secretary of revenue as may be required by the secretary.

(g) In the event the tax credit earned by the taxpayer and transferred to a transferee is later disallowed in whole or in part by the secretary of revenue, the taxpayer that originally earned the tax credit shall be liable for repayment to the state in the amount disallowed.

(h) For tax years commencing after December 31, 2005, any taxpayer claiming credits pursuant to this section, as a condition for claiming and qualifying for such credits, shall provide information pursuant to K.S.A.

79-32,243, and amendments thereto, as part of the tax return in which such credits are claimed. Such credits shall not be denied solely on the basis of the contents of the information provided by the taxpayer pursuant to K.S.A.

79-32,243, and amendments thereto.

(i) This section and K.S.A.

79-32,160b, and amendments thereto, shall be a part of and supplemental to the job expansion and investment credit act of 1976, and amendments thereto.

History: L. 1992, ch. 202, § 8; L. 1993, ch. 172, § 4; L. 1996, ch. 207, § 4; L. 1998, ch. 136, § 6; L. 2000, ch. 157, § 9; L. 2003, ch. 154, § 95; L. 2006, ch. 203, § 11; L. 2010, ch. 144, § 10; L. 2011, ch. 115, § 14; L. 2013, ch. 133, § 36; L. 2021, ch. 41, § 2; July 1.

§§ 79-32,160b Planned project within existing enterprise zone; tax election; prior act

Any taxpayer who has developed plans for the construction, reconstruction, enlarging or remodeling of a qualified business facility located within an enterprise zone or who has developed plans for the purchase of machinery or equipment for installation at a qualified business facility located within an enterprise zone may elect to claim the income tax credits and sales tax exemption available prior to the effective date of this act. In order to make such an election, the taxpayer shall submit to the department of revenue by certified mail, a form provided by the department, which shall identify the planned project prior to January 1, 1993.

History: L. 1992, ch. 202, § 9; July 1.

§§ 79-32,160c Application of act

The provisions of this act affecting tax liability shall be applicable to all taxable years commencing after December 31, 1992.

History: L. 1992, ch. 202, § 10; July 1.

§§ 79-32,160d Repealed

History: L. 1995, ch. 217, § 2; Repealed, L. 1996, ch. 52, § 1; March 28.

§§ 79-32,160e Application of act

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1995.

History: L. 1996, ch. 207, § 5; July 1.

§§ 79-32,160f Repealed

History: L. 1992, ch. 202, § 8; L. 1993, ch. 172, § 4; L. 1996, ch. 207, § 4; L. 1998, ch. 136, § 6; L. 2000, ch. 157, § 9; L. 2003, ch. 154, § 95; L. 2006, ch. 203, § 11; L. 2010, ch. 144, § 10; L. 2011, ch. 115, § 14; L. 2011, ch. 116, § 10; Repealed, L. 2013, ch. 133, § 37; July 1.

§§ 79-32,160g Limitation on credits earned through Kansas enterprise zone act and the job expansion and investment tax credit act

Except as otherwise provided, for taxable years commencing after December 31, 2011, no credits may be earned through the Kansas enterprise zone act, K.S.A. 79-32,160a; or the job expansion and investment tax credit act, K.S.A. 79-32,153. Any carry forward credit that has been earned through the Kansas enterprise zone act, K.S.A. 79-32,160a, and is remaining after December 31, 2011, may be carried forward to succeeding taxable years as long as all requirements continue to be met. Any credit that has been earned through the job expansion and investment tax credit act, K.S.A. 79-32,153, with years left in recomputing the credit after December 31, 2011, may continue for the remainder of the nine-year period as long as all requirements continue to be met.

History: L. 2011, ch. 116, § 3; July 1.

§§ 79-32,161 Repealed

History: L. 1976, ch. 433, § 1; L. 1981, ch. 387, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,162 Repealed

History: L. 1976, ch. 433, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,163 Repealed

History: L. 1976, ch. 433, § 3; L. 1981, ch. 387, § 2; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,164, 79-32,165 Repealed

History: L. 1976, ch. 433, §§ 6, 7; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,165a Repealed

History: L. 1981, ch. 387, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,166 Repealed

History: L. 1976, ch. 434, § 1; L. 1980, ch. 310, § 2; L. 1983, ch. 316, § 2; L. 1983, ch. 328, § 1; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,167 Repealed

History: L. 1976, ch. 434, § 2; L. 1980, ch. 310, § 3; L. 1983, ch. 316, § 3; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,168 Repealed

History: L. 1976, ch. 434, § 3; L. 1977, ch. 346, § 1; L. 1983, ch. 316, § 4; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,169 Repealed

History: L. 1976, ch. 434, § 4; L. 1977, ch. 346, § 2; L. 1980, ch. 310, § 1; L. 1983, ch. 316, § 5; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,170 Repealed

History: L. 1976, ch. 434, § 7; L. 1980, ch. 310, § 6; L. 1983, ch. 258, § 12; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,171 Repealed

History: L. 1976, ch. 434, § 8; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,172 Repealed

History: L. 1977, ch. 344, § 7; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,173 Repealed

History: L. 1978, ch. 407, § 16; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,174 Repealed

History: L. 1978, ch. 405, § 9; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,174a, 79-32,174b Repealed

History: L. 1980, ch. 310, §§ 8, 12; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,174c Repealed

History: L. 1983, ch. 316, § 6; Repealed, L. 1988, ch. 382, § 1; July 1.

§§ 79-32,175 Credit against tax for making taxpayer's principal dwelling or property accessible to persons with a disability; definitions

As used in this act:

(a) "Accessible to individuals with a disability" means in conformance with Title I and Title III of the Americans with disabilities act of 1990, 42 USCA 12101 et seq. and 28 C.F.R. Part 36 and 29 C.F.R. 1630 et seq.

(b) "Facility" means facility as such term is defined in 28 C.F.R. Part 36.104, but shall not mean new construction or any addition made to an existing facility except with regard to a facility described by K.S.A. 79-32,176, and amendments thereto.

(c) "Expenditures for the purpose of making all or any portion of an existing facility accessible to individuals with a disability" includes only those expenditures specifically attributable to the: (1) Removal or equivalent facilitation of an existing architectural barrier, when removal or equivalent facilitation is for the purpose of making an existing facility accessible to individuals with a disability; or (2) new construction of a facility described by K.S.A. 79-32,176, and amendments thereto which will facilitate its accessibility to individuals with a disability. Such term shall not include any part of any expense paid or incurred in connection with the new construction or substantial alteration of a facility, except with regard to a facility described by K.S.A. 79-32,176, or the normal replacement of depreciable property.

(d) "Expenditures for the purpose of making all or any portion of an existing facility or of equipment usable for the employment of persons with a disability" includes only those expenditures specifically attributable to the modification or adaptation of an existing facility or of equipment, which modification or adaptation is for the purpose of employing individuals with a disability.

History: L. 1978, ch. 409, § 1; L. 1981, ch. 388, § 1; L. 1992, ch. 208, § 19; L. 1994, ch. 195, § 11; L. 1997, ch. 120, § 3; July 1.

§§ 79-32,176 Repealed

History: L. 1978, ch. 409, § 2; L. 1981, ch. 388, § 2; L. 1989, ch. 298, § 1; L. 1992, ch. 208, § 20; L. 1994, ch. 173, § 1; L. 1994, ch. 356, § 1; L. 1996, ch. 228, § 12; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,176a Credit against tax for making taxpayer's principal dwelling or property accessible to individuals with a disability; amount; carryover to subsequent taxable years; credit refundable, when; cost-of-living adjustment

(a) Any resident individual taxpayer who makes expenditures for the purpose of making all or any portion of an existing facility accessible to individuals with a disability, which facility is used as, or in connection with, such taxpayer's principal dwelling or the principal dwelling of a lineal ascendant or descendant, including construction of a small barrier-free living unit attached to such principal dwelling, shall be entitled to claim a tax credit in an amount equal to the applicable percentage of such expenditures or $15,000, whichever is less, against the income tax liability imposed against such taxpayer pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. Nothing in this subsection shall be deemed to prevent any such taxpayer from claiming such credit: (1) For each principal dwelling in which the taxpayer or lineal ascendant or descendant may reside, or facility used in connection therewith; or (2) more than once, but not more often than once every four-year period of time. The applicable percentage of such expenditures eligible for credit shall be as set forth in the following schedules:

Married individuals filing joint returns.

• Taxpayers Federal% of expenditures
• Adjusted Gross Incomeeligible for credit
• $0 to $60,000 100%
• Over $60,000 but not over $70,000 90%
• Over $70,000 but not over $80,000 80%
• Over $80,000 but not over $90,000 70%
• Over $90,000 but not over $100,000 60%
• Over $100,000 but not over $110,000 50%
• Over $110,000 but not over $120,000 40%
• Over $120,000 but not over $130,000 30%
• Over $130,000 but not over $140,000 20%
• Over $140,000 but not over $150,000 10%
• Over $150,000 0%

All other individuals.

• Taxpayers Federal% of expenditures
• Adjusted Gross Incomeeligible for credit
• $0 to $40,000 100%
• Over $40,000 but not over $50,000 90%
• Over $50,000 but not over $60,000 80%
• Over $60,000 but not over $70,000 70%
• Over $70,000 but not over $80,000 60%
• Over $80,000 but not over $90,000 50%
• Over $90,000 but not over $100,000 40%
• Over $100,000 but not over $110,000 30%
• Over $110,000 but not over $120,000 20%
• Over $120,000 but not over $130,000 10%
• Over $130,000 0%

Such tax credit shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the taxable year in which the expenditures are made.

(b) Notwithstanding the provisions of subsection (a), if the amount of the taxpayer's tax liability is less than $3,750 in the first year in which the credit is claimed under this section, an amount equal to the amount by which 1/4 of the credit allowable under this section exceeds such tax liability shall be refunded to the taxpayer and the amount by which such credit exceeds such tax liability less the amount of such refund may be carried over for the next three succeeding taxable years. If the amount of the taxpayer's tax liability is less than $3,750 in the second year in which the credit is claimed under this section, an amount equal to the amount by which 1/3 of the amount of the credit carried over from the first taxable year exceeds such tax liability shall be refunded to the taxpayer and the amount by which the amount of the credit carried over from the first taxable year exceeds such tax liability less the amount of such refund may be carried over for the next two succeeding taxable years. If the amount of the taxpayer's tax liability is less than $3,750 in the third year in which the credit is claimed under this section, an amount equal to the amount by which ½ of the amount carried over from the second taxable year exceeds such tax liability shall be refunded to the taxpayer and the amount by which the amount of the credit carried over from the second taxable year exceeds such tax liability less the amount of such refund may be carried over to the next succeeding taxable year. If the amount of the credit carried over from the third taxable year exceeds the taxpayer's income tax liability for such year, the amount thereof which exceeds such tax liability shall be refunded to the taxpayer.

(c) In the case of all tax years commencing after December 31, 2021, the maximum tax credit amount, as prescribed in subsection (a), and the tax liability threshold amount in the first, second and third years, as prescribed in subsection (b), shall be increased by an amount equal to such maximum tax credit amount and tax liability threshold amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) of the federal internal revenue code for the calendar year in which the taxable year commences.

(d) The provisions of this section are applicable to tax year 2021, and all tax years thereafter.

History: L. 2014, ch. 86, § 5; L. 2021, ch. 42, § 4; July 1.

§§ 79-32,177 Credit against tax for making certain property used in trade or business or held for production of income accessible to or usable in the employment of persons with a disability; amount; carryover to subsequent taxable years

Any taxpayer who makes expenditures for the purpose of making all or any portion of an existing facility accessible to individuals with a disability, or who makes expenditures for the purpose of making all or any portion of a facility or of equipment usable for the employment of individuals with a disability, which facility or equipment is on real property located in this state and used in a trade or business or held for the production of income, shall be entitled to claim an income tax credit in an amount equal to 50% of such expenditures or, the amount of $10,000, whichever is less, against the income tax liability imposed against such taxpayer pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. Such tax credit shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the taxable year in which the expenditures are made.

History: L. 1978, ch. 409, § 3; L. 1981, ch. 388, § 3; L. 1992, ch. 208, § 21; L. 1994, ch. 195, § 13; L. 2012, ch. 135, § 19; L. 2014, ch. 86, § 7; July 1.

§§ 79-32,178 Rules and regulations

The secretary of revenue shall adopt such rules and regulations as may be deemed necessary to carry out the purposes of this act.

History: L. 1978, ch. 409, § 7; July 1.

§§ 79-32,179 Application of K.S.A. 79-1117, 79-1118, 79-32,117 and 79-32,175 through 79-32,178

The provisions of this act shall apply to all taxable years commencing after December 31, 1977.

History: L. 1978, ch. 409, § 8; July 1.

§§ 79-32,180 Application of K.S.A. 79-32,175 through 79-32,177, inclusive

The provisions of this act shall be applicable to all taxable years commencing after December 31, 1980.

History: L. 1981, ch. 388, § 4; July 1.

§§ 79-32,181 Credit against tax for interest rate reduction for agricultural production loan by production credit association

(a) On and after the effective date of this act and prior to July 1, 1990, any production credit association or agricultural credit association chartered by the farm credit administration under the federal farm credit act, as amended (12 U.S.C. 2001 et seq.), which extends or renews an agricultural production loan under the provisions of this act to an eligible agricultural borrower at an interest rate which is at least one whole percentage point less than the lowest rate at which the association is making agricultural production loans to agricultural loan customers with equivalent collateral, and any such association which reduces the rate of interest being charged on any outstanding agricultural production loan to an eligible agricultural borrower by at least one whole percentage point shall receive a credit against its income tax liability pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, for taxable years commencing after December 31, 1988, to the extent hereinafter provided. Such tax credit shall be allowed for such interest rate reductions by an association upon agricultural production loans having a total principal amount not exceeding 15% of the amount of such loans reflected in the association's report filed with the farm credit administration for calendar year 1985.

(b) For the purposes of this section, the term "eligible agricultural borrower" means any person, partnership or family farm corporation, as defined in K.S.A. 17-5903, and amendments thereto, located in the state of Kansas, having an agricultural production loan which has been classified as substandard or doubtful by any banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration.

(c) An interest rate reduction may be applied under the provisions of this section only when the eligible borrower can be reasonably expected to service the principal and interest of such person's loan.

(d) The total credit against tax liability shall be the amount by which the interest income to the association on and after the effective date of this act and prior to July 1, 1990, has been reduced on such loans because of such reductions in rates of interest, except that the credit allowed as a result of an interest rate reduction on any one agricultural production loan shall not exceed an amount equal to 3% per annum on the unpaid principal balance of the loan. The tax credit allowed for any taxable year shall not exceed ⅕ of the total tax credit of the association allowed under this act. Unused tax credit shall be carried forward as a credit to the association's tax liability in each subsequent taxable year and shall then be taken into account, subject to the limitation that the credit in any one taxable year may not exceed ⅕ of the total tax credit.

(e) Any taxpayer who qualified for and claimed credit under this section prior to its amendment by this act shall continue to be subject to this section as in effect at the time the taxpayer qualified for such credits for the entire period for which the credits were claimed.

History: L. 1986, ch. 367, § 2; L. 1989, ch. 292, § 2; April 18.

§§ 79-32,181a Credit against tax for interest rate reductions on certain agricultural production loans

(a) On and after the effective date of this act and prior to July 1, 2004, any production credit association or agricultural credit association chartered by the farm credit administration under the federal farm credit act, as amended (12 U.S.C. § 2001 et seq.), which extends or renews an agricultural production loan under the provisions of this section to an eligible agricultural borrower at an interest rate which is at least one whole percentage point less than the lowest rate at which the association is making agricultural production loans to agricultural loan customers with equivalent collateral, and any such association which reduces the rate of interest being charged on any outstanding agricultural production loan to an eligible agricultural borrower by at least one whole percentage point shall receive a credit against its income tax liability pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, for taxable years commencing after December 31, 1999, to the extent hereinafter provided. Such tax credit shall be allowed for such interest rate reductions by an association upon agricultural production loans having a total principal amount not exceeding 15% of the amount of such loans reflected in the association's report filed with the farm credit administration for calendar year 1999.

(b) For the purposes of this section, the term "eligible agricultural borrower" means any person, limited agricultural partnership, limited liability agricultural company or family farm corporation, as defined in K.S.A. 17-5903, and amendments thereto, located in the state of Kansas, having an agricultural production loan which has been classified as substandard or doubtful: (1) By any banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration; or (2) by the designated loan committee of such association prior to examination for classification eligibility by the banking regulator, the farm credit administration or a district farm credit system institution which is subject to review by the farm credit administration.

(c) An interest rate reduction may be applied under the provisions of this section only when the eligible borrower can be reasonably expected to service the principal and interest of such person's loan.

(d) The total credit against tax liability shall be the amount by which the interest income to the association on and after the effective date of this act and prior to July 1, 2004, has been reduced on such loans because of such reductions in rates of interest, except that the credit allowed as a result of an interest rate reduction on any one agricultural production loan shall not exceed an amount equal to 3% per annum on the unpaid principal balance of the loan. The tax credit allowed for any taxable year shall not exceed 1/5 of the total tax credit of the association allowed under this section. Unused tax credit shall be carried forward as a credit to the association's tax liability in each subsequent taxable year and shall then be taken into account, subject to the limitation that the credit in any one taxable year may not exceed 1/5 of the total tax credit.

(e) Any taxpayer who qualified for and claimed credit under this section prior to its amendment by this section shall continue to be subject to this section as in effect at the time the taxpayer qualified for such credits for the entire period for which the credits were claimed.

History: L. 2000, ch. 101, § 11; April 27.

§§ 79-32,182 Repealed

History: L. 1986, ch. 366, § 1; L. 1987, ch. 387, § 1; L. 1994, ch. 46, § 1; L. 1996, ch. 264, § 5; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,182a Repealed

History: L. 1986, ch. 366, § 1; L. 1987, ch. 385, § 4; Repealed, L. 1994, ch. 46, § 2; July 1.

§§ 79-32,182b Credit against tax for certain research and development activity expenditures

(a) For all taxable years commencing after December 31, 2022, a credit shall be allowed against the tax imposed by the Kansas income tax act on the Kansas taxable income of a taxpayer for expenditures in research and development activities conducted within this state in an amount equal to 10% of the amount by which the amount expended for such activities in the taxable year of the taxpayer exceeds the taxpayer's average of the actual expenditures for such purposes made in such taxable year and the next preceding two taxable years.

(b) In any one taxable year, the amount of such credit allowable for deduction from the taxpayer's tax liability shall not exceed 25% of the total amount of such credit plus any applicable carry forward amount. The amount by which that portion of the credit allowed by subsections (a) and (b) to be claimed in any one taxable year exceeds the taxpayer's tax liability in such year may be carried forward until the total amount of the credit is used.

(c) As used in this section, the term "expenditures in research and development activities" means expenditures made for such purposes, other than expenditures of moneys made available to the taxpayer pursuant to federal or state law, which are treated as expenses allowable for deduction under the provisions of the federal internal revenue code of 1986, as amended, except that for taxable years commencing after December 31, 2013, expenditures in research and development activities shall not include any expenditures for the performance of any abortion, as defined in K.S.A. 65-6701, and amendments thereto.

(d) For tax year 2023 and all tax years thereafter, the income tax credit allowed pursuant to this section shall be transferable by a taxpayer without a current tax liability. The tax credit may be transferred to any person and be claimed by the transferee as a credit against the transferee's Kansas income tax liability in the tax year when it was transferred. The credit shall be claimed and may be carried forward by the transferee as provided and limited by subsection (b). No person shall be entitled to a refund for the transferred tax credit. Only the full credit may be transferred, and the credit may only be transferred one time. Documentation of any credit acquired by transfer shall be provided by the taxpayer or the transferee in the manner required by the secretary of revenue.

History: L. 2001, ch. 130, § 1; L. 2012, ch. 135, § 20; L. 2013, ch. 119, § 19; L. 2022, ch. 63, § 41; July 1.

§§ 79-32,183 through 79-32,187 Repealed

History: L. 1988, ch. 381, §§ 11 to 14, 19; Repealed, L. 1989, ch. 299, § 1; July 1.

§§ 79-32,188 Severability of provisions of act

If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

History: L. 1989, ch. 303, § 7; July 1.

§§ 79-32,189 Application of act

Except as otherwise more specifically provided, the provisions of this act shall be applicable to all taxable years commencing after December 31, 1988.

History: L. 1989, ch. 303, § 8; July 1.

§§ 79-32,190 Child day care assistance tax credit; amount

(a) Any taxpayer that pays for or provides child day care services, including the provision of the service of locating such services, to its employees or that provides facilities and necessary equipment for child day care services shall be allowed a credit against the privilege or income tax imposed by articles 11 and 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, as follows:

(1) 30% of the total amount expended in the state during the taxable year by a taxpayer for child day care services purchased to provide care for the dependent children of the taxpayer's employees or for the provision of the service of locating such services for such children;

(2) (A) in the taxable year in which a facility providing child day care services in the state for use primarily by the dependent children of the taxpayer's employees is established, 50% of the total amount expended during such year by a taxpayer in the establishment and operation of such facility;

(B) in the taxable years other than the taxable year to which paragraph (2)(A) applies, 30% of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (2)(A) less the amount of moneys received by the taxpayer for use of such facility for child day care services;

(3) (A) in the taxable year in which a facility providing child day care services in the state for use primarily by the dependent children of the taxpayers' employees is established in conjunction with one or more other taxpayers, 50% of the total amount expended during such year by a taxpayer in the establishment and operation of such facility;

(B) in the taxable years other than the taxable year to which paragraph (3)(A) applies, 30% of the amount equal to the total amount expended during the taxable year by a taxpayer for the operation of a facility described in paragraph (3)(A) less the amount of moneys received by the taxpayer for use of such facility for child day care services; and

(4) for all taxable years commencing after December 31, 2020, 50% of the amount equal to the total amount expended during the taxable year by a taxpayer as payments to an organization providing access to available child day care services for the taxpayer's employees.

(b) No credit shall be allowed under this section unless the child day care facility or provider is licensed pursuant to Kansas law.

(c) The credit allowed by subsection (a)(1), (2)(B) and (3)(B) shall not exceed $30,000 for any taxpayer during any taxable year. The credit allowed by subsection (a)(2)(A), (3)(A) and (4) shall not exceed $45,000 for any taxpayer during any taxable year. The amount of the credit which exceeds the tax liability for a taxable year shall be refunded to the taxpayer. If the taxpayer is a corporation having an election in effect under subchapter S of the federal internal revenue code or a partnership, the credit provided by this section shall be claimed by the shareholders of such corporation or the partners of such partnership in the same manner as such shareholders or partners account for their proportionate shares of the income or loss of the corporation or partnership.

(d) The aggregate amount of credits claimed under this act for any fiscal year shall not exceed $3,000,000.

(e) For tax years 2013 through 2020, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 1989, ch. 285, § 1; L. 1992, ch. 124, § 1; L. 2012, ch. 135, § 21; L. 2022, ch. 85, § 23; July 1.

§§ 79-32,191 Application of K.S.A. 79-32,190

The provisions of this act shall apply to all taxable years commencing after December 31, 1991.

History: L. 1989, ch. 285, § 2; L. 1992, ch. 124, § 2; July 1.

§§ 79-32,192 Credit against tax for purchase costs of equipment used in manufacture of products from postconsumer waste; limitations

(a) There shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act an amount equal to 20% of the costs incurred by the taxpayer for purchases of qualified equipment if the total capacity of qualified equipment owned by the taxpayer on the last day of the taxable year in which such credit is claimed exceeds the total capacity of qualified equipment owned by the taxpayer on the last day of the base year. Such credit shall be claimed in the taxable year in which at least 70% of the total production capacity of the qualified equipment is used by the taxpayer to manufacture products. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the seventh taxable year succeeding the taxable year in which the tax credit is claimed. In no event shall the aggregate of any such credit for a taxpayer exceed $100,000.

(b) If qualified equipment which is purchased by any taxpayer who has claimed the credit allowable pursuant to this section is disposed of or otherwise ceases to be qualified equipment within three years of the taxable year for which such credit is allowed, the taxpayer shall refund the amount of the tax credit which was deducted from income tax liability which exceeds the following amounts: (1) Within the first year, zero; (2) within the second year, an amount equal to 33% of the amount of the credit allowed; (3) within the third year, an amount equal to 67% of the amount of the credit allowed. Any taxpayer who has refunded an amount pursuant to this subsection shall no longer be eligible to carry forward any amount of the credit which had not been used as of the date such refund is made.

(c) (1) The department of revenue shall prepare a report on the effectiveness of the tax credit allowed pursuant to the provisions of this section. Such report shall include the following information based upon the most current information available at the time of preparation:

(A) The number of taxpayers who were allowed the tax credit and the aggregate dollar amount of tax credits allowed;

(B) the volume of postconsumer waste utilized by qualified equipment for which the tax credit was allowed which would have otherwise been disposed of as waste and the percentage that the volume of postconsumer waste constitutes of the total volume of materials utilized in the manufacture of products;

(C) the number of new employees resulting from the use of qualified equipment for which the tax credit was allowed;

(D) the amount of property tax revenues attributable to qualified equipment for which the tax credit was allowed; and

(E) the types and quantity of products produced from qualified equipment for which the tax credit was allowed.

(2) Any taxpayer who is allowed the credit pursuant to the provisions of this section shall make available, upon request of the department of revenue, such information as is necessary for the department to prepare the report required by this subsection.

(3) The report shall be submitted to the legislature no later than January 1, 1994.

(d) As used in this section, unless the context otherwise requires:

(1) "Base year" means the income tax year immediately preceding the income tax year for which the credit allowed pursuant to the provisions of this section is claimed.

(2) "Capacity" means the volume of postconsumer waste which qualified equipment is capable of processing or handling.

(3) "Collection" means:

(A) The acquisition of materials from businesses or the general public through purchase or donation, including the organization of systems for such acquisition;

(B) the preparation of materials for over-the-road transportation through cleaning, densification by shredding, baling, or any other method, or coalescence, including the organization of systems for such preparation; or

(C) the transportation of postconsumer waste between separate geographical locations.

(4) "Cost" means the amount of the purchase price or the amount of the annual lease payment.

(5) "Energy conversion" means the use of postconsumer waste for the transformation of materials into heat to be converted into steam, electrical power, or other forms of energy which results in a corresponding decrease in the use of coal, natural gas, or other naturally occurring fuel for such purposes. Energy conversion includes, but is not limited to, methods by which gases generated by the decomposition of organic waste are captured in order to be sold in lieu of other energy-producing gas. Energy conversion does not include any incineration of solid waste for the primary purpose of reducing the quantity of such solid waste.

(6) "Postconsumer waste" means only those products and materials generated by businesses or consumers which have served their intended end use or usefulness and either have been or would normally be disposed of as solid waste except for the fact that they are separated from solid waste for purposes of collection, recycling or reuse. Postconsumer waste shall not include hazardous waste, as defined in K.S.A. 65-3430, and amendments thereto.

(7) "Product" means any material resulting from a manufacturing process and offered for sale to the private or public sector which is composed of at least 25% postconsumer waste, including energy conversion occurring in such manufacturing process, and which is used exclusively for any purpose other than as virgin material in a separate manufacturing process. Product does not include any shredded material unless such shredded material is incorporated directly into the manufacturing process, is to be used for energy conversion, or is to be used as compost.

(8) "Purchase" means:

(A) Any transaction under which title to qualified equipment is transferred for consideration; or

(B) any lease contract for qualified equipment for a period of at least three years regardless of whether title to qualified equipment is transferred at the end of such period.

(9) (A) "Qualified equipment" means machinery or equipment located within Kansas which has at least an estimated three-year useful life and which at least 70% of the total production capacity thereof is used by the taxpayer to manufacture products within three years of the date of purchase.

(B) Qualified equipment shall not include any machinery or equipment which is used for the collection of postconsumer waste.

(e) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1991, but prior to January 1, 1996.

History: L. 1992, ch. 316, § 13; July 1.

§§ 79-32,193 Military retired personnel income tax settlement; refund amount calculation; military retirees income tax refund fund established; transfers to and expenditures from fund, when

(a) The secretary of revenue is hereby authorized and directed to promptly negotiate, approve and recommend judicial approval of a settlement agreement to resolve all tax refund claims pending in the Barker class action for the amounts set forth in subsection (d). As used in this section, "Barker class action" means the consolidated class action styled Keyton E. Barker, et al. v. State of Kansas, et al., Nos. 89-CV-666 and 89-CV-1100, filed in the district court of Shawnee county, Kansas. The settlement agreement shall include:

(1) Any stipulations, terms and conditions which may be necessary to effectuate the prompt and final disposition of the Barker class action;

(2) stipulations that the plaintiffs in the Barker class action shall dismiss, with prejudice, their pending motion for an award of attorney's fees under 42 U.S.C. § 1988, and that class counsel in the Barker class action may submit one or more applications with the district court of Shawnee county, Kansas, for an award of reasonable litigation costs and expenses, including reasonable attorney's fees; and

(3) provisions for joint administration under the supervision of the secretary of revenue and class counsel or their respective designees in accordance with methodologies for the calculation and payment of refund claims to eligible persons. The settlement agreement shall be submitted to the district court of Shawnee county, Kansas, no later than June 15, 1994, and such court shall have all necessary jurisdiction to fully implement the provisions of this act.

(b) Subject to the provisions of subsection (c), any person who paid Kansas individual income tax on or on account of federal military retirement benefits for any or all of the tax years from 1984 through 1991 shall be entitled to receive refund payments in an aggregate amount equal to that portion of the tax actually paid pursuant to the Kansas income tax act which is attributable to federal military retirement benefits, plus interest on the amount of overpayment at the rate of 5% per annum from the date of overpayment through December 31, 1991, in accordance with the terms of the settlement agreement referenced in subsection (a) and the provisions of this act. Refund payments of such aggregate amount shall be made in three equal annual installments. As used in this section, "federal military retirement benefits" shall include all benefits calculated and paid by the United States in accordance with applicable provisions of title 10 and 14 of the United States code as retired pay, retainer pay or survivor's benefits. Where any person otherwise entitled to receive a refund payment under this section is deceased, such refund shall be paid upon a claim duly made on behalf of the estate of the deceased or in the absence of any such claim upon a claim by or on behalf of a surviving spouse and if none upon the claim of any heir at law.

(c) There is hereby created a military retirees income tax refund fund in the state treasury which shall be administered by the secretary of revenue in accordance with this section and appropriation acts. No expenditures from the military retirees income tax refund fund shall be made until and unless the settlement agreement referenced in subsection (a) is approved by the district court of Shawnee county, Kansas, after eligible persons have been afforded reasonable notice and an opportunity to be heard.

(1) In the event of judicial approval, administration of the military retirees income tax refund fund shall be subject to the jurisdiction and supervisory control of the district court of Shawnee county, Kansas, until such time as all refund payments have been made to eligible persons in accordance with the terms of the settlement agreement. The payment of refunds as provided in the settlement agreement shall represent a final and complete settlement of all claims, including any appeal or administrative process perfected pursuant to law for the purpose of obtaining a refund of income tax imposed upon federal military retirement benefits, of all federal military retired personnel for taxable years 1984 through 1991 against the state of Kansas, its departments, agencies, officials, employees and agents regarding the taxation of federal military retirement benefits for the taxable years 1984 through 1991. No claim for refund submitted by a federal military retired individual or, if such individual is deceased, on behalf of the estate of the deceased or, in the absence of any such claim, upon a claim by or on behalf of a surviving spouse and, if none, upon the claim of any heir-at-law, after 18 months from the date of judicial approval of the settlement agreement shall be allowed if due diligence has been exercised in attempting to locate any such individual. For so long as the judicial process is active in regard to the settlement agreement described herein, all administrative appeals or related activity by the director of taxation or the state board of tax appeals concerning claims for refunds of income tax imposed upon federal military retirement benefits for taxable years 1984 through 1991 shall be held in abeyance. Upon final judicial approval of the settlement agreement, all such administrative appeals shall be deemed dismissed with prejudice to all parties.

(2) In the event that the settlement agreement does not receive judicial approval, no expenditures or refund payments shall be made pursuant to this section, and all pending administrative appeals or related activities shall proceed in accordance with applicable law.

(d) (1) The aggregate amount, including interest thereon as provided by subsection (b), equal to that portion of Kansas individual income tax actually paid by all individuals for any or all of the taxable years 1984 through 1991, pursuant to the Kansas income tax act which is attributable to federal military retirement benefits, as calculated and determined pursuant to subsection (b), shall be certified on or before December 15, 1994, by the secretary of revenue to the director of accounts and reports.

(2) On December 20, 1994, the director of accounts and reports shall transfer the amount equal to ⅓ of the amount certified pursuant to paragraph (1) from the state budget stabilization fund to the military retirees income tax refund fund. On April 29, 1995, the director of accounts and reports shall transfer the amount equal to ⅓ of the amount certified pursuant to paragraph (1) from the state general fund to the military retirees income tax refund fund. On June 30, 1995, the director of accounts and reports shall transfer the amount equal to ⅓ of the amount certified pursuant to paragraph (1) from the state general fund to the military retirees income tax refund fund.

(3) Expenditures from the military retirees income tax refund fund shall be made upon warrants of the director of accounts and reports pursuant to vouchers approved by the secretary of revenue or by the secretary's designee in accordance with the settlement agreement referenced in subsection (a) as approved by the district court of Shawnee county, Kansas.

(e) If any subparagraph, paragraph or subsection of this act shall be held invalid or unconstitutional, it shall be conclusively presumed that the legislature would have enacted the remainder of this act without such invalid or unconstitutional subparagraph, paragraph or subsection.

History: L. 1994, ch. 345, § 1; L. 1995, ch. 226, § 35; L. 2008, ch. 109, § 116; L. 2014, ch. 141, § 123; July 1.

§§ 79-32,194 Community services contribution income and privilege tax credit; citation of act

This act shall be known and may be cited as the "Kansas community services program act."

History: L. 1994, ch. 38, § 1; July 1.

§§ 79-32,195 Tax credits for community services contributions; definitions

As used in this act, the following words and phrases shall have the meanings ascribed to them herein: (a) "Business firm" means any business entity authorized to do business in the state of Kansas which is subject to the state income tax imposed by the provisions of the Kansas income tax act, any individual subject to the state income tax imposed by the provisions of the Kansas income tax act, any national banking association, state bank, trust company or savings and loan association paying an annual tax on its net income pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or any insurance company paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto;

(b) "Community services" means:

(1) The conduct of activities which meet a demonstrated community need and which are designed to achieve improved educational and social services for Kansas children and their families, and which are coordinated with communities including, but not limited to, social and human services organizations that address the causes of poverty through programs and services that assist low income persons in the areas of employment, food, housing, emergency assistance and health care;

(2) crime prevention;

(3) health care services; and

(4) youth apprenticeship and technical training.

(c) "Crime prevention" means any nongovernmental activity which aids in the prevention of crime.

(d) "Youth apprenticeship and technical training" means conduct of activities which are designed to improve the access to and quality of apprenticeship and technical training which support an emphasis on rural construction projects as well as the necessary equipment, facilities and supportive mentorship for youth apprenticeships and technical training.

(e) "Community service organization" means any organization performing community services in Kansas and which:

(1) Has obtained a ruling from the internal revenue service of the United States department of the treasury that such organization is exempt from income taxation under the provisions of section 501(c)(3) of the federal internal revenue code; or

(2) is incorporated in the state of Kansas or another state as a nonstock, nonprofit corporation; or

(3) has been designated as a community development corporation by the United States government under the provisions of title VII of the economic opportunity act of 1964; or

(4) is chartered by the United States congress.

(f) "Contributions" shall mean and include the donation of cash, services or property other than used clothing in an amount or value of $250 or more. Stocks and bonds contributed shall be valued at the stock market price on the date of transfer. Services contributed shall be valued at the standard billing rate for not-for-profit clients. Personal property items contributed shall be valued at the lesser of its fair market value or cost to the donor and may be inclusive of costs incurred in making the contribution, but shall not include sales tax. Contributions of real estate are allowable for credit only when title thereto is in fee simple absolute and is clear of any encumbrances. The amount of credit allowable shall be based upon the lesser of two current independent appraisals conducted by state licensed appraisers.

(g) "Health care services" shall include, but not be limited to, the following: Services provided by local health departments, city, county or district hospitals, city or county nursing homes, or other residential institutions, preventive health care services offered by a community service organization including immunizations, prenatal care, the postponement of entry into nursing homes by home health care services, and community based services for persons with a disability, mental health services, indigent health care, physician or health care worker recruitment, health education, emergency medical services, services provided by rural health clinics, integration of health care services, home health services and services provided by rural health networks, except that for taxable years commencing after December 31, 2013, health care services shall not include any service involving the performance of any abortion, as defined in K.S.A. 65-6701, and amendments thereto.

(h) "Rural community" means any city having a population of fewer than 15,000 located in a county that is not part of a standard metropolitan statistical area as defined by the United States department of commerce or its successor agency. However, any such city located in a county defined as a standard metropolitan statistical area shall be deemed a rural community if a substantial number of persons in such county derive their income from agriculture and, in any county where there is only one city within the county which has a population of more than 15,000 and which classifies as a standard metropolitan statistical area, all other cities in that county having a population of less than 15,000 shall be deemed a rural community.

History: L. 1994, ch. 38, § 2; L. 1998, ch. 136, § 7; L. 1999, ch. 154, § 7; L. 2001, ch. 176, § 10; L. 2013, ch. 119, § 20; L. 2014, ch. 81, § 8; July 1.

§§ 79-32,196 Same; eligibility criteria for credit; limited retroactivity

For taxable years commencing after December 31, 1997, any business firm which contributes to a community service organization or governmental entity which engages in the activities of providing community services, shall be allowed a credit, as provided in K.S.A. 79-32,197, against the tax imposed by the Kansas income tax act, the tax on net income of national banking associations, state banks, trust companies or savings and loan associations imposed under article 11 of chapter 79 of the Kansas Statutes Annotated, or the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, if the proposal of the provider of community services is approved pursuant to K.S.A. 79-32,198. Any business firm which makes such a contribution after the effective date of this act and prior to July 1, 1998, shall be allowed a credit in accordance with this act, as if the contribution had been made in calendar year 1997, for the firm's tax liability for taxable years commencing after December 31, 1996. Notwithstanding any other provisions of this section, no business firm shall claim more than one credit for the same contribution.

History: L. 1994, ch. 38, § 3; L. 1998, ch. 136, § 8; April 30.

§§ 79-32,197 Same; amount of credit, carryover

The amount of credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto, shall not exceed 50% of the total amount contributed during the taxable year by the business firm to a community service organization or governmental entity for programs approved pursuant to K.S.A. 79-32,198, and amendments thereto. The amount of credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto, shall not exceed 70% of the total amount contributed during the taxable year by the business firm in a rural community to a community service organization or governmental entity located therein for programs approved pursuant to K.S.A. 79-32,198, and amendments thereto. If the amount of the credit allowed by K.S.A. 79-32,196, and amendments thereto, exceeds the taxpayer's income tax liability imposed under the Kansas income tax act, such excess amount shall be refunded to the taxpayer. In no event shall the total amount of credits allowed under this section exceed $4,130,000 for any one fiscal year.

History: L. 1994, ch. 38, § 4; L. 1999, ch. 154, § 9; L. 2001, ch. 176, § 11; July 1.

§§ 79-32,197a Same; assignability of credits

Any business firm or business entity not subject to Kansas income, privilege or premiums tax, hereinafter designated the assignor, may sell, assign, convey or otherwise transfer tax credits allowed and earned pursuant to K.S.A. 79-32,196, and amendments thereto, for an amount not less than 50% of the value of any such credit. Such credits shall be deemed to be allowed and earned by any such business entity which is only disqualified therefrom by reason of not being subject to such Kansas taxes. The business firm acquiring earned credits, hereinafter designated the assignee, may use the amount of the acquired credits to offset up to 100% of its income, privilege or premiums tax liability for the taxable year in which such acquisition was made. Only the full credit amount for any one contribution may be transferred and such credit may be transferred one time. Unused credit amounts claimed by the assignee may be carried forward for up to five years, except that all such amounts shall be claimed within 10 years following the tax year in which the contribution was made. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the director of community development of the department of commerce in writing within 30 calendar days following the effective date of the transfer and shall provide any information as may be required by the director of community development of the department of commerce to administer and carry out the provisions of this section. The amount received by the assignor of such tax credit shall be taxable as income of the assignor, and the excess of the value of such credit over the amount paid by the assignee for such credit shall be taxable as income of the assignee.

History: L. 1999, ch. 154, § 8; L. 2001, ch. 176, § 12; L. 2003, ch. 154, § 96; July 1.

§§ 79-32,198 Same; duties of director of community development of department of commerce; rules and regulations

The director of community development of the department of commerce shall annually review and approve or disapprove the proposal of the provider of community services, except that, no proposal for crime prevention shall be approved without the endorsement of the agency of local government within the area in which crime prevention is to be provided. The proposal shall set forth the program to be conducted, why the program is needed, the estimated amount to be invested in the program and the plans for implementing the program. The director is hereby authorized to promulgate rules and regulations for establishing criteria for evaluating such proposals by the provider of community services for approval or disapproval and for establishing priorities for approval or disapproval of such proposals by the provider of community services with the assistance and approval of the secretary of the department of revenue.

History: L. 1994, ch. 38, § 5; L. 2003, ch. 154, § 97; July 1.

§§ 79-32,199 Application of K.S.A. 79-32,194 through 79-32,198

The provisions of this act shall be applicable to all taxable years beginning after December 31, 1993.

History: L. 1994, ch. 38, § 9; July 1.

§§ 79-32,199a Application of K.S.A. 79-32,195, 79-32,197 and 79-32,197a

The provisions of K.S.A. 79-32,195, 79-32,197 and 79-32,197a shall be applicable to all taxable years commencing after December 31, 1998.

History: L. 1999, ch. 154, § 10; May 27.

§§ 79-32,199b Application of K.S.A. 79-32,195, 79-32,197 and 79-32,197a

The provisions of K.S.A. 79-32,195, 79-32,197 and 79-32,197a shall be applicable to all taxable years commencing after December 31, 2000.

History: L. 2001, ch. 176, § 13; July 1.

§§ 79-32,200 Kansas income tax credit for corporations for financial support to persons otherwise eligible and to families with dependent children; conditions and limitations

(a) There shall be allowed as a credit against the tax liability imposed under the Kansas income tax act of a person who has entered into an agreement with the secretary for children and families under K.S.A. 39-7,132, and amendments thereto, an amount equal to 70% of the amount of financial assistance paid by such person under K.S.A. 39-7,132, and amendments thereto, as certified by the secretary for children and families, of not to exceed the amount of financial assistance which would have been paid under the aid to families with dependent children program from state matching contributions, as certified by the secretary for children and families, if such person had not agreed to assume some financial support.

(b) An individual may not claim a tax credit under this section if a credit for child care and dependent care expenses was claimed on either the state or federal tax return, or if the individual receives payment for care of the person provided financial assistance.

(c) The credit allowed by this section shall not exceed the amount of tax imposed under the Kansas income tax act reduced by the sum of any other credits allowable pursuant to law.

(d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1993.

(e) For tax year 2014 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 1994, ch. 265, § 3; L. 2012, ch. 135, § 22; L. 2014, ch. 115, § 434; July 1.

§§ 79-32,201 Kansas income tax credit for corporations for alternative-fueled motor vehicle property expenditures

(a) Any taxpayer who makes expenditures for a qualified alternative-fueled motor vehicle or alternative-fuel fueling station shall be allowed a credit against the income tax imposed by article 32 of chapter 79 of the Kansas Statutes Annotated, as follows:

(1) For any qualified alternative-fueled motor vehicle placed in service on or after January 1, 1996, and before January 1, 2005, an amount equal to 50% of the incremental cost or conversion cost for each qualified alternative-fueled motor vehicle but not to exceed $3,000 for each such motor vehicle with a gross vehicle weight of less than 10,000 lbs.; $5,000 for a heavy duty motor vehicle with a gross vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $50,000 for motor vehicles having a gross vehicle weight of greater than 26,000 lbs.;

(2) for any qualified alternative-fueled motor vehicle placed in service on or after January 1, 2005, an amount equal to 40% of the incremental cost or conversion cost for each qualified alternative-fueled motor vehicle, but not to exceed $2,400 for each such motor vehicle with a gross vehicle weight of less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $40,000 for motor vehicles having a gross vehicle weight of greater than 26,000 lbs.;

(3) for any qualified alternative-fuel fueling station placed in service on or after January 1, 1996, and before January 1, 2005, an amount equal to 50% of the total amount expended for each qualified alternative-fuel fueling station but not to exceed $200,000 for each fueling station;

(4) for any qualified alternative-fuel fueling station placed in service on or after January 1, 2005, and before January 1, 2009, an amount equal to 40% of the total amount expended for each qualified alternative-fuel fueling station, but not to exceed $160,000 for each fueling station;

(5) for any qualified alternative-fuel fueling station placed in service on or after January 1, 2009, an amount equal to 40% of the total amount expended for each qualified alternative-fuel fueling station, but not to exceed $100,000 for each fueling station.

(b) If no credit has been claimed pursuant to subsection (a), a credit in an amount not exceeding the lesser of 5% of the cost of the vehicle or $750 shall be allowed to a taxpayer who purchases a motor vehicle equipped by the vehicle manufacturer with an alternative fuel system and who is unable or elects not to determine the exact basis attributable to such property. The credit under this subsection shall be allowed only to the first individual to take title to such motor vehicle, other than for resale. The credit under this subsection for motor vehicles which are capable of operating on a blend of 85% ethanol and 15% gasoline shall be allowed for taxable years commencing after December 31, 1999, only if the individual claiming the credit furnishes evidence of the purchase, during the period of time beginning with the date of purchase of such vehicle and ending on December 31 of the next succeeding calendar year, of 500 gallons of such ethanol and gasoline blend as may be required or is satisfactory to the secretary of revenue.

(c) The tax credit under subsection (a)(1) through (a)(4) or (b) shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount which exceeds the tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the third taxable year succeeding the taxable year in which the expenditures are made.

(d) The tax credit under subsection (a)(5) shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount which exceeds the tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year in which the expenditures are made.

(e) As used in this section:

(1) "Alternative fuel" means a combustible liquid derived from grain starch, oil seed, animal fat or other biomass; or produced from biogas source, including any nonfossilized, decaying, organic matter.

(2) "Qualified alternative-fueled motor vehicle" means a motor vehicle that operates on an alternative fuel, meets or exceeds the clean fuel vehicle standards in the federal clean air act amendments of 1990, Title II and meets one of the following categories:

(A) Bi-fuel motor vehicle: A motor vehicle with two separate fuel systems designed to run on either an alternative fuel or conventional fuel, using only one fuel at a time;

(B) dedicated motor vehicle: A motor vehicle with an engine designed to operate on a single alternative fuel only; or

(C) flexible fuel motor vehicle: A motor vehicle that may operate on a blend of an alternative fuel with a conventional fuel, such as E-85 (85% ethanol and 15% gasoline) or M-85 (85% methanol and 15% gasoline), as long as such motor vehicle is capable of operating on at least an 85% alternative fuel blend.

(3) "Qualified alternative-fuel fueling station" means the property which is directly related to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel, including the compression equipment, storage vessels and dispensers for such fuel at the point where such fuel is delivered but only if such property is primarily used to deliver such fuel for use in a qualified alternative-fueled motor vehicle.

(4) "Incremental cost" means the cost that results from subtracting the manufacturer's list price of the motor vehicle operating on conventional gasoline or diesel fuel from the manufacturer's list price of the same model motor vehicle designed to operate on an alternative fuel.

(5) "Conversion cost" means the cost that results from modifying a motor vehicle which is propelled by gasoline or diesel to be propelled by an alternative fuel.

(6) "Taxpayer" means any person who owns and operates a qualified alternative-fueled vehicle licensed in the state of Kansas or who makes an expenditure for a qualified alternative-fuel fueling station.

(7) "Person" means every natural person, association, partnership, limited liability company, limited partnership or corporation.

(f) Except as otherwise more specifically provided, the provisions of this section shall apply to all taxable years commencing after December 31, 1995.

(g) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 1995, ch. 262, § 6; L. 1999, ch. 154, § 5; L. 2001, ch. 176, § 14; L. 2007, ch. 180, § 14; L. 2012, ch. 135, § 23; January 1, 2013.

§§ 79-32,202 Repealed

History: L. 1997, ch. 41, § 14; L. 2006, ch. 203, § 12; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,202a Tax credit for adoption expenses

(a) (1) For tax years 2014 through 2023, and in addition to the credit provided in subsection (b), there shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to: (A) 25% of the amount of the credit allowed against such taxpayer's federal income tax liability pursuant to section 23 of the federal internal revenue code determined without regard to subsection (c) of such section; (B) in addition to subsection (a)(1)(A), 25% of the amount of such federal income tax credit, if the child adopted by the taxpayer was a resident of Kansas prior to such lawful adoption; and (C) in addition to subsections (a)(1)(A) and (a)(1)(B), 25% of the amount of such federal income tax credit, if the child adopted by the taxpayer is a child with special needs, as defined in section 23 of the federal internal revenue code, and the child was a resident of Kansas prior to such lawful adoption, for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability.

(2) For tax year 2024, and all tax years thereafter, and in addition to the credit provided in subsection (b), there shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to 100% of the amount of the credit allowed against such taxpayer's federal income tax liability pursuant to section 23 of the federal internal revenue code determined without regard to subsection (c) of such section for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability.

(b) For tax year 2014, and all tax years thereafter, there shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to $1,500 for the taxable year in which occurs the lawful adoption of a child in the custody of the secretary for children and families or a child with special needs, whether or not such individual is reimbursed for all or part of qualified adoption expenses or has received a public or private grant therefor. As used in this subsection, terms and phrases shall have the meanings ascribed thereto by the provisions of section 23 of the federal internal revenue code.

(c) The credit allowed by subsections (a) and (b) shall not exceed the amount of the tax imposed by K.S.A. 79-32,110, and amendments thereto, reduced by the sum of any other credits allowable pursuant to law. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the amount thereof that exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credits has been deducted from tax liability.

History: L. 2014, ch. 86, § 4; L. 2024, ch. 93, § 10; July 1.

§§ 79-32,203 Tax credits for expenditures related to nongame and endangered species; limited to certain tax years

(a) There shall be allowed two types of credits against the tax liability of a taxpayer imposed under the Kansas income tax act related to real property that is both:

(1) Designated by the secretary of wildlife and parks pursuant to the nongame and endangered species conservation act as critical habitat for a threatened or endangered species or certified by the secretary of wildlife and parks as land known to support populations of species in need of conservation; and

(2) included in management activities as part of a recovery plan, or an agreement identified in K.S.A. 32-962(b), and amendments thereto, as approved by the secretary of wildlife and parks for a species listed as threatened, endangered or in need of conservation pursuant to the nongame and endangered species conservation act.

(b) There shall be allowed as an annual credit against the tax liability of a taxpayer imposed an amount equal to the total amount paid by the taxpayer during the taxable year for ad valorem taxes and assessments that are imposed by the state or by any political or taxing subdivision of the state or related to real property described in subsection (a) for each year that the management activities specified in the recovery plan or agreement described in subsection (a)(2) remain in effect and apply to such real property. The credit allowed by this subsection shall not exceed the amount of tax imposed under the Kansas income tax act reduced by the sum of any other credits allowable pursuant to law.

(c) There shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act an amount equal to costs incurred by the taxpayer for habitat management or construction and maintenance of improvements on real property described in subsection (a). Such costs shall be for management or improvements in accordance with management activities as a part of a recovery plan or conservation agreement identified in K.S.A. 32-962(b), and amendments thereto, as approved by the secretary of wildlife and parks, for a species listed as threatened, endangered or in need of conservation pursuant to the nongame and endangered species conservation act. The tax credit allowed by this subsection shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the taxpayer may elect, at the time of filing the initial return upon which the credit is claimed, to:

(1) Carry over the amount thereof that exceeds such tax liability for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability; or

(2) receive reimbursement of the amount thereof that exceeds such tax liability, to be paid from amounts appropriated to the secretary of revenue for that purpose upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary or a person or persons designated by the secretary.

(d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1997, but before January 1, 2003.

History: L. 1997, ch. 113, § 6; L. 2012, ch. 47, § 129; L. 2023, ch. 7, § 142; July 1.

§§ 79-32,204 Kansas income tax credit for corporations for required improvements to qualified swine facility

(a) As used in this section:

(1) Terms have the meanings provided by K.S.A. 65-1,178, and amendments thereto;

(2) "qualified swine facility" means a swine facility that: (A) Is owned and operated by a sole proprietorship or partnership or by a family farm corporation, authorized farm corporation, limited liability agricultural company, family farm limited liability agricultural company, limited agricultural partnership, family trust, authorized trust or testamentary trust, as defined by K.S.A. 17-5903, and amendments thereto; and (B) is utilizing its swine waste management system on January 1, 1998; and

(3) "required improvements to a qualified swine facility" means capital improvements that the secretary of health and environment certifies to the director of taxation: (A) Are required for a qualified swine facility to comply with the standards and requirements established pursuant to K.S.A. 65-1,178 through 65-1,198, and amendments thereto, or pursuant to the amendments made by this act to K.S.A. 65-171d, and amendments thereto; and (B) are not required because of expansion for which a permit has not been issued or applied for before the effective date of this act.

(b) There shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act an amount equal to not more than 50% of the costs incurred by the taxpayer for required improvements to a qualified swine facility. The tax credit allowed by this subsection shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the taxpayer may carry over the amount thereof that exceeds such tax liability for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the year in which the costs are incurred.

(c) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1997.

(d) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 1998, ch. 143, § 28; L. 2012, ch. 135, § 24; January 1, 2013.

§§ 79-32,205 Earned income tax credit

(a) There shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to 18% for tax years 2010 through 2012, and an amount equal to 17% for tax year 2013, and all tax years thereafter, of the amount of the earned income credit allowed against such taxpayer's federal income tax liability pursuant to section 32 of the federal internal revenue code for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability.

(b) If the amount of the credit allowed by subsection (a) exceeds the taxpayer's income tax liability imposed under the Kansas income tax act, such excess amount shall be refunded to the taxpayer.

History: L. 1998, ch. 130, § 22; L. 2002, ch. 185, § 38; L. 2007, ch. 154, § 4; L. 2010, ch. 160, § 10; July 1.

§§ 79-32,206 Credit for property tax paid on commercial and industrial machinery and equipment

For all taxable years commencing after December 31, 2001, and before January 1, 2012, there shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act, the premiums tax upon insurance companies imposed pursuant to K.S.A. 40-252, and amendments thereto, and the privilege tax as measured by net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, an amount equal to 15% of the property tax levied for property tax years 2002, 2003 and 2004, 20% of the property tax levied for property tax years 2005 and 2006, and 25% of the property tax levied for property tax year 2007, and all such years thereafter, actually and timely paid during an income or privilege taxable year upon commercial and industrial machinery and equipment classified for property taxation purposes pursuant to section 1 of article 11 of the Kansas constitution in subclass (5) or (6) of class 2, machinery and equipment classified for such purposes in subclass (2) of class 2. For all taxable years commencing after December 31, 2004, and before January 1, 2012, there shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act an amount equal to 20% of the property tax levied for property tax years 2005 and 2006, and 25% of the property tax levied for property tax year 2007 and all such years thereafter, actually and timely paid during an income taxable year upon railroad machinery and equipment classified for property tax purposes pursuant to section 1 of article 11 of the Kansas constitution in subclass (3) of class 2. If the amount of such tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount thereof which exceeds such tax liability shall be refunded to the taxpayer. If the taxpayer is a corporation having an election in effect under subchapter S of the federal internal revenue code, a partnership or a limited liability company, the credit provided by this section shall be claimed by the shareholders of such corporation, the partners of such partnership or the members of such limited liability company in the same manner as such shareholders, partners or members account for their proportionate shares of the income or loss of the corporation, partnership or limited liability company. The secretary of revenue shall adopt rules and regulations regarding the filing of documents that support the amount of credit claimed pursuant to this section.

History: L. 1998, ch. 130, § 23; L. 2002, ch. 185, § 11; L. 2003, ch. 147, § 30; L. 2004, ch. 171, § 6; L. 2011, ch. 116, § 11; July 1.

§§ 79-32,207 Kansas income tax credit for corporations for plugging abandoned oil or gas well

(a) As used in this section, "abandoned oil or gas well" means an abandoned well, as defined by K.S.A. 55-191, and amendments thereto:

(1) The drilling of which was commenced before January 1, 1970; and

(2) which is located on land owned by the taxpayer claiming the tax credit allowed by this section.

(b) For any taxable year commencing after December 31, 2000, a credit shall be allowed against the tax imposed by the Kansas income tax act on the Kansas taxable income of a taxpayer for expenditures made for the purpose of plugging any abandoned oil or gas well in accordance with rules and regulations of the state corporation commission applicable thereto, in an amount equal to 50% of such expenditures made in the taxable year.

(c) If the amount of the tax credit allowed by this section exceeds the taxpayer's income tax liability for such taxable year, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability.

(d) The total amount of credits allowed taxpayers pursuant to this section, including the amount of credits carried over under subsection (c), shall not exceed $250,000 for any one fiscal year.

(e) The secretary of revenue shall adopt such rules and regulations as necessary to carry out the purposes of this section.

(f) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 1998, ch. 122, § 6; L. 2001, ch. 176, § 9; L. 2012, ch. 135, § 25; January 1, 2013.

§§ 79-32,208 Repealed

History: L. 1999, ch. 154, § 2; Repealed, L. 2000, ch. 184, § 33; January 1.

§§ 79-32,209 Federal innocent spouse rule conformity

In all cases where husband and wife file a joint Kansas income tax return and one spouse is relieved of liability under section 6013(e) or section 6015 of the federal internal revenue code, or would have otherwise been relieved of liability under either such section had there been a liability, such spouse shall be relieved of liability for tax, including interest and penalties, imposed under the Kansas income tax act for such taxable year.

History: L. 2000, ch. 184, § 6; July 1.

§§ 79-32,210 Kansas income tax credit for property tax paid by telecommunication companies which are corporations

(a) For all taxable years commencing after December 31, 2000, and with respect to property initially acquired and first placed into service in this state on and after January 1, 2001, there shall be allowed as a credit against the tax liability imposed by the Kansas income tax act of a telecommunications company, as defined in K.S.A. 79-3271, and amendments thereto, an amount equal to the difference between the property tax levied for property tax year 2001, and all such years thereafter, and actually and timely paid during the appropriate income taxable year upon property assessed at the 33% assessment rate and the property tax which would be levied and paid on such property if assessed at a 25% assessment rate.

(b) If the amount of the tax credit determined under subsection (a) exceeds the tax liability for the telecommunications company for any taxable year, the amount thereof which exceeds such tax liability shall be refunded to the telecommunications company. If the telecommunications company is a corporation having an election in effect under subchapter S of the federal internal revenue code, a partnership or a limited liability company, the credit provided by this section shall be claimed by the shareholders of such corporation, the partners of such partnership or the members of such limited liability company in the same manner as such shareholders, partners or members account for their proportionate shares of income or loss of the corporation, partnership or limited liability company.

(c) As used in this section, the term "acquired" shall not include the transfer of property pursuant to an exchange for stock securities, or the transfer of assets of one business entity to another due to a merger or other consolidation.

(d) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 2000, ch. 184, § 30; L. 2012, ch. 135, § 26; January 1, 2013.

§§ 79-32,211 Credit against tax for certain historic structure rehabilitation expenditures; limitations; definitions; sale or assignment; rules and regulations; application against tax delinquencies

(a) For all taxable years commencing after December 31, 2006, there shall be allowed a tax credit against the income, privilege or premium tax liability imposed upon a taxpayer pursuant to the Kansas income tax act, the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premiums tax and privilege fees imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, in an amount equal to:

(1) 25% of qualified expenditures incurred in the restoration and preservation of a qualified historic structure located in a city with a population of more than 50,000 pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of such expenditures equals at least $5,000 and less than $50,000;

(2) 40% of the qualified expenditures incurred in the restoration and preservation of a qualified historic structure located in a city with a population of more than 50,000 pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of such expenditures equals $50,000 or more;

(3) 40% of the qualified expenditures incurred in the restoration and preservation of a qualified historic structure located in a city, township or unincorporated area with a population of 50,000 or less pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of such expenditures equals $5,000 or more; or

(4) 40% of qualified expenditures incurred in the restoration and preservation of a qualified historic structure which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code and which is not income producing pursuant to a qualified rehabilitation plan by a qualified taxpayer if the total amount of such expenditures equals $5,000 or more.

(b) If the amount of such tax credit exceeds the qualified taxpayer's income, privilege or premium tax liability for the year in which the qualified rehabilitation plan was placed in service, as defined by section 47(b)(1) of the federal internal revenue code and federal regulation section 1.48-12(f)(2), such excess amount may be carried over for deduction from such taxpayer's income, privilege or premium tax liability in the next succeeding year or years until the total amount of the credit has been deducted from tax liability, except that no such credit shall be carried over for deduction after the 10th taxable year succeeding the taxable year in which the qualified rehabilitation plan was placed in service.

(c) Any bank, savings and loan association or savings bank shall pay taxes on 50% of the interest earned on loans to qualified taxpayers used for qualified expenditures for the restoration and preservation of a qualified historic structure.

(d) As used in this section, unless the context clearly indicates otherwise:

(1) "Qualified expenditures" means the costs and expenses incurred by a qualified taxpayer in the restoration and preservation of a qualified historic structure pursuant to a qualified rehabilitation plan which are defined as a qualified rehabilitation expenditure by section 47(c)(2) of the federal internal revenue code;

(2) "qualified historic structure" means any building, whether or not income producing, which is defined as a certified historic structure by section 47(c)(3) of the federal internal revenue code, is individually listed on the register of Kansas historic places, or is located and contributes to a district listed on the register of Kansas historic places;

(3) "qualified rehabilitation plan" means a project which is approved by the cultural resources division of the state historical society, or by a local government certified by the division to so approve, as being consistent with the standards for rehabilitation and guidelines for rehabilitation of historic buildings as adopted by the federal secretary of interior and in effect on the effective date of this act. The society shall adopt rules and regulations providing application and approval procedures necessary to effectively and efficiently provide compliance with this act, and may collect fees in order to defray its approval costs in accordance with rules and regulations adopted therefor; and

(4) "qualified taxpayer" means the owner of the qualified historic structure or any other person who may qualify for the federal rehabilitation credit allowed by section 47 of the federal internal revenue code.

If the taxpayer is a corporation having an election in effect under subchapter S of the federal internal revenue code, a partnership or a limited liability company, the credit provided by this section shall be claimed by the shareholders of such corporation, the partners of such partnership or the members of such limited liability company in the same manner as such shareholders, partners or members account for their proportionate shares of the income or loss of the corporation, partnership or limited liability company, or as the corporation, partnership or limited liability company mutually agree as provided in the bylaws or other executed agreement. Credits granted to a partnership, a limited liability company taxed as a partnership or other multiple owners of property shall be passed through to the partners, members or owners respectively pro rata or pursuant to an executed agreement among the partners, members or owners documenting any alternate distribution method.

(e) Any person, hereinafter designated the assignor, may sell, assign, convey or otherwise transfer tax credits allowed and earned pursuant to subsection (a). The taxpayer acquiring credits, hereinafter designated the assignee, may use the amount of the acquired credits to offset up to 100% of such assignee's income, privilege or premiums tax liability for either the taxable year in which the qualified rehabilitation plan was first placed into service or the taxable year in which such acquisition was made. Unused credit amounts claimed by the assignee may be carried forward for up to five years, except that all such amounts shall be claimed within 10 years following the tax year in which the qualified rehabilitation plan was first placed into service. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement and shall perfect such transfer by notifying the cultural resources division of the state historical society in writing within 90 calendar days following the effective date of the transfer and shall provide any information as may be required by such division to administer and carry out the provisions of this section. The amount received by the assignor of such tax credit shall be taxable as income of the assignor, and the excess of the value of such credit over the amount paid by the assignee for such credit shall be taxable as income of the assignee.

(f) The executive director of the state historical society may adopt rules and regulations as necessary for the efficient and effective administration of the provisions of this section.

(g) The amendments made to this section by this act related to tax credit amounts shall apply to qualified rehabilitation plans placed into service on or after July 1, 2025.

(h) Before the issuance of a tax credit pursuant to this section, the department of revenue may verify that the qualified taxpayer does not owe any delinquent income, privilege, premium, sales or compensating use taxes, or interest, additions or penalties on such taxes to the state. Such delinquency shall not affect the issuance of a tax credit, except that the amount of credits issued shall be reduced by the qualified taxpayer's tax delinquency. After applying all available credits towards the qualified taxpayer's tax delinquency, the department of revenue shall reduce the amount of outstanding delinquent tax owed by the qualified taxpayer. If any credits remain after satisfying all income, privilege, premium, sales or compensating use tax delinquencies, the remaining credits shall be issued to the qualified taxpayer. Once a tax credit is issued, the amount of credits evidenced by the tax credit shall not be subject to reduction, recapture, disallowance or voidability.

History: L. 2001, ch. 108, § 1; L. 2002, ch. 185, § 31; L. 2007, ch. 156, § 3; L. 2009, ch. 142, § 6; L. 2010, ch. 123, § 4; L. 2022, ch. 85, § 24; L. 2025, ch. 77, § 1; July 1.

§§ 79-32,211a Expired

History: L. 2007, ch. 156, § 1; Expired, June 30, 2012.

§§ 79-32,211b Historic Kansas act; citation

K.S.A. 79-32,211, and amendments thereto, and K.S.A. 2025 Supp. 79-32,211b and 79-32,211c, and amendments thereto, shall be known as and may be cited as the historic Kansas act.

History: L. 2022, ch. 85, § 13; July 1.

§§ 79-32,211c Credit for restoration and preservation of commercial structure at least 50 years old; amount of credit; limitations; requirements; rules and regulations

(a) For all taxable years commencing after December 31, 2021, there shall be allowed a tax credit against the income, privilege or premium tax liability imposed upon a taxpayer pursuant to the Kansas income tax act, the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premiums tax and privilege fees imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, in an amount equal to 10% of costs and expenses incurred for the restoration and preservation of a commercial structure at least 50 years old that does not receive tax credits pursuant to K.S.A. 79-32,211, and amendments thereto. An additional tax credit of 10% of the costs and expenses may be allowed for the installation of fire suppression materials or equipment by a taxpayer. The total amount of such costs and expenses shall be at least $25,000 but shall not exceed $500,000. If the amount of such tax credit exceeds the taxpayer's income, privilege or premium tax liability for the year in which the rehabilitation was completed, such excess amount may be carried over for deduction from such taxpayer's income, privilege or premium tax liability in the next succeeding year or years until the total amount of the credit has been deducted from tax liability, except that no such credit shall be carried over for deduction after the 10th taxable year succeeding the taxable year in which the rehabilitation plan was placed in service.

(b) Any bank, savings and loan association or savings bank shall pay taxes on 50% of the interest earned on loans to taxpayers used for costs and expenses for the restoration and preservation of a commercial structure at least 50 years old or for the installation of fire suppression materials or equipment.

(c) If the taxpayer is a corporation having an election in effect under subchapter S of the federal internal revenue code, a partnership or a limited liability company, the credit provided by this section shall be claimed by the shareholders of such corporation, the partners of such partnership or the members of such limited liability company in the same manner as such shareholders, partners or members account for their proportionate shares of the income or loss of the corporation, partnership or limited liability company, or as the corporation, partnership or limited liability company mutually agree as provided in the bylaws or other executed agreement. Credits granted to a partnership, a limited liability company taxed as a partnership or other multiple owners of property shall be passed through to the partners, members or owners respectively pro rata or pursuant to an executed agreement among the partners, members or owners documenting any alternate distribution method.

(d) Any person, hereinafter designated the assignor, may sell, assign, convey or otherwise transfer tax credits allowed and earned pursuant to subsection (a). The taxpayer acquiring credits, hereinafter designated the assignee, may use the amount of the acquired credits to offset up to 100% of the assignee's income, privilege or premium tax liability for either the taxable year in which the costs and expenses were made. Unused credit amounts claimed by the assignee may be carried forward for up to five years, except that all such amounts shall be claimed within 10 years following the tax year in which the costs and expenses were made. The assignor shall enter into a written agreement with the assignee establishing the terms and conditions of the agreement.

(e) No person claiming a tax credit under this section may claim a tax credit for the same structure under K.S.A. 79-32,211, and amendments thereto.

(f) The aggregate amount of tax credits that may be claimed under this section shall not exceed $10,000,000 each tax year.

(g) The director of taxation may adopt rules and regulations as necessary for the efficient and effective administration of the provisions of this section.

History: L. 2022, ch. 85, § 14; July 1.

§§ 79-32,212 Kansas income tax credit for single city port authority

(a) For taxable years 2002 through 2029, there shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act, an amount equal to 100% of the amount attributable to the retirement of indebtedness authorized by a single city port authority established before January 1, 2002. In no event shall the total amount of the credits allowed under this section exceed $500,000 for any one fiscal year.

(b) Upon certification by the secretary of revenue of the amount of any such credit, the director of accounts and reports shall issue to such taxpayer a warrant for such amount which shall be deemed to be a capital contribution.

(c) For tax years 2013 through 2021, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

(d) For tax years 2022 through 2029, the income tax credit provided by this section shall be available to all taxpayers subject to the income tax imposed pursuant to K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's income tax liability.

History: L. 2002, ch. 109, § 1; L. 2012, ch. 135, § 27; L. 2021, ch. 101, § 14; L. 2024, ch. 81, § 19; July 1.

§§ 79-32,213 Repealed

History: L. 2002, ch. 85, § 2; L. 2006, ch. 104, § 1; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,214 Amended returns to be filed by taxpayers receiving certain refund of property taxes

Notwithstanding the statute of limitations provisions in K.S.A. 79-3230, and amendments thereto, any taxpayer receiving a refund of property taxes pursuant to K.S.A. 79-1705, after having claimed any income tax business expense deductions or income tax credits with respect to any amount of such refunded property taxes, shall file amended returns for any tax years in which such deductions or credits were claimed. Such taxpayer shall be liable for any additional income tax owed on such amended returns. Nothing in this section shall allow the filing of an amended return for any purpose other than that specifically provided for in this section.

History: L. 2005, ch. 199, § 4; May 19.

§§ 79-32,215 Credit for business firms paying salary to teachers employed pursuant to a partnership agreement with school district

(a) For taxable years 2005, 2006 and 2007, any business firm which has entered into a partnership agreement pursuant to subsection (f) shall be allowed a credit against the income tax imposed by the Kansas income tax act as follows:

(1) An amount equal to 25% of the amount paid during the taxable year by such business firm to teachers as salary pursuant to the partnership agreement; or

(2) an amount equal to 30% of the amount paid during the taxable year by such business firm to teachers as salary pursuant to the partnership agreement if the teacher is teaching in a school district located in a rural community, underserved area, or underperforming urban area.

(b) In no event shall the total amount of credits allowed under this section exceed $500,000 for any one fiscal year, and of that amount, except as otherwise provided, no more than $125,000 of credits shall be allowed for business firms located in any one congressional district per fiscal year. The secretary of revenue shall establish by the adoption of rules and regulations a procedure to allow reallocation of unused tax credits by one congressional district to a congressional district which has or will use all of its allocated tax credits in that fiscal year and has additional tax credit allowance requests pending. The secretary of revenue shall approve all such credits in advance on a first-come, first-serve basis pursuant to subsection (d). No credit shall be allowed pursuant to this section to a business firm that enters into a partnership agreement with a school district in which the teacher employed by the business firm is a household or family member of any owner, director, officer or employee of such business firm.

(c) The credit allowed by this section shall not exceed the amount of tax imposed under the Kansas income tax act reduced by the sum of any other credits allowable pursuant to law. Such credit shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. The taxpayer shall not be allowed to carry over any amount of such credit exceeding the taxpayer's income tax liability. No credit shall be allowed pursuant to this section to a business firm that enters into a partnership agreement with a school district in which the teacher employed by the business firm is a household or family member of any owner, director, officer or employee of such business firm.

(d) Prior to a business firm claiming this tax credit, the secretary of revenue shall require each business firm to submit for approval the following information on forms as prescribed by the secretary: (1) Each partnership agreement; (2) the salary amount paid to each teacher during the taxable year by such business firm pursuant to such partnership agreement and for which the tax credit is sought; and (3) such further information as the secretary may require to administer this provision.

(e) As used in this section:

(1) "Business firm" means any business entity authorized to do business in the state of Kansas which is subject to the state income tax imposed by the provisions of the Kansas income tax act and any individual subject to the state income tax imposed by the provisions of the Kansas income tax act.

(2) "Underserved area" shall have the meaning ascribed thereto by K.S.A. 74-32,101, and amendments thereto.

(3) "Teacher" means a person who holds a certificate to teach in Kansas with an endorsement in the areas of mathematics, science, physics, chemistry or biology and has entered into a partnership agreement.

(4) "Partnership agreement" means an agreement entered into pursuant to subsection (f). Such agreement shall contain a description of the duties of the position the teacher shall be performing, sufficient to establish that such position satisfies the criteria set forth in subsection (f).

(5) "Rural community" shall have the meaning ascribed thereto by K.S.A. 79-32,195, and amendments thereto.

(6) "Underperforming urban area" means an area of the state in which low academic performance by pupils in school districts in such area as determined and specified by the state board of education.

(f) The board of education of any school district, teacher and business firm may enter a partnership agreement under which such business firm agrees to employ such teacher in a position that requires mathematics or science skills commensurate with the classes that the teacher regularly teaches during the times in which school is not regularly in session. If a teacher entering into a partnership agreement voluntarily leaves the employ of the school district to be employed by the business firm during the term of the agreement or within one year after the agreement is completed or terminated, the business firm shall repay to the state all credits claimed pursuant to this section. Such payment shall be due as part of the tax liability of the business entity for the tax year in which the teacher is no longer employed by the school district.

History: L. 2005, ch. 129, § 1; L. 2013, ch. 134, § 27; July 1.

§§ 79-32,216 Citation of act

This act[*] shall be known and may be cited as the Kansas energy development act.

History: L. 2006, ch. 209, § 40; July 1.

§§ 79-32,217 Refineries; credit for certain investments; definitions

As used in K.S.A. 79-32,217 through 79-32,220, and amendments thereto:

(a) "Expansion of an existing refinery" means expansion which begins after December 31, 2005, of the capacity of an existing refinery by at least 10% of such capacity.

(b) "New refinery" means a refinery, construction of which begins after December 31, 2005.

(c) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; or (4) limited liability partnership.

(d) "Qualified investment" means expenditures made in construction of a new refinery, expansion of an existing refinery or restoration of production of a refinery, for real and tangible personal property incorporated in and used as part of such refinery.

(e) "Refinery" means an industrial process plant, located in this state, where crude oil is processed and refined into petroleum products.

(f) "Restoration of production of a refinery" means restoration which begins after December 31, 2005, of production of a refinery which has been out of production for five or more years.

History: L. 2006, ch. 209, § 1; July 1.

§§ 79-32,218 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2005, and before January 1, 2011, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $250,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $250,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new refinery, the expansion of an existing refinery or the restoration of production of a refinery as provided in this section.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the refinery project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year and (D) a requirement that the taxpayer shall maintain operation of the new, expanded or restored refinery for at least 10 years during the term that the tax credit is available.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such determination of compliance shall include, but not be limited to, operation of the new, expanded or restored refinery during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2006, ch. 209, § 2; L. 2007, ch. 113, § 24; July 1.

§§ 79-32,219 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If a refinery is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,218, and amendments thereto, with respect to the total qualified investment in such refinery multiplied by the co-owner's percentage of ownership in such refinery.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new refinery, the expansion of an existing refinery or the restoration of production of a refinery which has been out of production for five or more years.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2006, ch. 209, § 3; July 1.

§§ 79-32,220 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,218, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2006, ch. 209, § 4; July 1.

§§ 79-32,221 Same; accelerated depreciation, deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,217 through 79-32,220, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a new refinery, an expansion of an existing refinery or restoration of production of a refinery which has been out of production for five or more years based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such new refinery, such expansion of an existing refinery or such restoration of production of a refinery for the first taxable year in which such refinery, such expansion of an existing refinery or such restoration of production of a refinery is in production and 5% of the amortizable costs of such new refinery, such expansion of an existing refinery or such restoration of production of a refinery for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, terms have the meanings provided by K.S.A. 79-32,217, and amendments thereto.

History: L. 2006, ch. 209, § 5; July 1.

§§ 79-32,222 Same; credit for certain environmental compliance expenditures

(a) As used in this section:

(1) "Refinery" has the meaning provided by K.S.A. 79-32,217, and amendments thereto.

(2) "Qualified expenditures" means expenditures which the secretary of health and environment certifies to the director of taxation are required for an existing refinery to comply with environmental standards or requirements established pursuant to federal statute or regulation, or state statute or rules and regulation, adopted after December 31, 2006.

(b) There shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act an amount equal to the taxpayer's qualified expenditures. The tax credit allowed by this subsection shall be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such taxable year, the taxpayer may carry over the amount thereof that exceeds such tax liability for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth taxable year succeeding the year in which the costs are incurred.

(c) (1) To qualify the expenditures of the tax credit allowed by this section, a taxpayer shall apply to the secretary of health and environment for a certification that the costs were incurred to comply with environmental standards or requirements as specified in subsection (a). The secretary shall prescribe the form of the application, which shall include, but not be limited to, the following information: (A) A detailed description of the refinery project that is the subject of the expenditure; (B) a citation to the applicable federal or state statutes, regulations or rules and regulations which require the environmental compliance; (C) a detailed accounting of the costs incurred for the environmental compliance; and (D) a certification by a responsible official that, based on information and belief formed after reasonable inquiry, the statements and information in the application are true, accurate and complete.

(2) If the secretary of health and environment determines that the expenditures were incurred to comply with environmental standards or requirements as specified in subsection (a), the secretary shall issue a certificate of compliance to the director of taxation.

(3) The secretary of health and environment may adopt rules and regulations to administer the provisions of this subsection, including rules and regulations to fix, charge and collect an application fee to cover all or any part of the department of health and environment's cost of certifying the taxpayer's qualified expenditures under this subsection.

(d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 2006.

(e) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.

History: L. 2006, ch. 209, § 6; L. 2012, ch. 135, § 28; January 1, 2013.

§§ 79-32,223 Crude oil or natural gas pipelines; credits for certain investments; definitions

As used in K.S.A. 79-32,223 through 79-32,226, and amendments thereto:

(a) "New qualifying pipeline" means a qualifying pipeline, construction of which begins after December 31, 2005.

(b) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; or (4) limited liability partnership.

(c) "Qualified investment" means expenditures made in construction of a new qualifying pipeline for real and tangible personal property incorporated in and used as part of such pipeline.

(d) "Qualifying pipeline" means a pipeline which is located in this state, is used primarily for transportation of crude oil or natural gas liquids and has a length of more than 190 miles in this state and to which refineries or natural gas liquid processing facilities in this state have access.

History: L. 2006, ch. 209, § 7; July 1.

§§ 79-32,224 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2005, and before January 1, 2011, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $250,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $250,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new qualifying pipeline.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the qualifying pipeline project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year and (D) a requirement that the taxpayer shall maintain operation of the new qualifying pipeline for at least 10 years during the term that the tax credit is available.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such agreement shall include, but not be limited to, operation of the new qualifying pipeline during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2006, ch. 209, § 8; L. 2007, ch. 113, § 25; July 1.

§§ 79-32,225 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If a new qualifying pipeline is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,224, and amendments thereto, with respect to the total qualified investment in such pipeline multiplied by the co-owner's percentage of ownership in such pipeline.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new qualifying pipeline.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2006, ch. 209, § 9; July 1.

§§ 79-32,226 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,224, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2006, ch. 209, § 10; July 1.

§§ 79-32,227 Same; accelerated depreciation, deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,223 through 79-32,226, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a new qualifying pipeline based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such new qualifying pipeline for the first taxable year in which such new qualifying pipeline is in production and 5% of the amortizable costs of such new qualifying pipeline for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, terms have the meanings provided by K.S.A. 79-32,223, and amendments thereto.

History: L. 2006, ch. 209, § 11; July 1.

§§ 79-32,228 Integrated coal or coke gasification nitrogen fertilizer plants; credits for certain investments; definitions

As used in K.S.A. 79-32,228 through 79-32,231, and amendments thereto:

(a) "Expansion of an existing coal or coke gasification nitrogen fertilizer plant" means expansion which begins after December 31, 2005, of the capacity of an existing coal or coke gasification nitrogen fertilizer plant by at least 20% of such capacity.

(b) "Integrated coal or coke gasification nitrogen fertilizer plant" means a facility which: (1) Is located in Kansas, (2) converts coal or petroleum coke into synthesis gas and (3) uses the synthesis gas to produce nitrogen fertilizer.

(c) "Kansas coal" means coal from a mine whose coal deposits are located in the ground wholly or partially in Kansas regardless of the location of the mine's tipple.

(d) "New coal or coke gasification nitrogen fertilizer plant" means a coal or coke gasification nitrogen fertilizer plant, construction of which begins after December 31, 2005.

(e) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; or (4) limited liability partnership.

(f) "Qualified investment" means expenditures made in construction of a new integrated coal or coke gasification nitrogen fertilizer plant or expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant, for real and tangible personal property incorporated in and used as part of such plant.

History: L. 2006, ch. 209, § 12; July 1.

§§ 79-32,229 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2005, and before January 1, 2011, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $250,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $250,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new integrated coal or coke gasification nitrogen fertilizer plant or the expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the nitrogen fertilizer plant project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year, (D) a requirement that the taxpayer shall maintain operation of the new or expanded nitrogen fertilizer plant for at least 10 years during the term that the tax credit is available and (E) if the taxpayer's nitrogen fertilizer plant uses a coal gasification process, a requirement that the taxpayer shall use at the taxpayer's integrated coal gasification nitrogen fertilizer plant in any taxable year for which an annual installment of the credit is allowed that percentage of Kansas coal which the secretary determines practicable, based on availability and cost of Kansas coal, in such year.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such determination of compliance shall include, but not be limited to, operation of the new or expanded integrated coal or coke gasification nitrogen fertilizer plant during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2006, ch. 209, § 13; L. 2007, ch. 113, § 26; July 1.

§§ 79-32,230 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If an integrated coal or coke gasification nitrogen fertilizer plant is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,229, and amendments thereto, with respect to the total qualified investment in such plant multiplied by the co-owner's percentage of ownership in such plant.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new coal or coke gasification nitrogen fertilizer plant or the expansion of the existing coal or coke gasification nitrogen fertilizer plant.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2006, ch. 209, § 14; July 1.

§§ 79-32,231 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,229, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2006, ch. 209, § 15; July 1.

§§ 79-32,232 Same; accelerated depreciation, deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,228 through 79-32,231, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a new integrated coal or coke gasification nitrogen fertilizer plant or an expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such new plant or expansion of an existing plant for the first taxable year in which such plant or expansion of an existing plant is in production and 5% of the amortizable costs of such new plant or expansion of an existing plant for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, terms have the meanings provided by K.S.A. 79-32,228, and amendments thereto.

History: L. 2006, ch. 209, § 16; July 1.

§§ 79-32,233 Biomass-to-energy plants; credits for certain investments; definitions

As used in K.S.A. 79-32,233 through 79-32,236, and amendments thereto:

(a) "Biomass" means any organic matter available on a renewable or recurring basis, including solid and liquid organic waste, but excluding: (1) Petroleum oil, natural gas, coal and lignite, and any products thereof; and (2) corn or grain sorghum suitable for human consumption.

(b) "Biomass-to-energy plant" means an industrial process plant, located in this state, where biomass is processed to produce annually any of the following, and coproducts: (1) Not less than 500,000 gallons of cellulosic alcohol; (2) liquid or gaseous fuel or energy in a quantity having BTU value equal to or greater than 500,000 gallons of cellulosic alcohol; or (3) oil produced for direct conversion into fuel in a quantity having BTU value equal to or greater than 500,000 gallons of cellulosic alcohol.

(c) "Expansion of an existing biomass-to-energy plant" means expansion which begins after December 31, 2005, of the capacity of an existing biomass-to-energy plant by at least 10% of such capacity.

(d) "New biomass-to-energy plant" means a biomass-to-energy plant, construction of which begins after December 31, 2005.

(e) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; or (4) limited liability partnership.

(f) "Qualified investment" means expenditures made in construction of a new biomass-to-energy plant or in expansion of the capacity of an existing biomass-to-energy plant, for real and tangible personal property incorporated in and used as part of such plant.

History: L. 2006, ch. 209, § 17; L. 2007, ch. 113, § 27; July 1.

§§ 79-32,234 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2005, and before January 1, 2011, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $250,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $250,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new biomass-to-energy plant or the expansion of an existing biomass-to-energy plant.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the biomass-to-energy plant project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year and (D) a requirement that the taxpayer shall maintain operation of the new or expanded biomass-to-energy plant for at least 10 years during the term that the tax credit is available.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such determination of compliance shall include, but not be limited to, operation of the new or expanded biomass-to-energy plant during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer this subsection.

History: L. 2006, ch. 209, § 18; L. 2007, ch. 113, § 28; July 1.

§§ 79-32,235 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If a biomass-to-energy plant is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,234, and amendments thereto, with respect to the total qualified investment in such plant multiplied by the co-owner's percentage of ownership in such plant.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new biomass-to-energy plant or the expansion of an existing biomass-to-energy plant.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2006, ch. 209, § 19; L. 2007, ch. 113, § 29; July 1.

§§ 79-32,236 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,234, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2006, ch. 209, § 20; July 1.

§§ 79-32,237 Same; accelerated depreciation, deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,233 through 79-32,236, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a new biomass-to-energy plant or an expansion of an existing biomass-to-energy plant based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such new plant or expansion of an existing plant for the first taxable year in which such new plant or expansion of an existing plant is in production and 5% of the amortizable costs of such new plant or expansion of an existing plant for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2005.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, terms have the meanings provided by K.S.A. 79-32,233, and amendments thereto.

History: L. 2006, ch. 209, § 21; L. 2007, ch. 113, § 30; July 1.

§§ 79-32,238 Integrated coal gasification power plants; credits for certain investments; definitions

As used in K.S.A. 79-32,238 through 79-32,241, and amendments thereto:

(a) "Commission" means the state corporation commission.

(b) "Expansion of an existing integrated coal gasification power plant" means expansion which begins after December 31, 2005, of the capacity of an existing integrated coal gasification power plant by at least 10% of such capacity.

(c) "Integrated coal gasification power plant" means a facility which: (1) Is located in Kansas, (2) converts coal into synthesis gas that can be used as a fuel to generate energy and (3) uses the synthesis gas as a fuel to generate electric energy.

(d) "Kansas coal" means coal from a mine whose coal deposits are located in the ground wholly or partially in Kansas regardless of the location of the mine's tipple.

(e) "New integrated coal gasification power plant" means an integrated coal gasification power plant, construction of which begins after December 31, 2005.

(f) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; (4) limited liability partnership; (5) corporation organized under the electric cooperative act; or (6) nonstock member-owned electric cooperative corporation incorporated in this state.

(g) "Qualified investment" means expenditures made in construction of a new integrated coal gasification power plant or in expansion of an existing integrated coal gasification power plant, for real and tangible personal property incorporated in and used as part of such plant.

History: L. 2006, ch. 209, § 22; July 1.

§§ 79-32,239 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2005, and before January 1, 2011, any taxpayer who is awarded a tax credit under this act by the commission and complies with the conditions set forth in this act and the agreement entered into by the commission and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $250,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $250,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new integrated coal gasification power plant or the expansion of an existing integrated coal gasification power plant.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the commission to enter into an agreement for a tax credit under this act. The commission shall prescribe the form of the application. After receipt of such application, the commission may enter into an agreement with the applicant for a credit under this act if the commission determines that the taxpayer's proposed investment satisfies the requirements of this act. The commission shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the power plant project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year, (D) a requirement that the taxpayer shall maintain operation of the new or expanded power plant for at least 10 years during the term that the tax credit is available, (E) a requirement that the taxpayer shall use at the taxpayer's integrated coal gasification power plant in any taxable year for which an annual installment of the credit is allowed that percentage of Kansas coal which the commission determines is prudent, based on availability and cost of Kansas coal, in such year and (F) a requirement that the taxpayer obtain from the commission a determination that the public necessity and convenience require, or will require, construction of the taxpayer's integrated coal gasification power plant.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The commission, in accordance with rules and regulations of the commission, shall annually determine whether the taxpayer is in compliance with the agreement. Such determination of compliance shall include, but not be limited to, operation of the new or expanded integrated coal gasification power plant during the tax years when any installments of tax credits are claimed by the taxpayer. If the commission determines that the taxpayer is in compliance, the commission shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The state corporation commission may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2006, ch. 209, § 23; L. 2007, ch. 113, § 31; July 1.

§§ 79-32,240 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If an integrated coal gasification power plant is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,239, and amendments thereto, with respect to the total qualified investment in such plant multiplied by the co-owner's percentage of ownership in such plant.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new integrated coal gasification power plant or the expansion of an existing integrated coal gasification power plant.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2006, ch. 209, § 24; July 1.

§§ 79-32,241 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the commission pursuant to K.S.A. 79-32,239, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2006, ch. 209, § 25; July 1.

§§ 79-32,242 Repealed

History: L. 2006, ch. 170, § 22; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§§ 79-32,243 Information required by taxpayer to claim income tax credits

(a) For tax years commencing after December 31, 2005, any taxpayer claiming credits pursuant to K.S.A. 74-50,132, 79-32,153 or 79-32,160a, and amendments thereto, as a condition for claiming and qualifying for such credits, shall provide the following information as part of the tax return, in which such credits are claimed, which shall be used by the department of revenue in evaluating the effectiveness of such tax credit programs, pursuant to K.S.A. 74-99b35, and amendments thereto:

(1) Actual jobs created as a direct result of the expenditures on which such credit claim is based, if the taxpayer has previously submitted an estimate of such number of actual jobs created to the department of commerce as a part of applying for certification for such program participation;

(2) additional payroll generated as a direct result of the expenditures on which such credit claim is based, if the taxpayer has previously submitted an estimate of such amount of additional payroll generated to the department of commerce as a part of applying for certification for such program participation;

(3) actual jobs retained as a direct result of the expenditures on which such credit claim is based, if the taxpayer has previously submitted an estimate of actual jobs retained to the department of commerce as a part of applying for certification for such program participation;

(4) additional revenue generated as a direct result of the expenditures on which such credit claim is based, if the taxpayer has previously submitted an estimate of such amount of additional revenue generated to the department of commerce as a part of applying for certification for such program participation;

(5) additional sales generated as a direct result of the expenditures on which such credit claim is based, if the taxpayer has previously submitted an estimate of additional sales generated to the department of commerce as a part of applying for certification for program participation;

(6) total employment and payroll at the end of the tax year in which the credits are claimed; and

(7) such further information as shall be required by the secretary of revenue.

(b) Such credits specified in subsection (a) shall not be denied solely on the basis of the information provided by the taxpayer pursuant to subsections (a)(1) through (a)(7).

History: L. 2006, ch. 203, § 3; L. 2010, ch. 144, § 11; July 1.

§§ 79-32,244 Credit for compensation paid by employers to employees who are members of national guard and reserved forces

(a) For taxable years 2006, 2007 and 2008, an employer who employs a member of the Kansas army and air national guard or a member of a Kansas unit of the reserved forces of the United States who was federally activated and deployed on or after August 7, 1990, that such employer did not employ prior to such activation and deployment and who is unemployed at the time of such employment shall be allowed a credit against the income tax imposed by the Kansas income tax act in an amount equal to 25% of the amount paid during the taxable year by such employer to such member as salary or compensation. Such credit shall not exceed $7,000 for each member employed by such employer. The credit provided in this section shall be limited to salary or compensation paid to such member for one year for each member employed by such employer.

(b) The credit allowed by this section shall not exceed the amount of tax imposed under the Kansas income tax act reduced by the sum of any other credits allowable pursuant to law. If the amount of the credit allowed by subsection (a) of this section exceeds the taxpayer's income tax liability imposed under the Kansas income tax act, such excess amount may be carried over for credit in the same manner in the succeeding taxable years until the total amount of such credit is used.

History: L. 2006, ch. 203, § 4; July 1.

§§ 79-32,245 Renewable electric cogeneration facilities; credits for certain investments; definitions

As used in K.S.A. 79-32,245 through 79-32,249, and amendments thereto:

(a) "New renewable electric cogeneration facility" means a renewable electric cogeneration facility which is located in this state and construction of which begins after December 31, 2006.

(b) "Pass-through entity" means any: (1) Corporation which is exempt from income tax under section 1363 of the federal internal revenue code and which complies with the requirements of K.S.A. 79-32,100e, and amendments thereto; (2) limited liability company; (3) partnership; or (4) limited liability partnership.

(c) "Qualified investment" means expenditures made in construction of a new renewable electric cogeneration facility, for real and tangible personal property incorporated in and used as part of such facility.

(d) "Renewable electric cogeneration facility" means a facility which generates electricity utilizing renewable energy resources or technologies, as defined in K.S.A. 79-201, and amendments thereto, and which is owned and operated by the owner of an industrial, commercial or agricultural process to generate electricity for use in such process to displace current or provide for future electricity use.

History: L. 2007, ch. 113, § 10; July 1.

§§ 79-32,246 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2006, and before January 1, 2012, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $50,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $50,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the new renewable electric cogeneration facility.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the renewable electric cogeneration facility project that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year and (D) a requirement that the taxpayer shall maintain operation of the new renewable electric cogeneration facility for at least 10 years during the term that the tax credit is available.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such agreement shall include, but not be limited to, operation of the new renewable electric cogeneration facility during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2007, ch. 113, § 11; July 1.

§§ 79-32,247 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If a new renewable electric cogeneration facility is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,246, and amendments thereto, with respect to the total qualified investment in such facility multiplied by the co-owner's percentage of ownership in such facility.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the new renewable electric cogeneration facility.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2007, ch. 113, § 12; July 1.

§§ 79-32,248 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,246, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2007, ch. 113, § 13; July 1.

§§ 79-32,249 Same; accelerated depreciation, deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,245 through 79-32,248, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a new renewable electric cogeneration facility based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such new renewable electric cogeneration facility for the first taxable year in which such new renewable electric cogeneration facility is in production and 5% of the amortizable costs of such new renewable electric cogeneration facility for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

History: L. 2007, ch. 113, § 14; July 1.

§§ 79-32,250 Waste heat utilization system at electric generation facility; accelerated depreciation, deduction

(a) A taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of a waste heat utilization system based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such system for the first taxable year in which such system is in operation and 5% of the amortizable costs of such system for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, "waste heat utilization system" has the meaning provided by K.S.A. 74-8949d, and amendments thereto.

History: L. 2007, ch. 113, § 18; July 1.

§§ 79-32,251 Biofuel storage and blending equipment; credits for certain investments; definitions

As used in K.S.A. 79-32,251 through 79-32,255, and amendments thereto:

(a) "Biofuel" means fuel made from organic matter, including solid and liquid organic waste, but excluding fuel made from oil, natural gas, coal or lignite, or any product thereof.

(b) "Fuel terminal" means a fuel storage and distribution facility which is supplied by motor vehicle, pipeline or marine vessel and from which motor fuels may be removed at a rack. "Fuel terminal" does not include any facility at which motor fuel blend stocks and additives are used in the manufacture of products other than motor fuels and from which no motor fuels are removed.

(c) "Qualified investment" means expenditures made for purchase, construction or installation of storage and blending equipment.

(d) "Refinery" means an industrial process plant, located in this state, where crude oil is processed and refined into petroleum products.

(e) "Storage and blending equipment" means any equipment which is used for storing and blending petroleum-based fuel and biodiesel, ethanol or other biofuel and is installed at a fuel terminal, refinery or biofuel production plant. "Storage and blending equipment" does not include equipment used only for denaturing ethyl alcohol.

History: L. 2007, ch. 113, § 32; July 1.

§§ 79-32,252 Same; amount of credit; requirements

(a) For taxable years commencing after December 31, 2006, and before January 1, 2012, any taxpayer who is awarded a tax credit under this act by the secretary of commerce and complies with the conditions set forth in this act and the agreement entered into by the secretary and the taxpayer under this act shall be allowed a credit against the taxpayer's tax liability under the Kansas income tax act as provided in subsection (b). Expenditures used to qualify for this credit shall not be used to qualify for any other type of Kansas income tax credit.

(b) The amount of the credit to which a taxpayer is entitled shall be equal to the sum of: (1) An amount equal to 10% of the taxpayer's qualified investment for the first $10,000,000 invested and (2) an amount equal to 5% of the amount of the taxpayer's qualified investment that exceeds $10,000,000. Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the taxpayer places into service the storage and blending equipment.

(c) If the amount of an annual installment of a tax credit allowed under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the annual installment of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

(d) (1) Before making a qualified investment, a taxpayer shall apply to the secretary of commerce to enter into an agreement for a tax credit under this act. The secretary shall prescribe the form of the application. After receipt of such application, the secretary may enter into an agreement with the applicant for a credit under this act if the secretary determines that the taxpayer's proposed investment satisfies the requirements of this act. The secretary shall enter into an agreement with an applicant which is awarded a credit under this act. The agreement shall include: (A) A detailed description of the storage and blending equipment that is the subject of the agreement, (B) the first taxable year for which the credit may be claimed, (C) the maximum amount of tax credit that will be allowed for each taxable year and (D) a requirement that the taxpayer shall maintain operation of the equipment for at least 10 years during the term that the tax credit is available.

(2) A taxpayer must comply with the terms of the agreement described in subsection (d)(1) to receive an annual installment of the tax credit awarded under this act. The secretary of commerce, in accordance with rules and regulations of the secretary, shall annually determine whether the taxpayer is in compliance with the agreement. Such agreement shall include, but not be limited to, operation of the storage and blending equipment during the tax years when any installments of tax credits are claimed by the taxpayer. If the secretary determines that the taxpayer is in compliance, the secretary shall issue a certificate of compliance to the taxpayer. If the secretary determines that the taxpayer is not in compliance with the agreement, the secretary shall notify the taxpayer and the secretary of revenue of such determination of noncompliance, and any tax credits claimed pursuant to this section for any tax year shall be forfeited.

(3) The secretary of commerce may adopt rules and regulations to administer the provisions of this subsection.

History: L. 2007, ch. 113, § 33; July 1.

§§ 79-32,253 Same; pass-through entities

(a) If a qualified investment is made by or transferred to a pass-through entity and the credit allowed by this act for a taxable year is greater than the entity's tax liability against which the tax credit may be applied, a shareholder, partner or member of the entity is entitled to a tax credit equal to the tax credit determined for the entity for the taxable year in excess of the entity's tax liability under the Kansas income tax act for the taxable year multiplied by the percentage of the entity's distributive income to which the shareholder, partner or member is entitled.

(b) If the storage and blending equipment is co-owned by two or more taxpayers, the amount of the credit that may be allowed to a co-owner in a taxable year is equal to the tax credit determined under K.S.A. 79-32,252, and amendments thereto, with respect to the total qualified investment in such equipment multiplied by the co-owner's percentage of ownership in such equipment.

(c) Such credit shall be taken in 10 equal, annual installments, beginning with the year in which the entity places into service the storage and blending equipment.

(d) If the amount of an annual installment of a tax credit allowed a shareholder, partner, member or co-owner under this section exceeds the taxpayer's income tax liability for the taxable year in which the annual installment is allowed, the amount thereof which exceeds such tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 14th taxable year succeeding the taxable year in which the first annual installment is allowed.

History: L. 2007, ch. 113, § 34; July 1.

§§ 79-32,254 Same; claim for credit

To receive the credit awarded by this act, a taxpayer must claim the credit on the taxpayer's annual state income tax return or returns in the manner prescribed by the director of taxation. The taxpayer shall submit to the director a copy of the taxpayer's agreement for a tax credit entered into with the secretary of commerce pursuant to K.S.A. 79-32,252, and amendments thereto, and all information that the director determines necessary for the calculation of the credit provided by this act.

History: L. 2007, ch. 113, § 35; July 1.

§§ 79-32,255 Same; accelerated depreciation; deduction

(a) In addition to the income tax credit allowable pursuant to K.S.A. 79-32,251 through 79-32,254, and amendments thereto, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of storage and blending equipment based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such equipment for the first taxable year in which such equipment is in production and 5% of the amortizable costs of such equipment for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2006.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

History: L. 2007, ch. 113, § 36; July 1.

§§ 79-32,256 Carbon dioxide capture, sequestration or utilization machinery or equipment; accelerated depreciation, deduction

(a) A taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of carbon dioxide capture, sequestration or utilization machinery and equipment based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such machinery and equipment for the first taxable year in which such machinery and equipment are in operation and 5% of the amortizable costs of such machinery and equipment for each of the next nine taxable years.

(b) The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

(c) The provisions of this section shall apply to all taxable years commencing after December 31, 2007.

(d) The secretary of revenue shall adopt such rules and regulations as deemed necessary to carry out the provisions of this section.

(e) As used in this section, "carbon dioxide capture, sequestration or utilization machinery and equipment" means any machinery and equipment which is located in this state and is: (1) Used to capture carbon dioxide from industrial and other anthropogenic sources, or to convert such carbon dioxide into one or more products; (2) used to inject carbon dioxide into a carbon dioxide injection well, as defined in K.S.A. 55-1637, and amendments thereto; or (3) used to recover carbon dioxide from sequestration.

History: L. 2007, ch. 73, § 7; July 1.

§§ 79-32,257 Citation of act

K.S.A. 79-32,257 through 79-32,259, and amendments thereto, shall be known and may be cited as the Kansas film production tax credit act.

History: L. 2007, ch. 184, § 3; July 1.

§§ 79-32,258 Film production; credit for certain eligible production expenses; eligibility requirements; application

(a) Except as otherwise provided, for all taxable years commencing after December 31, 2006, a credit against the tax imposed by the Kansas income tax act shall be allowed for direct production expenditures made by an eligible film production company, except that such provisions shall not be applicable for tax years 2009 and 2010. Such credit shall be in an amount equal to 30% of direct production expenditures made in Kansas that are directly attributable to the production of a film in Kansas and that have been awarded by the department of revenue. The tax credit shall be deducted from the eligible film production company's income tax liability for the taxable year in which the expenditures are made by the eligible film production company. If the amount of the film production tax credit allowed exceeds the film production company's income tax liability for the taxable year, the taxpayer may carry over the amount thereof that exceeds such tax liability for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the third taxable year succeeding the year in which the costs are incurred. If the eligible film production company is a corporation having an election in effect under subchapter S of the federal internal revenue code, a partnership or a limited liability entity, the credit provided by this section shall be claimed by the shareholders of such corporation, the partners of such partnership or the member of such limited liability entity in the same manner as such shareholder, partners or members account for their proportionate shares of the income or loss of the corporation, partnership or limited liability entity.

(b) A long-form narrative film production for which the film production tax credit is claimed shall contain an acknowledgment that the production was filmed in Kansas.

(c) To be eligible for the film production tax credit, a film production company shall submit to the department of commerce information required by the department to demonstrate conformity with the requirements of this act. Information supplied shall include expected direct production expenditures to be made in Kansas with respect to the film production for which the film production company is seeking the film production tax credit. The department of commerce may reserve a tax credit amount based upon the expected direct production expenditures. The department of commerce shall determine the eligibility of the company and shall certify this information to the department of revenue in a manner and at times the department of commerce and department of revenue shall agree upon.

(d) To receive a film production tax credit, a film production company shall apply to the department of revenue on forms and in the manner the department may prescribe. The application shall include a certification of the amount of direct production expenditures made in Kansas with respect to the film production for which the film production company is seeking the film production tax credit. The department of revenue may award a film production tax credit based on the application submitted and the amount of tax credit reserved by the department of commerce. Upon approval of the application and the awarding of the tax credit the department of revenue shall certify to the film production company and the department of commerce the amount of the tax credit awarded.

(e) The secretary of commerce and the secretary of revenue are hereby authorized to adopt rules and regulations to implement and administer the provisions of this act.

History: L. 2007, ch. 184, § 4; L. 2009, ch. 142, § 7; May 28.

§§ 79-32,259 Same; definitions

As used in K.S.A. 79-32,257 through 79-32,259, and amendments thereto:

(a) "Direct production expenditure" means an expenditure incurred in the state of Kansas in the production of a Kansas film including:

(1) Payment of wages, fringe benefits or fees for talent, management or labor to a person who is a Kansas resident for purposes of the Kansas income tax act;

(2) payment to a personal services corporation for the services of a performing artist, if:

(A) The personal services corporation is subject to taxation under the provisions of the Kansas income tax act; or

(B) the performing artist receiving payment from the personal services corporation pays Kansas income tax; and

(3) any of the following provided by a vendor:

(A) The story and scenario to be used for a film;

(B) set construction and operations, wardrobe, accessories and related services;

(C) photography, sound synchronization, lighting and related services;

(D) editing and related services;

(E) rental of facilities and equipment;

(F) leasing of vehicles;

(G) food or lodging;

(H) airfare if purchased through a Kansas-based travel agency or travel company;

(I) insurance coverage and bonding if purchased through a Kansas-based insurance agent; and

(J) other direct costs of producing a film in accordance with generally accepted entertainment industry practice.

(b) "Eligible film production company" means a film production company that has received certification from the department of commerce.

(c) "Film" means any film, video, commercial or television production, as approved by the department of commerce, that is 30 minutes or less in length with an expected in-state expenditure budget in excess of $50,000, or that is over 30 minutes in length with an expected in-state expenditure budget in excess of $100,000. Film shall not include the following:

(1) News or current events programming;

(2) talk show;

(3) production produced primarily for industrial, corporate or institutional purposes, and for internal use;

(4) sports event or sports programming;

(5) gala presentation or awards programming;

(6) infomercial or any production that directly solicits funds;

(7) political advertisement; or

(8) production that is considered obscene.

(d) "Film production company" means a person that produces one or more films.

History: L. 2007, ch. 184, § 5; July 1.

§§ 79-32,260 Same; expiration of act; amount, limitations

(a) No tax credits authorized by K.S.A. 79-32,257 through 79-32,259, and amendments thereto, shall be allowed for any tax year commencing on or after January 1, 2013.

(b) The total amount of tax credits which may be allowed under K.S.A. 79-32,257 through 79-32,259, and amendments thereto, shall not exceed $2,000,000 per tax year.

History: L. 2007, ch. 184, § 6; July 1.

§§ 79-32,261 Tax credit for certain contributions to community college, technical college or postsecondary educational institution

(a) (1) On and after July 1, 2008, any taxpayer who contributes in the manner prescribed by this paragraph to a community college located in Kansas for capital improvements, to a technical college for deferred maintenance or the purchase of technology or equipment or to a postsecondary educational institution located in Kansas for deferred maintenance, shall be allowed a credit against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. The tax credit allowed by this paragraph is applicable for the tax year 2008 for any contributions made on and after July 1, 2008, and for the tax years 2009, 2010, 2011 and 2012 for any contributions made during the entire tax year. The amount of the credit allowed by this paragraph shall not exceed 60% of the total amount contributed during the taxable year by the taxpayer to a community college or a technical college located in Kansas for such purposes. The amount of the credit allowed by this paragraph shall not exceed 50% of the total amount contributed during the taxable year by the taxpayer to a postsecondary educational institution for such purposes. If the amount of the credit allowed by this paragraph for a taxpayer who contributes to a community college or a technical college exceeds the taxpayer's income tax liability imposed by the Kansas income tax act, such excess amount shall be refunded to the taxpayer. If the amount of the tax credit for a taxpayer who contributes to a postsecondary educational institution exceeds the taxpayer's income tax liability for the taxable year, the amount which exceeds the tax liability may be carried over for deduction from the taxpayer's income tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the third taxable year succeeding the taxable year in which the contribution is made. Prior to the issuance of any tax credits pursuant to this paragraph, the structure of the process in which contributions received by a community college, a technical college or a postsecondary educational institution qualify as tax credits allowed and issued pursuant to this paragraph shall be developed by a community college, a technical college and a postsecondary educational institution in consultation with the secretary of revenue and the foundation or endowment association of any such community college, technical college or postsecondary educational institution in a manner that complies with requirements specified in the federal internal revenue code of 1986, as amended, so that contributions qualify as charitable contributions allowable as deductions from federal adjusted gross income.

(2) On and after July 1, 2022, any taxpayer who contributes in the manner prescribed by this paragraph to a community college or technical college located in Kansas for capital improvements, deferred maintenance or the purchase of technology or equipment shall be allowed a credit against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. The tax credit allowed by this paragraph is applicable for the tax year 2022 for any contributions made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and 2026 for any contributions made during the entire tax year. The amount of the credit allowed by this paragraph shall equal 60% of the total amount contributed during the taxable year by the taxpayer to a community college or a technical college located in Kansas for such purposes. Prior to the issuance of any tax credits pursuant to this paragraph, the structure of the process in which contributions received by a community college or technical college qualify as tax credits allowed and issued pursuant to this paragraph shall be developed by a community college and technical college in consultation with the secretary of revenue and the foundation or endowment association of any such community college or technical college in a manner that complies with requirements specified in the federal internal revenue code of 1986, as amended, so that contributions qualify as charitable contributions allowable as deductions from federal adjusted gross income.

(b) (1) Upon receipt of any contributions to a community college made pursuant to the provisions of subsection (a)(1), the treasurer of the community college shall deposit such contributions to the credit of the capital outlay fund of such community college established as provided by K.S.A. 71-501a, and amendments thereto. Expenditures from such fund shall be made for the purposes described in K.S.A. 71-501(a), and amendments thereto, except that expenditures shall not be made from such fund for new construction or the acquisition of real property for use as building sites or for educational programs.

(2) Upon receipt of any contributions to a technical college made pursuant to the provisions of subsection (a)(1), such contributions shall be deposited to the credit of a deferred maintenance fund or a technology and equipment fund established by the technical college which received the contribution. Expenditures from such fund shall be made only for the purpose as provided in subsection (b)(1).

(3) Upon receipt of any such contributions to a postsecondary educational institution made pursuant to the provisions of subsection (a)(1), such contributions shall be deposited to the credit of the appropriate deferred maintenance support fund of the postsecondary educational institution that received the contribution. Expenditures from such fund shall be made only for the purposes designated for such fund pursuant to law.

(4) Upon receipt of any such contributions to a community college or technical college made pursuant to the provisions of subsection (a)(2), the treasurer of the community college or technical college shall deposit such contributions to the credit of the capital outlay fund of such community college or technical college established as provided by K.S.A. 71-501a, and amendments thereto. Expenditures from such fund shall be made for the purposes designated for such fund pursuant to law.

(c) (1) In no event shall the total amount of credits allowed under subsection (a)(1) for taxpayers who contribute to any one such community college or technical college exceed the following amounts: For the tax year 2008, an amount not to exceed $78,125; for the tax year 2009, an amount not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an amount not to exceed $208,233.33.

(2) In no event shall the total of credits allowed under subsection (a)(1) for taxpayers who contribute to postsecondary educational institutions exceed the following amounts: For the tax year 2008, an amount not to exceed $5,625,000; for the tax year 2009, an amount not to exceed $11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to exceed $15,000,000. Except as otherwise provided, the allocation of such tax credits for each individual state educational institution shall be determined by the state board of regents in consultation with the secretary of revenue and the university foundation or endowment association of each postsecondary educational institution, and such determination shall be completed prior to the issuance of any tax credits pursuant to subsection (a)(1). Not more than 40% of the total of credits allowed under subsection (a)(1) shall be allocated to any one postsecondary educational institution unless all such postsecondary educational institutions approve an allocation to any one such postsecondary educational institution which exceeds 40% of the total of such credits allowed under subsection (a)(1).

(3) For the tax years 2022 through 2026, the amount of such credit awarded under subsection (a)(2) for each taxpayer shall not exceed $250,000 per tax year.

(4) In no event shall the total of credits allowed under subsection (a)(2) for contributions to any one community college or technical college exceed $500,000 per tax year.

(5) In no event shall the total of credits allowed under subsection (a)(2) exceed $5,000,000 for each tax year that the credit remains in effect.

(d) As used in this section: (1) "Community college" means a community college established under the provisions of the community college act;

(2) "deferred maintenance" means the maintenance, repair, reconstruction or rehabilitation of a building located at a technical college or a postsecondary educational institution which has been deferred, any utility systems relating to such building, any life-safety upgrades to such building and any improvements necessary to be made to such building in order to comply with the requirements of the Americans with disabilities act or other federal or state law, except that for taxable years commencing after December 31, 2013, deferred maintenance shall not include any maintenance, repair, reconstruction or rehabilitation of any building in which any abortion, as defined in K.S.A. 65-6701, and amendments thereto, is performed;

(3) "postsecondary educational institution" means the university of Kansas, Kansas state university of agriculture and applied science, Wichita state university, Emporia state university, Pittsburg state university, Fort Hays state university and Washburn university of Topeka; and

(4) "technical college" means a technical college as designated pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-32,464 and 74-32,465, and amendments thereto, and the institute of technology at Washburn university.

(e) (1) Any taxpayer not subject to Kansas income, privilege or premiums tax who contributes to a community college, technical college or postsecondary educational institution, hereinafter designated the transferor, may sell, assign, convey or otherwise transfer tax credits allowed and earned pursuant to this section. The sale price of a tax credit shall be at least 50% of the full value of the credit. Such credit shall be deemed to be allowed and earned by any such taxpayer which is only disqualified therefrom by reason of not being subject to such Kansas taxes. The taxpayer acquiring earned credits, hereinafter designated the transferee, may use the amount of the acquired credits to offset up to 100% of the taxpayer's income, privilege or premiums tax liability for the taxable year in which such acquisition was made. Such credits may be sold or transferred only one time and, if sold or transferred, shall be transferred in the tax year such credit is earned or the two successive tax years. A transferred credit shall be claimed in the year purchased. The transferor shall enter into a written agreement with the transferee establishing the terms and conditions of the sale or transfer and shall perfect such transfer by notifying the secretary of revenue in writing within 30 calendar days following the effective date of the transfer, subject to the review and approval or denial of such transfer by the secretary of revenue. The transferor and transferee shall provide any information pertaining to the sale or transfer as may be required by the secretary of revenue to administer and carry out the provisions of this section. The amount received by the transferor of such tax credit shall be taxable as income of the transferor, and the excess of the value of such credit over the amount paid by the transferee for such credit shall be taxable as income of the transferee.

(2) The provisions of this subsection shall not apply to tax credits earned pursuant to subsection (a)(2).

(f) The secretary of revenue shall submit an annual report to the legislature to assist the legislature in the evaluation of the utilization of any credits claimed pursuant to this act, including information specific as to each community college, technical college or postsecondary educational institution. Such report shall be due on or before the first day of the legislative session following the tax year in which the credits were claimed.

(g) The secretary of revenue shall adopt rules and regulations necessary to administer the provisions of this section.

History: L. 2007, ch. 200, § 16; L. 2013, ch. 119, § 21; L. 2022, ch. 63, § 42; July 1.

§§ 79-32,262 Tax credit for certain capital investments in a business located in or near certain cities made within three years of occurrence of certain major disasters

(a) Subject to limitations contained herein, for tax years 2008, 2009 and 2010, any taxpayer who makes a capital investment in a business which is located in the city of Chanute, Coffeyville, Erie, Fredonia, Greensburg, Independence, Iola, Neodesha or Osawatomie, Kansas, or within one mile of the city limits of any such city as long as such business is located in Kansas, when such investment is made within three years of the date of the occurrence of the disaster which is the subject of major disaster declaration DR 1699 or DR 1711 as the case may be shall be allowed a credit not to exceed 10% of such investment against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by the net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto. The total amount of credit allowed pursuant to this section for any one taxpayer shall not exceed $100,000. In no event shall the total amount of credits or refunds allowed under this section exceed $5,000,000 for any one fiscal year. The amount of credit allowed under this section shall be reduced by an amount equal to any assistance payment received by the taxpayer pursuant to the provisions of K.S.A. 75-3713e, and amendments thereto, or an assistance payment received by the taxpayer pursuant to the southeast Kansas business restoration assistance program as approved by the state finance council for the same investment as provided in this section. Notwithstanding any other provision of law, no taxpayer shall claim more than one credit allowed under this subsection for the same investment as provided in this section, except that nothing contained in this provision shall prevent a taxpayer from making a claim for and being allowed credit pursuant to this subsection in a subsequent tax year when such taxpayer was not allowed the credit in a previous tax year. If the amount of the tax credit determined under this section exceeds the income, privilege or premium tax liability for the taxpayer for any taxable year in which the qualified investment is made, the amount thereof which exceeds such tax liability may be carried over for deduction from such taxpayer's income, privilege or premium tax liability in the next succeeding year or years until the total amount of the credit has been deducted from tax liability, except that no such credit shall be carried over for deduction after the 10th taxable year succeeding the taxable year in which the qualified investment was made.

(b) (1) For tax years 2008, 2009 and 2010, a taxpayer may receive a refund of tax liability in lieu of the credit provided in this act. The refund shall be in an amount up to 50% of the credit earned by the taxpayer. The amount of refund allowed under this subsection shall be reduced by an amount equal to any assistance payment received by the taxpayer pursuant to the provisions of K.S.A. 75-3713e, and amendments thereto, or an assistance payment received by the taxpayer pursuant to the southeast Kansas business restoration assistance program as approved by the state finance council for the same investment as provided in this section. Notwithstanding any other provision of law, no taxpayer shall claim more than one refund allowed under this subsection for the same investment, except that nothing contained in this provision shall prevent a taxpayer from electing to receive a refund and receiving such refund in a subsequent tax year when such taxpayer was not allowed such refund in a previous tax year.

(2) A claim for refund shall be made prior to the taxpayer claiming any credit on which the refund is based. Should the taxpayer elect to receive the cash in lieu of the credit, the remaining portion of the tax credit shall be lost. Any refund pursuant to this subsection shall be allowed against the tax liability imposed under the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, and the privilege tax as measured by net income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated in the tax year the qualified investment is placed into service. The amount of such refund which exceeds such tax liability shall be refunded to the taxpayer.

(3) The secretary of revenue shall submit an annual report to the legislature detailing taxpayers that have been allowed a credit and that have made the election to receive a refund in lieu of the credit. The annual report shall provide the aggregate amount of such credits and refunds. Such report shall be due during the legislative session, commencing with the 2009 legislative session.

(c) As used in this section, "capital investment" means an investment in the construction, equipment, reconstruction, maintenance, repair, enlargement, furnishing or remodeling of real property, and the purchase, lease or repair of tangible personal property. A "capital investment" shall not include inventory or property held for sale in the ordinary course of business.

(d) The secretary of revenue shall adopt rules and regulations to carry out the provisions of this act.

History: L. 2008, ch. 182, § 8; June 5.

§§ 79-32,263 Tax credit for property taxes paid by certain senior citizens; selective assistance for effective senior relief (SAFESR)

This act shall be known and may be cited as the selective assistance for effective senior relief (SAFESR). There shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act, the following: (a) For tax years 2008, 2009 and 2010, an amount equal to 45% of the amount of property and ad valorem taxes actually and timely paid as described in this section; and (b) for tax year 2011 and all tax years thereafter, an amount equal to 75% of the amount of property and ad valorem taxes actually and timely paid by a taxpayer who is 65 years of age or older and who has household income equal to or less than 120% of the federal poverty level for two persons if such taxes were paid upon real or personal property used for residential purposes of such taxpayer which is the taxpayer's principal place of residence for the tax year in which the tax credit is claimed. The amount of any such credit for any such taxpayer shall not exceed the amount of property and ad valorem taxes paid by such taxpayer as specified in this section. A taxpayer shall not take the credit pursuant to this section if such taxpayer has received a homestead property tax refund pursuant to K.S.A. 79-4501 et seq., and amendments thereto, for such property for such tax year. Subject to the provisions of this section, if the amount of such tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount of such excess credit which exceeds such tax liability shall be refunded to the taxpayer. The secretary of revenue shall adopt rules and regulations regarding the filing of documents that support the amount of the credit claimed pursuant to this section. For purposes of this section, "household income" means all income as defined in K.S.A. 79-4502(a), and amendments thereto, including any payments received under the federal social security act, received by persons of a household in a calendar year while members of such household. The provisions of this act shall be part of and supplemental to the homestead property tax refund act.

History: L. 2008, ch. 182, § 12; L. 2014, ch. 86, § 1; July 1.

§§ 79-32,264 Limitations on tax credits; credits allowed and amounts to be carried forward

(a) For tax years 2009 and 2010, for any tax credit provided under the following: K.S.A. 65-7107, 79-1117, 79-32,176, 79-32,177 and 79-32,200 and K.S.A. 2025 Supp. 74-50,173, 74-8133, 74-8205, 79-32,153, 79-32,160a, 79-32,181a, 79-32,182b, 79-32,196, 79-32,197, 79-32,201, 79-32,202, 79-32,204, 79-32,207, 79-32,212, 79-32,213, 79-32,215, 79-32,218, 79-32,222, 79-32,224, 79-32,229, 79-32,234, 79-32,239, 79-32,242, 79-32,244, 79-32,246 and 79-32,252, and amendments thereto, and if nonrefundable, K.S.A. 79-32,261 and 79-32,262, and amendments thereto, and for tax year 2009, for the tax credit provided under K.S.A. 74-99c09, and amendments thereto, the total of any such credit or credits allowed against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated, shall not exceed the lesser of 90% of the total amount of such credit or credits earned in a current tax year or claimed in a current tax year as a carry forward from a prior tax year, or 90% of the tax as computed prior to the allowance of any such credit or credits. Except as otherwise provided by subsections (c) and (d), the amount of such credit or credits that may be carried forward in any succeeding taxable year shall be reduced by an amount equal to the lesser of 10% of the total amount of such credit or credits earned in a current tax year or claimed in a current tax year as a carry forward from a prior tax year, or 10% of the tax as computed prior to the allowance of any such credits.

(b) For tax years 2009 and 2010, for any tax credit provided under K.S.A. 40-2246 and 79-32,190 and K.S.A. 2025 Supp. 74-50,208, 79-32,206, 79-32,210 and 79-32,211a, and amendments thereto, and if refundable, K.S.A. 79-32,261 and 79-32,262, and amendments thereto, and for tax year 2009, for the tax credit provided under K.S.A. 74-50,154, and amendments thereto, the total amount of any credits refunded or allowed against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated, shall not exceed 90% of the total amount of tax credit or credits earned, and the remaining portion of such tax credit or credits shall be lost.

(c) For any tax credit or credits earned pursuant to K.S.A. 79-32,160a, and amendments thereto, other than tax credits earned pursuant to subsection (e) of K.S.A. 79-32,160a, and amendments thereto, in a tax year prior to 2009 and carried forward from such prior tax year and claimed in tax years 2009 or 2010, any reduction in the amount of credit or credits that may be carried forward to any succeeding tax year determined pursuant to subsection (a), may be carried forward to any tax year after 2010, pursuant to the applicable carry-forward period provided in K.S.A. 79-32,160a, and amendments thereto.

(d) For any tax credit earned pursuant to subsection (e) of K.S.A. 79-32,160a, and amendments thereto, by a taxpayer qualified and certified under the provisions of K.S.A. 74-50,131, and amendments thereto, who has received prior to June 1, 2009, written approval from the secretary of commerce of a certificate of intent to invest in a qualified business facility, any reduction in the amount of credit or credits that may be carried forward to any succeeding tax year determined pursuant to subsection (a), may be carried forward to any tax year after 2010, pursuant to the applicable carry-forward period provided in K.S.A. 79-32,160a, and amendments thereto.

(e) For any tax credit or credits earned pursuant to K.S.A. 74-8133, and amendments thereto, any reduction in the amount of credit or credits that may be carried forward to any succeeding tax year determined pursuant to subsection (a) from tax years 2009 or 2010, may be carried forward to any tax year after 2010, pursuant to the applicable carry-forward period provided in K.S.A. 74-8133, and amendments thereto.

History: L. 2009, ch. 142, § 2; L. 2010, ch. 123, § 5; April 29.

§§ 79-32,265 Limitation on income tax credits allowed; valid social security numbers required

Except as otherwise provided, no credit provided under the Kansas income tax act, and amendments thereto, shall be allowed for: (a) Any individual who fails to provide a valid social security number issued to such individual, the individual's spouse and dependents of the individual for purposes of section 205(c)(2)(A) of the social security act on such individual's Kansas income tax return as the identifying number for such individual for tax purposes; or (b) or any individual who has not been issued a valid social security number for the entire taxable year in which such credit is claimed, except that this provision shall not apply for an individual whose spouse possesses a valid social security number for the entire taxable year and whose filing status for income tax purposes is married filing jointly. The provisions of this section shall not apply to the credit provided by K.S.A. 79-32,111, and amendments thereto.

History: L. 2011, ch. 115, § 1; L. 2015, ch. 99, § 2; July 1.

§§ 79-32,266 Tax credit for taxpayers who receive income from business activities of certain qualified companies

(a) For taxable years commencing after December 31, 2010, there shall be allowed as a credit against the tax liability of a resident individual taxpayer an amount equal to 95% of the resident individual's income tax liability under the provisions of the Kansas income tax act for Kansas source income received from a qualified company that is business income attributable to business activities conducted at the business facility, office, department or other operation relocated to Kansas when the taxpayer owns such qualified company and materially participates in such business activities conducted at such relocated business facility, office, department or other operation of such qualified company which qualified for benefits under the provisions of subsection (a)(1) of K.S.A. 74-50,212, and amendments thereto. A taxpayer shall be treated as materially participating in such qualified company's business activities conducted at such business facility, office, department or other operation relocated to Kansas only if the taxpayer is involved in such business activities of such qualified company on a basis which is regular, continuous and substantial. A taxpayer may claim the credit authorized by this section during any tax year in which the qualified company owned by the taxpayer qualifies for benefits under provisions of K.S.A. 74-50,212, and amendments thereto.

(b) Business income attributable to the business activities conducted at the business facility, office, department or other operation relocated to Kansas of a qualified company which qualified for benefits under the provisions of subsection (a)(1) of K.S.A. 74-50,212, and amendments thereto, shall be determined by multiplying the business income of the company apportioned to this state by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. For purposes of this subsection, the property factor is a fraction, the numerator of which is the average value of the company's real and tangible personal property owned or rented and used during the tax period at such relocated facility, office, department or other relocated operation in Kansas, and the denominator of which is the average value of the company's real and tangible personal property owned or rented and used within this state during the tax period. The payroll factor is a fraction, the numerator of which is the total amount paid during the tax period by the company for compensation at such relocated facility, office, department or other relocated operation in Kansas, and the denominator of which is the total compensation paid by the company in this state during the tax period. The sales factor is a fraction, the numerator of which is the total sales of the relocated facility, office, department or other relocated operation in this state during the tax period, and the denominator of which is the total sales of the company in this state during the tax period.

(c) This credit shall not be available to any taxpayer making a modification under (b)(xix) or (c)(xx) of K.S.A. 79-32,117, and amendments thereto.

(d) The secretary of revenue shall adopt rules and regulations regarding the filing of documents that support the qualifications of the taxpayer for the credit claimed pursuant to this section.

History: L. 2011, ch. 115, § 13; L. 2012, ch. 135, § 38; L. 2013, ch. 87, § 5; April 25.

§§ 79-32,267 Tax credit for certain taxpayers domiciled in a rural opportunity zone

(a) For taxable years commencing after December 31, 2011, and before January 1, 2027, there shall be allowed as a credit against the tax liability of a resident individual taxpayer an amount equal to the resident individual's income tax liability under the provisions of the Kansas income tax act, when the resident individual:

(1) Establishes domicile in a rural opportunity zone on or after July 1, 2011, and prior to January 1, 2026, and was domiciled outside this state for five or more years immediately prior to establishing their domicile in a rural opportunity zone in this state;

(2) had Kansas source income less than $10,000 in any one year for five or more years immediately prior to establishing their domicile in a rural opportunity zone in this state; and

(3) was domiciled in a rural opportunity zone during the entire taxable year for which such credit is claimed.

(b) A resident individual may claim the credit authorized by this section for not more than five consecutive years following establishment of their domicile in a rural opportunity zone.

(c) The maximum amount of any refund under this section shall be equal to the amount withheld from the resident individual's wages or payments other than wages pursuant to K.S.A. 79-3294 et seq., and amendments thereto, or paid by the resident individual as estimated taxes pursuant to K.S.A. 79-32,101 et seq., and amendments thereto.

(d) No credit shall be allowed under this section if:

(1) The resident individual's income tax return on which the credit is claimed is not timely filed, including any extension; or

(2) the resident individual is delinquent in filing any return with, or paying any tax due to, the state of Kansas or any political subdivision thereof.

(e) This section shall be a part of and supplemental to the Kansas income tax act.

History: L. 2011, ch. 22, § 2; L. 2015, ch. 99, § 27; L. 2021, ch. 101, § 15; L. 2022, ch. 63, § 43; July 1.

§§ 79-32,268 Continuation of certain nonrefundable credits pursuant to the law at the time such credit was earned

Any nonrefundable credits applicable to the Kansas income tax imposed on individuals that are no longer available commencing in tax year 2013 pursuant to this act and earned in any tax year prior to 2013 which are unused may continue to be claimed, subject to the limitations applicable to any such credit pursuant to law at the time such credit was earned.

History: L. 2012, ch. 135, § 36; July 1.

§§ 79-32,269 Repealed

History: L. 2013, ch. 135, § 6; L. 2015, ch. 99, § 28; L. 2015, ch. 102, § 4; Repealed, L. 2017, ch. 84, § 8; July 1.

§§ 79-32,270 Repealed

History: L. 2013, ch. 135, § 7; Repealed, L. 2015, ch. 99, § 35; July 1.

§§ 79-32,271 Tax credit for certain taxpayers who purchased food in this state

(a) For any taxable year commencing after December 31, 2014, and ending prior to January 1, 2025, a credit shall be allowed against the tax imposed by the Kansas income tax act on the Kansas taxable income of an individual income taxpayer who purchased food in this state, had federal adjusted gross income for the tax year that did not exceed $30,615, and meets the qualifications in subsections (b) and (c).

(b) During the entire tax year a taxpayer filing single, head of household, or married filing separate, or the taxpayer and the taxpayer's spouse if married filing jointly, must be domiciled in this state. For purposes of this credit, "domicile" shall not include any correctional facility, or portion thereof, as defined in K.S.A. 75-5202, and amendments thereto, any juvenile correctional facility, or portion thereof, as defined in K.S.A. 38-2302, and amendments thereto, any correctional facility of the federal bureau of prisons located in the state of Kansas, or any city or county jail facility in the state of Kansas.

(c) During the entire tax year a taxpayer filing single, head of household, or married filing separate, or the taxpayer or the taxpayer's spouse if married filing jointly, must be either: (1) A person having a disability, regardless of age; (2) a person without a disability who is 55 years of age or older; or (3) a person without a disability who is younger than 55 years of age who claims an exemption for one or more dependent children under 18 years of age.

(d) The amount of the credit shall be $125 for every exemption claimed on the taxpayer's federal income tax return, except that no exemption shall be counted for a dependent unless the dependent is a child under 18 years of age.

(e) The credit allowed under this provision shall be applied against the taxpayer's income tax liability after all other credits allowed under the income tax act. It shall not be refundable and may not be carried forward.

(f) (1) Every taxpayer claiming the credit shall supply the division in support of a claim, reasonable proof of domicile, age and disability.

(2) A claim alleging disability shall be supported by a report of the examining physician of the claimant with a statement or certificate that the applicant has a disability as defined in subsection (g).

(g) "Disability" means: (1) Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months, and an individual shall be determined to be under a disability only if the physical or mental impairment or impairments are of such severity that the individual is not only unable to do the individual's previous work but cannot, considering age, education and work experience, engage in any other kind of substantial gainful work which exists in the national economy, regardless of whether such work exists in the immediate area in which the individual lives or whether a specific job vacancy exists for the individual, or whether the individual would be hired if application was made for work. For purposes of this paragraph, with respect to any individual, "work which exists in the national economy" means work which exists in significant numbers either in the region where the individual lives or in several regions of the country; and "physical or mental impairment" means an impairment that results from anatomical, physiological or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques; or

(2) blindness and inability by reason of blindness to engage in substantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which the individual has previously engaged with some regularity and over a substantial period of time. For purposes of this paragraph, "blindness" means central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees shall be considered for the purpose of this paragraph as having a central visual acuity of 20/200 or less.

(h) The secretary of revenue is hereby authorized to adopt such rules and regulations as may be necessary for the administration of the provisions of this section.

History: L. 2015, ch. 102, § 1; L. 2022, ch. 89, § 4; January 1, 2023.

§§ 79-32,272 Native American veteran income tax refund; Native American veterans' income tax refund fund; qualifications; reports to legislature

(a) On and after October 1, 2018, any Native American veteran who was domiciled within the boundaries of such veteran's tribal lands during the period of active military duty from the tax years 1977 through 2001, and who had Kansas personal income taxes withheld from such veteran's federal military income may apply to receive a refund as provided in this section. An application for refund shall be made to the director of taxation upon a form furnished by the director. Such refund shall be equal to the amount of the tax actually paid pursuant to the Kansas income tax act that is attributable to federal military income, plus interest on the amount of overpayment at the rate prescribed by K.S.A. 79-2968, and amendments thereto, from the due date of the original income tax return through September 30, 2018. When any person otherwise entitled to receive a refund payment under this section is deceased, such refund shall be paid upon a claim duly made on behalf of the estate of the deceased or, in the absence of any such claim, upon a claim by or on behalf of a surviving spouse and, if none, upon the claim of any heir-at-law.

(b) A fund designated as the Native American veterans' income tax refund fund shall be set apart and maintained by the director of taxation from the moneys collected under the provisions of the Kansas income tax act and held by the state treasurer for prompt payment of refunds as provided by this section. The fund shall be in such amount as the director determines is necessary to meet refund requirements under this section. In the event such fund is at any time insufficient to provide for the payment of refunds due claimants thereof, the director shall certify the amount of additional funding required to the director of accounts and reports, who shall promptly transfer the required amount from the state general fund to the Native American veterans' income tax refund fund and notify the state treasurer, who shall make proper entry in the records.

(c) On or before February 1, 2019, and February 1, 2020, the secretary of revenue shall report to the house committee on veterans and military, the house committee on appropriations, and the senate ways and means committee on how the provisions of this section are being administered, including the number of claimants and the moneys expended.

(d) No claim for refund under this section may be submitted by a Native American veteran or, if such person is deceased, on behalf of the estate of the deceased or, in the absence of any such claim, upon a claim by or on behalf of a surviving spouse and, if none, upon the claim of any heir-at-law after June 30, 2020.

(e) The secretary of revenue may adopt rules and regulations necessary to administer the provisions of this section.

(f) As used in this section: (1) "Native American" means a member of the Prairie Band Potawatomi Nation in Kansas, the Iowa Tribe of Kansas and Nebraska, the Kickapoo Tribe in Kansas, or the Sac and Fox Nation of Missouri in Kansas and Nebraska; and

(2) "tribal lands" means:

(A) For the Iowa Tribe of Kansas and Nebraska, only the land that comprises that portion of the Tribe's reservation as established by the treaty between the United States and the Tribe dated May 17, 1854, that: (i) Is within the boundaries of the state of Kansas; and (ii) is unaffected by the treaty between the United States and the Sauk and Foxes Tribes dated March 6, 1861, to the extent such treaty reduced the land set aside for the Tribe pursuant to the prior treaty dated May 17, 1854, and specifically excludes any portion of the Tribe's reservation that is not within the boundaries of the state of Kansas. For the purposes of this section, the Tribe's land shall also not include any lands that are inside the boundaries of the state of Kansas, but are outside the boundaries of the Tribe's reservation established by the 1854 treaty that have been or may at any time be taken into trust by the United States;

(B) for the Kickapoo Tribe in Kansas, only the land granted in the treaty between the United States and the Kickapoo Tribe of Indians of the Kickapoo Reservation in Kansas dated June 28, 1862;

(C) for the Sac and Fox Nation of Missouri in Kansas and Nebraska, only the land granted in the treaty between the United States and the Tribe dated March 6, 1861, and ratified on February 6, 1863; or

(D) for the Prairie Band Potawatomi Nation, only the land granted in Article 4 of the treaty with the Potawatomi Nation ratified on July 22, 1846, as modified by the treaties with the Potawatomi Nation ratified on April 15, 1862, and July 25, 1868, respectively.

History: L. 2018, ch. 48, § 1; July 1.

§§ 79-32,273 Citation of act; tax credit for certain years for purchases from qualified vendors employing individuals with disabilities; cumulative credit limitations; certification; definitions; reports to legislature

(a) The provisions of this section shall be known and may be cited as the disability employment act.

(b) A credit shall be allowed against the tax imposed by the Kansas income tax act in an amount equal to 15% of the amount for expenditures of goods and services purchased by the taxpayer from a qualified vendor on and after January 1, 2019, including such expenditures made on and after January 1, 2024, but prior to the effective date of this act, as certified by the secretary of commerce as provided in subsection (d). The amount of such credit awarded for each taxpayer shall not exceed $500,000 per qualified vendor per tax year. In no event shall the total amount of cumulative credits allowed under this section exceed:

(1) $5,000,000 for tax years 2019 through 2023;

(2) $8,000,000 for tax years 2024 through 2028; and

(3) $8,000,000 for each consecutive five tax years thereafter starting with tax year 2029.

(c) The tax credit allowed by this section shall be deducted from the taxpayer's income tax liability for the tax year in which the expenditures were made by the taxpayer. If the amount of such tax credit exceeds the taxpayer's income tax liability for such tax year, the taxpayer may carry over the amount that exceeds such tax liability for deduction from the taxpayer's liability in the next succeeding tax year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fourth tax year succeeding the tax year in which the expenditures were incurred.

(d) The secretary of commerce shall annually certify that expenditures for goods and services purchased by a taxpayer subject to the tax credit provided in this section were made from a qualified vendor, and provide such certification to the secretary of revenue. The secretary of commerce is hereby authorized to promulgate rules and regulations for establishing criteria based on the provisions of K.S.A. 75-3317 et seq., and amendments thereto, for evaluating whether purchases by taxpayers from a qualified vendor should be certified as provided in this section, with the assistance and approval of the secretary of revenue.

(e) As used in this section:

(1) "Qualified vendor" means:

(A) Any business that qualifies as a certified business pursuant to K.S.A. 75-3740, and amendments thereto, and is a not-for-profit business that is a sole proprietorship, partnership, association or corporation domiciled in Kansas, or any corporation, even if a wholly owned subsidiary of a foreign corporation, that:

(i) Does business primarily in Kansas or substantially all of its production in Kansas;

(ii) employs at least 30% of its employees in an integrated setting who are individuals with disabilities and reside in Kansas;

(iii) offers to contribute at least 75% of the premium cost for individual health insurance coverage for each eligible employee. The department of administration shall require a certification of these facts; and

(iv) does not employ individuals under a certificate issued by the United States secretary of labor under 29 U.S.C. § 214(c);

(B) qualifies as a qualified vendor pursuant to K.S.A. 75-3317, and amendments thereto, and also:

(i) Employs at least 30% of its employees in an integrated setting;

(ii) offers to contribute at least 75% of the premium cost for individual health insurance coverage for each eligible employee or offers a qualified company-sponsored insurance plan under the affordable care act or pays the required subsidy to the internal revenue service for employees who purchase insurance through the open market, if a company-sponsored plan is not offered. If any such company is not covered under the affordable care act and does not offer a company-sponsored insurance plan, such company must offer assistance to the employee to cover at least 75% of their health insurance costs through a health savings account or other legal and appropriate methodology; and

(iii) does not employ individuals under a certificate issued by the United States secretary of labor under 29 U.S.C. § 214(c); or

(C) a division within a Kansas not-for-profit organization that:

(i) Does business primarily in Kansas or substantially all of its production in Kansas;

(ii) within such division, employs in an integrated setting at least 30% of its employees who are individuals with disabilities and reside in Kansas;

(iii) within such division, offers to contribute at least 75% of the premium cost for individual health insurance coverage for each eligible employee or offers a qualified company-sponsored insurance plan under the affordable care act or pays the required subsidy to the internal revenue service for employees who purchase insurance through the open market, if a company-sponsored plan is not offered. If any such company is not covered under the affordable care act and does not offer a company-sponsored insurance plan, such company must offer assistance to the employee to cover at least 75% of their health insurance costs through a health savings account or other legal and appropriate methodology; and

(iv) does not employ individuals under a certificate issued by the United States secretary of labor under 29 U.S.C. § 214(c) and the Kansas not-for-profit organization, including any other division within the Kansas not-for-profit organization, does not employ individuals under such a certificate.

(2) "Individuals with disabilities" or "individual with a disability" means any individual who:

(A) Is certified by the Kansas department for aging and disability services or by the Kansas department for children and families, which administers the rehabilitation services program or by a healthcare provider determined by the secretary of revenue, that shall include, but is not limited to, medical doctors, doctors of osteopathy, physician assistants, nurse practitioners, physical therapists, occupational therapists and optometrists who can substantiate an individual as having a physical or mental impairment that constitutes a substantial barrier to employment; and

(B) (i) is receiving services, has received services or is eligible to receive services under a home and community based services program, as defined by K.S.A. 39-7,100, and amendments thereto;

(ii) is employed by a charitable organization domiciled in the state of Kansas and exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, as amended; or

(iii) is an individual with a disability pursuant to the disability standards established by the social security administration as determined by the Kansas disability determination services under the Kansas department for children and families.

(f) The secretary of revenue shall report to the house committee on taxation and the senate committee on assessment and taxation on or before February 1, 2021, 2022, and 2023, concerning the implementation and effectiveness of the credit provided in this section.

History: L. 2019, ch. 3, § 1; L. 2024, ch. 1, § 4; February 15.

§§ 79-32,274 Tax credit for contribution to Eisenhower foundation

(a) For taxable years commencing after December 31, 2020, and before January 1, 2026, there shall be allowed a credit against the tax imposed by the Kansas income tax act and the privilege tax pursuant to K.S.A. 79-1106 et seq., and amendments thereto, in an amount equal to 50% of the total amount contributed during the taxable year by a taxpayer subject to income tax pursuant to K.S.A. 79-32,110(a) or (c), and amendments thereto, or subject to the privilege tax pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto, to the Eisenhower foundation.

(b) The amount of such credit awarded to a taxpayer in a taxable year pursuant to this section shall not exceed:

(1) $25,000 for any taxpayer subject to the income tax on resident individuals imposed pursuant to K.S.A. 79-32,110(a), and amendments thereto; or

(2) $50,000 for any taxpayer subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, or the privilege tax on financial institutions pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto.

(c) The aggregate amount of credits claimed pursuant to this section shall not exceed $350,000 for any fiscal year.

(d) The credit allowed by this section shall not exceed the amount of tax imposed under the Kansas income tax act or the privilege tax reduced by the sum of any other credits allowable pursuant to law. Such credit shall be deducted from the taxpayer's income or privilege tax liability for the taxable year in which the contributions are made by the taxpayer. The taxpayer shall not be allowed to carry over any amount of such credit exceeding the taxpayer's income or privilege tax liability.

History: L. 2021, ch. 101, § 7; May 27.

§§ 79-32,275 Tax credit for contributions to friends of cedar crest association

(a) For taxable years commencing after December 31, 2020, and before January 1, 2026, there shall be allowed a credit against the tax imposed by the Kansas income tax act and the privilege tax pursuant to K.S.A. 79-1106 et seq., and amendments thereto, in an amount equal to 50% of the total amount contributed during the taxable year by a taxpayer subject to income tax pursuant to K.S.A. 79-32,110(a) or (c), and amendments thereto, or subject to the privilege tax pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto, to the friends of cedar crest association.

(b) The amount of such credit awarded to a taxpayer in a taxable year pursuant to this section shall not exceed:

(1) $25,000 for any taxpayer subject to the income tax on resident individuals imposed pursuant to K.S.A. 79-32,110(a), and amendments thereto; or

(2) $50,000 for any taxpayer subject to the income tax on corporations imposed pursuant to K.S.A. 79-32,110(c), and amendments thereto, or the privilege tax on financial institutions pursuant to K.S.A. 79-1107 and 79-1108, and amendments thereto.

(c) The aggregate amount of credits claimed pursuant to this section shall not exceed $350,000 for any fiscal year.

(d) The credit allowed by this section shall not exceed the amount of tax imposed under the Kansas income tax act or the privilege tax reduced by the sum of any other credits allowable pursuant to law. Such credit shall be deducted from the taxpayer's income or privilege tax liability for the taxable year in which the contributions are made by the taxpayer. The taxpayer shall not be allowed to carry forward any amount of such credit exceeding the taxpayer's income or privilege tax liability.

History: L. 2021, ch. 101, § 8; May 27.

§§ 79-32,276 Compensation obtained fraudulently by another individual; exclusion from gross income, when; fraud due to identity theft, reporting to department

(a) Notwithstanding any other provision of law, for any individual whose identity was fraudulently used to secure any type of compensation, if such individual never received such compensation, such compensation shall not be considered gross income and shall not be taxable for Kansas income tax purposes after determination by the department of revenue that the compensation was obtained fraudulently by another individual.

(b) The department of revenue shall provide a method for any taxpayer subject to the Kansas income tax act to report to the department of revenue whether such taxpayer was a victim of fraud due to identity theft and whether such fraud resulted in the reporting of any income to the federal internal revenue service. The report shall include, but not be limited to, the amount of the income reported to the federal internal revenue service due to fraud, if known.

History: L. 2021, ch. 101, § 10; May 27.

§§ 79-32,277 Kansas taxpayer protection act; title and effective date

The provisions of K.S.A. 2025 Supp. 79-32,277 through 79-32,282, and amendments thereto, shall be known and may be cited as the Kansas taxpayer protection act and shall be effective on and after January 1, 2022.

History: L. 2021, ch. 101, § 1; May 27.

§§ 79-32,278 Definitions

As used in this act:

(a) "Paid tax return preparer" means any person who prepares or substantially prepares for compensation, or who employs one or more persons who prepare or substantially prepare for compensation, any income tax return or claim for refund, required to be filed pursuant to K.S.A. 79-3201 et seq., and amendments thereto. "Paid tax return preparer" does not include the following:

(1) An individual licensed as a certified public accountant in this state under K.S.A. 1-302b or 1-322, and amendments thereto;

(2) an individual licensed as a certified public accountant in another licensing jurisdiction and practicing in this state under K.S.A. 1-302b or 1-322, and amendments thereto; or

(3) an individual employed by a firm licensed in this state under K.S.A. 1-308, and amendments thereto, and preparing a return under the supervision of an individual described in paragraph (1) or (2).

(b) "Secretary" means secretary of the Kansas department of revenue.

History: L. 2021, ch. 101, § 2; May 27.

§§ 79-32,279 Duties of paid tax return preparers; penalty, when

(a) Any income tax return or claim for refund prepared or substantially prepared by a paid tax return preparer shall be signed by the paid tax return preparer and shall bear the paid tax return preparer's federal internal revenue service preparer tax identification number. Any paid tax return preparer who fails to sign the income tax return or claim for refund or who fails to provide the preparer's federal internal revenue service preparer tax identification number shall pay a civil penalty of $50 for each such failure to the Kansas department of revenue, unless it can be shown that the failure was due to reasonable cause and not willful or reckless conduct. The penalty imposed on any paid tax return preparer with respect to returns or claims for refund filed during any calendar year shall not exceed $25,000 per paid tax return preparer.

(b) The penalty shall be imposed pursuant to this section upon the written order of the secretary or the secretary's designee to the paid tax return preparer who committed the violation. Such order shall state the violation, the penalty to be imposed and the right of the paid tax return preparer to appeal the order. Such order shall be subject to appeal and review in the manner provided by the Kansas administrative procedure act.

(c) Any penalty collected pursuant to this section shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

History: L. 2021, ch. 101, § 3; May 27.

§§ 79-32,280 Actions to enjoin prohibited conduct; reporting

(a) The secretary or the secretary's designee is hereby authorized to enjoin any person from engaging in conduct described in subsection (b) or from further action as a paid tax return preparer under the provisions of the Kansas taxpayer protection act who is found to be in violation of this act and the secretary or the secretary's designee shall be entitled, in any proceeding brought for such purpose to have an order restraining such person from engaging in conduct in violation of the provisions of this act, and no bond shall be required for any such restraining order, nor for any temporary or permanent injunction issued in such proceedings. The secretary may commence suit in a court of competent jurisdiction to enjoin any paid tax return preparer from further engaging in any conduct described in subsection (b) or from further action as a paid tax return preparer in this state. The secretary may request the assistance of the attorney general or the attorney general's duly authorized designee to enforce provisions of this section.

(b) In an action pursuant to subsection (a), the court may enjoin the paid tax return preparer from further engaging in any conduct described in this subsection, if the court finds that injunctive relief is appropriate to prevent occurrence of such conduct. The court may issue an injunction when the paid tax return preparer has engaged in any of the following conduct:

(1) Prepared any income tax return or claim for refund that includes an understatement of a taxpayer's liability due to an unreasonable position. As used in this subsection, "unreasonable position" shall have the meaning ascribed by section 6694(a)(2) of the federal internal revenue code;

(2) prepared any income tax return or claim for refund that includes an understatement of a taxpayer's liability due to the paid tax return preparer's willful or reckless conduct. As used in this subsection, "willful or reckless conduct" shall have the meaning ascribed by section 6694(b)(2) of the federal internal revenue code;

(3) where required, failed to do any of the following:

(A) Furnish a copy of the income tax return or claim for refund;

(B) sign the income tax return or claim for refund;

(C) furnish an identifying number;

(D) retain a copy of the income tax return or claim for refund; or

(E) be diligent in determining eligibility for tax benefits;

(4) negotiated a check issued to the taxpayer by the department of revenue without the permission of the taxpayer;

(5) engaged in any conduct subject to any criminal penalty provided for in chapter 79 of the Kansas Statutes Annotated, and amendments thereto;

(6) misrepresented the paid tax return preparer's eligibility to practice before the department of revenue or otherwise misrepresented the paid tax return preparer's experience or education;

(7) guaranteed the payment of any income tax refund or the allowance of any income tax credit; or

(8) engaged in any other fraudulent or deceptive conduct that substantially interferes with the proper administration of the tax laws of the state of Kansas.

(c) If the court finds that a paid tax return preparer has continually or repeatedly engaged in any conduct described in subsection (b) and that an injunction prohibiting the conduct would not be sufficient to prevent the person's interference with the proper administration of the tax laws of the state of Kansas, the court may enjoin the person from acting as a paid tax return preparer in the state of Kansas. The fact that the person has been enjoined from preparing tax returns or claims for refund for the United States or any other state in the five years preceding the petition for an injunction shall establish a prima facie case for an injunction to be issued pursuant to this section. For purposes of this subsection, "state" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.

(d) The secretary or the secretary's designee shall annually report a summary of the secretary's enjoinment actions on the department of revenue's website.

History: L. 2021, ch. 101, § 4; May 27.

§§ 79-32,281 Jurisdiction; venue; consent judgment

(a) Preparation or substantial preparation of any income tax return or claim for refund filed pursuant to K.S.A. 79-3201 et seq., and amendments thereto, by a paid tax return preparer, whether or not a resident or citizen of this state, thereby submits the preparer to the jurisdiction of the courts of this state as to any cause of action arising from the provisions of this act.

(b) Every action pursuant to this act shall be brought in the district court of Shawnee county.

(c) In lieu of instigating or continuing an action or proceeding, the secretary or the secretary's designee may accept a consent judgment with respect to any act or practice declared to be a violation of this act. A consent judgment shall provide for the discontinuance by the paid tax return preparer entering the same of any act or practice declared to be a violation of this act. Any consent judgment entered into pursuant to this section shall not be deemed to admit the violation, unless it does so by its terms. Before any consent judgment entered into pursuant to this section shall be effective, it must be approved by the district court and an entry made in the manner required for making an entry of judgment. Once such approval is received, any breach of the conditions of such consent judgment shall be treated as a violation of a court order and shall be subject to all the penalties provided by law.

History: L. 2021, ch. 101, § 5; May 27.

§§ 79-32,282 Rules and regulations

The secretary may adopt rules and regulations necessary to carry out the provisions of the Kansas taxpayer protection act.

History: L. 2021, ch. 101, § 6; May 27.

§§ 79-32,283 Income tax credit for certain qualified charitable distributions of fiduciary financial institutions; requirements; pass-through entity; carry forward

(a) For taxable years commencing after December 31, 2020, there shall be allowed as a credit against the tax liability of a fiduciary financial institution imposed pursuant to the Kansas income tax act or the privilege tax imposed upon a fiduciary financial institution pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, in an amount equal to the qualified charitable distributions made in connection with the fiduciary financial institution's fidfin activities during such taxable year if the fiduciary financial institution maintained such fiduciary financial institution's principal office in an economic growth zone during such taxable year in accordance with the provisions of K.S.A. 9-2309, and amendments thereto.

(b) For purposes of this section:

(1) "Economic growth zone" and "fidfin" means the same as defined in K.S.A. 9-2301, and amendments thereto;

(2) "qualified charitable distributions" means distributions of cash, beneficial interests or other assets to one or more qualified charities having an aggregate value equal to at least 2.5% of the fiduciary financial institution's transactions originated during the taxable year. Such transactions shall exclude any renewals, extensions of credit or accruals associated with transactions made in a prior taxable year;

(3) "qualified charities" means one or more charities, in which contributions are allowable as a deduction pursuant to section 170 of the federal internal revenue code if such charities have:

(A) Been organized pursuant to a charter promulgated by the department of commerce for the purposes of making distributions for the benefit of economic growth zones;

(B) committed in writing to utilize the entire amount of the qualified charitable distributions, excluding reasonable administrative expenses, exclusively for the benefit of charitable causes located in one or more economic growth zones or postsecondary educational institutions as defined in K.S.A. 74-3201b, and amendments thereto; and

(C) agreed to provide an annual report to the department of commerce detailing qualified distributions received during such year, distributions made pursuant to subparagraph (B) and the remaining balance of qualified distributions as of the end of the reporting year.

The requirements of subparagraph (A) shall not apply to a charity, contributions to which are allowable as a deduction pursuant to section 170 of the federal internal revenue code, that has committed in writing to utilize the entire amount of the qualified charitable distributions, excluding reasonable administrative expenses, exclusively for the benefit of the economic growth zone identified in K.S.A. 9-2325(a)(2), and amendments thereto.

(c) No credit shall be allowed under this section if the fiduciary financial institution's tax return on which the credit is claimed is not timely filed, including any extension.

(d) A distribution or remittance to the department of commerce pursuant to K.S.A. 9-2311, and amendments thereto, shall be deemed a qualified charitable distribution for purposes of this section.

(e) A fiduciary financial institution shall not be required to ensure that qualified charitable distributions are made solely for the benefit of the economic growth zones where such fiduciary financial institution has:

(1) Established such fiduciary financial institution's principal office pursuant to K.S.A. 9-2309, and amendments thereto; or

(2) made qualified investments as defined in K.S.A. 9-2301, and amendments thereto. Qualified charitable distributions may be made for the benefit of any one or more economic growth zones.

(f) If a fiduciary financial institution is a pass-through entity for Kansas tax purposes and the credit allowed by this section for a taxable year is greater than the fiduciary financial institution's tax liability against which the tax credit may be applied, a member of the entity or any other party who is required to report such income on a Kansas income tax return is entitled to a tax credit equal to the tax credit determined for the fiduciary financial institution for the taxable year in excess of the fiduciary financial institution's tax liability under the Kansas income tax act or privilege tax under article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, for the taxable year multiplied by the percentage of the fiduciary financial institution's distributive income to which the member is entitled. Tax credits allowed and earned under this section shall not be sold, assigned, conveyed or otherwise transferred.

(g) If the amount of a tax credit allowed a member or other party under this section exceeds the taxpayer's income tax liability for the taxable year in which the tax credit is allowed, the amount thereof that exceeds such tax liability may be carried over for deduction from the taxpayer's income or privilege tax liability in the next succeeding taxable year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the 5th taxable year succeeding the taxable year in which the tax credit is first allowed.

(h) In any taxable year, a fiduciary financial institution shall pay the greater of the qualified charitable distributions made during such taxable year or the tax liability of a fiduciary financial institution imposed pursuant to the Kansas income tax act or the privilege tax imposed upon a fiduciary financial institution pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto.

(i) This section shall be a part of and supplemental to the Kansas income tax act.

History: L. 2021, ch. 80, § 28; July 1.

§§ 79-32,284 Citation and purpose of act

(a) K.S.A. 2025 Supp. 79-32,284 through 79-32,289, and amendments thereto, shall be known and may be cited as the salt parity act.

(b) The legislature finds and declares that:

(1) The deductibility of state income taxes should be the same for C corporations, S corporations and partnerships; and

(2) the purpose of the tax credit in K.S.A. 2025 Supp. 79-32,288, and amendments thereto, is to avoid double taxation of income on electing pass-through entity owners.

(c) The provisions of this act shall be a part of and supplemental to the Kansas income tax act.

History: L. 2022, ch. 63, § 1; L. 2024, ch. 81, § 20; July 1.

§§ 79-32,285 Definitions

As used in K.S.A. 2025 Supp. 79-32,284 through 79-32,289, and amendments thereto, unless the context otherwise requires:

(a) "Act" means the provisions of K.S.A. 2025 Supp. 79-32,284 through 79-32,289, and amendments thereto.

(b) "C corporation" means a corporation other than an S corporation.

(c) "Electing pass-through entity" means, with respect to a taxable period, an S corporation or partnership that has made the election under K.S.A. 2025 Supp. 79-32,286, and amendments thereto, with respect to the taxable period.

(d) "Electing pass-through entity owner" means, with respect to an S corporation, a shareholder of the S corporation and, with respect to a partnership, a partner in the partnership, except that a partner does not include a C corporation.

(e) "Income attributable to the state" means, with respect to an S corporation or partnership, the portion of the items of income, gain, loss or deduction of the S corporation or partnership apportioned or allocated to this state in accordance with the provisions of K.S.A. 79-3271 through 79-3293b, and amendments thereto.

(f) "Income not attributable to the state" means all items of income, gain, loss or deduction of an electing pass-through entity other than income attributable to the state.

(g) "S corporation" means a corporation having an election in effect under subchapter S of the federal internal revenue code.

(h) "Taxable period" means any taxable year or portion of a taxable year during which a corporation is an S corporation or a noncorporate entity is a partnership.

History: L. 2022, ch. 63, § 2; July 1.

§§ 79-32,286 Election by S corporation or partnership to be taxed at entity level

Notwithstanding K.S.A. 79-32,129 and 79-32,139, and amendments thereto, and except as provided in subsection (b), for taxable years commencing on or after January 1, 2022, an S corporation or partnership may annually elect to be subject to tax at the entity level for the taxable period. The S corporation or partnership shall make the election on the return filed by such S corporation or partnership under K.S.A. 79-3220 and 79-3221, and amendments thereto. The filing of such return shall be binding on all electing pass-through entity owners.

History: L. 2022, ch. 63, § 3; July 1.

§§ 79-32,287 Tax rate imposed; credit allowance; modifications and certain expensing deductions

(a) With respect to any taxable period for which it has made the election under K.S.A. 2025 Supp. 79-32,286, and amendments thereto, an electing pass-through entity shall be subject to a tax in an amount equal to the highest rate of tax for the applicable income tax year under K.S.A. 79-32,110(a), and amendments thereto, multiplied by the sum of:

(1) Each nonresident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income attributable to the state; and

(2) each resident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income calculated as either: (A) The sum of income attributable to the state and income not attributable to the state; or (B) income attributable to the state. The electing pass-through entity must use the same method of calculation for all resident electing pass-through entity owners. The provisions of paragraphs (1) and (2) shall be determined pursuant to K.S.A. 79-32,130, 79-32,131, 79-32,133 and 79-32,139, and amendments thereto.

(b) An electing pass-through entity shall be treated as a corporation under K.S.A. 79-32,101, and amendments thereto, with respect to the tax imposed under this act, except that K.S.A. 79-32,107, and amendments thereto, shall not apply during the first taxable period for which this act is applicable.

(c) Any credit allowed pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, that is attributable to the activities of an electing pass-through entity in the taxable year shall be passed through to and claimed by the electing pass-through entity owner.

(d) Any modification to federal taxable income pursuant to K.S.A. 79-32,117 or 79-32,138, and amendments thereto, and any expensing deduction allowed pursuant to K.S.A. 79-32,143a, and amendments thereto, that is attributable to the activities of an electing pass-through entity in the taxable year shall be claimed on:

(1) The electing pass-through entity's return; and

(2) each electing pass-through entity owner's individual return, in the same proportion and manner as would have applied without the election under K.S.A. 2025 Supp. 79-32,286, and amendments thereto.

(e) The provisions of article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, regarding the collection, administration and enforcement of tax shall be applicable to the tax due under this section, and notwithstanding the provisions of K.S.A. 79-32,129 and 79-32,139, and amendments thereto, an electing pass-through entity shall be a taxpayer.

(f) The provisions of this section shall apply to taxable years commencing on or after January 1, 2022.

History: L. 2022, ch. 63, § 4; L. 2024, ch. 81, § 21; July 1.

§§ 79-32,288 Liability for tax

(a) Notwithstanding K.S.A. 79-32,129 and 79-32,139, and amendments thereto, electing pass-through entity owners shall not be liable for the tax under this act in their separate or individual capacities. Electing pass-through entity owners subject to Kansas individual income tax shall be entitled to a credit against the tax imposed under K.S.A. 79-32,110, and amendments thereto. The credit shall be equal to the electing pass-through entity owner's direct share of the tax imposed under K.S.A. 2025 Supp. 79-32,286, and amendments thereto. Subsequent to the application of all other credits allowed, if any excess credit exists, such amount shall be refundable to the electing pass-through entity owner. The credit allowed to an electing pass-through entity owner under this subsection shall not exceed the direct share of pass-through entity tax reported by such pass-through entity.

(b) Notwithstanding the provisions of this act, the basis in the hands of an electing pass-through entity owner in the interest in the partnership or the stock or indebtedness in the S corporation shall be determined as if the election under K.S.A. 2025 Supp. 79-32,286, and amendments thereto, had not been made.

History: L. 2022, ch. 63, § 5; July 1.

§§ 79-32,289 Rules and regulations

The secretary of revenue may adopt rules and regulations to require or permit an electing pass-through entity to make returns, set forth information or furnish copies of information as may be deemed necessary to carry out the provisions of this act. The secretary of revenue may adopt such other rules and regulations as may be deemed necessary or expedient in enforcing the provisions of this act.

History: L. 2022, ch. 63, § 6; July 1.

§§ 79-32,290 Tax credit for graduates of aerospace and aviation-related educational programs and employers of program graduates; definitions

As used in K.S.A. 2025 Supp. 79-32,290 through 79-32,293, and amendments thereto:

(a) "Aerospace" means relating to vehicles or objects for the purpose of suborbital, orbital or space flight, whether for private or public, or civil or defense-related purposes.

(b) "Aviation" means relating to vehicles or objects, except parachutes, for the purpose of controlled flight through the air, regardless of how propelled or controlled, or whether manned or unmanned, whether for private or public, or civil or defense-related purposes.

(c) "Aviation sector" means a private or public organization engaged in the manufacture of aviation or aerospace hardware or software, aviation or aerospace maintenance, aviation or aerospace repair and overhaul, supply of parts to the aviation or aerospace industry, provision of services and support relating to the aviation or aerospace industry, research and development of aviation or aerospace technology and systems, and the education and training of aviation or aerospace personnel.

(d) "Compensation" means payments in the form of contract labor for which the payor is required to provide a federal tax form 1099 to the person paid, wages subject to withholding tax paid to a part-time employee or full-time employee, or salary or other remuneration. "Compensation" does not include employer-provided retirement, medical or healthcare benefits, reimbursement for travel, meals, lodging or any other expense.

(e) "Institution" means a state educational institution, municipal university, institute of technology, community college or technical college, as those terms are defined in K.S.A. 74-3201b, and amendments thereto, or an educational institution, municipal university, institute of technology, community college or technical college within the meaning of those terms as defined in K.S.A. 74-3201b, and amendments thereto, but located in or established under the laws of another state or any other public or private college or university that is accredited by a regional accrediting body, the engineering accreditation commission of the accreditation board for engineering and technology (ABET) or the federal aviation administration.

(f) "Qualified employee" means any person newly employed on a full-time basis by or first contracting with a qualified employer on a full-time basis on or after January 1, 2022, who has been awarded an undergraduate or graduate degree, or a technical degree or certificate from a qualified program by an institution.

(g) "Qualified employer" means a sole proprietorship, general partnership, limited partnership, limited liability company, corporation, other legally recognized business entity or public entity whose principal business activity involves the aviation sector.

(h) "Qualified program" means: (1) A program that has been accredited by the engineering accreditation commission of the accreditation board for engineering and technology (ABET), the federal aviation administration or a regional accrediting body and that awards an undergraduate or graduate degree; or (2) a program within the meaning of an associate of applied science degree program or career technical education program, within the meaning of those programs as defined in K.S.A. 74-32,407, and amendments thereto, whether a state or out-of-state program that results in the awarding of a degree or certificate that prepares the graduate for gainful employment with a qualified employer.

(i) "Tuition" means the amount paid for enrollment, program specific course fees and instruction in a qualified program that includes both amounts paid during participation in a qualified program or tuition debt upon completion of a qualified program. "Tuition" does not include the cost of books, fees, other than program specific course fees, or room and board.

History: L. 2022, ch. 63, § 10; July 1.

§§ 79-32,291 Credit for qualified employer tuition reimbursement

(a) For taxable years beginning after December 31, 2021, a taxpayer who is a qualified employer subject to the tax imposed under the provisions of the Kansas income tax act shall be allowed a credit against the tax for tuition reimbursed to a qualified employee.

(b) The credit may be claimed only if the qualified employee has been awarded an undergraduate or graduate degree, or technical degree or certificate from a qualified program within one year prior to or following the commencement of employment with a qualified employer and may be claimed each year thereafter that the qualified employee remains employed up to the fourth year of employment.

(c) The credit shall be in an amount equal to 50% of the tuition reimbursed during the taxable year for which the credit is claimed to a qualified employee, except that in no event shall the credit exceed 50% of the average annual amount paid by a qualified employee for enrollment and instruction in a qualified program, as determined by the secretary of revenue.

(d) The credit shall be applied against the taxpayer's income tax liability after all other credits allowed under the income tax act. The credit shall not be refundable and may not be carried forward.

History: L. 2022, ch. 63, § 11; July 1.

§§ 79-32,292 Credit for qualified employer for compensation paid to qualified employees

(a) For taxable years beginning after December 31, 2021, a taxpayer who is a qualified employer subject to the tax imposed under the provisions of the Kansas income tax act shall be allowed a credit against the tax for compensation paid during the taxable year to a qualified employee in the first through fifth consecutive years of employment. Except as otherwise provided, the credit shall be in an amount equal to 10% of the compensation paid.

(b) The credit shall not exceed $15,000 annually for each qualified employee.

(c) The credit shall be applied against the taxpayer's income tax liability after all other credits allowed under the income tax act. The credit shall not be refundable and may not be carried forward.

(d) No credit shall be claimed for compensation paid to a qualified employee after the fifth year of employment of the qualified employee.

History: L. 2022, ch. 63, § 12; July 1.

§§ 79-32,293 Credit for qualified employee

(a) For taxable years beginning after December 31, 2021, a taxpayer who becomes a qualified employee during the taxable year shall be allowed a credit against the tax imposed under the provisions of the Kansas income tax act in an amount equal to $5,000. The credit shall be deducted from the taxpayer's income tax liability for the taxable year in which the taxpayer is or has been a qualified employee and may be claimed each year the taxpayer achieves the status of a qualified employee for the four taxable years succeeding the taxable year in which the credit was first allowed.

(b) If the amount of the credit allowed a qualified employee is greater than the qualified employee's income tax liability for the taxable year in which the credit is allowed, the amount of the credit which exceeds the tax liability may be carried over for deduction from the qualified employee's income tax liability in the next succeeding taxable year or years, except that the tax credit may not be carried over for deduction after the fourth taxable year succeeding the taxable year in which the credit was first allowed.

History: L. 2022, ch. 63, § 13; July 1.

§§ 79-32,294 Rules and regulations

(a) The secretary of revenue may adopt rules and regulations necessary or convenient for the implementation and administration of K.S.A. 2025 Supp. 79-32,290 through 79-32,293, and amendments thereto.

(b) The secretary of revenue shall annually submit a written report to the house committee on appropriations and to the senate committee on ways and means beginning with the 2023 legislative session. The report shall contain information regarding the cost and effectiveness of the tax credit program described in K.S.A. 2025 Supp. 79-32,290 through 79-32,293, and amendments thereto. The secretary also may include in the report any recommendations for changes to law necessary to implement K.S.A. 2025 Supp. 79-32,290 through 79-32,293, and amendments thereto.

History: L. 2022, ch. 63, § 14; July 1.

§§ 79-32,295 Application of act

No new credits shall be issued or may be earned under the provisions of K.S.A. 2025 Supp. 79-32,290 through 79-32,293, and amendments thereto, after December 31, 2026.

History: L. 2022, ch. 63, § 15; July 1.

§§ 79-32,296 Tax credit for school and classroom supplies purchased by teachers

For tax year 2022, and all tax years thereafter, there shall be allowed a credit against the tax liability of a qualified taxpayer imposed under the Kansas income tax act in an amount equal to the expenditures made by the taxpayer for school and classroom supplies during the taxable year. The amount of the credit allowed each taxable year under this section shall not exceed $250. As used in this section, a "qualified taxpayer" means an individual who is a Kansas resident and is employed as a public or private school teacher.

History: L. 2022, ch. 63, § 16; July 1.

§§ 79-32,297 Tax credit for qualified railroad track maintenance expenditures

(a) For taxable years 2022 through 2031, there shall be allowed a credit against the tax liability imposed under the Kansas income tax act in an amount equal to 50% of an eligible taxpayer's qualified railroad track maintenance expenditures paid or incurred during the taxable year.

(b) The amount of the credit allowed each taxable year under this section shall not exceed the product of $5,000 and the number of miles of railroad track owned or leased within the state of Kansas by the eligible taxpayer as of the close of the taxable year. For rail siding located on or adjacent to a class II or class III railroad in the state of Kansas, the amount of the credit allowed for each taxable year under this section shall not exceed $5,000 per rail siding owned or leased within the state of Kansas by the eligible taxpayer as of the close of the taxable year. A mile of railroad track may be taken into account only once in each taxable year. The total amount of credits allowed under this section for each taxable year shall not exceed $8,720,000.

(c) The credits allowed pursuant to this section that are not used by the eligible taxpayer are transferable by written agreement from the eligible taxpayer to any eligible customer or eligible vendor at any time during the five years immediately following the taxable year for which the credits were allowed. The eligible taxpayer originally allowed the credit and the subsequent transferee must jointly file a copy of the written transfer agreement with the Kansas department of revenue within 30 days of the transfer. The written agreement must contain the name, address and taxpayer identification number of the parties to the transfer, the amount of unused credit being transferred, the taxable year the credit was originally allowed to the eligible taxpayer and the taxable year or years for which the credit may be claimed. The eligible taxpayer and subsequent transferee shall also provide any information pertaining to the transfer as may be required by the secretary of revenue to administer and carry out the provisions of this section.

(d) Any unused credit amounts may be carried forward for up to five taxable years immediately following the taxable year for which the credits were allowed. The credit shall not be refundable.

(e) As used in this section:

(1) (A) "Eligible customer" means a business that:

(i) Uses class II or class III short line railroads or railroad-related property, facilities or structures located wholly or partly within the state of Kansas to directly or indirectly transport property, commodities or goods;

(ii) is served by a class II or class III short line railroad; or

(iii) stores railcars on the class II or class III short line railroad.

(B) "Eligible customer" does not include a class I railroad, as defined in 49 C.F.R. § 1201.1-1(a), as in effect on January 1, 2022.

(2) "Eligible taxpayer" means:

(A) Any railroad subject to the Kansas income tax act that is classified by the United States surface transportation board as a class II or class III railroad, as defined in 49 C.F.R. § 1201.1-1(a), as in effect on January 1, 2022; or

(B) any owner or lessee of rail siding located on or adjacent to a class II or class III railroad in the state of Kansas.

(3) (A) "Eligible vendor" means a person who provides railroad-related services directly to an eligible taxpayer. "Railroad-related services" includes, but is not limited to: Transport of freight by rail; loading and unloading of freight transported by rail; railroad bridge services; railroad track construction; provision of railroad track material or equipment; locomotive or freight train car leasing or rental; maintenance of a railroad's right-of-way, including vegetation control; and freight train car repair, rehabilitation or remanufacturing repair services.

(B) "Eligible vendor" does not include a class I railroad, as defined in 49 C.F.R. § 1201.1-1(a), as in effect on January 1, 2022.

(4) (A) "Qualified railroad track maintenance expenditures" means gross expenditures for maintenance, reconstruction or replacement of railroad track, including roadbed, bridges, industrial leads and side track, and related track structures to the extent the expenditures are on track located in the state of Kansas and the track was owned or leased by an eligible taxpayer as of January 1, 2022.

(B) "Qualified railroad track maintenance expenditures" does not include expenditures used to generate a federal tax credit or expenditures funded by a state or federal grant.

(f) The secretary of revenue shall annually certify the tax credit amount allowed for each eligible taxpayer. The secretary of revenue may adopt rules and regulations necessary to administer the provisions of this section.

(g) The secretary of transportation may adopt rules and regulations to permit verification of the eligibility of an eligible taxpayer's expenditures for purposes of the credit.

History: L. 2022, ch. 63, § 18; July 1.

§§ 79-32,298 Title and purpose of act

The provisions of K.S.A. 2025 Supp. 79-32,298 through 79-32,303, and amendments thereto, shall be known and may be cited as the Kansas targeted employment act. The purpose of this act shall be to incentivize employers to employ persons with developmental disabilities in Kansas and decrease the reliance and associated costs to taxpayers to fund governmental programs.

History: L. 2022, ch. 70, § 1; July 1.

§§ 79-32,299 Definitions

As used in this act:

(a) "Competitive integrated employment" has the meaning as provided in the workforce innovation and opportunity act, 29 U.S.C. § 3101 et seq., as defined in 29 U.S.C. § 3102, 34 C.F.R. § 361.5 and 29 U.S.C. § 705.

(b) "Community service provider" means an association or organization licensed by the Kansas department for aging and disability services whose purpose is to provide support and services, relating to the ability to live and to work in the community, to persons who, without such support and services, would be unable or would have significant difficulty maintaining employment or living in the community. "Community service provider" also includes other governmental agencies that support or that elect to support eligible individuals with job placement and job preservation supports including, but not limited to, school districts, community mental health centers and vocational rehabilitation contractors.

(c) "Earned income" means compensation paid to a Kansas employee for competitive integrated employment that is equal or greater than the minimum wage and is performed in a competitive integrated setting.

(d) "Eligible individual" means an individual, including a high school student, who is a Kansas resident, is employed by an employer in a competitive integrated setting, has a developmental disability that has been documented as required by the secretary for aging and disability services and who has agreed to provide the secretary for aging and disability services, or the secretary's designee, information required by the secretary pursuant to the Kansas targeted employment act, or to permit the secretary of revenue to provide such information to the secretary for aging and disability services.

(e) "Developmental disability" means the same as defined in K.S.A. 39-1803, and amendments thereto.

(f) "Targeted employment business" means those employers employing eligible individuals in competitive integrated employment in a competitive integrated setting and who are authorized to do business in Kansas. In order to qualify as a "targeted employment business," the employer must pay earned income to an eligible individual in a calendar year. "Targeted employment business" does not include a community service provider.

History: L. 2022, ch. 70, § 2; July 1.

§§ 79-32,300 Credit against income, privilege or premium tax liability for employment of eligible individuals by targeted employment businesses; determination of credit amount; maximum annual amount of all credits

For tax years 2022 through 2027, a credit shall be allowed against the income, privilege or premium tax liability imposed upon a taxpayer qualifying as a targeted employment business or a taxpayer outsourcing work to a targeted employment business pursuant to the Kansas income tax act, the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premiums tax and privilege fees imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, for every hour that an eligible individual is employed in a calendar year in a targeted employment business and receives earned income as compensation. The credit shall only apply to wages for hours worked and not for any compensation for leave paid to the eligible individual. The credit shall be 50% of the wages paid to the eligible individual on an hourly basis, up to a maximum credit of $7.50 per hour. For the purpose of calculating the tax credit, the wage rate used shall not be more than a reasonable or usual and customary market wage rate for a similar job. The credit shall not be refundable, shall not be carried forward and shall only be used once each taxable year against tax liability imposed by only one of the income, privilege or premium taxes. For any employed eligible individual who receives support or services from a community service provider, such eligible individual may choose to have support or services provided as needed at the individual's worksite to help the individual maintain employment. The maximum amount of all tax credits allowed in each tax year under the Kansas targeted employment act shall be $5,000,000.

History: L. 2022, ch. 70, § 3; July 1.

§§ 79-32,301 Targeted employment business information reporting requirements to secretary of revenue; rules and regulations

(a) Any targeted employment business seeking to qualify for a tax credit pursuant to K.S.A. 2025 Supp. 79-32,300, and amendments thereto, shall provide to the secretary of revenue the names of each eligible individual employed and the wage rate per hour, hours worked and gross wages paid, minus any compensation for leave, for each eligible individual and such other information as the secretary of revenue may require.

(b) The secretary of revenue and the secretary for aging and disability services are hereby authorized to adopt such rules and regulations as may be necessary for the administration of the provisions of the Kansas targeted employment act.

History: L. 2022, ch. 70, § 4; July 1.

§§ 79-32,302 Powers and duties of secretary for aging and disability services; program for measurement of results from tax credits; provision of tax information by secretary of revenue; confidentiality; report by secretary for aging and disability services

(a) The secretary for aging and disability services shall develop and implement a program to measure the results of the tax credits allowed by K.S.A. 2025 Supp. 79-32,298 through 79-32,301, and amendments thereto, including an analysis of: (1) Decreases in reliance upon state government-funded subsidies for employed eligible individuals and any associated net savings to Kansas taxpayers resulting from any such decreases in reliance; (2) effects of reallocation of tax dollars that employers would have paid to the state government of Kansas to employers who employed eligible individuals pursuant to the tax credit program; and (3) any benefits or detriments to the quality of life and the standard of living for employed eligible individuals, including access to health insurance, healthcare or other services and increases or decreases in income, discretionary income and expenses. The secretary for aging and disability services may require employed eligible individuals or targeted employment businesses to provide or to permit the secretary of revenue to provide, as a condition of participation in the tax credit program, information necessary to assess the tax credit program pursuant to this section, including information otherwise confidential under state or federal law. All confidential information provided shall be received, stored and used in a manner that shall maintain the confidentiality of the information provided and not permit the identification of eligible individuals or targeted employment businesses.

(b) Notwithstanding any other provision of state law, the secretary of revenue shall provide the secretary for aging and disability services with tax information, including tax information for individuals and targeted employment businesses that have waived the confidentiality of such information, as necessary to enable the secretary for aging and disability services to fulfill the requirements of this section. All information pertaining to an eligible individual or targeted employment business shall be provided in a manner that shall maintain the confidentiality of such eligible individuals and businesses. Nothing in this section shall be construed to violate or conflict with any federal law.

(c) The secretary for aging and disability services shall submit a written report of the findings of the secretary's review pursuant to subsection (a) to the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house on the first day of the 2023 through 2027 regular sessions of the legislature.

History: L. 2022, ch. 70, § 5; July 1.

§§ 79-32,303 Expiration of act

The provisions of K.S.A. 2025 Supp. 79-32,298 through 79-32,302, and amendments thereto, shall expire on January 1, 2028, except that tax credits earned in tax year 2027 may be awarded by the secretary of revenue as provided by this act.

History: L. 2022, ch. 70, § 6; July 1.

§§ 79-32,304 Citation of act

The provisions of K.S.A. 2025 Supp. 79-32,304 through 79-32,309, and amendments thereto, shall be known and may be cited as the Kansas affordable housing tax credit act.

History: L. 2022, ch. 85, § 1; July 1.

§§ 79-32,305 Definitions

As used in K.S.A. 2025 Supp. 79-32,304 through 79-32,309, and amendments thereto:

(a) "Act" means the provisions of K.S.A. 2025 Supp. 79-32,304 through 79-32,309, and amendments thereto;

(b) "allocation certificate" means a statement issued by the KHRC certifying that a given development is eligible for the credit and specifying the amount of the credit allowed;

(c) "credit" means the Kansas affordable housing tax credit allowed pursuant to this act;

(d) "credit period" means the credit period as defined in section 42(f)(1) of the federal internal revenue code;

(e) "director" means the director of taxation pursuant to K.S.A. 75-5102, and amendments thereto;

(f) "federal tax credit" means the federal low-income housing tax credit provided by section 42 of the federal internal revenue code;

(g) "KHRC" means the Kansas housing resources corporation, a not-for-profit subsidiary of the Kansas development finance authority incorporated pursuant to K.S.A. 74-8904(v), and amendments thereto;

(h) "pass-through entity" means any: (1) Limited liability company; (2) limited partnership; or (3) limited liability partnership;

(i) "pass-through certification" means a certification provided to the director by any pass-through entity allocating a credit to its partners or members, certifying the amount of credit to be allocated to each partner or member of such pass-through entity;

(j) "qualified allocation plan" means the qualified allocation plan adopted by the KHRC pursuant to section 42(m) of the federal internal revenue code;

(k) "qualified development" means a "qualified low-income housing project," as that term is defined in section 42 of the federal internal revenue code that is located in Kansas and is determined by the KHRC to be eligible for a federal tax credit whether or not a federal tax credit is allocated with respect to such qualified development; and

(l) "qualified taxpayer" means an individual, a person, firm, corporation, or other entity that owns an interest, direct or indirect, in a qualified development and is subject to the taxes imposed by the Kansas income tax act, the privilege taxes imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premium taxes imposed pursuant to K.S.A. 40-252, and amendments thereto.

History: L. 2022, ch. 85, § 2; July 1.

§§ 79-32,306 Tax credit for qualified development; amount; allocation; requirements; allocation in pass-through entity; carryforward of credit; maximum amount of total credits; discontinuance of credits

(a) For all taxable years commencing after December 31, 2022, except as provided in subsection (i), there shall be allowed a credit against the income tax liability imposed pursuant to the Kansas income tax act, the privilege tax liability imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premium tax liability imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, for each qualified development for each year of the credit period, in an amount equal to the federal tax credit allocated or allowed by the KHRC to such qualified development, except that there shall be no reduction in the credit allowable in the first year of the credit period due to the calculation in section 42(f)(2) of the federal internal revenue code.

(b) The KHRC shall issue an allocation certificate to an owner of a qualified development to which a credit has been allocated. The KHRC shall issue an allocation certificate to the qualified development simultaneously with issuance of federal form 8609 with respect to the federal tax credits.

(c) All allocations shall be made pursuant to the qualified allocation plan.

(d) If an owner of a qualified development receiving an allocation of a credit is a pass-through entity, the owner may allocate the credit among its partners or members in any manner agreed to by such persons regardless of whether: (1) Any such person is allocated or allowed any portion of any federal tax credit with respect to the qualified project; (2) the allocation of the credit under the terms of the agreement has substantial economic effect within the meaning of section 704(b) of the federal internal revenue code; or (3) any such person is deemed a partner for federal income tax purposes, if the partner or member would be considered a partner or member under applicable state law governing such entity and has been admitted as a partner or member on or prior to the date for filing the qualified taxpayer's tax return, including any amendments to such tax return, with respect to the year of the credit. In the case of multiple tiers of pass-through entities, the credit may be so allocated through any number of pass-through entities in any manner agreed by the owners of such pass-through entities, none of which shall be considered a transfer. Any pass-through entity allocating a credit to its partners or members shall attach a pass-through certification to its tax return annually. Each partner or member shall be allowed to claim or further allocate such amount subject to any restrictions set forth in this act.

(e) An owner of a qualified development to which a credit has been allocated and each qualified taxpayer to which such owner has allocated a portion of such credit, if any, shall file with their state income, privilege or premium tax return a copy of the allocation certificate issued by the KHRC with respect to such qualified development and a copy of any pass-through certification, as prescribed by the director.

(f) No credit shall be allocated pursuant to this act unless the qualified development is the subject of a recorded restrictive covenant requiring the development to be maintained and operated as a qualified development and is in accordance with the accessibility and adaptability requirements of the federal tax credits and title VIII of the civil rights act of 1968, as amended by the fair housing amendments act of 1988, for a period of 15 taxable years, or such longer period as may be agreed to between the KHRC and the owner of the qualified development, beginning with the first taxable year of the credit period.

(g) The allocated credit amount may be taken against the income, privilege or premium taxes imposed for each taxable year of the credit period. Any amount of credit that exceeds the income, privilege or premium tax liability of a qualified taxpayer for a taxable year may be carried forward as a credit against subsequent years' tax liability up to 11 tax years following the tax year in which the allocation was made and shall be applied first to the earliest years possible. Any amount of the credit that is not used shall not be refunded to the taxpayer.

(h) Unless otherwise provided in this act or the context or law requires otherwise, the KHRC shall determine eligibility for a credit and allocate credits in accordance with the standards and requirements set forth in section 42 of the federal internal revenue code. Any combination of federal tax credits and credits allowed pursuant to this act shall be the least amount necessary to ensure the financial feasibility of a qualified development.

(i) (1) Notwithstanding the foregoing provisions, the total amount of Kansas affordable housing tax credits awarded by the KHRC to all qualified developments for qualified allocation plan year 2025 shall not exceed $25,000,000. Commencing with the qualified allocation plan adopted for 2026 and ending with the qualified allocation plan adopted for 2028, the total amount of Kansas affordable housing tax credits awarded by the KHRC to all qualified developments in each qualified allocation plan year shall not exceed $8,800,000. On and after November 15, 2025, the KHRC shall not accept any application for, or award any additional allocation of, credit under this act to a qualified development receiving a 4% federal tax credit, which is defined as a qualified development financed by tax-exempt bonds as provided under section 42(h)(4) of the federal internal revenue code. The KHRC shall continue to award credit under this act to qualified developments receiving 9% federal tax credits in accordance with the provisions of this act for the 2026, 2027 and 2028 qualified allocation plans. A qualified development receiving a 4% federal tax credit awarded a credit allocation under this act by the KHRC on or before November 14, 2025, pursuant to the 2025 qualified allocation plan or any previous qualified allocation plan, shall continue to receive the awarded credit throughout the authorized credit period and any applicable carryforward period.

(2) Subsequent to awards for the 2028 qualified allocation plan, the KHRC shall not accept any application for, or award any additional allocation of, credit under this act in any amount to a qualified development. No credits under this act shall be allocated or awarded after the 2028 qualified allocation plan or after December 31, 2028. A qualified development receiving a 9% federal tax credit awarded a credit allocation under this act by the KHRC pursuant to the 2028 qualified allocation plan or any previous qualified allocation plan shall continue to receive the awarded credit throughout the authorized credit period and any applicable carryforward period.

History: L. 2022, ch. 85, § 3; L. 2025, ch. 129, § 1; July 1.

§§ 79-32,307 Recaptured or disallowed credits; effect on tax liability

If, under section 42 of the federal internal revenue code, a portion of any federal tax credit taken on a qualified development is required to be recaptured or is otherwise disallowed during the credit period, the qualified taxpayer that claimed the credit pursuant to this act with respect to such qualified development shall also be required to recapture a portion of any credits authorized by this act. The percentage of credits subject to recapture shall be equal to the percentage of federal tax credits subject to recapture or otherwise disallowed during such period. Any credits recaptured or disallowed shall increase the tax liability of the qualified taxpayer who claimed the credits and shall be included on the tax return of the qualified taxpayer submitted for the taxable year in which the recapture or disallowance event is identified.

History: L. 2022, ch. 85, § 4; July 1.

§§ 79-32,308 Rules and regulations

The KHRC and the director, in consultation with each other, shall promulgate rules and regulations necessary for their respective administration of this act.

History: L. 2022, ch. 85, § 5; July 1.

§§ 79-32,309 Administration by Kansas housing resources corporation; annual report to the legislature

(a) The KHRC, in consultation with the director, shall monitor and oversee compliance with the provisions of this act and shall report specific occurrences of noncompliance to the director.

(b) For each allocation year, the KHRC shall submit a written report to the legislature on or before December 31 of each year and make such report available to the public. The report shall:

(1) Specify the number of qualified developments that have been allocated credits during the allocation year and the total number of units supported by each development;

(2) describe each qualified development that has been allocated credits including, without limitation, the geographic location of the development, the household type and any specific demographic information available about residents intended to be served by the development, the income levels intended to be served by the development, and the rents or set-asides authorized for each development; and

(3) provide housing market and demographic information that demonstrates how the qualified developments supported by the credits are addressing the need for affordable housing within the communities they are intended to serve as well as information about any remaining disparities in the affordability of housing within those communities.

History: L. 2022, ch. 85, § 6; July 1.

§§ 79-32,310 Purpose and citation of act

(a) The purpose of the Kansas housing investor tax credit act is to bring housing investment dollars to communities that lack adequate housing. Development of suitable residential housing will complement economic development of rural and urban areas that lack adequate housing resources and enable such communities to attract businesses, employees and new residents.

(b) K.S.A. 2025 Supp. 79-32,310 through 79-32,315, and amendments thereto, shall be known and may be cited as the Kansas housing investor tax credit act.

History: L. 2022, ch. 85, § 7; July 1.

§§ 79-32,311 Definitions

As used in the Kansas housing investor tax credit act, K.S.A. 2025 Supp. 79-32,310 through 79-32,315, and amendments thereto:

(a) "Act" means the Kansas housing investor tax credit act;

(b) "cash investment" means, as approved by the director, money or money equivalent in consideration for qualified securities;

(c) "city" means any city incorporated in accordance with Kansas law with a population of less than 70,000, as certified to the secretary of state by the division of the budget on the previous July 1 in accordance with K.S.A. 11-201, and amendments thereto;

(d) "corporation" means the Kansas housing resources corporation;

(e) "county" means any county organized in accordance with K.S.A. 18-101 et seq., and amendments thereto, with a population of less than 75,000, as certified to the secretary of state by the division of the budget on the previous July 1 in accordance with K.S.A. 11-201, and amendments thereto;

(f) "director" means the director of housing of the Kansas development finance authority;

(g) "Kansas investor" means an individual who is a resident of Kansas or any business entity domiciled in Kansas, or any corporation, even if a wholly owned subsidiary of a foreign corporation, that does business primarily in Kansas or conducts substantially all of its business activities in Kansas, or a bank or other financial institution or association chartered or incorporated under the laws of Kansas that does business primarily in Kansas or conducts substantially all of its business activities in Kansas;

(h) "manufactured home" means a "manufactured home" as defined in K.S.A. 58-4202, and amendments thereto, that is installed on a permanent foundation. The permanent foundation shall be of a type not removable intact from the site, constructed of durable materials such as concrete, mortared masonry or treated wood, site built and shall have attachment points to anchor and stabilize the manufactured home to transfer all loads to the underlying soil or rock;

(i) "modular home" means a "modular home" as defined in K.S.A. 58-4202, and amendments thereto, that is installed on a permanent foundation. The permanent foundation shall include a basement or crawl space;

(j) "qualified housing project" means a project within a city or county for the construction of single-family residential dwellings, including, but not limited to, manufactured housing or modular housing, or multi-family residential dwellings or buildings, that is eligible for designation by the director as a project for the purposes of the tax credit allowed under this act. "Qualified housing project" does not include a project eligible for income or other tax credits designated for low-income housing under state or federal law, including, but not limited to, the low income housing tax credit pursuant to 26 U.S.C. § 42, or a project participating in tenant-based or project-based programs pursuant to section 8 of the United States housing act of 1937, 42 U.S.C. § 1437f;

(k) "qualified investor" means an investor that has made a cash investment in a qualified housing project and is eligible for a tax credit under this act. A "qualified investor" includes a natural person, a business or a bank or other financial institution or association and the project builder or developer; and

(l) "qualified securities" means a cash investment through any form or combination of forms of financial assistance, including equity or debt instruments or bank or financial institution or association loans pursuant to rules and regulations adopted by the director, and that with respect to any investment made for the purpose of receiving a tax credit under this act have been approved in form and substance by the director.

History: L. 2022, ch. 85, § 8; July 1.

§§ 79-32,312 Kansas housing investor tax credit program; administration; qualified housing projects; requirements; eligibility; rules and regulations

(a) There is hereby established the Kansas housing investor tax credit program within the Kansas housing resources corporation, to be administered by the director of housing. The purpose of tax credits issued under the Kansas housing investor tax credit program is to facilitate investment in suitable housing that will support the growth of communities that lack adequate housing by attracting new employees, residents and families and will support the development and expansion of businesses that are job and wealth creating enterprises.

(b) To achieve this purpose and to optimize the use of the limited resources of the state, the director is authorized to issue tax credits for qualified housing projects to qualified investors who make cash investments in such qualified housing projects and to project builders and developers. Such tax credits shall be issued for those qualified housing projects that, as determined by the director, are most likely to provide the greatest economic benefit to and best meet the needs of the community lacking adequate housing where the project is located. In issuing tax credits, the director shall give priority to Kansas investors.

(c) To be designated as a qualified housing project, the project builder or developer shall apply to the director. Such application shall be in a form and substance as required by the director and shall include:

(1) The name and address of the project builder or developer and names of all principals or management;

(2) if the project builder or developer is seeking tax credits for such builder's or developer's cash investment in the project, information as required by the director for consideration of the request;

(3) a project plan, including a description of the project, timeline, housing to be constructed, intended market, costs and anticipated pricing for the housing and any other information that may be required by the director;

(4) a statement of the potential economic impact of the project;

(5) a description of all financing for the project, the amount of any tax credits requested and the earliest year in which the tax credits may be claimed;

(6) a statement of the amount, timing and projected use of the proceeds to be raised from qualified investors;

(7) the names, addresses and taxpayer identification numbers of all investors who may qualify for the tax credit. Such list of investors who may qualify for the tax credit shall be amended as any information on the list shall change; and

(8) such additional information as the director may require.

(d) In determining whether to designate a project as a qualified housing project, the director shall consider whether the project:

(1) Has the support of the community and the governing body of the city or county where such project is located;

(2) will enhance the ability of the community that lacks adequate housing to attract new businesses or expand existing business by providing suitable housing directly for employees or make such housing significantly more available, or will meet other significant housing needs of the community making the community attractive to new or expanding businesses or their employees, as determined by the director;

(3) has the financial support, management, planning and market to be successful;

(4) has an analysis or survey of the housing needs of the community provided by the project builder or developer or the governing body of the city or county where the project is located that, in the director's judgment, supports proceeding with the proposed project for the purposes of this act;

(5) has met all other requirements of this act to the satisfaction of the director; and

(6) has met such other requirements of the director as adopted in rules and regulations.

(e) If the director approves the application, the director shall enter into an agreement with the project builder or developer for the project prior to issuing any tax credits for the project. The agreement shall set forth the amount of tax credits to be issued for the project, the requirements for a cash investment and the issuance of tax credits. If the project builder or developer has been approved by the director for tax credits for the project builder's or developer's cash investment in the project, the agreement shall set forth the amount of credits so approved and the amount of credits remaining for issuance to other qualified investors. Such agreement shall require, as a condition of the issuance of tax credits, binding commitments by the project builder or developer to the corporation for:

(1) The reporting of progress and financial data, including investor information. The project builder or developer shall have the obligation to notify the director in a timely manner of any changes in the qualifications of the project or in the eligibility of investors to claim a tax credit;

(2) the right of access to the project and to the financial records of the project builder or developer;

(3) the provision of information for purposes of the economic development incentive program information database pursuant to K.S.A. 2025 Supp. 74-50,226, and amendments thereto;

(4) the repayment requirements upon loss of designation pursuant to K.S.A. 2025 Supp. 79-32,314, and amendments thereto; and

(5) any additional terms and conditions required by the director.

(f) To be eligible to receive tax credits, a qualified investor shall make a cash investment in the project in accordance with the agreement required by subsection (e). Each project builder or developer of a designated qualified housing project shall promptly report to the corporation the following information at the time such information becomes known to the builder or developer:

(1) The name, address and taxpayer identification number of each qualified investor who has made a cash investment in qualified securities in the project and has received tax credits for this investment during the preceding year and all other preceding years;

(2) the amounts of the cash investments by each qualified investor and a description of the qualified securities issued in consideration of such cash investments;

(3) the name, address and taxpayer identification number of each person to whom tax credits have been transferred by the original qualified investor; and

(4) any additional information as the director may require when requested.

(g) Any violation of the reporting requirements set forth in this section shall be grounds for loss of the designation as a qualified housing project, as provided by K.S.A. 2025 Supp. 79-32,314, and amendments thereto.

(h) The reasonable costs of the administration of this act, the review of applications for certification as qualified housing projects and the issuance of tax credits to qualified housing projects as authorized by this act may be reimbursed in total or in part through fees paid by the qualified project, qualified investors or transferees of investors, according to a reasonable fee schedule adopted by the director.

(i) The state of Kansas shall not be held liable for any damages to any qualified investor that makes an investment in a qualified housing project.

(j) The director shall provide information regarding qualified housing projects and qualified investors to the secretary of revenue.

(k) The director shall adopt rules and regulations as necessary to implement the provisions of this act.

History: L. 2022, ch. 85, § 9; July 1.

§§ 79-32,313 Tax credit for qualified housing projects; requirements; limitations; carryforward and transfer of credit; rules and regulations

(a) (1) For tax year 2022 and all tax years thereafter, a credit against the income tax liability imposed pursuant to the Kansas income tax act, the privilege tax liability imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premium tax liability imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, shall be allowed to:

(A) A qualified investor for a cash investment in a qualified housing project that has been approved and issued a tax credit by the director. The tax credit may be claimed in its entirety in the taxable year the cash investment is made; and

(B) a project builder or developer of a qualified housing project that has been approved and issued a tax credit by the director.

(2) To claim such tax credit, the qualified investor, project builder or developer or transferee shall provide all information or documentation in the form and manner required by the secretary of revenue. If the amount of the credit exceeds the taxpayer's tax liability in any one taxable year, the remaining portion of the credit may be carried forward in the succeeding taxable years until the total amount of the credit is used, except that no credit may be claimed after four taxable years next succeeding the taxable year that such credit was issued, and any remaining credit shall be forfeited. Any portion of the credit that is carried forward may be transferred pursuant to subsection (d) and claimed by the transferee in the same manner as the transferor.

(b) (1) Tax credits may be issued by the director for a qualified housing project as follows:

(A) For qualified housing projects located in a county with a population of not more than 8,000, in an amount of not to exceed $35,000 per residential unit;

(B) for qualified housing projects located in a county with a population of more than 8,000 but not more than 25,000, in an amount of not to exceed $32,000 per residential unit; and

(C) for all other qualified housing projects, in an amount of not to exceed $30,000.

(2) A qualified housing project shall be limited to a total of 40 such residential units per year for both single-family and multi-family dwellings.

(3) Tax credits may be issued to a qualified investor in the amount of a cash investment of up to the total amount that may be issued by the director under this subsection for the qualified housing project, or as provided in the agreement required by K.S.A. 2025 Supp. 79-32,312, and amendments thereto. Project builders or developers may apply to the director each year for tax credits for additional units or phases of a project. Qualified investors may be issued tax credits for cash investments in multiple qualified housing projects. Project builders or developers may apply and be approved for multiple qualified housing projects in the same tax year.

(4) The aggregate amount of tax credits that may be issued under this section shall not exceed $13,000,000 each tax year, except that if the director issues an aggregate amount of tax credits in one tax year that is less than $13,000,000, then the director may carry forward the difference and issue such amount of tax credits in the immediately succeeding tax year in addition to the statutory amount that may be issued under this section. Of the aggregate amount of tax credits issued in one tax year, the director shall allocate:

(A) Not less than $2,500,000 in tax credits for qualified housing projects located in counties with a population of not more than 8,000;

(B) not less than $2,500,000 in tax credits for qualified housing projects located in counties with a population of more than 8,000 but not more than 25,000; and

(C) up to $8,000,000 in tax credits for qualified housing projects located in counties with a population of more than 25,000 but not more than 75,000.

(c) A cash investment in a qualified housing project shall be deemed to have been made on the date of acquisition of the qualified security, as such date is determined by the director.

(d) Any qualified investor who receives a tax credit pursuant to this section shall be deemed to acquire an interest in the nature of a transferable credit limited to the amount of the credit issued to the qualified investor by the director. All or a portion of such credit may be transferred by the qualified investor or any subsequent transferee to one or more persons, whether or not such transferee is then a qualified investor, and claimed by the transferee as a credit against the transferee's Kansas tax liability in the same manner as provided in subsection (a) beginning in the year that the cash investment was originally made by the qualified investor. The credit may be carried forward as permitted by subsection (a). There shall be no limit on the number of times a credit or any portion thereof can be transferred. No person shall be entitled to a refund for any interest on such tax credit that may be created under this section. A credit acquired by transfer shall be subject to the limitations prescribed in this section. Any such transferee succeeds to all remaining rights and restrictions of the transferor with respect to the credit being transferred on the date of such transfer. Documentation of any credit acquired by transfer shall be provided by the taxpayer claiming such credit in the manner required by the secretary of revenue. The qualified investor or subsequent transferee transferring such credit shall provide the director and the secretary of revenue with the name, address and taxpayer identification number of each person to whom credits have been transferred and such other information as may be required by the director or the secretary of revenue. The provisions of this subsection shall apply to credits issued for tax year 2022 and all tax years thereafter.

(e) The secretary of revenue may adopt rules and regulations as necessary to implement and administer the provisions of this act.

(f) For purposes of calculating any tax due under K.S.A. 40-253, and amendments thereto, the credit allowed by this section shall be treated as a tax paid under K.S.A. 40-252, and amendments thereto.

(g) The provisions of subsection (d), as amended by this act, shall apply retroactively to any credits issued for tax year 2022 and all tax years thereafter.

History: L. 2022, ch. 85, § 10; L. 2023, ch. 68, § 9; L. 2025, ch. 129, § 2; July 1.

§§ 79-32,314 Loss of qualified housing project designation; notice

(a) If the director determines that a project is not in substantial compliance with the requirements of this act or the agreement executed pursuant to K.S.A. 2025 Supp. 79-32,312, and amendments thereto, the director shall inform the project builder or developer of the project in writing that the project will lose designation as a qualified housing project in 120 days from the date of mailing of the notice unless such builder or developer corrects the deficiencies and becomes compliant with with the requirements for designation.

(b) At the end of such 120-day period, if the project is still not in substantial compliance, the director shall send a notice of loss of designation to the project builder or developer, the secretary of revenue and all known qualified investors in the project. Loss of designation of a qualified housing project shall preclude the issuance of any additional tax credits with respect to the project, and the director shall not approve any subsequent application for such project as a qualified housing project. Upon loss of the designation as a qualified housing project, the project builder or developer shall repay any tax credits such taxpayer has claimed.

(c) Qualified investors other than the project builder or developer who have lawfully made a cash investment in a qualified housing project approved by the director shall not have tax credits disallowed solely due to the project losing its designation as a qualified housing project under this act.

History: L. 2022, ch. 85, § 11; July 1.

§§ 79-32,315 Annual report; contents

(a) On or before January 31, 2023, and on or before January 31 of each year thereafter, the director shall transmit a report annually to the governor, the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house of representatives. Such report shall be based upon information received from each qualified housing project for which tax credits have been issued during the preceding year and shall describe the following:

(1) The manner in which the purpose, as described in this act, has been carried out;

(2) the total cash investments made for qualified securities in qualified housing projects during the preceding year and cumulatively since the enactment of this act;

(3) an estimate of jobs facilitated by housing developed through such investments; and

(4) an estimate of the multiplier effect on the Kansas economy of the investments. The amount of tax credits claimed in the previous fiscal year; a general description of the investors that benefited from the tax credits; and any aggregate job creation or capital investment in Kansas that resulted from the tax credits for a period of five years beginning from the date on which the tax credits were issued.

(b) The director shall conduct an annual review of the activities undertaken pursuant to this act to ensure that tax credits issued pursuant to this act are issued in compliance with the provisions of this act and rules and regulations adopted by the director.

History: L. 2022, ch. 85, § 12; July 1.

§§ 79-32,316 Pregnancy resource act tax credit; definitions; eligibility; limitations; certification of eligible charitable organizations; application for and allocation of credits

(a) This section shall be known and may be cited as the pregnancy resource act.

(b) As used in this section:

(1) "Eligible charitable organization" means an organization that is:

(A) Exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(B) a nonprofit organization organized under the laws of this state; and

(C) (i) a member of an organization whose members are pregnancy centers or residential maternity care facilities based in the state; or

(ii) a pregnancy center or residential maternity facility that:

(a) Maintains a dedicated phone number for clients;

(b) maintains in this state its primary physical office, clinic or residential home that is open for clients for a minimum of 20 hours a week, excluding state holidays;

(c) offers services, at no cost to the client, for the express purpose of providing assistance to women in order to carry their pregnancy to term, encourage parenting or adoption, prevent abortion and promote healthy childbirth; and

(d) utilizes trained healthcare providers to perform any available medical procedures.

(2) "Healthcare provider" means an individual licensed, registered or certified by the:

(A) State board of healing arts;

(B) board of nursing; or

(C) behavioral sciences regulatory board.

(c) (1) For taxable years commencing after December 31, 2023, a credit shall be allowed against the income, privilege or premium tax liability imposed upon a taxpayer pursuant to the Kansas income tax act, the privilege tax imposed upon any national banking association, state bank, trust company or savings and loan association pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, or the premiums tax and privilege fees imposed upon an insurance company pursuant to K.S.A. 40-252, and amendments thereto, in an amount equal to 70% of the total amount contributed during the taxable year by a taxpayer to an eligible charitable organization.

(2) A contribution for which a credit is claimed must be a voluntary contribution and shall not be a payment for services rendered.

(3) If the amount of such tax credit exceeds the taxpayer's tax liability for such tax year, the taxpayer may carry over the amount that exceeds such tax liability for deduction from the taxpayer's liability in the next succeeding tax year or years until the total amount of the tax credit has been deducted from tax liability, except that no such tax credit shall be carried over for deduction after the fifth tax year succeeding the tax year in which the contribution was made.

(4) In no event shall the total amount of credits allowed under this section for contributions to a single eligible charitable organization exceed $5,000,000 per tax year.

(5) The aggregate amount of credits claimed pursuant to this section shall not exceed $10,000,000 per tax year.

(d) Taxpayers claiming a credit authorized by this section shall provide the name of the eligible charitable organization and the amount of the contribution to the department of revenue on forms provided by the department.

(e) An eligible charitable organization shall provide the department with a written certification pursuant to subsection (f) that it meets all criteria to be considered an eligible charitable organization. The organization shall also notify the department of any changes that may affect eligibility under this section.

(f) The eligible charitable organization's written certification must be signed by an officer of the organization under penalty of perjury. The written certification shall include the following:

(1) Verification of the organization's status under section 501(c)(3) of the federal internal revenue code of 1986;

(2) a statement that the organization does not provide, pay for, refer for or provide coverage of abortions and does not financially support, partner with or affiliate with any other entity that provides, pays for, refers for or provides coverage of abortions, including nonsurgical abortions and abortifacients;

(3) a statement that the organization maintains its principal office or presence in this state and that at least 50% of its clients claim to be residents of this state; and

(4) any other information that the department requires to administer this section.

(g) The department shall review each written certification and determine whether the organization meets all the criteria to be considered an eligible charitable organization and notify the organization of its determination. The department may also periodically request recertification from the organization. The department shall compile and make available to the public a list of eligible charitable organizations.

(h) Tax credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity shall be allocated among all partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners, members or shareholders mutually agree as provided in an executed agreement.

(i) Prior to claiming any credit on a return, a taxpayer shall apply for credits with the department on forms prescribed by the department. In the application the taxpayer shall certify to the department the dollar amount of the contributions made or to be made during the calendar year. Within 30 days after the receipt of an application, the department shall allocate credits based on the dollar amount of contributions as certified in the application. If the department cannot allocate the full amount of credits certified in the application due to the limit on the aggregate amount of credits that may be awarded under this section in a tax year, the department shall so notify the applicant within 30 days with the amount of credits, if any, that may be allocated to the applicant in the calendar year. Once the department has allocated credits to a taxpayer, if the contribution for which a credit is allocated has not been made as of the date of the allocation, then the contribution must be made not later than 90 days from the date of the allocation. If the contribution is not made within such time period, the allocation shall be cancelled and returned to the department for reallocation.

History: L. 2024, ch. 93, § 8; July 1.

Article 33 Cigarettes and Tobacco Products

§ 79-3301 Definitions

As used in K.S.A. 79-3301 et seq., and amendments thereto:

(a) "Act" means the Kansas cigarette and tobacco products act.

(b) "Carrier" means one who transports cigarettes from a manufacturer to a wholesale dealer or from one wholesale dealer to another.

(c) "Carton" means the container used by the manufacturer of cigarettes in which no more than 10 packages of cigarettes are placed prior to shipment from such manufacturer.

(d) "Cigarette" means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape, and irrespective of tobacco being flavored, adulterated or mixed with any other ingredient if the wrapper is in greater part made of any material except tobacco.

(e) "Conspicuous location or place" means a location or place available to the general public.

(f) "Consumer" means the person purchasing or receiving cigarettes or tobacco products for final use.

(g) "Contracting entity" means any public or private person, firm or entity that has entered into a contract with the secretary of revenue to provide services.

(h) "Dealer" means any person who engages in the sale or manufacture of cigarettes, tobacco products or electronic cigarettes in the state of Kansas, and who is required to be licensed under the provisions of this act.

(i) "Dealer establishment" means any location or premises, other than vending machine locations, at or from which cigarettes, tobacco products or electronic cigarettes are sold, and where records are kept.

(j) "Director" means the director of taxation.

(k) "Distributor" means: (1) Any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from outside the state any tobacco products for sale;

(2) any person who makes, manufactures, fabricates or stores tobacco products in this state for sale in this state; or

(3) any person engaged in the business of selling tobacco products outside this state who ships or transports tobacco products to any person in the business of selling tobacco products in this state.

(l) "Division" means the division of taxation.

(m) "Electronic cigarette" means a battery-powered device, whether or not such device is shaped like a cigarette, that can provide inhaled doses of nicotine by delivering a vaporized solution by means of cartridges or other chemical delivery systems.

(n) "Importer" means the same as provided in 26 U.S.C. § 5702(k).

(o) "License" means the privilege of a licensee to sell cigarettes or tobacco products in the state of Kansas, and the written evidence of such authority or privilege as issued by the director.

(p) "Licensee" means any person holding a current license issued pursuant to this act.

(q) "Manufacturer" means the same as provided in 26 U.S.C. § 5702(d).

(r) "Manufacturer's salesperson" means a person employed by a cigarette manufacturer who sells cigarettes, manufactured by such employer and procured from wholesale dealers.

(s) (1) "Package" means a container in which no more than 25 individual cigarettes are wrapped and sealed by the manufacturer of cigarettes prior to shipment to a wholesale dealer;

(2) for the purposes of K.S.A. 79-3321(v) and (w), and amendments thereto, "package" means the same as provided in 15 U.S.C. § 1332(4).

(t) "Person" means any individual, partnership, society, association, joint-stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity whether appointed by a court or otherwise and any combination of individuals.

(u) "Received" means the coming to rest of cigarettes for sale by any dealer in the state of Kansas.

(v) "Retail dealer" or "retailers" means a person, other than a vending machine operator, in possession of cigarettes or electronic cigarettes for the purpose of sale to a consumer.

(w) "Sale" means any transfer of title or possession or both, exchange, barter, distribution or gift of cigarettes, tobacco products or electronic cigarettes, with or without consideration.

(x) "Sample" means cigarettes or tobacco products distributed to members of the general public at no cost for purposes of promoting the product.

(y) "Self-service display" means a display that contains cigarettes or tobacco products and is located in an area openly accessible to a retail dealer's consumers, and from which such consumers can readily access cigarettes or tobacco products without the assistance of a salesperson, and which is knowingly utilized by the retail dealer to market and sell cigarettes and tobacco products to consumers. A display case that holds cigarettes or tobacco products behind locked doors does not constitute a self-service display.

(z) "Stamps" means tax indicia applied by means of heat process, pressure or any other process approved by the director.

(aa) "Tax indicia" means visible evidence of tax payment in the form of stamps.

(bb) "Tobacco products" means cigars, cheroots, stogies, periques; granulated, plug cut, crimp cut, ready rubbed and other smoking tobacco; snuff, snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking. Tobacco products do not include cigarettes.

(cc) "Tobacco specialty store" means a dealer establishment that derives at least 65% of such dealer establishment's revenue from cigarettes or tobacco products.

(dd) "Vending machine" means any coin operated machine, contrivance or device, by means of which merchandise may be sold.

(ee) "Vending machine distributor" means any person who sells cigarette vending machines to a vending machine operator operating vending machines in the state of Kansas.

(ff) "Vending machine operator" means any person who places a vending machine, owned, leased or operated by such person, at locations where cigarettes are sold from such vending machine. The owner or lessee of the premises upon which a vending machine is placed shall not be considered the operator of the machine, nor shall the owner or lessee, or any employee or agent of the owner or lessee be considered an authorized agent of the vending machine operator, if the owner or lessee does not own or lease the machine and the owner's or lessee's sole remuneration from the machine is a flat rental fee or commission based upon the number or value of cigarettes sold from the machine, or a combination of both.

(gg) "Wholesale dealer" means any person who sells cigarettes to other wholesale dealers, retail dealers, vending machine operators and manufacturer's salespersons for the purpose of resale in the state of Kansas.

(hh) "Wholesale sales price" means the original net invoice price for which a manufacturer sells a tobacco product to a distributor, as shown by the manufacturer's original invoice.

History: L. 1933, ch. 122, § 1 (Special Session); L. 1939, ch. 329, § 1; L. 1966, ch. 46, § 1 (Budget Session); L. 1967, ch. 498, § 1; L. 1969, ch. 456, § 1; L. 1984, ch. 357, § 1; L. 1996, ch. 214, § 1; L. 2000, ch. 92, § 1; L. 2010, ch. 8, § 9; L. 2012, ch. 127, § 2; L. 2017, ch. 96, § 3; June 22.

§ 79-3302 Title and purpose of act

(a) K.S.A. 79-3301 through 79-3304, 79-3306, 79-3309, 79-3310, 79-3311, 79-3312, 79-3312a, 79-3313, 79-3316, 79-3321, 79-3322, 79-3323, 79-3324a, 79-3326, 79-3328, 79-3329, 79-3333, 79-3335, 79-3371, 79-3373, 79-3374, 79-3375, 79-3377, 79-3378, 79-3379, 79-3387, 79-3388, 79-3391, 79-3392, 79-3393, 79-3394 and K.S.A. 79-3311a, 79-3336, 79-3395 through 79-3399, and 79-33,100, and amendments thereto, shall be known and may be cited as the Kansas cigarette and tobacco products act.

(b) It is the purpose and intent of this act to regulate the sale of cigarettes and tobacco products in this state and to impose a tax thereon.

History: L. 1933, ch. 122, § 2 (Special Session); L. 1939, ch. 329, § 2; L. 1972, ch. 342, § 105; L. 1984, ch. 358, § 1; L. 1996, ch. 214, § 2; L. 2000, ch. 92, § 2; L. 2017, ch. 96, § 4; June 22.

§ 79-3303 Licenses and permits; requirements relating to vending machines

(a) Each person engaged in the business of selling cigarettes or electronic cigarettes in the state of Kansas and each vending machine distributor shall obtain a license as provided by this act. A separate application, license and fee is required for each dealer establishment owned or operated by a dealer. A vending machine operator is required to obtain a vending machine operator's master license and, in addition, a separate permit for each vending machine operated by the operator. A vending machine operator may submit one application for the vending machine operator's master license and all permits for vending machines operated by the operator. The license shall be displayed in the dealer establishment and the vending machine permit shall remain securely and visibly attached to the vending machine and contain such information as the director may require. Any vending machine found without such permit attached to the machine shall be sealed by an agent of the director and such seal shall be removed only by an agent of the director after payment of the permit fee and the penalties provided by this act.

(b) The application for a vending machine operator's master license and vending machine permits shall list the brand name and serial number of each machine and such other information as required by the director. Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any officer or employee of the division to divulge or make known in any way the location of any vending machine to any person not an officer or employee of the division or contracting entity of the division, where the division has determined disclosure of such information is essential for completion of the contract and has taken appropriate steps to preserve confidentiality, except that such information may be divulged to any law enforcement officer for use in the officer's official duties. Any officer, employee or contracting entity revealing any such location in violation of this provision, in addition to the penalties otherwise provided in this act, shall be dismissed from office.

(c) A vending machine operator, in the course of business as a vending machine operator, may dispose of or sell vending machines without securing a license to sell vending machines. The vending machine operator may move vending machines from one location to another and, if a vending machine becomes inoperative or is disposed of, the permit for such machine may be transferred to another machine. A vending machine operator, within 10 days, shall notify the director of the brand name and serial number of vending machines that become inoperative or that the operator disposes of, sells, acquires or brings into service in this state as additional machines.

(d) The key to the lower or storage compartment of a vending machine shall remain only in the possession of the vending machine operator or the operator's authorized agent. All services connected with the operation of a vending machine shall be performed by the vending machine operator or the operator's authorized agent. All vending machines shall be subject to inspection by the director or the director's authorized agents. No permit shall be issued for a vending machine unless it is constructed so that at least one package of each vertical column of cigarettes located therein is visible showing tax indicia.

(e) All vending machines operated on military installations shall have a permit affixed to the machines and the cigarettes shall show tax indicia of the Kansas tax.

(f) On or before the 10th day of each month, each vending machine distributor shall report to the director, on forms provided by the director, all sales of cigarette vending machines by the distributor to persons in the state of Kansas during the preceding month; the name and address of the purchaser; and the brand name, serial number and sale price of the machines.

(g) Concurrently with a change in ownership of a dealer establishment the license applicable to the establishment is void and shall be surrendered to the director and shall not be transferred. On removal of a dealer establishment from one location to another, the owner of the establishment shall notify the director and surrender the owner's license. The director shall issue a new license for the unexpired term of the surrendered license on payment of a fee of $2. If a dealer's license is lost, stolen or destroyed, the director may issue a new license on proof of loss, theft or destruction, at a cost of $2. The director shall remit all moneys received under this subsection to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

History: L. 1933, ch. 122, § 3 (Special Session); L. 1939, ch. 329, § 3; L. 1953, ch. 438, § 1; L. 1967, ch. 498, § 2; L. 1969, ch. 457, § 1; L. 1996, ch. 214, § 3; L. 2001, ch. 5, § 449; L. 2012, ch. 127, § 3; L. 2017, ch. 96, § 5; June 22.

§ 79-3304 License fees and bond; disqualifications for issuance or renewal of license

(a) The license fee for each biennium or portion thereof shall be as follows:

(1) For retail dealer's license, $25 for each dealer establishment.

(2) For retailer's license on railroad or sleeping cars, $50. Only one retail license need be obtained by each railroad or sleeping car company to permit the sale of cigarettes on any or all of its cars within the state.

(3) For show, carnival or catering license, $50 for each concession.

(4) For resident retail dealer's temporary license for a place of business of a temporary nature, $2 for each seven days or portion thereof.

(5) For wholesale dealer's license, $50 for each dealer establishment. No wholesale dealer's license shall be issued until the person applying therefor has filed with the director a bond payable to the state of Kansas in such an amount as shall be fixed by the director, but in no event less than $1,000, with a corporate surety authorized to do business in the state of Kansas, and approved by the director. If a wholesale dealer is unable to secure a corporate surety bond, the director may issue a license to such wholesale dealer, upon the wholesale dealer furnishing a personal bond meeting the approval of the director. Such bond shall be conditioned on the wholesale dealer's compliance with all the provisions of this act during the license period.

(6) For vending machine distributor's license, $50.

(7) For manufacturer's salesperson license, $20 for each salesperson. The manufacturer's salesperson shall, with respect to each sale made to a retail dealer, make and deliver to the retail dealer a true invoice wherein such salesperson shall insert the name of the wholesale dealer from whom such salesperson secured such cigarettes, together with such salesperson's own name and the name of the retail dealer purchasing the cigarettes.

(8) For vending machine operator's license, no fee.

(9) For vending machine permit, $25 for each permit.

(b) An application for any license required under the provisions of this act may be refused to: (1) A person who is not of good character and reputation in the community in which such person resides; or (2) a person who has been convicted of a felony or of any crime involving moral turpitude or of the violation of any law of any state or the United States pertaining to cigarettes or tobacco products and who has not completed the sentence, parole, probation or assignment to a community correctional services program imposed for any such conviction within two years immediately preceding the date of making application for any of such licenses.

(c) The director may refuse to issue or renew a license to any person who:

(1) Has been convicted on or after January 1, 2013, of a felony under the laws of this state or any other state or the United States;

(2) is not current in the payment of any tax or fine under this act;

(3) has had a cigarette license revoked in this state or any other state;

(4) is not at least 21 years of age;

(5) intends to carry on the business as an agent of another;

(6) at the time of application for renewal of any license issued under this act, would not be eligible for the license upon first application;

(7) does not own the premises for which a license is sought, or does not, at the time of the application, have a written lease;

(8) has been convicted of a crime involving any tax under this act;

(9) is a corporation in which any officer, manager or director thereof, or any stockholder owning in the aggregate more than 5% of the common or preferred stock of such corporation, has been an officer, manager or director or stockholder owning in the aggregate more than 5% of the common or preferred stock, of a corporation that:

(A) Has had a license revoked under this act; or

(B) has been convicted of a crime involving any tax under this act; or

(10) is a limited liability company in which any officer, manager or director thereof, or any member owning in the aggregate more than 5% of the limited liability company, has been an officer, manager or director or stockholder owning in the aggregate more than 5% of the common or preferred stock, of a corporation that:

(A) Has had a license revoked under this act; or

(B) has been convicted of a crime involving any tax under this act.

History: L. 1933, ch. 122, § 4 (Special Session); L. 1939, ch. 329, § 4; L. 1949, ch. 482, § 1; L. 1959, ch. 394, § 1; L. 1966, ch. 46, § 2 (Budget Session); L. 1967, ch. 498, § 3; L. 1980, ch. 319, § 1; L. 1985, ch. 326, § 1; L. 1986, ch. 123, § 30; L. 1996, ch. 214, § 4; L. 2017, ch. 96, § 6; L. 2023, ch. 18, § 1; July 1.

§ 79-3305 Repealed

History: L. 1933, ch. 122, § 5 (Special Session); L. 1939, ch. 329, § 5; L. 1967, ch. 498, § 4; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3306 License; application forms; issuance

Licenses shall be issued by the director for a biennium or portion thereof upon application for the license made on forms furnished by the director containing such information as the director may require subscribed to by the applicant or the applicant's authorized representative.

History: L. 1933, ch. 122, § 6 (Special Session); L. 1939, ch. 329, § 6; L. 1967, ch. 498, § 5; L. 1985, ch. 326, § 2; April 25.

§ 79-3307 Repealed

History: L. 1933, ch. 122, § 7 (Special Session); L. 1939, ch. 329, § 7; Repealed, L. 1967, ch. 498, § 20; July 1.

§ 79-3308 Repealed

History: L. 1933, ch. 122, § 8 (Special Session); Repealed, L. 1939, ch. 329, § 25; July 1.

§ 79-3309 Violations of act that may result in suspension or revocation of license; notice of violation; request for hearing; restraining orders or injunctions

(a) Whenever the director has reason to believe that any person licensed under this act has violated any of the provisions of this act, in any of the following ways, the director shall notify the person by certified mail of the director's intention to suspend or revoke the person's license or licenses, if the person:

(1) Has been convicted on or after January 1, 2013, of a felony under the laws of this state or any other state or the United States;

(2) is not current in the payment of any tax or fine under this act;

(3) has had a cigarette license revoked in this state or any other state;

(4) is not at least 21 years of age;

(5) intends to carry on the business as an agent of another;

(6) at the time of application for renewal of any license issued under this act, would not be eligible for the license upon first application;

(7) does not own the premises for which a license is sought, or does not, at the time of the application, have a written lease;

(8) has been convicted of a crime involving any tax under this act;

(9) in the case of a corporation, any officer, manager or director thereof, or any stockholder owning in the aggregate more than 5% of the common or preferred stock of such corporation, has been an officer, manager or director or stockholder owning in the aggregate more than 5% of the common or preferred stock, of a corporation that:

(A) Has had a license revoked under this act; or

(B) has been convicted of a crime involving any tax under this act; or

(10) in the case of a limited liability company, any officer, manager or director thereof, or any member owning in the aggregate more than 5% of the limited liability company, has been an officer, manager or director or stockholder owning in the aggregate more than 5% of the common or preferred stock, of a corporation that:

(A) Has had a license revoked under this act; or

(B) has been convicted of a crime involving any tax under this act.

(b) Within 30 days after the mailing of the notice, the person may request a hearing in writing before the director. The hearing shall be conducted in accordance with the provisions of the Kansas administrative procedure act. If, after such hearing, it appears to the satisfaction of the director that the person has violated any of the provisions of this act, the director is hereby authorized and empowered to suspend or revoke the person's license or licenses and may in addition deny the application of the person for a license or licenses for a portion of the succeeding calendar year for such period as the director determines is necessary, but in no case for a period ending more than one year following the date upon which the license or licenses were suspended or revoked. The suspension or revocation of a vending machine operator's master license shall suspend or revoke all vending machine permits issued to the vending machine operator for the term of the license suspension or revocation.

(c) If a person continues to engage in activities requiring a license under this act after having notice or knowledge of the suspension or revocation of the person's license or licenses or after becoming more than 10 days delinquent in filing a bond payable to the state of Kansas as required by the director, payment of any fine, tax, penalty or interest imposed pursuant to this act, the state shall be entitled, in any proceedings brought for such purposes, to have an order and judgment restraining and enjoining such unlawful sale and no bond shall be required for the issuance of any such restraining order or injunction.

History: L. 1933, ch. 122, § 9 (Special Session); L. 1935, ch. 309, § 1; L. 1939, ch. 329, § 8; L. 1943, ch. 290, § 4; L. 1949, ch. 483, § 1; L. 1957, ch. 429, § 19; L. 1966, ch. 46, § 3 (Budget Session); L. 1967, ch. 498, § 6; L. 1988, ch. 356, § 331; L. 1996, ch. 214, § 5; L. 2017, ch. 96, § 7; L. 2023, ch. 18, § 2; July 1.

§ 79-3310 Tax on cigarettes imposed; rates

There is imposed a tax upon all cigarettes sold, distributed or given away within the state of Kansas. On and after July 1, 2015, the rate of such tax shall be $1.29 on each 20 cigarettes or fractional part thereof or $1.61 on each 25 cigarettes, as the case requires. Such tax shall be collected and paid to the director as provided in this act. Such tax shall be paid only once and shall be paid by the wholesale dealer first receiving the cigarettes as herein provided.

The taxes imposed by this act are hereby levied upon all sales of cigarettes made to any department, institution or agency of the state of Kansas, and to the political subdivisions thereof and their departments, institutions and agencies.

History: L. 1933, ch. 122, § 10 (Special Session); L. 1935, ch. 309, § 2; L. 1939, ch. 329, § 9; L. 1947, ch. 459, § 1; L. 1957, ch. 505, § 1; L. 1964, ch. 37, § 1 (Budget Session); L. 1965, ch. 529, § 1; L. 1967, ch. 498, § 7; L. 1970, ch. 396, § 1; L. 1983, ch. 329, § 1; L. 1984, ch. 357, § 2; L. 1985, ch. 327, § 1; L. 2002, ch. 185, § 1; L. 2015, ch. 99, § 29; July 1.

§ 79-3310a Repealed

History: L. 1983, ch. 329, § 2; Repealed, L. 1984, ch. 357, § 4; July 1.

§ 79-3310b Repealed

History: L. 1983, ch. 329, § 3; L. 1984, ch. 357, § 3; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3310c Inventory tax on cigarettes; procedures for payment

On or before July 31, 2015, each wholesale dealer, retail dealer and vending machine operator shall file a report with the director in such form as the director may prescribe showing cigarettes, cigarette stamps and meter imprints on hand at 12:01 a.m. on July 1, 2015. A tax of $.50 on each 20 cigarettes or fractional part thereof or $.62 on each 25 cigarettes, as the case requires and $.50 or $.62, as the case requires upon all tax stamps and all meter imprints purchased from the director and not affixed to cigarettes prior to July 1, 2015, is hereby imposed and shall be due and payable on or before October 31, 2015. The tax imposed upon such cigarettes, tax stamps and meter imprints shall be imposed only once under this act. The director shall remit all moneys collected pursuant to this section to the state treasurer who shall credit the entire amount thereof to the state general fund.

History: L. 2002, ch. 185, § 2; L. 2015, ch. 99, § 30; July 1.

§ 79-3311 Stamps; sale; discount; corporate surety bond; use and bond; cigarette tax refund fund established; transportation for out-of-state sale

The director shall design and designate indicia of tax payment to be affixed to each package of cigarettes as provided by this act. Stamps applied by the heat process shall be sold only in amounts of 30,000 or multiples thereof, except that such stamps which are suitable for packages containing 25 cigarettes each shall be sold in amounts prescribed by the director. Stamps applied by the heat process shall be supplied to wholesale dealers in good standing with the director at the time of purchase at a discount of 0.55% on and after July 1, 2015, and thereafter, from the face value thereof, and shall be deducted at the time of purchase or from the remittance therefor as hereinafter provided. Any wholesale cigarette dealer who shall file with the director a bond, of acceptable form, payable to the state of Kansas with a corporate surety authorized to do business in Kansas, shall be permitted to purchase stamps, and remit therefor to the director within 30 days after each such purchase, up to a maximum outstanding at any one time of 85% of the amount of the bond. Failure on the part of any wholesale dealer to remit as herein specified shall be cause for forfeiture of such dealer's bond. All revenue received from the sale of such stamps shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall first credit such amount as the director shall order to the cigarette tax refund fund and shall credit the remaining balance to the state general fund. A refund fund designated the cigarette tax refund fund not to exceed $10,000 at any time shall be set apart and maintained by the director from taxes collected under this act and held by the state treasurer for prompt payment of all refunds authorized by this act. Such cigarette tax refund fund shall be in such amount as the director shall determine is necessary to meet current refunding requirements under this act.

The wholesale cigarette dealer shall affix to each package of cigarettes stamps required by this act prior to the sale of cigarettes to any person, by such dealer or such dealer's agent or agents, within the state of Kansas. The director is empowered to authorize wholesale dealers to affix revenue tax stamps upon original packages of cigarettes and is charged with the duty of regulating the use of tax stamps to secure payment of the proper taxes. No wholesale dealer shall affix revenue tax stamps to original packages of cigarettes without first having obtained permission from the director to employ this method of affixation. If the director approves the wholesale dealer's application for permission to affix revenue tax stamps to original packages of cigarettes, the director shall require such dealer to file a suitable bond payable to the state of Kansas executed by a corporate surety authorized to do business in Kansas. The director may, to assure the proper collection of taxes imposed by the act, revoke or suspend the privilege of affixing tax stamps upon original packages of cigarettes.

A licensed wholesale dealer may, for the purpose of sale in another state, transport cigarettes not bearing Kansas indicia of tax payment through the state of Kansas provided such cigarettes are contained in sealed and original cartons.

History: L. 1933, ch. 122, § 11 (Special Session); L. 1935, ch. 309, § 3; L. 1939, ch. 329, § 10; L. 1957, ch. 505, § 2; L. 1964, ch. 37, § 2 (Budget Session); L. 1965, ch. 529, § 2; L. 1967, ch. 498, § 8; L. 1970, ch. 396, § 2; L. 1971, ch. 315, § 1; L. 1983, ch. 329, § 4; L. 1985, ch. 327, § 2; L. 1986, ch. 381, § 1; L. 2001, ch. 5, § 450; L. 2002, ch. 185, § 3; L. 2015, ch. 99, § 31; L. 2017, ch. 96, § 8; June 22.

§ 79-3311a Stamps; minimum number of cigarettes; liability for tax

(a) Notwithstanding any other provision in this act, any person who purchases, possesses, uses or consumes more than 400 cigarettes in this state without the required tax indicia being affixed as herein provided shall be liable for the tax imposed by this act.

(b) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2017, ch. 96, § 1; June 22.

§ 79-3312 Redemption of stamps

The director shall redeem any unused stamps that any wholesale dealer presents for redemption within six months after the purchase thereof, at the face value less 0.55% thereof if such stamps have been purchased from the director and are whole, complete stamps. The director shall prepare a voucher showing the net amount of such refund due, and the director of accounts and reports shall draw a warrant on the state treasurer for the same. Wholesale dealers shall be entitled to a refund of the tax paid on cigarettes which have become unfit for sale upon proof thereof less 0.55% of such tax.

History: L. 1935, ch. 309, § 4; L. 1939, ch. 329, § 11; L. 1957, ch. 505, § 3; L. 1964, ch. 37, § 3 (Budget Session); L. 1967, ch. 498, § 9; L. 1970, ch. 396, § 3; L. 1971, ch. 315, § 2; L. 1983, ch. 329, § 5; L. 1985, ch. 327, § 3; L. 2002, ch. 185, § 4; L. 2015, ch. 99, § 32; L. 2017, ch. 96, § 9; June 22.

§ 79-3312a Cigarettes refused by consignee; duty of carrier; liability for tax; damaged or missing cigarettes

Carriers are hereby required to report to the director the amount of cigarettes refused by any consignee and all such cigarettes returned to the manufacturer on forms and in the manner and time provided by the director. Failure of carriers to file such reports shall make the carrier liable for unpaid tax on such cigarettes. Carriers may sell cigarettes damaged in transit when refused by the consignee if the carrier first obtains written authority of the director for such sale and pays the tax due thereon. Cigarettes damaged in transit, refused by the consignee and not returned to the manufacturer or sold as herein provided shall be destroyed in the presence of an agent of the director and in such case the tax shall be waived. Any consignee signing receipt of delivery and then discovering shortage in transit shall be responsible for the tax on the amount of cigarettes shown in the said receipt of delivery. In all other cases of shortage in shipment of cigarettes as evidenced by waybill or invoice the carrier shall be liable for the tax due on the missing cigarettes unless the said carrier shall furnish to the director on forms and in the manner and time provided by the director proof satisfactory to the director that such shortage was occasioned by the theft of said cigarettes by a person or persons outside of the employment of said carrier. In the event that said proof is satisfactory to the director, the tax on said missing cigarettes shall be waived.

History: L. 1967, ch. 498, § 10; L. 1969, ch. 458, § 1; July 1.

§ 79-3313 Cigarettes required to be sold in packages; distribution of free sample packages; violations and sanctions; hearing

All cigarettes sold in this state shall be in packages, and each of the packages shall bear evidence of payment of the tax thereon except that any railroad or sleeping car company licensed as a retailer is hereby authorized to sell cigarettes upon its cars without affixing stamps to the packages of cigarettes provided that monthly reports and payment of the tax due is made directly to the director in the manner and under the terms provided for by the director. In addition, manufacturers are hereby authorized to distribute in the state, through their authorized representatives or wholesale dealers, free sample packages of cigarettes containing less than 20 cigarettes without affixing stamps to the packages provided that monthly reports and payment of a tax at the rates prescribed by law are made directly to the director. No wholesale dealer or manufacturers' authorized representatives shall sell or distribute cigarettes, except free sample packages, to any person in the state of Kansas not holding a dealer's license as provided in this act. Such packages of sample cigarettes shall bear the word "sample" or "not for sale" and "state tax paid" in letters easily read.

Whenever the director shall have reason to believe that any manufacturer has violated the provisions of this section or the conditions provided by the director, the director shall conduct a hearing thereon in accordance with the provisions of the Kansas administrative procedure act. If upon the basis of such hearing it appears to the satisfaction of the director that such manufacturer has violated any of the provisions of this section or the conditions provided by the director, the director is hereby authorized to suspend or revoke the authorization to the manufacturer for such period as the director determines is necessary but in no case for more than one year.

History: L. 1933, ch. 122, § 12 (Special Session); L. 1935, ch. 309, § 5; L. 1939, ch. 329, § 12; L. 1953, ch. 439, § 1; L. 1957, ch. 429, § 20; L. 1967, ch. 498, § 11; L. 1969, ch. 459, § 1; L. 1984, ch. 358, § 2; L. 1988, ch. 356, § 332; L. 2004, ch. 145, § 44; July 1, 2007.

§ 79-3314 Repealed

History: L. 1933, ch. 122, § 13 (Special Session); L. 1935, ch. 309, § 6; L. 1939, ch. 329, § 13; Repealed, L. 1967, ch. 498, § 20; July 1.

§ 79-3315 Repealed

History: L. 1933, ch. 122, § 14 (Special Session); Repealed, L. 1935, ch. 309, § 13; April 1.

§ 79-3316 Certain records required of dealer; restrictions on purchase by dealer; tax exemption forms

(a) All purchases of cigarettes by any dealer shall be evidenced by an invoice, a duplicate of which shall be furnished to the party receiving the cigarettes from any dealer.

(b) Purchases of cigarettes by wholesale dealers shall be made from the manufacturers of cigarettes or from other Kansas licensed wholesale dealers. Purchases of cigarettes by retail dealers or vending machine operators shall be from wholesale dealers.

(c) All invoices issued by wholesale dealers shall be in duplicate and a copy must accompany the consigned cigarettes. Cigarettes sold by a wholesale dealer to any other dealer shall be evidenced by invoices bearing the vendee's name and license number. A wholesale dealer selling cigarettes to a manufacturer's salesperson shall at the time of delivery of same make a true duplicate invoice, inserting therein the name of the salesman together with the name of such salesperson's employer, except that for an outlet, or fuel outlet or fuel center owned by the same entity, separate invoices are not required if cigarettes are sold from the fuel outlet owned by the same entity.

(d) All records pertaining to sales of cigarettes by dealers in the state of Kansas shall be preserved for a period of three years and shall be available for inspection by the director or the director's designee at the dealer's place of business or, if the dealer has more than one place of business in the state, at a central location of the dealer.

(e) Every wholesale dealer shall report to the director on or before the 10th day of each month, stating the amount of cigarettes sold during the preceding month and the amount of all cigarettes returned to the manufacturer. Any wholesale dealer who refuses any shipment or part of a shipment of unstamped cigarettes or has a shortage in the shipment of cigarettes consigned to such dealer shall in the monthly report next following the refusal or shortage report to the director the number of packages or cartons of cigarettes refused or short and the name of the carrier from whom the cigarettes were refused or shortage occurred. Such report shall be filed electronically in the manner prescribed by the director.

(f) Exemption from payment of cigarette tax on sale of cigarettes made outside the state by any wholesale dealer shall be filed on forms provided by the director.

History: L. 1933, ch. 122, § 15 (Special Session); L. 1935, ch. 309, § 7; L. 1939, ch. 329, § 14; L. 1955, ch. 418, § 1; L. 1967, ch. 498, § 12; L. 1996, ch. 214, § 6; L. 1998, ch. 192, § 10; L. 2017, ch. 96, § 10; June 22.

§ 79-3317 Repealed

History: L. 1935, ch. 309, § 8; L. 1939, ch. 329, § 15; Repealed, L. 1967, ch. 498, § 20; July 1.

§ 79-3318 Repealed

History: L. 1935, ch. 309, § 9; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3319 Repealed

History: L. 1933, ch. 122, § 16 (Special Session); L. 1939, ch. 329, § 16; Repealed, L. 1967, ch. 498, § 20; July 1.

§ 79-3320 Repealed

Revisor's Note: Later act, see 21-3711.

History: L. 1933, ch. 122, § 17 (Special Session); L. 1939, ch. 329, § 17; L. 1967, ch. 498, § 13; Repealed, L. 1969, ch. 180, § 21-4701; July 1, 1970.

§ 79-3321 Unlawful acts

It shall be unlawful for any person:

(a) Except as otherwise specifically provided by this act, to possess, sell, transport, import, distribute, wholesale or manufacture more than 1,000 cigarettes without the required tax indicia being affixed as herein provided.

(b) To mutilate or attach to any individual package of cigarettes any stamp that has in any manner been mutilated or that has been heretofore attached to a different individual package of cigarettes or to have in possession any stamps so mutilated.

(c) To prevent the director or any officer or agent authorized by law, to make a full inspection for the purpose of this act, of any place of business and all premises connected thereto where cigarettes are or may be manufactured, sold, distributed, or given away.

(d) To use any artful device or deceptive practice to conceal any violation of this act or to mislead the director or officer or agent authorized by law in the enforcement of this act.

(e) Who is a dealer to fail to produce on demand of the director or any officer or agent authorized by law any records or invoices required to be kept by such person.

(f) Knowingly to make, use, or present to the director or agent thereof any falsified invoice or falsely state the nature or quantity of the goods invoiced.

(g) Who is a dealer to fail or refuse to keep and preserve for the time and in the manner required by this act all the records required by this act to be kept and preserved.

(h) To wholesale cigarettes to any person, other than a manufacturer's salesperson, retail dealer or wholesaler who is:

(1) Duly licensed by the state where such manufacturer's salesperson, retail dealer or wholesaler is located; or

(2) exempt from state licensing under applicable state or federal laws or court decisions including any such person operating as a retail dealer upon land allotted to or held in trust for an Indian tribe recognized by the United States bureau of Indian affairs.

(i) To have in possession any evidence of tax indicia provided for herein not purchased from the director.

(j) To fail or refuse to permit the director or any officer or agent authorized by law to inspect a carrier transporting cigarettes.

(k) To vend small cigars, or any products so wrapped as to be confused with cigarettes, from a machine vending cigarettes, nor shall a vending machine be so built to vend cigars or products that may be confused with cigarettes, be attached to a cigarette vending machine.

(l) To sell, furnish or distribute cigarettes, electronic cigarettes or tobacco products to any person under 21 years of age.

(m) Who is under 21 years of age to purchase or attempt to purchase cigarettes, electronic cigarettes or tobacco products.

(n) Who is under 21 years of age to possess or attempt to possess cigarettes, electronic cigarettes or tobacco products.

(o) To sell cigarettes to a retailer or at retail that do not bear Kansas tax indicia or upon which the Kansas cigarette tax has not been paid.

(p) To sell cigarettes without having a license for such sale as provided herein.

(q) To sell a vending machine without having a vending machine distributor's license.

(r) Who is a retail dealer to fail to post and maintain in a conspicuous place in the dealer's establishment the following notice: "By law, cigarettes, electronic cigarettes and tobacco products may be sold only to persons 21 years of age and older."

(s) To distribute samples within 500 feet of any school when such facility is being used primarily by persons under 21 years of age unless the sampling is:

(1) In an area to which persons under 21 years of age are denied access;

(2) in or at a retail location where cigarettes and tobacco products are the primary commodity offered for sale at retail; or

(3) at or adjacent to an outdoor production, repair or construction site or facility.

(t) To sell cigarettes, electronic cigarettes or tobacco products by means of a vending machine, including vending machines that sell packaged, single cigarettes, in any establishment, or portion of an establishment, which is open to minors, except that this subsection shall not apply to:

(1) The installation and use by the proprietor of the establishment, or by the proprietor's agents or employees, of vending machines behind a counter, or in some place in such establishment, or portion thereof, to which minors are prohibited by law from having access; or

(2) the installation and use of a vending machine in a commercial building or industrial plant, or portions thereof, where the public is not customarily admitted and where machines are intended for the sole use of adult employees employed in the building or plant.

(u) To sell cigarettes, electronic cigarettes or tobacco products by means of a self-service display in any establishment, except that the provisions of this subsection shall not apply to:

(1) A vending machine that is permitted under subsection (t);

(2) a self-service display that is located in a tobacco specialty store; or

(3) a self-service display located in a facility where the retailer ensures that no person younger than 21 years of age is present or permitted to enter at any time.

(v) To sell or distribute in this state; to acquire, hold, own, possess or transport for sale or distribution in this state; or to import or cause to be imported, into this state for sale or distribution in this state:

(1) Any cigarettes the package of which: (A) Bears any statement, label, stamp, sticker or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed or used in the United States, including, but not limited to, labels stating "For Export Only," "U.S. Tax-Exempt," "For Use Outside U.S." or similar wording; or (B) does not comply with: (i) All requirements imposed by or pursuant to federal law regarding warnings and other information on packages of cigarettes manufactured, packaged or imported for sale, distribution or use in the United States, including but not limited to the precise warning labels specified in the federal cigarette labeling and advertising act, 15 U.S.C. § 1333; and (ii) all federal trademark and copyright laws;

(2) any cigarettes imported into the United States in violation of 26 U.S.C. § 5754 or any other federal law, or federal regulations implementing such laws;

(3) any cigarettes that such person otherwise knows or has reason to know the manufacturer did not intend to be sold, distributed or used in the United States; or

(4) any cigarettes for which there has not been submitted to the secretary of the U.S. department of health and human services the list or lists of the ingredients added to tobacco in the manufacture of such cigarettes required by the federal cigarette labeling and advertising act, 15 U.S.C. § 1335a.

(w) To alter the package of any cigarettes, prior to sale or distribution to the ultimate consumer, so as to remove, conceal or obscure:

(1) Any statement, label, stamp, sticker or notice described in subsection (v); or

(2) any health warning that is not specified in, or does not conform with, the requirements of, the federal cigarette labeling and advertising act, 15 U.S.C. § 1333.

(x) To affix any stamp required pursuant to K.S.A. 79-3311, and amendments thereto, to the package of any cigarettes described in subsection (v) or altered in violation of subsection (w).

(y) To possess, sell, transport, import, distribute, wholesale or manufacture cigarettes, smokeless tobacco or roll-your-own tobacco in violation of K.S.A. 50-6a01 et seq., and amendments thereto.

(z) To sell cigarettes, smokeless tobacco or roll-your-own tobacco in any manner that is not a direct, face-to-face exchange between the retailer and the consumer, except: (1) Mail-order sales, which shall not include mail-order redemption coupons and distribution of free samples through the mail; (2) vending machines as provided in subsection (t); and (3) self-service displays as provided in subsection (u).

History: L. 1933, ch. 122, § 18 (Special Session); L. 1939, ch. 329, § 18; L. 1967, ch. 498, § 14; L. 1969, ch. 460, § 1; L. 1988, ch. 384, § 1; L. 1996, ch. 214, § 7; L. 2000, ch. 92, § 3; L. 2010, ch. 8, § 10; L. 2012, ch. 127, § 1; L. 2017, ch. 96, § 11; L. 2023, ch. 18, § 3; July 1.

§ 79-3322 Criminal penalties; defenses to prosecution; cigarette or tobacco infractions; aiding and abetting; referral to attorney general or proper county or district attorney

(a) (1) Except as otherwise provided in this act, a violation of K.S.A. 79-3321(a), (c), (d), (f), (h), (i), (j), (v), (w), (x) or (y), and amendments thereto, is a:

(A) Class A misdemeanor for a first violation, and the offender shall be fined not less than $1,000 nor more than $2,500 upon a first conviction;

(B) severity level 6, nonperson felony for a second violation, and the offender shall be fined not less than $50,000 nor more than $100,000 upon a second conviction; and

(C) severity level 6, nonperson felony for a third and all subsequent violations, and the offender shall be fined $100,000 upon a third and all subsequent convictions.

(2) It shall be a defense to prosecution under K.S.A. 79-3321(a), and amendments thereto, that a licensee has: (A) Segregated the cigarettes from public view; (B) marked the cigarettes as not for retail sale to consumers; and (C) within 72 hours of receipt, notified the licensee's wholesale dealer, in writing, that the cigarettes do not bear indicia of Kansas tax and that the wholesale dealer shall remove the cigarettes from the licensee's premises.

(b) Except as provided in subsections (a), (c) or (d), a violation of K.S.A. 79-3321, and amendments thereto, is a class B misdemeanor and upon conviction, an offender shall be fined not less than $500 nor more than $1,000 or imprisoned for not more than one year, or both for each separate violation. In addition thereto any person found liable for any license fee or tax imposed under the provisions of this act shall be personally liable for such license fee or tax plus a penalty in an amount equal to 100% thereof.

(c) (1) It is a class B person misdemeanor punishable by a minimum fine of $200 for any person to: (A) Sell, give or furnish any cigarettes or tobacco products to any person under 21 years of age; or (B) buy any cigarettes or tobacco products for any person under 21 years of age.

(2) It shall be a defense to a prosecution under this subsection if: (A) The defendant is a licensed retail dealer, or employee thereof, or a person authorized by law to distribute samples; (B) the defendant sold, furnished or distributed the cigarettes or tobacco products to the person under 21 years of age with reasonable cause to believe the person was of legal age to purchase or receive cigarettes or tobacco products; and (C) to purchase or receive the cigarettes or tobacco products, the person under 21 years of age exhibited to the defendant a driver's license, Kansas nondriver's identification card or other official or apparently official document containing a photograph of the person and purporting to establish that the person was of legal age to purchase or receive cigarettes or tobacco products.

(3) It shall be a defense to a prosecution under this subsection if: (A) The defendant engages in the lawful sale, furnishing or distribution of cigarettes or tobacco products by mail; and (B) the defendant sold, furnished or distributed the cigarettes or tobacco products to the person by mail only after the person had provided to the defendant an unsworn declaration, conforming to K.S.A. 53-601, and amendments thereto, that the person was 21 or more years of age.

(4) For purposes of this subsection the person who violates this subsection shall be the individual directly selling, furnishing or distributing the cigarettes or tobacco products to any person under 21 years of age or the retail dealer who has actual knowledge of such selling, furnishing or distributing by such individual or both.

(d) Violation of K.S.A. 79-3321(m) or (n), and amendments thereto, is a cigarette or tobacco infraction for which the fine is $25. In addition, the judge may require the juvenile to appear in court with a parent or legal guardian.

(e) Any agent, employees or others who aid, abet or otherwise participate in any way in the violation of the Kansas cigarette and tobacco products act or in any of the offenses hereunder punishable shall be guilty and punished as principals to the same extent as any person violating this act.

(f) The secretary of revenue or the secretary's authorized agent may refer such evidence as may be available concerning violations of this act or any rules and regulations or order hereunder to the attorney general or the proper county or district attorney, who may in the prosecutor's discretion, with or without such a reference, institute the appropriate criminal proceedings under this act. Upon receipt of such reference, the attorney general or the county attorney or district attorney may request that a duly employed attorney of the department of revenue prosecute or assist in the prosecution of such violation or violations on behalf of the state. Upon approval of the secretary or the secretary's authorized agent, such employee shall be appointed a special prosecutor for the attorney general or the county attorney or district attorney to serve without compensation from the attorney general or the county attorney or district attorney. Such special prosecutor shall have all the powers and duties prescribed by law for assistant attorneys general or assistant county or district attorneys and such other powers and duties as are lawfully delegated to such special prosecutor by the attorney general or the county attorney or district attorney. If an attorney employed by the secretary or secretary's authorized agent acts as a special prosecutor, the secretary may pay extradition and witness expenses associated with the case.

History: L. 1933, ch. 122, § 19 (Special Session); L. 1939, ch. 329, § 19; L. 1967, ch. 498, § 15; L. 1984, ch. 358, § 4; L. 1996, ch. 214, § 8; L. 1998, ch. 192, § 11; L. 2000, ch. 92, § 4; L. 2017, ch. 96, § 12; L. 2023, ch. 18, § 4; July 1.

§ 79-3323 Contraband goods; seizure

(a) Except as provided in subsection (c), the following are declared to be common nuisances and contraband:

(1) All packages of cigarettes, in quantities of 20 packages or more, not bearing indicia of tax payment as required in this act and all devices for vending cigarettes in which unstamped packages are found;

(2) all packages of cigarettes, in quantities of 20 packages or more, not bearing indicia of tax payment as required by any compact between:

(A) The governor and the Prairie Band Potawatomi Nation and approved by the legislature; (B) the governor and the Iowa Tribe of Kansas and Nebraska and approved by the legislature; (C) the governor and the Kickapoo Tribe in Kansas and approved by the legislature; or (D) the governor and the Sac and Fox Nation of Missouri in Kansas and Nebraska and approved by the legislature;

(3) all cigarettes or tobacco products in the possession of a minor;

(4) cigarettes, smokeless tobacco or roll-your-own tobacco in violation of K.S.A. 50-6a01 et seq., and amendments thereto; and

(5) all property, including vehicles, used in the sale, transportation, distribution, importation, wholesale or manufacture of unstamped packages of cigarettes.

Cigarettes in vending machines and exposed to view not showing indicia of tax payment required by this act to be visible from the outside of the vending machine shall be presumed to be unstamped.

(b) Any cigarettes or property constituting a common nuisance and contraband as provided by this section may be seized by the director or the director's authorized agent or any duly constituted peace officer with or without process or warrant and shall be subject to forfeiture as provided in this act. The party making the seizure shall deliver to the owner of the property and to the person or persons found in possession of the property a receipt stating from whom the property was seized, the place of seizure and a description and the brand of the property seized. A duplicate of the receipt shall be filed in the office of the director and shall be open for public inspection.

(c) Cigarettes in quantities of 1,000 or less in the possession of a licensee are not declared a common nuisance and contraband if the licensee has: (1) Segregated the cigarettes from public view; (2) marked the cigarettes as not for retail sale to consumers; and (3) within 72 hours of receipt, notified the licensee's wholesale dealer, in writing, that the cigarettes do not bear indicia of Kansas tax and that the wholesale dealer shall remove the cigarettes from the licensee's premises.

History: L. 1933, ch. 122, § 20 (Special Session); L. 1939, ch. 329, § 20; L. 1953, ch. 440, § 1; L. 1967, ch. 498, § 16; L. 1980, ch. 319, § 2; L. 1996, ch. 214, § 10; L. 2017, ch. 96, § 13; June 22.

§ 79-3324 Repealed

History: L. 1933, ch. 122, § 21 (Special Session); L. 1939, ch. 329, § 21; L. 1953, ch. 440, § 2; L. 1967, ch. 498, § 17; Repealed, L. 1980, ch. 319, § 4; July 1.

§ 79-3324a Contraband goods; seizure and sale; disposition of proceeds

(a) All of the cigarettes and property seized by the director or the director's authorized agent shall first be listed and appraised by the person making the seizure, and turned over to the director and a receipt taken. The person making the seizure shall immediately make and file a written report showing the name of the person making the seizure, the place where, and the person from whom the property was seized, and inventory and appraisal thereof, at the usual and ordinary wholesale price of the articles received by the director of taxation. The director shall institute forfeiture proceedings within the department of revenue in the name of the state of Kansas, as plaintiff, and in the name of the owner or person in possession, as defendant, if known, and if unknown, in the name of the property seized. The director shall issue notice to the owner or person in whose possession such property was found, directing such person to answer within 10 days. The forfeiture hearing under this subsection shall be conducted in accordance with the provisions of the Kansas administrative procedure act. If the property is declared forfeited and ordered sold, notice of the sale shall be posted in the official newspaper of Shawnee county, Kansas, not less than 10 days before the date of the sale, except that cigarettes shall be withheld from public sale and shall be sold by the director of taxation to the manufacturer of such cigarettes or to a licensed distributor and the purchase price shall be paid to the director of taxation and treated as cigarette tax collected. After deducting all costs incurred in the seizure, forfeiture and sale of all contraband, including cigarettes and property seized by the director or by the director's authorized agent, pursuant to this subsection, all such proceeds shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the cigarette and tobacco products regulation fund created by K.S.A. 79-3391, and amendments thereto, and such proceeds shall be used exclusively for cigarette and tobacco products regulation and enforcement, and not for any other purpose.

(b) All of the cigarettes and property seized by officers of the state of Kansas, other than the director or the director's authorized agent, shall first be listed and appraised by the officer making the seizure, and turned over to the county sheriff of the county in which the seizure is made and a receipt taken. The person making the seizure shall immediately make and file a written report showing the name of the person making the seizure, the place where, and the person from whom the property was seized, and inventory and appraisal thereof, at the usual and ordinary wholesale price of the articles received to the director of taxation. The county or district attorney of the county in which the seizures are made may, at the request of the director, file in the district court forfeiture proceedings in the name of the state of Kansas, as plaintiff, and in the name of the owner or person in possession, as defendant, if known, and if unknown in the name of the property seized. The clerk of the court shall issue summons to the owner or person in whose possession such property was found, directing such person to answer within 10 days. If the property is declared forfeited and ordered sold, notice of the sale shall be posted in five public places in the county not less than 10 days before the date of the sale, except that cigarettes shall be withheld from public sale and shall be sold by the director of taxation to the manufacturer of such cigarettes or to a licensed distributor and the purchase price shall be paid to the director of taxation and treated as cigarette tax collected. The proceeds of any public sale shall be deposited with the clerk of the court, who shall, after deducting costs, including the costs of the sale, pay the balance to the treasurer of the county wherein the sale is constructed. The treasurer shall credit the entire amount to the county general fund.

(c) The seizure and sale of the cigarettes shall not relieve the person from whom the cigarettes were seized from any prosecution on the payment of any penalties provided for under the provisions of K.S.A. 79-3301 et seq., and amendments thereto; nor shall it relieve the purchaser from any payment of the regular cigarette tax and the placing of proper stamps thereon before making any sale of the cigarettes or the personal consumption of the same.

(d) The forfeiture provisions of this act shall only apply to persons having possession of or transporting cigarettes with intent to barter, sell or give away the same. The possession of cigarettes in any quantity of more than five cartons, 50 packages or 1,000 cigarettes, not bearing indicia of tax payment as required by the provisions of K.S.A. 79-3301 et seq., and amendments thereto, shall be prima facie evidence of intent to barter, sell or give away the cigarettes in violation of the provisions of K.S.A. 79-3301 et seq., and amendments thereto.

History: L. 1980, ch. 319, § 3; L. 2017, ch. 96, § 14; June 22.

§ 79-3325 Repealed

History: L. 1933, ch. 122, § 22 (Special Session); Repealed, L. 1939, ch. 329, § 25; July 1.

§ 79-3326 Duties of director; enforcement of act

The director of taxation shall administer and enforce the provisions of this act, and to require such reports, make such investigations and take such other action as the director deems necessary or suitable to that end. For the purpose of ascertaining the correctness of any return or making an estimate of the tax due for any taxpayer or person, the director or the director's designee has the power to examine any books, papers, records or memoranda bearing upon the matters required to be included in the return or report. The secretary of revenue shall adopt rules and regulations for the administration of this act. For the purpose of enforcing this act the director may call to the director's aid any law enforcement officer of this state to prosecute all violators of any of the provisions of this act. The police of any city shall have the right to inspect all premises, records and invoices pertaining to the wholesale distribution, retail sale or sampling of cigarettes or tobacco products within the city at all reasonable times. All agents and representatives designated by the director are hereby invested with all the powers of peace and police officers within the state of Kansas in the enforcement of the provisions of this act throughout the state.

History: L. 1933, ch. 122, § 23 (Special Session); L. 1935, ch. 309, § 10; L. 1939, ch. 329, § 22; L. 1967, ch. 498, § 18; L. 1972, ch. 342, § 106; L. 1996, ch. 214, § 11; L. 2017, ch. 96, § 15; June 22.

§ 79-3327 Repealed

History: L. 1933, ch. 122, § 24 (Special Session); L. 1935, ch. 309, § 11; L. 1939, ch. 329, § 23; L. 1943, ch. 305, § 1; L. 1947, ch. 460, § 1; L. 1951, ch. 494, § 1; L. 1957, ch. 505, § 4; Repealed, L. 1961, ch. 456, § 1; June 30.

§ 79-3327a Repealed

History: L. 1933, ch. 122, § 24 (Special Session); L. 1935 ch. 309, § 11; L. 1939, ch. 329, § 23; L. 1943, ch. 305, § 1; L. 1947, ch. 460, § 1; L. 1951, ch. 494, § 1; L. 1957, ch. 429, § 21; L. 1964, ch. 37, § 4 (Budget Session); L. 1965, ch. 530, § 1; L. 1967, ch. 498, § 19; L. 1970, ch. 396, § 4; L. 1971, ch. 315, § 3; Repealed, L. 1978, ch. 401, § 9; January 1, 1979.

§ 79-3328 Expenses of enforcement

The director is hereby authorized and instructed to pay all proper expenses incurred in the enforcement of this act and for that purpose shall present the necessary vouchers approved by him or her to the director of accounts and reports, who shall issue his or her warrants upon the state treasurer for the amount due upon such vouchers and such warrants shall be paid by the state treasurer as by law provided.

History: L. 1933, ch. 122, § 25 (Special Session); January 1, 1934.

§ 79-3329 Unconstitutionality of part

If any part or parts of this act are held to be unconstitutional the remaining part thereof shall be unaffected thereby.

History: L. 1933, ch. 122, § 26 (Special Session); January 1, 1934.

§ 79-3330 Repealed

History: L. 1933, ch. 122, § 27 (Special Session); L. 1935, ch. 310, § 1; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-3331 Repealed

History: L. 1935, ch. 309, § 12; Repealed, L. 1939, ch. 329, § 25; July 1.

§ 79-3332 Repealed

History: L. 1939, ch. 329, § 24; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-3333 Sale of cigarettes, smokeless tobacco and roll-your-own tobacco; requirements; internet, telephone or mail order transactions, requirements; packages of cigarettes; penalties

(a) Each person engaged in the business of selling cigarettes, smokeless tobacco or roll-your-own tobacco to persons who reside in Kansas shall obtain a license as provided by the Kansas cigarette and tobacco products act.

(b) All cigarettes sold to persons who reside in Kansas shall have a valid Kansas cigarette tax stamp affixed to each package.

(c) All retail dealers, whether located in or outside the state of Kansas, shall have a registration certificate as provided in K.S.A. 79-3608, and amendments thereto, and be subject to the provisions of the Kansas retailers' sales tax act. Each licensee or other person selling cigarettes, smokeless tobacco or roll-your-own tobacco over the internet, telephone or other mail order transaction shall file all sales tax returns and remit taxes owed pursuant to K.S.A. 79-3607, and amendments thereto.

(d) All sales transactions over the internet, telephone or other mail order transaction shall not be completed, unless, before each delivery of cigarettes, smokeless tobacco or roll-your-own tobacco is made, whether through the mail, through a transportation company or any other delivery system, the seller has obtained from the purchaser a certification that includes a reliable confirmation that the purchaser is at least the legal minimum age to purchase cigarettes, smokeless tobacco or roll-your-own tobacco; that the cigarettes or tobacco products purchased are not intended for consumption by an individual who is younger than the legal minimum age to purchase cigarettes, smokeless tobacco or roll-your-own tobacco; and a written statement signed by the purchaser that certifies the purchaser's address and that the purchaser is at least the minimum legal age to purchase cigarettes, smokeless tobacco or roll-your-own tobacco. Such statement shall also confirm: (1) That the purchaser understands that signing another person's name to such certification is illegal; (2) that the sale of cigarettes, smokeless tobacco or roll-your-own tobacco to individuals under the legal minimum purchase age is illegal; and (3) that the purchase of cigarettes, smokeless tobacco or roll-your-own tobacco by individuals under the legal minimum purchase age is illegal under the laws of Kansas.

(e) The retail cigarette dealer shall verify the information contained in the certification provided by the purchaser against a commercially available database of governmental records, or obtain a photocopy or other image of the valid, government-issued identification stating the date of birth or age of the purchaser.

(f) All invoices, bills of lading, sales receipts and any other document related to the sale of cigarettes, smokeless tobacco or roll-your-own tobacco through the internet or other mail order transaction shall contain the current, valid retailer Kansas cigarette, smokeless tobacco or roll-your-own tobacco dealer license number, Kansas sales tax registration number, business name and address of the seller.

(g) All packages of cigarettes shipped from a cigarette dealer to purchasers who reside in Kansas shall clearly print the package with the word "CIGARETTES" on all sides of the package. In addition, such package shall contain an externally visible and easily legible notice located on the same side of the package as the address to which the package is delivered as follows:

"IF THESE CIGARETTES HAVE BEEN SHIPPED TO YOU FROM A SELLER LOCATED OUTSIDE OF THE STATE IN WHICH YOU RESIDE, THE SELLER HAS REPORTED PURSUANT TO FEDERAL LAW THE SALE OF THESE CIGARETTES TO YOUR STATE TAX COLLECTION AGENCY, INCLUDING YOUR NAME AND ADDRESS. YOU ARE LEGALLY RESPONSIBLE FOR ALL APPLICABLE UNPAID STATE TAXES ON THESE CIGARETTES."

(h) (1) Each retail dealer that sells cigarettes to Kansas consumers without indicia of Kansas tax shall file an annual statement for each consumer to the department of revenue on such forms as are provided or approved by the department to the director for all Kansas consumers by March 1 of each year showing such information as the Kansas department of revenue shall require by rules and regulations, including the: (A) Name and address of such Kansas consumer; (B) the date of purchase; and (C) the total number of packs of cigarettes purchased by such Kansas consumer made from the retail dealer in the previous calendar year.

(2) The director may require any retail dealer that sells cigarettes to Kansas consumers without indicia of Kansas tax of more than $100,000 in a calendar year to file the annual statement described in paragraph (1) by electronic format, including magnetic media or another machine-readable form for that year.

(3) Failure to file the annual statement required in paragraph (1) shall subject the retailer dealer to a penalty of $10 for each consumer that should have been included in such annual statement, unless the retailer shows reasonable cause for such failure.

(i) Except as otherwise provided by this act, a violation of subsection (a), (d), (e) or (h) is a:

(1) Class A misdemeanor for a first violation, and the offender shall be fined not less than $1,000 nor more than $2,500 upon a first conviction;

(2) severity level 6, nonperson felony for a second violation, and the offender shall be fined not less than $50,000 nor more than $100,000 upon a second conviction; and

(3) severity level 6, nonperson felony for a third and all subsequent violations, and the offender shall be fined $100,000 upon a third and all subsequent convictions.

(j) Each separate violation of any provision of this section, other than the provisions of subsection (a), (d), (e) or (h) shall be a class B misdemeanor, and the offender shall be fined not less than $500 nor more than $1,000.

(k) The secretary of revenue or the secretary's authorized agent may refer such evidence as may be available concerning violations of this act or any rules and regulations or order hereunder to the attorney general or the proper county or district attorney, who may, in the prosecutor's discretion, with or without such a reference, institute the appropriate criminal proceedings under this act. Upon receipt of such reference, the attorney general or the county attorney or district attorney may request that a duly employed attorney of the department of revenue prosecute or assist in the prosecution of such violation or violations on behalf of the state. Upon approval of the secretary or the secretary's authorized agent, such employee shall be appointed as a special prosecutor for the attorney general or the county attorney or district attorney to serve without compensation from the attorney general or the county attorney or district attorney. Such special prosecutor shall have all the powers and duties prescribed by law for assistant attorneys general or assistant county or district attorneys and such other powers and duties as are lawfully delegated to such special prosecutor by the attorney general or the county attorney or district attorney. If an attorney employed by the secretary or secretary's authorized agent acts as a special prosecutor, the secretary may pay extradition and witness expenses associated with the case.

(l) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2004, ch. 140, § 1; L. 2017, ch. 96, § 16; June 22.

§ 79-3334 Active cigarette and tobacco licensees, list

(a) The Kansas department of revenue shall publish a list of active cigarette and tobacco licensees and shall update such list monthly.

(b) The list of active cigarette and tobacco licensees published as provided in subsection (a) shall contain the following information: County name, owner, business name, address, license type and license number.

(c) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2004, ch. 140, § 2; July 1.

§ 79-3335 Counterfeit cigarettes; seizure; penalties

(a) Counterfeit cigarettes shall be seized by the director. For purposes of this section, counterfeit cigarettes includes cigarettes manufactured, sold, transported, imported, distributed or possessed in this state with intent to deceive consumers and to avoid the provisions of this act, and also includes cigarettes that have false manufacturing labels or packages of cigarettes bearing counterfeit tax stamps. It shall be unlawful for any person to sell, transport, import, distribute, possess, wholesale or manufacture counterfeit cigarettes.

(b) Except as otherwise provided by this act, a violation of the provisions of this section shall be a:

(1) Class A misdemeanor for a first violation, and the offender shall be fined not less than $1,000 nor more than $2,500 upon a first conviction;

(2) severity level 6, nonperson felony for a second violation, and the offender shall be fined not less than $50,000 nor more than $100,000 upon a second conviction; and

(3) severity level 6, nonperson felony for a third and all subsequent violations, and the offender shall be fined $100,000 upon a third and all subsequent convictions.

(c) The secretary of revenue, or the secretary's authorized agent, may refer such evidence as may be available concerning violations of this act or any rules and regulations or order hereunder to the attorney general or the proper county or district attorney, who may in the prosecutor's discretion, with or without such a reference, institute the appropriate criminal proceedings under this act. Upon receipt of such reference, the attorney general or the county attorney or district attorney may request that a duly employed attorney of the department of revenue prosecute or assist in the prosecution of such violation or violations on behalf of the state. Upon approval of the secretary or the secretary's authorized agent, such employee shall be appointed as a special prosecutor for the attorney general or the county attorney or district attorney to serve without compensation from the attorney general or the county attorney or district attorney. Such special prosecutor shall have all the powers and duties prescribed by law for assistant attorneys general or assistant county or district attorneys and such other powers and duties as are lawfully delegated to such special prosecutor by the attorney general or the county attorney or district attorney. If an attorney employed by the secretary or secretary's authorized agent acts as a special prosecutor, the secretary may pay extradition and witness expenses associated with the case.

(d) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2004, ch. 140, § 3; L. 2017, ch. 96, § 17; June 22.

§ 79-3336 Conviction for violation; defined

For the purpose of determining whether a conviction is a first, second, third or subsequent conviction in sentencing under this act:

(a) "Conviction" or "convicted" includes being convicted of a violation of this act or entering into a diversion or deferred judgment agreement in lieu of further criminal proceedings on a complaint alleging a violation of this act;

(b) "conviction" or "convicted" includes being convicted of a violation of a law of another state or the United States, which prohibits the acts that this act prohibits or entering into a diversion or deferred judgment agreement in lieu of further criminal proceedings in a case alleging a violation of such law;

(c) only convictions occurring in the immediately preceding five years beginning on July 1, 2017, shall be taken into account, but the court may consider other prior convictions in determining the sentence to be imposed within the limits provided for a first, second, third or subsequent offense, whichever is applicable; and

(d) it is irrelevant whether an offense occurred before or after conviction for a previous offense.

(e) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2017, ch. 96, § 2; June 22.

§§ 79-3337 through 79-3350 Reserved

§§ 79-3351 through 79-3369 Repealed

History: L. 1969, ch. 461, §§ 1 to 19; Repealed, L. 1973, ch. 400, § 1; July 1.

§ 79-3370 Repealed

History: L. 1972, ch. 375, § 1; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3371 Tax on privilege of selling tobacco products

A tax is hereby imposed upon the privilege of selling or dealing in tobacco products in this state by any person engaged in business as a distributor thereof, at the rate of ten percent (10%) of the wholesale sales price of such tobacco products. Such tax shall be imposed at the time the distributor (a) brings or causes to be brought into this state from without the state tobacco products for sale; (b) makes, manufactures, or fabricates tobacco products in this state for sale in this state; or (c) ships or transports tobacco products to retailers in this state to be sold by those retailers.

History: L. 1972, ch. 375, § 2; July 1.

§ 79-3372 Repealed

History: L. 1972, ch. 375, § 3; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3373 Distributor's license

No person shall engage in the business of selling or dealing in tobacco products as a distributor in this state without first having received a license from the director. Every application for such license shall be made on a form prescribed by the director and shall state the name and address of the applicant; if the applicant is a firm, partnership or association, the name and address of each of its members; if the applicant is a corporation, the name and address of each of its officers; the address of its principal place of business; the place where the business to be licensed is to be conducted; and such other information as the director may require for the purpose of the administration of this act. A person outside this state who ships or transports tobacco products to retailers in this state, to be sold by those retailers, may make application for license as a distributor, be granted such a license by the director and thereafter be subject to all the provisions of this act and entitled to act as a licensed distributor if the person files with the application proof that the person has appointed the secretary of state as the person's agent for service of process relating to any matter or issue arising under this act.

History: L. 1972, ch. 375, § 4; L. 1996, ch. 214, § 12; July 1.

§ 79-3374 License fees; surety bond; application for each place of business

Each application for a distributor's license shall be accompanied by a fee of twenty-five dollars ($25). The application shall also be accompanied by a corporate surety bond issued by a surety company authorized to do business in this state, conditioned for the payment when due of all taxes, penalties and accrued interest which may be due the state. The bond shall be in an amount to be determined by the director and in a form prescribed by the director. Whenever it is the opinion of the director that the bond given by a licensee is inadequate in amount to fully protect the state, he or she shall require an additional bond in such amount as he or she deems sufficient. A separate application for a license shall be made for each place of business at which a distributor proposes to engage in business as such under this act, but an applicant may provide one bond in an amount determined by the director for all applications made by him or her. A distributor applying for a license between June thirtieth and December thirty-first of any year shall be required to pay only one-half of the license fee provided for herein.

History: L. 1972, ch. 375, § 5; July 1.

§ 79-3375 Issuance, expiration and display of licenses; license not transferable

Upon receipt of an application in proper form and payment of the license fee required hereunder, the director shall, unless otherwise provided by this act, issue to applicant a license hereunder, which license shall permit the applicant to whom it is issued to engage in business as a distributor at the place of business shown on the license. Each license shall expire on December thirty-first following its date of issue unless sooner revoked by the director, or unless the business for which the license was issued is transferred. In either case the holder of the license shall immediately surrender it to the director. Each license shall be prominently displayed on the premises covered by the license. No license shall be transferable to any other person.

History: L. 1972, ch. 375, § 6; July 1.

§ 79-3376 Repealed

History: L. 1972, ch. 375, § 7; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3377 Certain records required of distributor; access to premises

(a) Each distributor shall keep in each licensed place of business complete and accurate records for that place of business, including itemized invoices of: (1) Tobacco products held, purchased, manufactured, brought in or caused to be brought in from outside the state or shipped or transported to retailers in this state; and (2) all sales of tobacco products made, except sales to an ultimate consumer. Such records shall show the names and addresses of purchasers and other pertinent papers and documents relating to the purchase, sale or disposition of tobacco products. When a licensed distributor sells tobacco products exclusively to ultimate consumers at the addresses given in the license, no invoice of those sales shall be required, but itemized invoices shall be made of all tobacco products transferred to other retail outlets owned or controlled by that licensed distributor. All books, records and other papers and documents required by this subsection to be kept shall be preserved for a period of at least three years after the date of the documents or the date of the entries thereof appearing in the records, unless the director, in writing, authorizes their destruction or disposal at an earlier date.

(b) At any time during usual business hours duly authorized agents or employees of the director may enter any place of business of a distributor and inspect the premises, the records required to be kept under this act and the tobacco products contained therein, to determine whether or not all the provisions of this act are being fully complied with. Refusal to permit such inspection by a duly authorized agent or employee of the director shall be grounds for revocation of the license.

(c) Each person who sells tobacco products to persons other than an ultimate consumer shall render with each sale itemized invoices showing the seller's name and address, the purchaser's name and address, the date of sale and all prices and discounts. Such person shall preserve legible copies of all such invoices for three years after the date of sale.

(d) Each distributor shall procure itemized invoices of all tobacco products purchased. The invoices shall show the name and address of the seller and the date of purchase. The distributor shall preserve a legible copy of each such invoice for three years after the date of purchase. Invoices shall be available for inspection by authorized agents or employees of the director at the distributor's place of business.

History: L. 1972, ch. 375, § 8; L. 1996, ch. 214, § 13; July 1.

§ 79-3378 Monthly tax returns; remittance of tax; deficiencies

(a) On or before the 20th day of each calendar month every distributor with a place of business in this state shall file a return with the director showing the quantity and wholesale sales price of each tobacco product: (1) Brought, or caused to be brought, into this state for sale; and (2) made, manufactured, or fabricated in this state for sale in this state during the preceding calendar month. Every licensed distributor outside this state shall in like manner file a return showing the quantity and wholesale sales price of each tobacco product shipped or transported to retailers in this state to be sold by those retailers, during the preceding calendar month. Returns shall be made electronically in the manner prescribed by the director. Each return shall be accompanied by a remittance for the full tax liability shown therein, less 4% of such liability as compensation to reimburse the distributor for such distributor's expenses incurred in the administration of this act.

(b) As soon as practicable after any return is filed, the director shall examine the return. If the director finds that, in the director's judgment, the return is incorrect and any amount of tax is due from the distributor and unpaid, the director shall notify the distributor of the deficiency. If a deficiency disclosed by the director's examination cannot be allocated by the director to a particular month or months, the director may nevertheless notify the distributor that a deficiency exists and state the amount of tax due. Such notice shall be given to the distributor by registered or certified mail.

History: L. 1972, ch. 375, § 9; L. 2017, ch. 96, § 18; June 22.

§ 79-3379 Refunds and credits of tax

Where tobacco products, on which the tax imposed by this act has been reported and paid, or which have been reported for the purpose of determining and imposing the tax for the privilege of doing business under the provisions of this act and on which the tax has been paid, are sold, shipped or transported by the distributor to retailers, distributors or ultimate consumers without the state, or are returned to the manufacturer by the distributor, or destroyed by the distributor, a refund or credit of such tax shall be made to the distributor. For the purpose of making such credit or refund, or any combination thereof, the director may issue a tax credit memoranda or may prepare a voucher showing the net amount of such refund due and the director of accounts and reports shall draw a warrant upon the state treasurer for the amount of any such refund certified by the director.

History: L. 1972, ch. 375, § 10; L. 1975, ch. 503, § 1; July 1.

§ 79-3380 Repealed

History: L. 1972, ch. 375, § 11; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3381 Repealed

History: L. 1972, ch. 375, § 12; L. 1980, ch. 308, § 19; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3382 Repealed

History: L. 1972, ch. 375, § 13; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3383 Repealed

History: L. 1972, ch. 375, § 14; L. 1988, ch. 356, § 333; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3384 Repealed

History: L. 1972, ch. 375, § 15; L. 1988, ch. 356, § 334; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3385 Repealed

History: L. 1972, ch. 375, § 16; L. 1988, ch. 366, § 46; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3386 Repealed

History: L. 1972, ch. 375, § 17; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3387 Disposition of revenues

(a) All revenue collected or received by the director from taxes imposed by this act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.

(b) All moneys received from license fees, forfeiture proceeds under K.S.A. 79-3324a, and amendments thereto, and fines imposed by this act shall be collected by the director and shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the cigarette and tobacco products regulation fund created by K.S.A. 79-3391, and amendments thereto, and such proceeds shall be used exclusively for cigarette and tobacco products regulation and enforcement, and not for any other purpose.

History: L. 1972, ch. 375, § 18; L. 1996, ch. 214, § 14; L. 2001, ch. 5, § 451; L. 2017, ch. 96, § 19; June 22.

§ 79-3388 Tobacco products not exempt from sales tax

The imposition of the tax as provided in this act shall not render tobacco products exempt from the retailers' sales tax act under the provisions of K.S.A. 79-3606 (a).

History: L. 1972, ch. 375, § 19; July 1.

§ 79-3389 Reserved

§ 79-3390 Repealed

History: L. 1984, ch. 358, § 3; Repealed, L. 1996, ch. 214, § 40; July 1.

§ 79-3391 Administrative fines; cigarette and tobacco products regulation fund created; expenditures

(a) In addition to or in lieu of any other civil or criminal penalty provided by law, the secretary of revenue or the secretary's designee, upon a finding that a person under this act has violated any provision of this act or any provision of any rule and regulation of the secretary of revenue adopted pursuant to this act shall impose on such person a civil fine not exceeding $1,000 for each violation.

(b) It shall be unlawful for any person, directly or indirectly, to: (1) Sell, give or furnish any cigarettes or tobacco products to any person under 21 years of age; or (2) buy any cigarettes or tobacco products for any person under 21 years of age. In determining the fine to be imposed under this subsection by a licensed retail dealer whose employee sold, furnished or distributed the cigarettes or tobacco products, the secretary of revenue or the secretary's designee shall consider it to be a mitigating circumstance if the employee had completed a training program, approved by the secretary of revenue or the secretary's designee, in avoiding sale, furnishing or distributing of cigarettes and tobacco products to persons under 21 years of age.

(c) No fine shall be imposed pursuant to this section except upon the written order of the secretary of revenue or the secretary's designee to the licensee who committed the violation. Such order shall state the violation, the fine to be imposed and the right of the licensee to appeal the order. Such order shall be subject to appeal and review in the manner provided by the Kansas administrative procedure act.

(d) Any fine collected pursuant to this section shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the cigarette and tobacco products regulation fund.

(e) There is hereby created, in the state treasury, the cigarette and tobacco products regulation fund. Moneys in the fund shall be expended only for the enforcement of this act and rules and regulations adopted pursuant to this act. Such expenditures shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or a person designated by the secretary.

(f) If a person violates subsection (b) for a second or subsequent occurrence within a three-year period, the secretary may impose a graduated fine upon such person for the second or subsequent occurrence. For the purposes of imposing a fine under this section, if three or more years have elapsed since a person has been found to have violated the provisions of subsection (b), such person shall be treated as never having violated subsection (b).

History: L. 1996, ch. 214, § 15; L. 1998, ch. 192, § 12; L. 2000, ch. 92, § 10; L. 2001, ch. 5, § 452; L. 2017, ch. 96, § 20; L. 2023, ch. 18, § 5; July 1.

§ 79-3392 Application of certain laws to taxes under act

The provisions of K.S.A. 75-5133, 79-3610, 79-3611, 79-3612, 79-3613, 79-3615 and 79-3617, and amendments thereto, relating to the assessment, collection, appeal and administration of the retailers' sales tax, insofar as practical, shall have full force and effect with respect to taxes, penalties and fines imposed by this act.

History: L. 1996, ch. 214, § 16; L. 2005, ch. 110, § 5; L. 2017, ch. 96, § 21; June 22.

§ 79-3393 Cigarette or tobacco infraction; procedure

(a) When a person is stopped by a law enforcement officer for a cigarette or tobacco infraction, the law enforcement officer shall prepare and deliver to the person a written cigarette or tobacco citation on a form approved by the secretary of revenue or the secretary's designee. The citation shall contain a notice to appear in court, the name and address of the person, the offense or offenses charged, the time and place when and where the person shall appear in court, the signature of the law enforcement officer and any other pertinent information. The time specified in the notice to appear shall be at least five days after the alleged infraction unless the person charged with the infraction demands an earlier hearing. The place specified in the notice to appear shall be before a judge of the district court within the county where the infraction is alleged to have been committed or before a judge of the municipal court where the infraction is alleged to have been committed in a city which has adopted an ordinance which prohibits the same acts.

(b) The notice to appear may provide that the person charged with the infraction shall appear in court with a parent or legal guardian and shall provide that the person charged has a right to trial.

(c) Acts classified as cigarette or tobacco infractions by K.S.A. 79-3322(d), and amendments thereto, shall be classified as ordinance cigarette or tobacco infractions by those cities adopting ordinances prohibiting the same acts. The fine for an ordinance cigarette or tobacco infraction shall be $25.

History: L. 1996, ch. 214, § 9; L. 1998, ch. 192, § 13; L. 2017, ch. 96, § 22; June 22.

§ 79-3394 Use of minors to determine compliance, limitations

No person shall engage or direct a minor to violate any provision of this act for purposes of determining compliance with provisions of this act or the Kansas consumer protection act unless such person has procured the written consent of a parent or guardian of the minor to so engage or direct the minor and such person is:

(a) An officer having authority to enforce the provisions of this act;

(b) an authorized representative of the attorney general, a county attorney or a district attorney; or

(c) an authorized representative of a business acting pursuant to a self-compliance program designed to increase compliance with the provisions of this act.

History: L. 1996, ch. 214, § 17; July 1.

§ 79-3395 Cigarettes imported into the United States; certain information to be filed with the director

On the first business day of each month, each person licensed to affix the state tax stamp to cigarettes shall file with the director, for all cigarettes imported into the United States to which such person has affixed the tax stamp in the preceding month:

(a) A copy of: (1) The permit issued pursuant to the internal revenue code, 26 U.S.C. § 5713, to the person importing such cigarettes into the United States allowing such person to import such cigarettes; and (2) the customs form containing, with respect to such cigarettes, the internal revenue tax information required by the U.S. bureau of alcohol, tobacco and firearms;

(b) a statement, signed by such person under penalty of perjury, which shall be treated as confidential by the commissioner and exempt from disclosure under the open records act, K.S.A. 45-215 through 45-223, and amendments thereto, identifying the brand and brand styles of all such cigarettes, the quantity of each brand style of such cigarettes, the supplier of such cigarettes, and the person or persons, if any, to whom such cigarettes have been conveyed for resale; and

(c) a statement, signed by an officer of the manufacturer or importer under penalty of perjury, certifying that the manufacturer or importer has complied with: (1) The package health warning and ingredient reporting requirements of the federal cigarette labeling and advertising act, 15 U.S.C. §§ 1333 and 1335a, with respect to such cigarettes; and (2) the provisions of K.S.A. 50-6a01 et seq., and amendments thereto, including a statement indicating whether the manufacturer is, or is not, a participating tobacco product manufacturer within the meaning of K.S.A. 50-6a01 et seq., and amendments thereto.

History: L. 2000, ch. 92, § 5; July 1.

§ 79-3396 Failure to file; penalty

(a) In addition to or in lieu of any other civil or criminal penalty provided by law, the director, upon a finding that a licensee has violated the provisions of subsection (u), (v) or (w) of K.S.A. 79-3321, and amendments thereto, or has failed to comply with the provisions of K.S.A. 79-3395, and amendments thereto, or any rule and regulation adopted pursuant thereto, may revoke or suspend the license of any licensee in the manner provided by K.S.A. 79-3309, and amendments thereto; the director also may impose a civil fine in an amount not to exceed the greater of 500% of the retail value of the cigarettes involved or $5,000. Such fine shall be imposed in the manner provided by K.S.A. 79-3391, and amendments thereto.

(b) Any cigarettes that are acquired, held, owned, possessed, transported, imported, sold or distributed in this state in violation of subsection (u), (v) or (w) of K.S.A. 79-3321, and amendments thereto, or has failed to comply with the provisions of K.S.A. 79-3395, and amendments thereto, shall be deemed contraband under K.S.A. 79-3323, and amendments thereto, and shall be subject to seizure and forfeiture as provided therein and in K.S.A. 79-3324a, and amendments thereto. All such cigarettes seized and forfeited shall be destroyed. Such cigarettes shall be deemed contraband whether the violation of this act is knowing or otherwise.

History: L. 2000, ch. 92, § 6; July 1.

§ 79-3397 Enforcement of act; civil liability for violation of act

(a) The provisions of subsection (u), (v) or (w) of K.S.A. 79-3321 and K.S.A. 79-3395, and amendments thereto, shall be enforced by the director. At the request of the director or the director's duly authorized agent, the Kansas bureau of investigation and all local law enforcement agencies shall enforce such provisions. The attorney general shall have concurrent power with the district and county attorneys of the state to enforce such provisions.

(b) For the purpose of enforcing the provisions of subsection (u), (v) or (w) of K.S.A. 79-3321 and K.S.A. 79-3395, and amendments thereto, the director and any agency to which the director shall have delegated enforcement responsibility pursuant to subsection (a) may request information from any state or local agency, and may share information with, and request information from, any federal agency and any agency of any other state or any local agency thereof.

(c) Any person who may be damaged or injured by a violation of the provisions of subsection (u), (v) or (w) of K.S.A. 79-3321 or K.S.A. 79-3395, and amendments thereto, shall have a cause of action against any person causing such damage or injury. Such action may be brought by any person who is injured in such person's business or property by reason of any violation of such provisions, regardless of whether such injured person dealt directly or indirectly with the defendant. The plaintiff in any action commenced hereunder in the district court of the county wherein such plaintiff resides, or the district court of the county of the defendant's principal place of business, may sue for and recover treble the damages sustained. In addition, any person who is threatened with injury or additional injury by reason of any person's violation may commence an action in such district court to enjoin any such violation, and any damages suffered may be sued for and recovered in the same action in addition to injunctive relief. In any action commenced under this act, the plaintiff may be allowed reasonable attorney fees and costs. The remedies provided herein shall be alternative and in addition to any other remedies provided by law.

History: L. 2000, ch. 92, § 7; July 1.

§ 79-3398 Exceptions to applicability of act

The provisions of subsection (u), (v) or (w) of K.S.A. 79-3321 and K.S.A. 79-3395, and amendments thereto, shall not apply to:

(a) Cigarettes allowed to be imported or brought into the United States for personal use; and

(b) cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. § 1555(b) and any implementing regulations, except that this act shall apply to any such cigarettes that are brought back into the customs territory for resale within the customs territory.

History: L. 2000, ch. 92, § 8; July 1.

§ 79-3399 Tax on electronic cigarettes imposed; rates; inventory tax

(a) On and after July 1, 2017, a tax is hereby imposed upon the privilege of selling or dealing in electronic cigarettes in this state by any person engaged in business as a distributor thereof, at the rate of $.05 per milliliter of consumable material for electronic cigarettes and a proportionate tax at the like rate on all fractional parts thereof. For electronic cigarettes in the possession of retail dealers for which tax has not been paid, tax shall be imposed under this subsection at the earliest time the retail dealer: (1) Brings or causes to be brought into this state from without the state electronic cigarettes for sale; (2) makes, manufactures or fabricates electronic cigarettes in this state for sale in this state; or (3) sells electronic cigarettes to consumers within this state.

(b) "Consumable material" means any liquid solution or other material that is depleted as an electronic cigarette is used.

(c) The secretary of revenue shall adopt rules and regulations to implement the provisions of this section.

History: L. 2015, ch. 99, § 12; L. 2016, ch. 84, § 5; L. 2017, ch. 96, § 25; June 22.

§§ 79-33,100 Exceptions to applicability of act; compacts

(a) No provisions of this act shall: (1) Be deemed to amend or modify any compact described in K.S.A. 79-3323(a), and amendments thereto; or (2) be enforced in a manner which would cause the state to breach the terms of any compact described in K.S.A. 79-3323(a), and amendments thereto.

(b) The provisions of this section shall be part of and supplemental to the Kansas cigarette and tobacco products act.

History: L. 2017, ch. 96, § 24; June 22.

Article 34 Motor Vehicle Fuel Taxes

§ 79-3401 Citation of act; definitions

This act shall be known and may be cited as the "motor-fuel tax law," and as so constituted is hereinafter referred to as "this act." The following words, terms and phrases, when used in this act, shall have the meanings ascribed to them in this section, except in those instances clearly indicating a different meaning:

(a) "Aviation fuel" means motor fuels for use as fuel for aircraft;

(b) "agricultural ethyl alcohol" means a motor-vehicle fuel component with a purity of at least 99%, exclusive of any added denaturants, denatured in conformity with one of the methods approved by the United States department of the treasury, bureau of alcohol, tobacco and firearms, and distilled in the United States of America from grain produced in the United States of America;

(c) "bulk plant" means a motor fuels storage facility, other than a terminal, that is primarily used to redistribute motor fuels;

(d) "dealer" means any person engaged in the retail sale of motor-vehicle fuels or special fuels;

(e) "director" means the director of taxation, a duly authorized deputy, agent or representative;

(f) "distributor" means any person, who:

(1) Imports or causes to be imported from any other state or territory of the United States motor-vehicle fuels or special fuels for such person's own use in the state of Kansas, or for sale and delivery therein, after the same shall have come to rest or storage therein, whether or not in the original package, receptacle or container; or

(2) imports or causes to be imported, from a foreign country, motor-vehicle fuels or special fuels for such person's own use in the state of Kansas, or for sale and delivery therein, after the same shall have come to rest or storage, whether or not in the original package, receptacle or container;

(3) purchases or receives motor-vehicle fuels or special fuels in the original package, receptacle or container in the state of Kansas for such person's own use therein, or for sale and delivery therein, from any person who has imported the same from any other state or territory of the United States, or any other nation, in case such motor-vehicle fuels or special fuels have not, prior to such purchase or receipt, come to rest or storage in the state of Kansas; or

(4) received and, in any manner, uses, sells or delivers motor-vehicle fuels or special fuels in the state of Kansas on which the tax provided for in this act has not been previously paid;

(g) "exporter" means any person who exports or causes to be exported motor vehicle fuels or special fuels from Kansas to any other state or territory of the United States or to a foreign country, for such person's own use or for sale or delivery therein, whether or not in the original package, receptacle or container;

(h) "importer" means any person who imports or causes to be imported motor-vehicle fuels or special fuels from any other state or territory of the United States or from a foreign country, for such person's own use in the state of Kansas or for sale or delivery therein, whether or not in the original package, receptacle or container;

(i) "liquid fuels" or "motor fuels" means any inflammable liquid by whatever name such liquid shall be known or sold that is used, or practically or commercially usable, either alone or when mixed or combined in an internal-combustion engine for the generation of power;

(j) "manufacturer" or "refiner" means any person that produces, refines, prepares, blends, distills, manufactures or compounds motor-vehicle fuels or special fuels in the state of Kansas for such person's own use therein, or for sale or delivery therein. The term "manufacturer" shall not include any person that mechanically separates liquids from natural gas at production facilities or gathering system pipelines on the lease. No person who produces, refines, prepares, blends, distills, manufactures, or compounds motor-vehicle fuels or special fuels shall be required to render a distributor's (manufacturer's) report as to any particular lot or lots of motor-vehicle fuels or special fuels until such motor-vehicle fuels or special fuels have been loaded at a refinery or other place of production into tank cars, or placed in any tank at such refinery or other place of production from which any withdrawals are made direct into tanks, tank wagons or other types of transportation equipment, containers or facilities;

(k) "motor vehicle" means a motor vehicle as defined by K.S.A. 8-126, and amendments thereto, that is required to be registered pursuant to K.S.A. 8-126 et seq., and amendments thereto;

(l) "motor-vehicle fuels" means gasoline, casinghead gasoline, natural gasoline, drip gasoline, aviation gasoline, gasohol, gasoline-oxygenate blend and any other spark-ignition motor fuel as defined by the 1995 United States department of commerce, national institute of standards and technology handbook 130 issued December of 1994, and as may subsequently be defined in rules and regulations that the director may adopt pursuant to K.S.A. 79-3419, and amendments thereto;

(m) "oil inspector" means the director of taxation, a duly authorized deputy, agent or representative;

(n) "person" means every natural person, association, partnership, limited partnership, limited liability company or corporation. When used in any statute, prescribing and imposing a fine or imprisonment, or both, the term "person" as applied to firms and associations means the partners or members thereof and, as applied to corporations, the corporation and the officers thereof;

(o) "public highways" means and includes every way or place, of whatever nature, generally open to the use of the public as a matter of right, for the purposes of vehicular travel and notwithstanding that the same shall have been temporarily closed for the purpose of construction, reconstruction or repair;

(p) "received" means motor-vehicle fuel or special fuel produced, refined, prepared, distilled, manufactured, blended or compounded at any refinery or other place, in the state of Kansas by any person, or imported into this state from any other state, territory, or foreign country by pipeline or connecting pipeline at a pipeline terminal or pipeline tank farm for storage, shall be deemed to be "received" by such person thereat when the same shall have been loaded at such refinery, pipeline terminal, pipeline tank farm or other place, into tank cars, tank trucks or other container, or placed in any tank from which any withdrawals are made direct into tank cars, tank trucks or other types of transportation equipment, containers or facilities;

(q) "retailer" means a person that engages in the business of selling or distributing motor fuels to the end user;

(r) "school bus" means every motor vehicle that is: (1) Privately owned and contracted for, leased or hired by a school district or nonpublic school for the transportation of pupils or students to or from school or to or from school-related functions or activities; or (2) owned and operated by a school district or nonpublic school that is registered under the provisions of K.S.A. 8-126 et seq., and amendments thereto, used for the transportation of pupils or students to or from school or to or from school-related functions or activities;

(s) "special fuels" means all combustible liquids suitable for the generation of power for the propulsion of motor vehicles including, but not limited to, diesel fuel, alcohol and such fuels not defined under the motor-vehicle fuels definition, hereinafter referred to as motor-vehicle fuel;

(t) "terminal" means a fuel storage and distribution facility that is supplied by motor vehicle, pipeline or marine vessel, and from which motor fuels may be removed at a rack. "Terminal" does not include any facility at which motor fuel blend stocks and additives are used in the manufacture of products other than motor fuels and from which no motor fuels are removed;

(u) "terminal operator" means the person who by ownership or contractual agreement is charged with the responsibility for, or physical control over, and operation of a terminal;

(v) "transporter" means a person who has been issued a liquid-fuels carrier's license pursuant to K.S.A. 55-506 et seq., and amendments thereto; and

(w) "E85 fuels" means an alternative fuel that is a blend of denatured ethanol and hydrocarbon that typically contains 85% ethanol by volume, but at a minimum must contain 70% ethanol by volume, and complies with ASTM specification D5798-99.

History: L. 1933, ch. 317, § 1; L. 1939, ch. 330, § 1; L. 1941, ch. 378, § 1; L. 1943, ch. 306, § 1; L. 1971, ch. 316, § 1; L. 1978, ch. 412, § 1; L. 1982, ch. 413, § 1; L. 1984, ch. 359, § 1; L. 1992, ch. 106, § 5; L. 1995, ch. 262, § 24; L. 2006, ch. 81, § 1; L. 2019, ch. 48, § 1; July 1.

§ 79-3402 Purpose of tax

The tax imposed by this act is levied for the purpose of producing revenue to be used by the state of Kansas to defray in whole, or in part, the cost of constructing, widening, purchasing of right-of-way, reconstructing, maintaining, surfacing, resurfacing and repairing the public highways, including the payment of bonds issued for highways included in the state system of this state, and the cost and expenses of the director of taxation and the director's agents and employees incurred in administration and enforcement of this act and for no other purpose whatever.

History: L. 1933, ch. 317, § 2; L. 1995, ch. 262, § 25; July 1.

§ 79-3403 Licenses required under act; applications; fees; bonds; unlawful acts

It shall be unlawful for any distributor to use, sell or deliver any motor-vehicle fuels or special fuels within this state unless such distributor at the time of such use, sale, or delivery, is the holder of a valid, unrevoked motor-vehicle-fuels distributor's license or special fuels distributor's license issued to such distributor in accordance with the provisions of this act for each particular place of business at which such distributor shall use, sell or deliver motor-vehicle fuels or special fuels. Every person desiring to operate as a distributor shall have a physical location in this state for doing business and shall file an application for a motor-vehicle-fuels or special fuels license or licenses with the director. The application for the motor-vehicle-fuels or special fuels distributor's license shall be made upon a form prescribed, prepared and furnished by the director, and shall set forth the name under which the applicant transacts or intends to transact business, the exact location of each place of business within the state where the applicant transacts or intends to transact the business of using, selling or delivering motor-vehicle fuels or special fuels, and such other information as the director may require. If the applicant is other than a natural person, the application shall set forth the name and address of each partner or person constituting the association, and if a corporation the names and addresses of the principal officers, and any other information prescribed by the director for purposes of identification.

The application shall be signed and verified by oath or affirmation by the owner, if a natural person. For any other business form the application shall be signed and verified by oath or affirmation by a member or partner, and in case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of such person's authority. The director has the authority to deny a distributor's license to any applicant. Upon approval of the application and the bond required, the director shall grant and issue to such distributor a motor-vehicle-fuels distributor's or special fuels distributor's license for each place of business, within the state as set forth in such person's application. Motor-vehicle-fuels distributor's licenses or special fuels distributor's licenses shall not be assignable and shall be valid only for the distributor in whose name issued and for the transaction of business at the place specifically designated therein, and shall at all times be conspicuously displayed at the place for which issued. All licenses issued by the director shall be in force, so long as the holder has in force a bond, as required by this act, deposited with the director, or until such license is surrendered or revoked for cause by the director. No motor-vehicle-fuels distributor's license or special fuels distributor's license shall be granted and issued until the person applying has filed with the director a bond, payable to the state of Kansas, in such amount as shall be fixed by the director, but in no event less than $1,000, with a corporate surety authorized to do business in the state of Kansas and approved by the director, except that should a distributor be unable to secure a corporate surety bond, the director shall issue a license to such distributor upon the distributor furnishing a personal bond meeting the approval of the director, such bond to be conditioned that the distributor named will faithfully comply with all the provisions of this act during the period of the license or licenses issued to such distributor under such application.

It shall be unlawful for any manufacturer to use, sell or deliver any motor-vehicle fuels or special fuels within this state unless such manufacturer at the time of such use, sale, or delivery is the holder of a valid, unsuspended and unrevoked motor-vehicle fuel manufacturer's license or special fuel manufacturer's license issued to such manufacturer in accordance with the provisions of this act for each particular place of business at which such manufacturer shall use, sell or deliver motor-vehicle fuels or special fuels. No special fuel manufacturer's license will be required for any manufacturer who is blending products for winterization purposes if the manufacturer at the time of the blending is the holder of a valid, unsuspended and unrevoked motor-vehicle fuels or special fuels distributor's license. No motor-vehicle fuels or special fuel manufacturer's license shall be required for any consumer who is blending motor-vehicle fuel or special fuel purchased for such consumer's own use, and not for resale, from a distributor or retailer who is the holder of a valid, unsuspended and unrevoked motor-vehicle fuels or special fuels distributor's or retailer's license. Every person desiring to operate as a manufacturer shall file an application for a motor-vehicle fuel manufacturer's license or licenses or special fuel manufacturer's license or licenses with the director. The application for the motor-vehicle fuel manufacturer's license or special fuel manufacturer's license shall be made on a form prescribed, prepared, and furnished by the director, and shall set forth the name under which the applicant transacts or intends to transact business, the exact location of each place of business within the state where the applicant transacts or intends to transact the business of using, selling or delivering motor-vehicle fuels or special fuels, and such other information as the director may require. If the applicant is other than a natural person, the application shall set forth the name and address of each partner or person constituting the association, and if a corporation the names and addresses of the principal officers, and any other information prescribed by the director for purposes of identification.

The application shall be signed and verified by oath or affirmation by the owner, if a natural person. For any other business form, the application shall be signed and verified by oath or affirmation by a member or a partner, and in case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of such person's authority. The director has the authority to deny a manufacturer's license to any applicant. Upon approval of the application and the bond required, the director shall grant and issue to manufacturer a motor-vehicle fuels or special fuels manufacturer's license for each place of business, within the state as set forth in such person's application. Motor-vehicle fuels manufacturer's licenses or special fuels manufacturer's licenses shall not be assignable and shall be valid only for the manufacturer in whose name and issued for the transaction of business at the place specifically designated therein, and shall at all times be conspicuously displayed at the place for which issued. All licenses issued by the director shall be in force, so long as the holder has in force a bond, as required by this act, deposited with the director, or until such license is surrendered or revoked by the director.

Any person not licensed as a motor-vehicle fuels or special fuels distributor under this act, desiring to import motor-vehicle fuels or special fuels from any other state or territory of the United States, or from a foreign country for such person's own use in the state of Kansas, or for sale or delivery therein, or desiring to export motor-vehicle fuels or special fuels from Kansas to any other state or territory of the United States, or to a foreign country for such person's own use or for sale or delivery therein, shall file application for a motor-vehicle fuel or special fuel importer's or exporter's license with the director. The application shall be made upon a form prescribed, prepared, and furnished by the director, and shall set forth the name under which the applicant transacts, or intends to transact, business of using, selling or delivering motor-vehicle fuels or special fuels and such other information as the director may require. If the applicant is other than a natural person, the application shall set forth the name and address of each partner or person constituting the association, and if a corporation the names and address of the principal officers, and any other information prescribed by the director for purposes of identification.

The application shall be signed and verified by oath or affirmation by the owner, if a natural person. For any other business form the application shall be signed and verified by oath or affirmation by a member or partner, and in case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of such person's authority. The director has the authority to deny an importer's or exporter's license to any applicant. Upon approval of the application and the bond required, the director shall grant and issue to an importer or exporter a motor-vehicle fuels or special fuels importer's or exporter's license. The written consent of the applicant, irrevocable, that actions may be commenced against it in the proper court of any county in this state in which a cause of action may arise or in which the plaintiff may reside, by the service of process on the secretary of state, and stipulating and agreeing that such service shall be taken and held, in all courts, to be as valid and binding as if due service had been made upon the applicant personally, or upon the president and secretary, if a corporation. The secretary of state shall notify the applicant of any action started against such applicant by mailing a copy of the summons to the address set out in the application by registered mail. Motor-vehicle fuels importer's or exporter's licenses or special fuels importer's or exporter's licenses shall not be assignable and shall be valid only for the importer or exporter in whose name such license is issued. All licenses issued by the director shall be in force, so long as the holder has in force a bond, as required by this act, deposited with the director or until such license is surrendered by the director.

No motor-vehicle fuel or special fuel manufacturer's license shall be granted and issued until the person applying has filed with the director a bond payable to the state of Kansas, in such amount as shall be fixed by the director, but in no event less than $5,000, with a corporate surety authorized to do business in the state of Kansas and approved by the director.

No motor-vehicle fuel or special fuel importer's or exporter's license shall be granted and issued until the person applying has filed with the director a bond, payable to the state of Kansas, in such amount as shall be fixed by the director, but in no event less than $5,000, with a corporate surety authorized to do business in the state of Kansas and approved by the director.

It shall be unlawful for any retailer to sell or deliver any motor-vehicle fuels or special fuels within this state unless such retailer at the time of such sale or delivery, is the holder of a valid, unrevoked retailer's license issued to such retailer in accordance with the provisions of this act for each particular place of business at which such retailer shall sell or deliver motor-vehicle fuels or special fuels. Every person desiring to operate as a retailer shall have a physical location in this state for doing business and shall file an application for a retailer's license with the director. The application for the retailer's license shall be made upon a form prescribed, prepared and furnished by the director, and shall set forth the name under which the applicant transacts or intends to transact business, the exact location of the place of business within the state where the applicant transacts or intends to transact the business of selling or delivering motor-vehicle fuels or special fuels, and such other information as the director may require. If the applicant is other than a natural person, the application shall set forth the name and address of each partner or person constituting the association, and if a corporation the names and addresses of the principal officers, and any other information prescribed by the director for purposes of identification.

The application shall be signed and verified by oath or affirmation by the owner, if a natural person. For any other business form the application shall be signed and verified by oath or affirmation by a member or partner, and in case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of such person's authority. The director has the authority to deny a retailer's license to any applicant. Upon approval of the application, the director shall grant and issue to such retailer a motor-vehicle fuels or special fuels retailers' license. Retailers licenses shall not be assignable and shall be valid only for the retailer in whose name and issued for the transaction of business at the place specifically designated therein, and shall at all times be conspicuously displayed at the place for which issued. All licenses issued by the director shall be in force until such license is surrendered or revoked by the director.

Each licensee licensed under this act shall furnish annually to the director any changes occurring in the members, corporate or company officers, directors and stock ownership of those owning more than 5% of total outstanding shares of the licensee.

History: L. 1933, ch. 317, § 3; L. 1939, ch. 330, § 2; L. 1943, ch. 306, § 2; L. 1992, ch. 106, § 6; L. 1995, ch. 262, § 26; L. 2007, ch. 15, § 1; March 22.

§ 79-3404 Repealed

History: L. 1933, ch. 317, § 4; Repealed, L. 1941, ch. 379, § 4; June 30.

§ 79-3405 Additional bond; financial statements; revocation of license; release of sureties; renewal of license; interstate commerce exempt

The director may at any time require any distributor, manufacturer, importer or exporter to furnish such additional bond with authorized corporate surety, as shall be necessary to secure at all times the payment by such person to the state of all taxes, penalties and interest due under the provisions of this act. If any distributor, manufacturer, importer or exporter shall fail to file such additional bond within 10 days after receipt of written notice mailed or otherwise delivered to such person by the director, the director may suspend or revoke the license or licenses issued to such person, and collect all taxes, penalties and interest accrued against such distributor, manufacturer, importer or exporter. For the purpose of determining whether an existing bond or bonds are sufficient, the director may at any time, by mailed written notice, or otherwise delivered, require any distributor, manufacturer, importer or exporter to furnish a financial statement in such form as the director may prescribe. Upon failure of any distributor, manufacturer, importer or exporter to furnish a sworn financial statement within 20 days after receipt of such written notice, the director may suspend or revoke any or all licenses issued to such person, and shall collect all taxes, penalties, and interest accrued against such distributor, manufacturer, importer or exporter.

Any surety on a bond furnished by a distributor, manufacturer, importer or exporter as provided shall be released and discharged from any and all liability to the state accruing on such bond after the expiration of 60 days from the date upon which such surety shall have lodged with the director a written request to be released and discharged, but this provision shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue before the expiration of the sixty-day period. The director shall promptly, upon receiving any such request, notify the distributor, manufacturer, importer or exporter who furnished the bond and unless the distributor, manufacturer, importer or exporter shall, on or before the expiration of such sixty-day period, file with the director a new bond fully complying with the provisions of this act, the director shall revoke and cancel such distributor's, manufacturer's, importer's or exporter's license or licenses and notify the distributor, manufacturer, importer or exporter by registered mail or otherwise.

Licenses issued under the provisions of this act may be renewed annually before the first day of November upon an application to the director, but no licenses shall be renewed until the applicant shall file with the director a bond in such amounts as shall be fixed by the director and fully complying with the provisions of this act. Nothing contained in this act shall require the filing of an application or bond, or the possession or display of a motor-vehicle-fuels or special fuels license, for the use, sale and delivery of motor-vehicle fuels or special fuels exclusively in interstate or foreign commerce not within the taxing power of the state, or for use by, or sale or delivery to, the United States government.

History: L. 1933, ch. 317, § 5; L. 1939, ch. 330, § 3; L. 1992, ch. 106, § 7; L. 1995, ch. 262, § 27; July 1.

§ 79-3406 Licenses for additional places or stations

Any distributor, manufacturer or retailer who is the holder of any valid and unrevoked license or licenses and who shall subsequent to the issuance procure or propose to procure or operate additional places or stations for using, selling or delivering motor-vehicle fuels or special fuels, upon making application to the director, showing as to each proposed new place or station the same information as required for an original application, may secure from the director a license or licenses for each of such new or proposed places or stations, which new license or licenses shall be in the same form and contain the same statements as the original license or licenses.

History: L. 1933, ch. 317, § 6; L. 1939, ch. 330, § 4; L. 1992, ch. 106, § 8; L. 1995, ch. 262, § 28; July 1.

§ 79-3407 Suspension or revocation of licenses; hearing

Whenever any distributor, manufacturer, importer or exporter is 10 days delinquent in the payment of any such tax, penalty or interest, or any distributor, manufacturer, importer, exporter or retailer is 10 days delinquent in the making of any such report, or shall make any false report or statement or application purporting to be under the provisions of this act, or shall make any false statement in any application, report or statement required by or purporting to be under the provisions of this act, or purporting to be under the rules and regulations promulgated by the director under such provisions, or shall have willfully or persistently violated any of the provisions of this act or of any rules and regulations made thereunder, the director upon conducting a hearing as provided in this section and upon finding to the director's satisfaction upon such hearing, that such distributor, manufacturer, importer, exporter or retailer has been delinquent, or has violated provisions of this act, may revoke any or all licenses issued to such distributor, manufacturer, importer, exporter or retailer.

Hearings under this section shall be conducted in accordance with the Kansas administrative procedure act. In the event that the director revokes any license or licenses the distributor, manufacturer, importer, exporter or retailer to whom such license or licenses were issued shall immediately, upon service of the director's order, surrender the same to the director and cease using, selling, delivering or manufacturing any motor-vehicle fuels or special fuels at or from any places of business or stations for which the license or licenses have been revoked.

History: L. 1933, ch. 317, § 7; L. 1939, ch. 330, § 5; L. 1943, ch. 290, § 5; L. 1957, ch. 429, § 22; L. 1963, ch. 487, § 1; L. 1988, ch. 356, § 335; L. 1992, ch. 106, § 9; L. 1995, ch. 262, § 29; L. 1998, ch. 96, § 1; July 1.

§ 79-3408 Tax imposed on use, sale or delivery of motor-vehicle fuels or special fuels; importation of motor-vehicle fuels or special fuels; incidence of tax imposed on distributor; allowance for certain losses; exempt transactions; reports required

(a) A tax per gallon or fraction thereof, at the rate computed as prescribed in K.S.A. 79-34,141, and amendments thereto, is hereby imposed on the use, sale or delivery of all motor-vehicle fuels or special fuels which are used, sold or delivered in this state for any purpose whatsoever.

(b) Unless otherwise specified in K.S.A. 79-3408c, and amendments thereto, the incidence of this tax is imposed on the distributor of the first receipt of the motor fuel and such taxes shall be paid but once. Such tax shall be computed on all motor-vehicle fuels or special fuels received by each distributor, manufacturer or importer in this state or imported by any distributor, manufacturer or importer into this state and paid in the manner provided for herein, except that an allowance of 2.5% shall be made and deducted by the distributor to cover all ordinary losses which may have resulted from physical loss while handling such motor-vehicle fuels or special fuels. No such allowance shall be made on any motor-vehicle fuel or special fuel exported from the state or sold to the United States of America or any of its agencies or instrumentalities as are now or hereinafter exempt by law from liability to state taxation. No such allowance shall be made for any motor-vehicle fuel or special fuel sold or disposed of to a consumer in tank car, transport or pipeline lots. As used in this subsection, the term "distributor of the first receipt" shall include distributors, manufacturers and importers that import motor-vehicle fuels or special fuels into Kansas.

(c) No tax is hereby imposed upon or with respect to the following transactions:

(1) The sale or delivery of motor-vehicle fuel or special fuel for export from the state of Kansas to any other state or territory or to any foreign country.

(2) The sale or delivery of motor-vehicle fuel or special fuel to the United States of America and such of its agencies as are now or hereafter exempt by law from liability to state taxation.

(3) The sale or delivery of motor-vehicle fuel or special fuel to a contractor for use in performing work for the United States or those agencies of the United States above mentioned, provided such contractor has in effect with the United States or any such agency a cost-plus-a-fixed-fee contract covering the work.

(4) The sale or delivery of motor-vehicle fuel or special fuel which is aviation fuel.

(5) The first sale or delivery of motor-vehicle fuel or special fuel from a refinery, pipeline terminal, pipeline tank farm or other place to a duly licensed distributor who in turn resells to another duly licensed distributor.

(6) The sale or delivery of special fuel which is indelibly dyed in accordance with regulations prescribed pursuant to 26 U.S.C. § 4082 and such special fuel is only used for nonhighway purposes.

(7) The sale of kerosene used as a fuel only to power antique steam motor vehicles first manufactured prior to 1940.

(d) Each distributor, manufacturer, importer, exporter or retailer shall make full reports and furnish such further information as the director may require with reference to all transactions upon which no tax is to be paid.

History: L. 1933, ch. 317, § 8; L. 1939, ch. 330, § 6; L. 1941, ch. 379, § 1; L. 1949, ch. 484, § 1; L. 1951, ch. 495, § 1; L. 1953, ch. 441, § 1; L. 1955, ch. 419, § 1; L. 1969, ch. 462, § 1; L. 1970, ch. 397, § 5; L. 1970, ch. 398, § 2; L. 1976, ch. 426, § 1; L. 1979, ch. 323, § 1; L. 1979, ch. 324, § 1; L. 1982, ch. 413, § 2; L. 1983, ch. 320, § 1; L. 1984, ch. 359, § 2; L. 1985, ch. 328, § 1; L. 1986, ch. 382, § 1; L. 1987, ch. 388, § 6; L. 1989, ch. 209, § 31; L. 1990, ch. 353, § 1; L. 1992, ch. 106, § 10; L. 1994, ch. 226, § 1; L. 1995, ch. 262, § 30; L. 1998, ch. 96, § 2; L. 2004, ch. 173, § 14; L. 2005, ch. 46, § 1; L. 2006, ch. 81, § 3; April 13.

§ 79-3408a Repealed

History: L. 1949, ch. 484, § 2; Repealed, L. 1977, ch. 335, § 1; July 1.

§ 79-3408b Repealed

History: L. 1949, ch. 484, § 3; L. 1951, ch. 495, § 2; L. 1953, ch. 441, § 2; Repealed, L. 1955, ch. 419, § 4; June 30.

§ 79-3408c Fuel owned on date rate of tax changed; inventory tax or refund; native American licensed retailer exempt, when

(a) A tax is hereby imposed on the use, sale or delivery of all motor-vehicle fuel or special fuel owned at 12:01 a.m. July 1, 1999, and on July 1 of each year thereafter, by any licensed distributor or licensed retailer at a rate per gallon, or fraction thereof, equal to the amount, if any, by which the tax per gallon, or fraction thereof, in effect on such date as prescribed by K.S.A. 79-3408, and amendments thereto, exceeds the rate of tax upon such motor-vehicle fuel or special fuel which was in effect on the preceding day. Such tax shall be paid by the licensed distributor or licensed retailer owning such motor-vehicle fuel or special fuel at such time and date. On or before the 25th day of the month in which a tax is imposed under this section, every such distributor and retail dealer shall make a report to the director on a form prescribed and furnished by the director showing the total number of gallons, or fraction thereof, of such motor-vehicle fuel or special fuel owned at the time the tax is imposed under this section and such report shall be accompanied by a remittance of the tax due.

Any licensed distributor or licensed retailer who shall fail to make such report or pay such tax, within the time prescribed, shall be subject to the same penalties and interest charges prescribed by the motor-vehicle fuel or special fuel tax law for failure of a licensed distributor to make monthly reports and payments of motor-vehicle fuel or special fuel tax. The provisions of the motor-fuel tax law relating to remedies for the collection of delinquent motor-fuel taxes from distributors shall apply to the collection of taxes imposed by this section which have become delinquent from licensed distributors and licensed retailers. All taxes, penalties and interest collected by the director under the tax imposed by this section shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the funds and in the amounts specified in K.S.A. 79-34,142, and amendments thereto.

(b) Whenever the rate of tax upon motor-vehicle fuels or special fuels fixed pursuant to K.S.A. 79-3408, and amendments thereto, which become effective on July 1, 1999, or on July 1 in any year thereafter is less than the rate of tax upon such fuel in effect on the preceding day, the licensed distributor or licensed retailer owning such fuel at 12:01 a.m. on the date such reduction in taxes becomes effective shall be entitled to a refund of taxes paid upon such fuel in an amount equal to the amount by which taxes were reduced from the amount of motor-vehicle fuels or special fuels taxes per gallon, or fraction thereof, actually paid upon each gallon, or fraction thereof, of motor-vehicle fuels or special fuels multiplied by the number of gallons of motor-vehicle fuels or special fuels owned by the distributor or dealer on such date. On or before the 25th day of the month in which such tax is reduced, every such distributor and retailer shall make a report to the director on a form prescribed and furnished by the director showing the total number of gallons of such motor-vehicle fuel or special fuel owned by such distributor or retailer at 12:01 a.m. on the date upon which such tax was reduced. It shall be the duty of the director of taxation to examine all such claims and determine the amount to which each claimant is entitled. In the event any distributor or retailer entitled to such refund shall owe the state any motor-vehicle fuel or special fuel tax, penalties, or interest, the refund authorized by this section shall upon being determined by the director be credited upon the amount of such taxes, penalties and interest. Whenever the director shall determine that any distributor or retailer shall be entitled to a refund under any of the provisions of this section, and such refund cannot be effected by giving credit therefor, as hereinbefore provided, or against the future motor-vehicle fuel or special fuel tax liability of such taxpayer the director shall certify the amount of the refund to the state director of accounts and reports, who shall draw a warrant for the amount so certified on the state treasurer in favor of the distributor or retailer entitled to such refund, and mail, or otherwise deliver, the same to the distributor entitled thereto. Such warrant shall be paid by the state treasurer to such distributor or retailer from the motor-vehicle fuel or special fuel tax refund fund.

(c) The provisions of this section shall not apply to any licensed retailer who is a native American whose licensed place of business or businesses are located on such retailer's reservation, nor to any native American tribes having licensed places of business or businesses located on such tribe's reservation.

History: L. 1969, ch. 462, § 2; L. 1976, ch. 426, § 2; L. 1983, ch. 320, § 2; L. 1989, ch. 209, § 32; L. 1992, ch. 106, § 11; L. 1995, ch. 262, § 31; L. 1998, ch. 96, § 3; L. 1999, ch. 137, § 28; L. 2001, ch. 5, § 453; July 1.

§ 79-3408d Repealed

History: L. 1984, ch. 359, § 3; Repealed, L. 1987, ch. 388, § 8; July 1.

§ 79-3408e Repealed

History: L. 1992, ch. 106, § 1; L. 1993, ch. 182, § 1; Repealed, L. 1995, ch. 262, § 48; July 1.

§ 79-3408f Repealed

History: L. 1992, ch. 106, § 2; Repealed, L. 1995, ch. 262, § 48; July 1.

§ 79-3408g Repealed

History: L. 1933, ch. 317, § 8; L. 1939, ch. 330, § 6; L. 1941, ch. 379, § 1; L. 1949, ch. 484, § 1; L. 1951, ch. 495, § 1; L. 1953, ch. 441, § 1; L. 1955, ch. 419, § 1; L. 1969, ch. 462, § 1; L. 1970, ch. 397, § 5; L. 1970, ch. 398, § 2; L. 1976, ch. 426, § 1; L. 1979, ch. 323, § 1; L. 1979, ch. 324, § 1; L. 1982, ch. 413, § 2; L. 1983, ch. 320, § 1; L. 1984, ch. 359, § 2; L. 1985, ch. 328, § 1; L. 1986, ch. 382, § 1; L. 1987, ch. 388, § 6; L. 1989, ch. 209, § 31; L. 1990, ch. 353, § 1; L. 1992, ch. 106, § 10; L. 1994, ch. 226, § 1; L. 1995, ch. 242, § 5; Repealed, L. 1998, ch. 96, § 6; July 1.

§ 79-3409 Distributor to collect tax; price sign requirements

Every distributor paying such tax or being liable for the payment shall be entitled to charge and collect an amount, including the cost of doing business that could include such tax on motor-vehicle fuels or special fuels sold or delivered by such distributor, as a part of the selling price. When the price of motor-vehicle fuels or special fuels posted on a price sign does not include the state and federal tax which such retail dealer's distributor paid or for which the distributor was liable, the total of the taxes must be shown in numbers the same size as the price of the motor fuel. Any deviation from the maximum price charged for a given grade of motor-vehicle fuels or special fuels must be stated in letters at least six inches high and legible. Fractions of cents must be posted in numbers at least ⅕ the height of the whole number.

History: L. 1933, ch. 317, § 9; L. 1941, ch. 379, § 2; L. 1949, ch. 484, § 4; L. 1955, ch. 420, § 1; L. 1957, ch. 506, § 1; L. 1959, ch. 395, § 1; L. 1992, ch. 106, § 12; L. 1998, ch. 96, § 4; July 1.

§ 79-3410 Monthly reports to state director; waiver, when; payment of tax; interest and penalty; waiver; manufacturer's daily report; exemption from reporting requirements, when

(a) Except as hereinafter provided, every distributor, manufacturer, importer, exporter or retailer of motor-vehicle fuels or special fuels, on or before the 25th day of each month, shall render to the director at the director's office in Topeka, Kansas, upon a form prescribed, prepared and furnished by the director a report certified to be true and correct showing the number of gallons of motor-vehicle fuels or special fuels received or imported by such distributor, manufacturer, importer, exporter or retailer during the preceding calendar month, and such further information as the director shall require. Every distributor and importer shall be exempt from reporting to the director exempt sales to the end user of special fuel which is indelibly dyed in accordance with regulations prescribed pursuant to 26 U.S.C. § 4082. Every distributor, manufacturer or importer within the time herein fixed for the rendering of such reports, shall compute and shall pay to the director at the director's office the amount of taxes due to the state on all motor-vehicle fuels or special fuels received or imported by such distributor, manufacturer or importer during the preceding calendar month.

(b) The director may waive the requirement for monthly reports from licensed manufacturers, who are also licensed distributors, when all taxes accrued under either or both licenses or which might accrue are paid under the distributor license. All taxes imposed under the provisions of this act not paid on or before the 25th

day of the month succeeding the calendar month in which the motor-vehicle fuels or special fuels were received or imported by the distributor, manufacturer or importer shall be deemed delinquent and shall bear interest at the rate per month, or fraction thereof, prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from such due date until paid, and in addition thereto there is hereby imposed upon all amounts of such taxes remaining due and unpaid after such due date a penalty in the amount of 5%, and the penalty shall be by the director added to and collected as a part of the taxes. If the distributor, manufacturer or importer furnishes evidence to the director that the delinquency was due to causes beyond such person's reasonable control, and if in the opinion of the director the delinquency was not the result of willful negligence of the distributor, manufacturer or importer the penalty or interest or both may be waived or reduced by the director.

If any person shall file a false or fraudulent return or fail to file a return with intent to evade the tax imposed by this act, there shall be added to the amount of deficiency determined by the director a penalty equal to 100% of the deficiency together with the interest at the rate per month or fraction thereof, prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, on such deficiency from the date such tax was due to the date of payment, in addition to all other penalties prescribed by law. Every manufacturer, refiner or terminal operator of motor-vehicle fuels or special fuels shall daily send reports to the director of all sales of liquid fuels. The reports are to be made on forms prescribed, prepared and furnished by the director or on forms furnished by the manufacturer and approved by the director.

(c) Whenever the secretary or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsection (b) was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

History: L. 1933, ch. 317, § 10; L. 1939, ch. 330, § 7; L. 1947, ch. 461, § 1; L. 1949, ch. 485, § 1; L. 1955, ch. 420, § 2; L. 1977, ch. 336, § 1; L. 1980, ch. 308, § 20; L. 1992, ch. 106, § 13; L. 1994, ch. 95, § 3; L. 1995, ch. 262, § 32; L. 2006, ch. 81, § 4; April 13.

§ 79-3411 Determination of amount due; statement; collection

If any distributor, manufacturer, importer, exporter or retailer shall fail, neglect or refuse to render any report required by the provisions of this act within the period specified, or if the director is not satisfied of the correctness of any report or tax payment made by any distributor, manufacturer, importer, exporter or retailer, the director is hereby authorized and empowered to determine from any information in the director's possession the true amount of taxes, penalties and interest due the state from such distributor, manufacturer, importer, exporter or retailer and such determination shall, in all actions or proceedings, be taken as prima facie correct. Promptly after making such determination the director shall send, or deliver, by registered mail or otherwise, a statement to such distributor, manufacturer, importer, exporter or retailer and shall proceed to collect the amounts so determined.

History: L. 1933, ch. 317, § 11; L. 1939, ch. 330, § 8; L. 1995, ch. 262, § 33; July 1.

§ 79-3412 Levy of executions on property of delinquents

Whenever any person shall be in default for more than 10 days in payment of any taxes, penalties or interest accruing or accrued under the provisions of this act, and no seizure of property of such person has been made under any other provisions of this act, the director shall, unless the director has good reason to the contrary, issue a warrant under the secretary's or the secretary's designee's hand and official seal, directed to the sheriff of any county of the state, commanding the sheriff to levy upon and sell the real and personal property of the taxpayer found within the sheriff's county for the payment of the amount thereof with the added penalties, interest and cost of executing the warrant and to return the warrant to the secretary or the secretary's designee and to pay to the secretary or the secretary's designee the money collected by virtue of it not more than 60 days from the date of the warrant. The sheriff, within five days after the receipt of the warrant, shall file with the clerk of the district court of the county a copy thereof, and thereupon the clerk shall enter in the appearance docket the name of the person specified in the warrant, the amount of the tax or portion of it, interest and penalties for which the warrant is issued and the date such copy is filed and note the taxpayer's name in the general index. No fee shall be charged for either entry. The amount of such warrant so docketed shall thereupon become a lien upon the title to and interest in the real property of the taxpayer against whom it is issued. The sheriff shall proceed in the same manner and with the same effect as prescribed by law with respect to executions issued against property upon judgments of a court of record and shall be entitled to the same fees for services to be collected in the same manner.

The court in which the warrant is docketed shall have jurisdiction over all subsequent proceedings as fully as though a judgment had been rendered in the court. At the discretion of the secretary or the secretary's designee, a warrant of like terms, force and effect may be issued and directed to any officer or employee of the secretary, and in the execution thereof, such officer or employee shall have all the powers conferred by law upon sheriffs, with respect to executions issued against property upon judgments of a court of record, and the subsequent proceedings thereunder shall be the same as provided where the warrant is issued directly to the sheriff. The taxpayer shall have the right to redeem the real estate within a period of 18 months from the date of such sale. If a warrant is returned, unsatisfied in full, the secretary or the secretary's designee shall have the same remedies to enforce the claim for taxes as if the state of Kansas had recovered judgment against the taxpayer for the amount of the tax. No law exempting any goods and chattels, lands and tenements from forced sale under execution shall apply to a levy and sale under any such warrant or upon any execution issued upon any judgment rendered in any action for motor fuel taxes. The secretary or the secretary's designee shall have the right at any time after a warrant has been returned unsatisfied or satisfied only in part, to issue alias warrants until the full amount of the tax is collected.

History: L. 1933, ch. 317, § 12; L. 1939, ch. 330, § 9; L. 1995, ch. 262, § 34; L. 1998, ch. 96, § 5; July 1.

§ 79-3413 Lien for taxes; interest and penalties; notice; recordation; sale of personal property; duties of officers and others

Whenever any person, liable to this state for any taxes, penalties and interest imposed by, or accumulated under, the provisions of this act, shall fail, neglect or refuse to pay the full amount of such taxes, penalties and interest when the same is due, the director shall deliver by mail or otherwise to the register of deeds of the county in which such person resides, or has its principal place of business in this state, a certified notice of lien setting forth the name and address of the person so liable, the amount of all taxes, penalties and interest due from such person to the state, and that such sums are due under the provisions of this act.

The director may also deliver such notice of lien as aforesaid to the register of deeds of any county in this state in which the person liable for such taxes, interest or penalties has any property, real or personal. All such taxes, interest and penalties shall be and constitute a lien upon all the personal property of the person so liable located in this state and upon all real estate belonging to such person and located in the county in which such notice of lien shall be filed, from the time of the filing of such notice of lien and until all said taxes, interest and penalties are paid in full. It shall be the duty of each register of deeds in this state to index and file immediately all such notices of lien in the manner provided in cases of chattel mortgages, and no fee shall be charged for such filing and indexing. The director may issue a certificate of release of lien upon request whenever all taxes, interest and penalties for which such person is liable, whether set forth in such notice of lien or not, have been fully paid and satisfied, and such person may file the same with the register of deeds of any county in which such notice of lien has been filed. The lien provided in favor of the state by this section shall be superior to all other liens which shall accrue or attach on the property of the person liable subsequent to the filing of such notice of lien.

The state director or his or her deputy or agent may, or any sheriff or constable, in his or her jurisdiction, upon written instruction of the director, shall, at any time after such lien accrues, seize and hold all personal property subject thereto and proceed to advertise and sell the same, or so much thereof as shall be necessary to satisfy the amount of the state's lien, together with all expenses of selling, at public sale for cash, upon such notice as is provided by law in the case of a chattel-mortgage sale. Any surplus of the proceeds of such sale, after paying the amount of the lien of the state thereon and the costs of the officers in giving notice of and holding such sale, and securing and preserving the property pending such sale, shall be delivered to the person or persons lawfully entitled thereto.

Every assignee, sheriff, receiver, trustee or other officer who shall seize or take possession of any property or estate of any distributor, manufacturer or importer or of any person liable to the state for any taxes, interest or penalties accruing under the provisions of this act, shall promptly, upon so doing, notify the director in writing of the title of the cause or proceeding in which such officer was appointed or is acting, and the property which has been seized or taken into possession, with the purpose for which same was taken; and in case of an order on creditors to file claims, shall furnish notice thereof to the director. It shall be the duty of the director to furnish to any person having an interest therein, and applying therefor, a true statement of the amount of taxes, penalties and interest shown in the records of said director to be due from any distributor, manufacturer or importer but such statement shall not preclude the director from asserting any claim or lien for taxes, interest or penalties which shall subsequently accrue or be discovered.

History: L. 1933, ch. 317, § 13; L. 1939, ch. 330, § 10; September 2.

§ 79-3414 Discontinuance as distributor, manufacturer, importer, exporter or retailer; notice; taxes, penalties and interest due

Whenever a distributor, manufacturer, importer, exporter or retailer ceases to engage in business as a distributor, manufacturer, importer, exporter or retailer at any place or station within the state of Kansas by reason of the discontinuance, sale or transfer of the business of such distributor, manufacturer, importer, exporter or retailer it shall be the duty of such distributor, manufacturer, importer, exporter or retailer to notify the director in writing at least five days prior to the time the discontinuance, sale or transfer takes effect. The notice, as to each such place or station, shall give the date of discontinuance and, in the event of a sale or transfer of the business, the date thereof and the name and address of the purchaser or transferee.

All taxes, penalties, and interest accrued under the provisions of this act, whether or not due and payable under other provisions of this act, shall become due and payable concurrently with such discontinuance, sale or transfer, and it shall be the duty of any such distributor, manufacturer, importer, exporter or retailer to render to the director the report herein required, and pay all such taxes, interest and penalties, and to surrender to the director all licenses issued to the distributor, manufacturer, importer, exporter or retailer for such places or stations. Unless all taxes, penalties and interest accrued and due under the provisions of this act from a distributor, manufacturer, importer, exporter or retailer making such sale or transfer have been paid at the time such sale or transfer becomes effective, the purchaser or transferee shall be liable to the state of Kansas for the amount of all such taxes, penalties and interest, but only to the extent of the value of the property and business acquired from such distributor, manufacturer, importer, exporter or retailer.

History: L. 1933, ch. 317, § 14; L. 1939, ch. 330, § 11; L. 1995, ch. 262, § 35; July 1.

§ 79-3415 Records, invoices and bills of lading

Each distributor, manufacturer, importer, exporter, retailer or user shall maintain and keep, for a period of three years, a full record or records of all motor-vehicle fuels or special fuels received, imported, used or sold and delivered within this state by such distributor, manufacturer, importer, exporter, retailer or user, together with invoices and bills of lading thereof, and such other pertinent papers as may be required by the director.

History: L. 1933, ch. 317, § 15; L. 1939, ch. 330, § 12; L. 1992, ch. 106, § 14; L. 1995, ch. 262, § 36; L. 2006, ch. 81, § 5; April 13.

§ 79-3416 Transportation of fuels; report; manifest; required statement

Every railroad, street railroad, interurban railroad or suburban railroad, every pipeline company, every common carrier, and every carrier for hire, who shall transport any liquid fuels, motor-vehicle fuels or special fuels, from any point outside of this state into this state, or between any two points in this state, or from any point in this state to any point outside this state, and every private carrier or other person who shall transport any liquid fuels, motor-vehicle fuels or special fuels from any other state into this state, or from this state into another state, or shall transport any liquid fuels, motor-vehicle fuels or special fuels exceeding 500 gallons in amount, for any distance exceeding 25 miles within this state, shall render a written report, under oath, to the director, on forms prescribed and furnished by the director, of all such transportation of liquid fuels, motor-vehicle fuels or special fuels so made to or from points within this state. Every such report shall cover a period of one calendar month and shall be rendered to the director on or before the 15th day of the month succeeding the month covered by such report, and shall show the true name and address of the consignor and the consignee, and if delivery has been to some person other than the original consignee, the name and address of the person to whom delivery was actually made, the date and the point of delivery, and the name and the number of gallons of the liquid fuels, the motor-vehicle fuels or the special fuels delivered. If such transportation was by tank car, such report shall also show the number and initials of each tank car, if such transportation was by motor truck such report shall show the motor and license number of each truck, and if such delivery was made by any other means the report shall show the manner in which such transportation and delivery was made; such records and reports are required pursuant to the police and taxing powers of this state for the purpose of promoting the public health and safety and of aiding in the administration of the tax on motor-vehicle fuels or special fuels.

Every carrier or other person transporting motor-vehicle fuel or special fuel by tank car, tank truck or trailer from a refinery, place of manufacture or production, or pipeline terminal, or importing motor-vehicle fuel or special fuel into this state by tank car, tank truck or trailer for use, sale, or delivery in the state of Kansas shall carry a manifest on forms prescribed, prepared and furnished by the director or on forms furnished by the manufacturer, refiner or terminal operator and approved by the director showing the date of the use, sale, or delivery, the purchaser and the purchaser's address, the point of delivery, the product type or types and the quantity sold corrected to 60 degrees Fahrenheit, the means of delivering, including the license number, if any, liquid-fuels carrier's license number, and other number and description of such tank car, tank truck or trailer. Any manifest, bill of lading, shipping paper or invoice for special fuel which is indelibly dyed in accordance with regulations prescribed pursuant to 26 U.S.C. § 4082 shall include the statement "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE." Every person receiving or importing motor-vehicle fuel or special fuel or any part of the same shall receipt at the place provided on such manifest for the quantity received or imported by such person. The director may prescribe the number of copies of such manifest and the manner and time of delivering the same to the director, ports of entry, or other disposition of copy by the carrier, consignor, consignee, distributor, or other person in any manner connected with or dealing with such shipment.

For the period July 1, 1995 through June 30, 1996, the point of delivery referred to in this section shall include at a minimum the city and state of actual delivery. On and after July 1, 1996, the point of delivery referred to in this section shall include at a minimum the address, city and state of actual delivery. The facility number issued by the Kansas department of health and environment, authorized under K.S.A. 65-34,100 et seq., and amendments thereto, may be substituted in lieu of the point of delivery.

History: L. 1933, ch. 317, § 16; L. 1939, ch. 330, § 13; L. 1992, ch. 106, § 15; L. 1995, ch. 262, § 37; L. 2006, ch. 81, § 6; April 13.

§ 79-3417 Refunds for lost or destroyed fuels; procedure

Every distributor shall be entitled to a refund from the state of the amount of motor-vehicle fuels or special fuels tax paid on any motor-vehicle fuels or special fuels of 100 gallons or more in quantity, which are lost or destroyed at any one time while such distributor is the owner thereof, through theft, leakage, fire, explosion, lightning, flood, storm or other cause beyond the control of the distributor. Such distributor shall notify the director in writing of such loss or destruction, the specific cause thereof, and the amount of motor-vehicle fuel or special fuel so lost or destroyed, within 60 days from the date of such loss or destruction. Within 30 days after notifying the director of such loss or destruction such distributor shall file with the director an affidavit on oath, stating the full circumstances and amount of the loss or destruction and other information requested by the director.

The director shall examine all such claims and determine the amount to which the claimant is entitled. If any distributor entitled to a refund owes the state any motor-vehicle fuel or special fuel tax, penalties, or interest, the refund authorized by this section shall be credited upon such taxes, penalties and interest. When the director determines that any distributor is entitled to a refund under this section, and such refund cannot be effected by giving credit therefor, the director shall sign a voucher for the refund. Such amount shall be paid to the distributor from the revenue administration fee fund.

History: L. 1933, ch. 317, § 17; L. 1984, ch. 360, § 1; L. 1992, ch. 106, § 16; July 1, 1993.

§ 79-3418 Repealed

History: L. 1933, ch. 317, § 18; L. 1935, ch. 311, § 1; L. 1941, ch. 380, § 1; L. 1943, ch. 308, § 1; L. 1945, ch. 367, § 1; Repealed, L. 1949, ch. 486, § 15; January 1, 1950.

§ 79-3419 Enforcement of act; rules and regulations

The director of taxation shall enforce the provisions of this act. The secretary of revenue shall adopt rules and regulations for the administration of this act. In the performance of the director's duties, the director of taxation may call upon the law enforcement officers of this state to perform their several duties within their respective jurisdiction, and it shall be the duty of each such law enforcement officer to render aid in the enforcement of the provisions of this act.

The county attorneys of the several counties of this state shall prosecute all violations of the provisions of this act, and all civil proceedings arising or pending in their respective counties for recovery of taxes, penalties or interest, arising under the provisions of this act. The director of taxation may request of the attorney general the aid and assistance of the Kansas bureau of investigation for investigation of special cases. The director of taxation, the director of vehicles and the attorney general shall communicate to each other all information received concerning violations of the provisions of the motor-fuel tax law and also all information concerning suspected violations which in the opinion of any one of them requires investigation.

The director of taxation shall designate auditors, appointed in writing by the director, to engage in the enforcement of the provisions hereof. Such auditors shall check distributors, retailers, refund permit holders or any person who uses, stores, transports, sells or delivers liquid fuels, motor-vehicle fuels or special fuels to insure strict compliance with the provisions of the motor-fuel tax law. The director or such auditor shall have authority to administer oaths, issue subpoenas, compel the attendance of witnesses and the production of books, papers, accounts, documents and testimony.

In case of disobedience on the part of any person to comply with any subpoena issued hereunder, or the refusal of any witness to testify to any matter regarding which such person may be lawfully interrogated, it shall be the duty of the district court of the proper county, or the judge thereof on application of such director or auditor to compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

History: L. 1933, ch. 317, § 19; L. 1941, ch. 380, § 2; L. 1949, ch. 484, § 5; L. 1972, ch. 342, § 107; L. 1992, ch. 106, § 17; L. 1995, ch. 262, § 38; July 1.

§ 79-3420 Examination of books, records, returns, property and equipment; secrecy required; exceptions

The director, or any deputy or agent appointed in writing by the director, is hereby authorized to examine the books, papers, records, storage tanks, tank wagons, trucks and any other equipment of any distributor, dealer, transporter, manufacturer, importer, exporter, retailer, user or any other person, pertaining to the use, storage, transportation or sale and delivery of liquid fuels, motor-vehicle fuels or special fuels, to verify the accuracy of any report, statement or payment made under the provisions of this act, or to ascertain whether or not all reports and tax payments required by this act have been made. Any information gained by the director, the director's deputies or agents, as the result of the reports, investigations and verifications herein required to be made, shall be confidential, and shall not be divulged by any person except as herein provided. Every distributor, dealer, transporter, manufacturer, importer, exporter, retailer or user and every person handling or possessing any liquid fuels, motor-vehicle fuels or special fuels shall give the director, or the director's deputy or agent appointed in writing, full and free access during reasonable business hours to all the papers, records and property mentioned, with full opportunity to examine the same. The director, or any deputy or agent appointed in writing by the director, shall examine returns and shall determine the correct amount of the tax. If the tax found due shall be greater than the amount paid, or if a claim for a refund is denied, notice shall be mailed to the taxpayer. Within 60 days after the mailing of such notice, the taxpayer may request an informal conference with the secretary of revenue or the secretary's designee relating to the tax liability by filing a written request with the secretary of revenue or the secretary's designee. Based on the evidence presented at such informal conference, the secretary of revenue or the secretary's designee shall make a final determination within the period prescribed by K.S.A. 79-3226, and amendments thereto, and shall notify the taxpayer of such decision and, if additional amounts are found to be due, such decision shall be accompanied by a notice and demand for payment. Notice under this section shall be sent by first-class mail. The tax shall be paid within 20 days thereafter, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, on the additional tax from the date the tax was due unless an appeal is taken in the manner provided by law, but no additional tax shall be assessed for less than $5. Interest at such rate shall continue to accrue on any additional tax liability during the course of any appeal.

Whenever the director of taxation has reason to believe that a person liable for tax under any provisions of the motor-fuel tax law is about to depart from the state or to remove such person's property therefrom, or to conceal oneself or such person's property therein, or to do any other act tending to prejudice, jeopardize or render wholly or partly ineffectual the collection of such motor-fuel tax unless proceedings be brought without delay, the director shall immediately make an assessment for all motor-fuel tax due from such taxpayer, noting such finding on the assessment. The assessment shall be made on the basis of emergency proceedings in accordance with the provisions of K.S.A. 77-536, and amendments thereto. Thereupon, a warrant shall be issued for the collection of the tax as provided in K.S.A. 79-3412, and amendments thereto, except that there shall be no 10-day waiting period before assessment is issued. The taxpayer, within 15 days from the date of filing of such warrant, may request an informal conference with the secretary of revenue or the secretary's designee on the correctness of the assessment. The director may publish the gallons received or imported by each licensed motor-vehicle fuel or special fuel distributor and the deductions claimed by such distributor and such publication shall be an exception to the confidentiality provisions of K.S.A. 75-5133, and amendments thereto. The director may also make available or furnish information to the taxing officials of any other state or of the federal government, or the director of property valuation, in the manner as provided in K.S.A. 74-2424, and amendments thereto.

History: L. 1933, ch. 317, § 20; L. 1939, ch. 330, § 14; L. 1943, ch. 307, § 3; L. 1971, ch. 317, § 1; L. 1990, ch. 354, § 1; L. 1992, ch. 106, § 18; L. 1995, ch. 262, § 39; L. 1997, ch. 126, § 11; L. 2006, ch. 81, § 7; April 13.

§ 79-3421 Rewards for information of unlawful evasion of tax

The director is hereby authorized to pay out of any available funds in the revenue administration fee fund, hereinafter provided, to any person, other than a public officer or employee, who shall first furnish the director information of violation by any person of any of the provisions of this act, involving unlawful evasion of any motor-vehicle-fuels or special fuels tax, such sum as the director may deem proper, not exceeding 10% of the amount of tax so evaded or sought to be evaded; but such amount shall only be paid upon the sworn voucher of the claimant therefor and after collection of delinquent tax shall have been effected, or the person complained against shall have been convicted of violation of some provision of this act.

History: L. 1933, ch. 317, § 21; L. 1992, ch. 106, § 19; July 1, 1993.

§ 79-3422 Repealed

History: L. 1933, ch. 317, § 22; Repealed, L. 1947, ch. 462, § 1; June 30.

§ 79-3423 Repealed

History: L. 1933, ch. 317, § 23; L. 1939, ch. 330, § 15; L. 1941, ch. 379, § 3; L. 1949, ch. 486, § 11; L. 1992, ch. 106, § 20; Repealed, L. 1995, ch. 262, § 48; July 1.

§ 79-3424 Exempt from other taxes

The business of using, manufacturing or selling of motor-vehicle fuels or special fuels shall not be subject to any excise, license, privilege or occupation tax other than the one herein imposed, whether such tax be imposed by the state of Kansas or by any municipal corporation or other political subdivision of this state; and no municipal corporation, or other political subdivision of this state, shall levy or collect any tax upon, or measured by, the sale, receipt, importation, distribution or use of motor-vehicle fuel or special fuel, or any excise, license, privilege, or occupational tax upon the business of manufacturing, using, selling or delivering motor-vehicle fuels or special fuels.

History: L. 1933, ch. 317, § 24; L. 1992, ch. 106, § 21; L. 2006, ch. 81, § 8; April 13.

§ 79-3425 Payment into state treasury; distribution of proceeds of tax

All of the amounts collected under the motor-fuel tax law and amendments thereto, except amounts collected pursuant to K.S.A. 79-3408c, and amendments thereto, shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall credit such amount as the director shall order in the motor-vehicle fuel tax refund fund to be used for the purpose of paying motor-vehicle fuel tax refunds as provided by law. The state treasurer shall credit the remainder of such amounts as follows: To the state highway fund amounts specified in K.S.A. 79-34,142, and amendments thereto, to a special city and county highway fund which is hereby created, amounts specified in K.S.A. 79-34,142, and amendments thereto, to be apportioned and distributed in the manner provided in K.S.A. 79-3425c, and amendments thereto, and to the current production account and the new production account of the Kansas qualified agricultural ethyl alcohol producer incentive fund, which is hereby created in the state treasury, in the amount and in the manner specified in K.S.A. 79-34,161, and amendments thereto, to be expended in the manner provided in K.S.A. 79-34,162, and amendments thereto.

History: L. 1933, ch. 317, § 25; L. 1949, ch. 484, § 6; L. 1957, ch. 429, § 23; L. 1969, ch. 462, § 3; L. 1970, ch. 397, § 6; L. 1970, ch. 398, § 3; L. 1972, ch. 252, § 13; L. 1974, ch. 441, § 1; L. 1975, ch. 427, § 249; L. 1976, ch. 426, § 3; L. 1979, ch. 325, § 5; L. 1979, ch. 323, § 5; L. 1983, ch. 320, § 3; L. 1987, ch. 388, § 7; L. 1999, ch. 137, § 29; L. 2001, ch. 5, § 454; L. 2001, ch. 167, § 9; July 1.

§ 79-3425a Repealed

History: L. 1949, ch. 484, § 7; L. 1951, ch. 495, § 3; L. 1955, ch. 419, § 2; Repealed, L. 1957, ch. 507, § 1; June 29.

§ 79-3425b Repealed

History: L. 1955, ch. 419, § 3; L. 1959, ch. 396, § 2; L. 1965, ch. 531, § 1; Repealed, L. 1970, ch. 397, § 10; July 1.

§ 79-3425c Apportionment of special city and county highway fund; apportionment of county equalization and adjustment fund; credit and use

(a) On each January 15, April 15, July 15 and October 15 of each year, the director of accounts and reports shall transfer $625,000 to the county equalization and adjustment fund from the special city and county highway fund and on such dates the state treasurer shall apportion and pay to the several counties of the state 57% of the moneys in the special city and county highway fund, created by K.S.A. 79-3425, and amendments thereto, and shall apportion and pay to the several cities of the state the remaining 43% of such moneys.

(b) The allocation and payment to each county under the provisions of this section shall be made in the following manner:

First,

Each county of the state shall receive a payment of $5,000;

Second, of the balance remaining, 44.06% thereof shall be apportioned and paid to each county on each January 15 and April 15 of each year in the proportion that the total amount of money collected in such county from motor vehicle registration fees for the second preceding calendar year bears to the total amount of money collected in all counties from motor vehicle registration fees for the second preceding calendar year, and on July 15 and October 15 of each year in the proportion that the total amount of money collected in such county from motor vehicle registration fees for the preceding calendar year bears to the total amount of money collected in all counties from motor vehicle registration fees for the preceding calendar year;

Third,

44.06% of such balance shall be apportioned and paid to each county on each January 15 and April 15 of each year in the proportion that the average daily vehicle miles traveled in such county for the second preceding calendar year bears to the average daily vehicle miles traveled in all counties of the state for the second preceding calendar year, and on July 15 and October 15 of each year in the proportion that the average daily vehicle miles traveled in such county for the preceding calendar year bears to the average daily vehicle miles traveled in all counties of the state for the preceding calendar year; and

Fourth, the remaining 11.88% of such balance shall be apportioned and paid to each county on each January 15 and April 15 of each year in the proportion that the total road miles in such county for the second preceding calendar year bears to the total road miles in all counties of the state for the second preceding calendar year; and on July 15 and October 15 of each year in the proportion that the total road miles in such county for the preceding calendar year bears to the total road miles in all counties of the state for the preceding calendar year.

If the total amount of money received by any county pursuant to the foregoing distribution formula during the period from July 15 of any year to April 15 of the next succeeding year is less than the total amount received by such county from the special city and county highway fund and the county equalization and adjustment fund for fiscal year 1999, the state treasurer shall apportion and pay to each such county from the county equalization and adjustment fund an amount which together with the amount received pursuant to the foregoing distribution formula will equal the total amount received from the two aforementioned funds during such period of time. In the event that there is insufficient funds in the county equalization and adjustment fund to pay each county the amount to which it is entitled, each county shall receive a payment in the proportion that the amount to which such county is entitled bears to the amount to which all such counties are entitled. If there is money remaining in such fund after such distribution, the state treasurer shall distribute the balance to the several counties in the manner provided in the second and third clauses of the foregoing formula for distributing moneys to counties from the special city and county highway fund.

All payments shall be made to the county treasurers of the respective counties, and upon receipt of the same:

(1) The county treasurers of Sedgwick and Shawnee counties shall credit 50% of the moneys received to the road and bridge fund of such counties and apportion and pay the remainder of such moneys to the several cities located in such counties;

(2) the county treasurer of Wyandotte county shall credit 10% of the moneys received to the road and bridge fund of such county and apportion and pay the remainder of such moneys to the several cities located in such county;

(3) the county treasurers of Lyon, Cowley, Crawford, Montgomery, Butler, Saline, Leavenworth, Riley, Reno and Douglas counties shall credit 90% of the moneys so received to the road and bridge fund of such counties and apportion and pay the remainder of such moneys to the several cities located in such counties except that no persons residing within the Fort Riley military reservation shall be included or considered in determining the population of any city located within Geary or Riley county; and

(4) the county treasurers of Johnson county and all other counties not listed in paragraphs (1), (2) or (3) shall credit all of the moneys received to the road and bridge fund of such counties.

Not less than 25% of the amount received by each county and credited to the county road and bridge fund under the provisions of this section shall be expended by the county on mail and school bus routes on county roads as defined in K.S.A. 68-101, and amendments thereto. Payments to the cities under the provisions of this subsection shall be in the proportion that the population of each city bears to the total population of all cities located in the same county as such city.

In counties which have not adopted the county-unit road system, the amount of money retained by such counties after distribution to the cities within such county pursuant to this subsection shall be distributed to each township within such county in not less than the proportion that the amount of money received by each township from the county and township road fund during the period from July 1, 1969, to June 30, 1970, bears to the total amount of money received by such county from the county and township road fund, the county road and city street funds, the special motor carrier fee county road fund and the special city and county highway fund during the period from July 1, 1969, to June 30, 1970, plus the amount such county would have received on July 15, 1970, from the special city and county highway fund based on the formula for distributing such fund in effect on June 30, 1970. All payments to townships hereunder shall be made to the treasurers thereof, and all moneys so received shall be deposited in the general road fund of such township.

(c) The allocation and payment of moneys to the several cities of the state from the special city and county highway fund shall be in the proportion that the population of each city bears to the total population of all cities in the state except that the population of any military reservation which has been annexed to a city after the date of December 31, 1981, shall not be included in the population of such city for the purpose of this allocation. All such payments shall be to the city treasurers of the respective cities. Upon receipt of same unless a consolidated street and highway fund is established pursuant to K.S.A. 12-1,119, and amendments thereto, the city treasurer of each city shall credit the same to a separate fund to be used for the construction, reconstruction, alteration, repair and maintenance of the streets and highways of such city and for the payment of bonds, and interest thereon, issued pursuant to K.S.A. 79-3425g, and amendments thereto.

(d) For the purposes of this section, the average daily vehicle miles traveled in each county shall be determined by the secretary of transportation, but it shall not include miles traveled on interstate highways, and the population of each city shall be reported in the annual enumeration by the secretary of agriculture for the preceding calendar year.

(e) In order to reduce vehicular traffic and congestion on its streets and highways, the board of county commissioners of any county, the governing body of any city or the township board of any township may use for the purpose of constructing, repairing and maintaining footpaths and bicycle paths not to exceed 10% of the moneys such government receives under K.S.A. 79-3425c, and amendments thereto, except that such limitation shall not apply to moneys received by a county that the county is required to distribute to a city or a township. Such moneys shall not be expended on any recreational trail, as defined in subsection (b) of K.S.A. 58-3211, and amendments thereto.

History: L. 1969, ch. 462, § 17; L. 1970, ch. 397, § 7; L. 1970, ch. 398, § 4; L. 1972, ch. 376, § 1; L. 1975, ch. 504, § 1; L. 1975, ch. 427, § 250; L. 1976, ch. 427, § 1; L. 1978, ch. 413, § 1; L. 1980, ch. 320, § 1; L. 1982, ch. 414, § 1; L. 1983, ch. 320, § 4; L. 1987, ch. 260, § 3; L. 1989, ch. 209, § 33; L. 1999, ch. 137, § 30; L. 2003, ch. 160, § 87; L. 2004, ch. 180, § 15; L. 2005, ch. 174, § 184; L. 2006, ch. 142, § 162; L. 2007, ch. 167, § 198; July 1.

§ 79-3425d Repealed

History: L. 1976, ch. 427, § 2; Repealed, L. 1999, ch. 137, § 42; July 1.

§ 79-3425e Repealed

History: L. 1979, ch. 325, § 4; L. 1988, ch. 380, § 5; L. 1990, ch. 28, § 17; L. 1992, ch. 327, § 85; Repealed, L. 1993, ch. 292, § 88; June 10.

§ 79-3425f Special city and county highway fund; revenue for public transportation

(a) The board of county commissioners of any county may use for the purpose of public transportation not to exceed 10% of the moneys such county receives under K.S.A. 79-3425c, and amendments thereto, except that such limitation shall not apply to moneys received by a county that the county is required to distribute to a city or a township.

(b) The governing body of any city may use for the purpose of public transportation not to exceed 10% of the moneys such city receives under K.S.A. 79-3425c, and amendments thereto.

(c) The township board of any township may use for the purpose of public transportation not to exceed 10% of the moneys such township receives under K.S.A. 79-3425c, and amendments thereto.

(d) This section shall be supplemental to K.S.A. 79-3425c, and amendments thereto.

History: L. 1982, ch. 387, § 1; July 1.

§ 79-3425g Same; street and highway construction, reconstruction, alteration, repair and maintenance; revenue bonds payable from revenues allocated from fund

The governing body of any city is hereby authorized to issue revenue bonds to finance the cost of construction, reconstruction, alteration, repair and maintenance of the streets and highways of such city. Such bonds shall be payable solely from the revenue allocated to the city from the special city and county highway fund pursuant to K.S.A. 79-3425c, and amendments thereto. Such bonds shall not constitute a general obligation of the city and shall not be subject to any debt limitations of the city. Such bonds shall be negotiable instruments and shall be registered, executed and subject to all other terms as provided by ordinance of the city and shall bear interest at a rate not to exceed the maximum rate prescribed by K.S.A. 10-1009. The provisions of K.S.A. 10-113 shall not apply to any bonds issued pursuant to this section.

All bonds issued pursuant to this section and all income or interest therefrom shall be exempt from all state taxes.

History: L. 1982, ch. 414, § 2; L. 2010, ch. 44, § 36; July 1.

§ 79-3425h Repealed

History: L. 1969, ch. 462, § 17; L. 1970, ch. 397, § 7; L. 1970, ch. 398, § 4; L. 1972, ch. 376, § 1; L. 1975, ch. 504, § 1; L. 1975, ch. 427, § 250; L. 1976, ch. 427, § 1; L. 1978, ch. 413, § 1; L. 1980, ch. 320, 1; L. 1982, ch. 65, § 4; Repealed, L. 1983, ch. 320, § 25; May 12.

§ 79-3425i Transfers from state general fund to special city and county highway fund; limitations on transfers

On January 15 and July 15 of each year, the director of accounts and reports shall transfer a sum equal to the total taxes collected under the provisions of K.S.A. 79-6a04 and 79-6a10, and amendments thereto, and annual commercial vehicle fees collected pursuant to K.S.A. 8-143m, and amendments thereto, and credited to the state general fund during the six months next preceding the date of transfer, from the state general fund to the special city and county highway fund, created by K.S.A. 79-3425, and amendments thereto, except that: (1) Such transfers are subject to reduction under K.S.A. 75-6704, and amendments thereto; (2) no moneys shall be transferred from the state general fund to the special city and county highway fund during state fiscal year 2025, state fiscal year 2026 or state fiscal year 2027; and (3) all transfers under this section shall be considered to be demand transfers from the state general fund.

History: L. 1979, ch. 325, § 4; L. 1988, ch. 380, § 5; L. 1990, ch. 28, § 17; L. 1990, ch. 350, § 10; L. 1993, ch. 292, § 74; L. 1994, ch. 239, § 8; L. 1995, ch. 199, § 9; L. 1996, ch. 191, § 154; L. 1997, ch. 123, § 115; L. 1998, ch. 203, § 165; L. 1999, ch. 132, § 95; L. 2000, ch. 130, § 105; L. 2001, ch. 144, § 169; L. 2001, ch. 216, § 67; L. 2002, ch. 204, § 163; L. 2003, ch. 3, § 23; L. 2003, ch. 138, § 128; L. 2004, ch. 123, § 175; L. 2005, ch. 174, § 185; L. 2006, ch. 142, § 163; L. 2007, ch. 167, § 199; L. 2008, ch. 131, § 170; L. 2009, ch. 2, § 90; L. 2009, ch. 124, § 144; L. 2009, ch. 144, § 86; L. 2010, ch. 165, § 154; L. 2011, ch. 118, § 187; L. 2012, ch. 87, § 10; L. 2012, ch. 175, § 164; L. 2013, ch. 136, § 276; L. 2015, ch. 104, § 246; L. 2017, ch. 104, § 240; L. 2019, ch. 68, § 179; L. 2020, ch. 5, § 169; L. 2021, ch. 98, § 187; L. 2022, ch. 81, § 187; L. 2023, ch. 82, § 184; L. 2024, ch. 88, § 191; L. 2025, ch. 117, § 205; April 25.

§ 79-3426 Information to other states

(a) The director, upon the request of the official of any other state entrusted with the enforcement of the motor-vehicle-fuels tax law of such other state, may forward to such official any information which the director may have in the director's possession relative to the manufacture, receipt, sale, delivery, use, transportation or shipment by any person of liquid fuels, and the director, upon request of any distributor, importer, exporter or retailer holding a valid license, shall furnish to such distributor, importer, exporter or retailer a list of the names and addresses of all the persons holding distributor's, importer's, exporter's or retailer's licenses issued and outstanding in this state.

(b) The director, upon the request of the official entrusted with the enforcement of the fuel tax laws of any other state, the District of Columbia, the United States, its territories and possessions, the provinces of the Dominion of Canada, may forward to such official any information which the director may have in the director's possession relative to the manufacture, receipt, importation, sale, delivery, use, transportation or shipment by any person of special fuel as defined in this act.

History: L. 1933, ch. 317, § 26; L. 1992, ch. 106, § 22; L. 1995, ch. 262, § 40; L. 2006, ch. 81, § 9; April 13.

§ 79-3427 Repealed

History: L. 1933, ch. 317, § 27; Repealed, L. 1951, ch. 478, § 1; June 30.

§ 79-3428 Invalidity of part

If any provisions of this act or the application thereof to any person or circumstances is held invalid, the remainder of the act and the application of such provision to other persons or circumstances shall not be affected thereby.

History: L. 1933, ch. 317, § 28; May 1.

§ 79-3429 Repealed

History: L. 1939, ch. 331, § 1; L. 1949, ch. 486, § 10; Repealed, L. 1982, ch. 413, § 3; July 1.

§ 79-3430 Repealed

History: L. 1939, ch. 331, § 2; L. 1972, ch. 342, § 108; Repealed, L. 1982, ch. 413, § 3; July 1.

§§ 79-3431, 79-3432 Repealed

History: L. 1939, ch. 331, §§ 3, 4; Repealed, L. 1982, ch. 413, § 3; July 1.

§ 79-3433 Repealed

History: L. 1941, ch. 381, § 1; L. 1943, ch. 309, § 1; L. 1953, ch. 442, § 1; L. 1955, ch. 421, § 1; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3434 Repealed

History: L. 1941, ch. 381, § 2; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3435 Repealed

History: L. 1941, ch. 381, § 3; L. 1949, ch. 487, § 1; L. 1951, ch. 496, § 1; L. 1953, ch. 443, § 1; L. 1953, ch. 442, § 2; L. 1955, ch. 423, § 1; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3435a Repealed

History: L. 1955, ch. 294, § 12; L. 1956, ch. 61, § 1; L. 1957, ch. 429, § 24; L. 1958, ch. 66, § 1 (Budget Session); Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3436 Repealed

History: L. 1941, ch. 381, § 4; L. 1953, ch. 442, § 3; L. 1955, ch. 421, § 2; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3437 Repealed

History: L. 1941, ch. 381, § 5; L. 1943, ch. 290, § 6; L. 1949, ch. 487, § 2; L. 1953, ch. 442, § 4; L. 1957, ch. 429, § 25; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3438 Repealed

History: L. 1941, ch. 381, § 6; L. 1953, ch. 442, § 5; L. 1955, ch. 421, § 3; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3439 Repealed

History: L. 1941, ch. 381, § 7; L. 1949, ch. 487, § 3; Repealed, L. 1953, ch. 442, § 18; January 1, 1954.

§ 79-3440 Repealed

History: L. 1941, ch. 381, § 8; L. 1943, ch. 290, § 7; L. 1953, ch. 442, § 6; L. 1957, ch. 429, § 26; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3441 Repealed

History: L. 1941, ch. 381, § 9; L. 1953, ch. 442, § 7; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3442 Repealed

History: L. 1941, ch. 381, § 10; Repealed, L. 1953, ch. 442, § 18; January 1, 1954.

§ 79-3443 Repealed

History: L. 1941, ch. 381, § 11; L. 1949, ch. 487, § 4; L. 1953, ch. 442, § 8; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3444 Repealed

History: L. 1941, ch. 381, § 12; L. 1953, ch. 442, § 9; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3445 Repealed

History: L. 1941, ch. 381, § 13; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3446 Repealed

History: L. 1941, ch. 381, § 14; L. 1953, ch. 442, § 10; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3447 Repealed

History: L. 1941, ch. 381, § 15; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3448 Repealed

History: L. 1941, ch. 381, § 16; L. 1949, ch. 487, § 5; L. 1953, ch. 442, § 11; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3449 Repealed

History: L. 1941, ch. 381, § 17; L. 1949, ch. 487, § 6; L. 1957, ch. 429, § 27; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3450 Repealed

History: L. 1941, ch. 381, § 18; L. 1953, ch. 442, § 12; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3451 Repealed

History: L. 1941, ch. 381, § 19; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3452 Repealed

History: L. 1941, ch. 381, § 20; L. 1953, ch. 442, § 17; Repealed, L. 1959, ch. 397, § 17; July 1.

§ 79-3453 Refund of tax paid on motor-vehicle fuels or special fuels not used on highways, when

Any person who uses any motor-vehicle fuels or special fuels on which the motor-fuel or special fuel tax has been paid for use in school buses or for any purpose other than operating motor vehicles on the public highways, such person shall be entitled to be refunded the tax paid upon complying with the requirements of this act. Such person shall not be entitled to a refund of such tax unless the amount of the refund exceeds $25. The words "licensed distributor," as used in this act, shall also include a licensed importer.

History: L. 1949, ch. 486, § 1; L. 1984, ch. 360, § 2; L. 1992, ch. 106, § 23; L. 1993, ch. 182, § 2; L. 1995, ch. 262, § 41; July 1.

§ 79-3454 Refund permit; application; contents; fee; duties of director

Every person who desires to be eligible to receive motor-vehicle-fuels or special fuels tax refund, before making any claim for a refund, shall make written application, upon a form furnished by the director, for a permit to obtain such refunds. Such application shall be filed with the director and shall be signed by the applicant or an agent of the applicant, if such agent is authorized to do so in writing by the applicant and in such event the written authorization of the applicant shall be filed with and attached to the application. The application shall contain the name of the applicant and show whether applicant is an individual, corporation, partnership or association, applicant's address and occupation, the uses to which the applicant intends to put such motor-vehicle fuel or special fuel upon which a refund will be claimed, the make and model and other mechanical description of machinery in which motor fuels upon which a refund will be claimed are to be used, and, if the applicant is engaged in farming, the location of the farm and the number of acres under cultivation or to be cultivated, and if such motor-vehicle fuels or special fuels are to be used in a manufacturing or industrial process, the application shall state the nature and kind of process. Such application shall also include the storage capacity for motor-vehicle fuels or special fuels subject to claim for tax refunds, storage capacity for motor-vehicle fuels or special fuels used on public highways, and a list of the cars and trucks, including make and model, owned and operated by the applicant in which is used motor-vehicle fuel or special fuel on which refunds may not be claimed when used on the highway.

The application shall be accompanied by a fee of $6. The director shall remit all such fees to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. Upon investigation by the director, if the statements contained in the application shall be found to be true, and if the director shall be satisfied that the application is made in good faith, the director shall issue to the applicant a refund permit specifying the terms and conditions under which refunds shall be made. The permit so issued shall contain a number to be given to each applicant and shall be in such form as may be prescribed by the director. Such permit shall not be transferable and shall be issued for a period of three years and shall be good for purchases and deliveries made either prior to or during the period for which issued.

History: L. 1949, ch. 486, § 2; L. 1953, ch. 445, § 3; L. 1957, ch. 429, § 28; L. 1959, ch. 398, § 1; L. 1975, ch. 505, § 1; L. 1991, ch. 285, § 1; L. 1992, ch. 106, § 24; L. 1993, ch. 182, § 3; L. 2001, ch. 5, § 455; July 1.

§ 79-3455 Cancellation of refund permit, when

If any claimant for refund makes any false statement on any application for a permit or upon any claim for a refund, or if any recipient of a permit to obtain motor-vehicle tax refunds, uses refund tax motor-vehicle fuels or special fuels in any motor vehicle, except for a school bus, upon the public highways of the state of Kansas, the director shall forthwith cancel the permit of such person.

History: L. 1949, ch. 486, § 3; L. 1992, ch. 106, § 25; L. 1995, ch. 262, § 42; July 1.

§ 79-3456 Invoice by licensed distributors or retailers; contents; copies

(a) At the time of making each delivery of motor-vehicle fuel or special fuel upon which a refund of the tax may be claimed, the licensed distributor or licensed retailer delivering the same shall make out an invoice which shall contain a serial number which shall not be repeated through any one calendar year, and which shall state the following:

(1) The name of the distributor or retailer (printed or rubber stamped) selling the refund motor fuel;

(2) the name of the purchaser;

(3) the number of gallons of motor-vehicle fuel containing less than 10% agricultural ethyl alcohol thus purchased and delivered;

(4) the number of gallons of motor-vehicle fuels containing 10% or more of agricultural ethyl alcohol thus purchased and delivered;

(5) the date and place of delivery;

(6) the number of gallons of special fuel purchased and delivered; and

(7) the price paid for such motor-vehicle fuel or special fuel.

(b) The invoice prepared by a distributor or retailer shall be made out in triplicate unless the invoice is generated by automated procedures approved by the director. One copy of each invoice made out in triplicate shall be delivered to the purchaser at the time of purchase. Upon receiving payment in full for such motor-vehicle fuel or special fuel the distributor or retailer shall receipt for payment on the original invoices. A duplicate shall be retained by the distributor or retailer for a period of three years and shall be subject to examination by the director. Carbon or contact-type paper shall be used in making the first and second duplicate invoices unless the invoice is generated by automated procedures approved by the director.

(c) Invoices generated by automated procedures approved by the director shall be made out in duplicate. The original of each such invoice shall be delivered to the purchaser and upon receiving payment for such motor-vehicle fuel or special fuel the distributor or retailer shall receipt for payment on another original invoice. Duplicates of all such invoices shall be retained by the distributor or retailer for a period of three years.

(d) If the invoice of any distributor or retailer is not printed in triplicate or does not meet the requirements of this section then such distributor or retailer shall use the uniform invoice prepared and furnished free of cost by the director as provided in this act.

History: L. 1949, ch. 486, § 4; L. 1959, ch. 398, § 2; L. 1979, ch. 324, § 4; L. 1984, ch. 360, § 3; L. 1992, ch. 106, § 26; L. 1993, ch. 182, § 4; L. 1995, ch. 262, § 43; July 1.

§ 79-3457 Same; invoice blanks; records by director

The director shall issue free of cost the blank invoices required by this act to those distributors or retailers who do not provide their own invoices approved by the director. The director shall keep accurate records of all invoices issued and furnished to each licensed distributor or licensed retailer, and the licensed distributor or retailer shall, at all times, account for all such invoices received by such distributor or retailer. The director shall not issue any additional invoices to a licensed distributor or licensed retailer until such distributor or retailer has made proper accounting for such invoices issued to such distributor or retailer. The invoices shall not be transferable or assignable unless such transfer or assignment is authorized by the director.

History: L. 1949, ch. 486, § 5; L. 1995, ch. 262, § 44; July 1.

§ 79-3458 Claim for refund; time for filing; contents; signature

After purchasing or acquiring for use motor-vehicle fuel or special fuel upon which refund of the tax may be due, a purchaser and claimant may file with the director a claim on a form furnished by the director. Such claim for refund must be filed within one year after the date of purchase of the motor-vehicle fuels or special fuels on which a tax refund is claimed. The claim shall show or include the following:

(1) The name, post office address and the refund permit number of the claimant;

(2) the total number of gallons of motor-vehicle fuel or special fuel purchased as supported by original invoices or automated invoices or self-generated lists approved by the director that show the price of such motor-vehicle fuel or special fuel in full, including the motor-vehicle fuel or special fuel tax. If an original invoice is lost or destroyed, a statement to that effect shall accompany the claim for refund and such statement shall also set forth the date of delivery, the serial number of the invoice, number of gallons of motor-vehicle fuel or special fuel purchased and the name of the distributor or retailer from whom purchased; and if the director finds that the invoice was originally properly issued and that the claim is otherwise regular, the director shall allow such claim for refund;

(3) the amount of the claim; and

(4) if motor-vehicle fuel or special fuel for motor vehicles using the public highways is generally purchased for delivery directly to the fuel tank of such vehicles, the name of the dealer from whom the greater portion of such purchases are made.

All applications for refunds furnished by the director shall contain a printed warning clause. Every such application for refund if made by an individual shall be signed by the claimant and if the claimant is a corporation or association it shall be signed by one of the principal officers of the corporation or association and in the case of a partnership, by one of the partners.

History: L. 1949, ch. 486, § 6; L. 1959, ch. 398, § 3; L. 1972, ch. 377, § 1; L. 1975, ch. 505, § 2; L. 1992, ch. 106, § 27; L. 1995, ch. 262, § 45; L. 2004, ch. 173, § 15; July 1.

§ 79-3459 Payment of refunds; notice of denial or delay

Upon receipt of a claim for refund by the director if the director shall find that the same is complete and as required by law, and is satisfied that such refund is due, the director, within 20 days after receiving the same, shall certify to the director of accounts and reports the name and address of the claimant and the amount of the refund due, and within 10 days thereafter the director of accounts and reports shall draw a warrant so certified on the treasurer of state and against the motor-vehicle fuel or special fuel tax refund fund to the claimant of such refund, except that if the director, director of accounts and reports and state treasurer shall agree that payments of refunds could be made more expeditiously if the warrants on the state treasurer were written in the office of the director, then the director may draw such warrants and the signatures of the director of accounts and reports and state treasurer required thereon shall be placed thereon by an employee or agent appointed by the director of accounts and reports and state treasurer but whose compensation shall be paid by the director of taxation from the revenue administration fee fund.

All such warrants shall be mailed by the director to the claimant within 30 days after the receipt of the claim for refund in payment of which such warrant is issued. In the event a claim for refund be denied, the director shall notify the claimant by mail within 20 days after the claim is received in the director's office, except that in the event the claim for refund is insufficient or the director shall be of the opinion that additional information is required before approving or rejecting such claim for refund, the director, within 20 days, shall notify the claimant the reason for the delay but the director in such cases shall either approve or reject the claim for refund within 50 days after the date the original claim for refund was received by the director.

History: L. 1949, ch. 486, § 7; L. 1992, ch. 106, § 28; July 1, 1993.

§ 79-3460 Assignments prohibited; payment in case of death

No permit, invoice, or claim for refund shall be assigned. A permit may continue to be valid, in case of the death of the original permit holder, for the unexpired term of such permit. In case of death of the applicant or purchaser, refund payment shall be made to his or her spouse, heirs, or estate. Personal representatives of any deceased permit holder may apply for and receive refund payments on purchases made prior to the death of such permit holder or upon purchases made during the remainder of the term of the permit.

History: L. 1949, ch. 486, § 8; January 1, 1950.

§ 79-3461 Refund revolving fund

A revolving fund designated as the motor-vehicle fuel tax refund fund not to exceed one million dollars ($1,000,000) shall be set apart and maintained by the director from the motor-vehicle fuel tax collected under the provisions of article 34 of chapter 79 of the General Statutes of 1935 and the 1947 Supplement thereto and acts amendatory thereof or supplemental thereto, and held by the state treasurer for the payment of all refunds authorized by this act.

History: L. 1949, ch. 486, § 9; January 1, 1950.

§ 79-3462 Actions to recover refunds

The director, in the name of the state of Kansas, may bring and maintain a civil action to recover from any person illegally obtaining the payment of a refund claim the amount of such payment.

History: L. 1949, ch. 486, § 12; January 1, 1950.

§ 79-3462a Importers of motor-vehicle fuels or special fuels; claim for refund; limitations

No claim for refund of tax imposed by the Kansas motor-fuel tax law based upon any decision of the Kansas supreme court or any federal court that importers are not subject to any provision of the motor-fuel tax law, including, but not limited to, the remittance and payment provisions of the motor-fuel tax law, shall be allowed for tax paid prior to the date of such decision.

History: L. 2006, ch. 81, § 12; April 13.

§ 79-3463 Operating nonhighway vehicles on highways, when

For the purpose of this act the movement on the highways of motor vehicles primarily designed or operated for nonhighway use from one location where motor-vehicle fuels or special fuels will be used for nonhighway purposes to another such location shall not be construed to be operating or propelling motor vehicles on the public highways.

History: L. 1949, ch. 486, § 13; L. 1992, ch. 106, § 29; July 1, 1993.

§ 79-3464 Act supplemental

This act shall be construed as supplemental to and as part of the motor-fuel tax law of this state.

History: L. 1949, ch. 486, § 14; January 1, 1950.

§ 79-3464a Dyed special fuels; unlawful use; exceptions; penalties

(a) It shall be unlawful to operate or cause to be operated in this state a motor vehicle with special fuel that contains any quantity of dye or marker as prescribed pursuant to 26 U.S.C. 4082 in the fuel supply tank of the motor vehicle. This subsection does not apply to persons operating or causing to be operated motor vehicles that have received fuel into the fuel supply tanks outside of this state in a jurisdiction that does not prohibit dyed special fuel of that color and type in the fuel supply tank of motor vehicles.

(b) In addition to penalties prescribed under K.S.A. 79-3464e, the director shall collect or cause to be collected from the owners or operators of motor vehicles the tax as provided in K.S.A. 79-3408, and amendments thereto, for each gallon of dyed special fuel delivered into the fuel supply tank of a motor vehicle while in this state. In addition, the seller of the special fuel is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for a taxable purpose.

(c) In addition to those persons and agencies responsible for the enforcement of the criminal laws of this state, the director, any deputy or agent appointed in writing by the director, may conduct inspections to determine compliance with this section. The director, any deputy or agent shall have the same power and authority as provided in K.S.A. 79-3420, and amendments thereto.

(d) The director shall approve all equipment and facilities used to test dyes, markers and the chemical composition of fuel inspected under this section.

(e) The secretary shall adopt rules and regulations for the enforcement of this section.

History: L. 1995, ch. 262, § 7; July 1.

§ 79-3464b Denial or revocation of licenses under motor-fuel tax law, when; application

(a) Licenses under this act may be denied or revoked to any person:

(1) Who is not at least 18 years of age;

(2) who has not filed all applicable tax returns and paid all taxes, interest and penalties owed to the state of Kansas, excluding items under formal appeal pursuant to applicable statutes;

(3) who has not paid all motor fuel taxes, interest and penalties owed to a taxing agency in any state or the federal government;

(4) who has been convicted of a felony involving theft within five years immediately preceding the date of making application in this or any other jurisdiction;

(5) who has been convicted of a felony involving fraud or tax evasion in this or any other jurisdiction;

(6) who has had a motor fuel tax license revoked for cause under the provisions of this act;

(7) who has had a motor fuel tax license revoked for cause in another state;

(8) who intends to carry on the business authorized by the license as agent of another;

(9) who is a limited liability company when any member of the limited liability company would be denied a license for any reason;

(10) who is a corporation when any officer or director thereof, or any stockholder owning more than 5% of the stock of the corporation would be denied a license for any reason;

(11) who is a partnership or limited partnership when any partner would be denied a license for any reason.

(b) Each applicant will make application upon forms prescribed by the director. The director may require names, dates of birth, social security numbers and addresses of all members, directors, corporate or company officers and stock ownership of those owning more than 5% of total issued shares, or any other information the director deems necessary to determine eligibility.

(c) The director may revoke the license of any person who fails to meet any of the applicable qualifying standards for selection as a licensee provided for in this act.

History: L. 1995, ch. 262, § 8; July 1.

§ 79-3464c Filing by electronic or magnetic media, when; tax credit, when; rules and regulations

(a) The director may require a licensed distributor receiving or importing 50,000 gallons of motor fuel or more in a calendar month to file by electronic or magnetic media, in a standard format, such information as specified by the director. A licensed distributor, that can show just cause, may request a waiver from these requirements.

(b) Any distributor filing information prescribed by the director in accordance with subsection (a), who continues to file in accordance with subsection (a), shall be entitled to a onetime tax credit against the motor fuel tax imposed by article 34 of chapter 79 of the Kansas Statutes Annotated. Distributors filing in accordance with subsection (a):

(1) On or before July 1, 1999, shall be entitled to an amount equal to $8,000;

(2) after July 1, 1999, but on or before July 1, 2000, shall be entitled to an amount equal to $6,400; and

(3) after July 1, 2000, but on or before June 30, 2001, shall be entitled to an amount equal to $4,000.

(c) Any distributor electing to cease filing in accordance with subsection (a) within 10 years of the taxable year in which the taxpayer claimed the credit pursuant to subsection (b), shall be liable to reimburse the state for the amount of any such credit claimed.

(d) The secretary of revenue shall adopt rules and regulations establishing the criteria and procedures for claiming the tax credit under subsection (b).

History: L. 1995, ch. 262, § 9; L. 1998, ch. 137, § 1; L. 2006, ch. 81, § 10; April 13.

§ 79-3464d Liability for the collection or payment of motor vehicle fuel or special fuel taxes

(a) Any person who is responsible for the collection or payment of motor vehicle fuel or special fuel tax or control, receipt, custody or disposal of funds due and owing under the Kansas motor fuel tax law who fails to collect such tax, or account for and pay over such tax or attempts in any manner to evade or defeat such tax or the payment thereof, shall be personally liable for the total amount of the tax evaded, or not collected, or not accounted for and paid over, together with any interest and penalty imposed thereon. The provisions of this section shall apply regardless of the relationship with the licensee held by such person and regardless of the business form of the licensee.

(b) Any person having control or supervision of or supervising employees having control or supervision of the collection, filing of returns, accounting or payment of motor vehicle fuel or special fuel taxes of a licensee shall be personally liable for the tax, penalty and interest thereon, if the licensee fails to collect the tax, file returns, pay the tax or attempts in any manner to evade or defeat the tax.

(c) The liability of each officer, director, shareholder or employee for a corporation's failure to collect the tax, file returns or pay any liability due survives the dissolution of the corporation.

(d) The liability of each member for a limited liability company's failure to collect the tax, file returns or pay any liability due survives the dissolution of the limited liability company.

(e) Evidence of personal or individual responsibility for the collection or payment of taxes, filing return, control, receipt, custody or disposal of funds may include any one or more of the following:

(1) Signatory on any tax registration form;

(2) signatory on any tax return;

(3) authorization to sign tax registration forms or tax returns;

(4) authorization to draw on the licensee's funds;

(5) authorization to pledge licensee's assets as collateral to receive loans, advances or lines of credit from thrift institutions on behalf of the corporations;

(6) authorization to bind the licensee to contracts for sales or purchases in day-to-day business operations; or

(7) authorization to directly supervise employees who are authorized to perform any one or all of the above.

History: L. 1995, ch. 262, § 10; July 1.

§ 79-3464e Unlawful acts; penalties

(a) It shall be unlawful for any distributor, importer, exporter, manufacturer, retailer, user, carrier, transporter or any other person to:

(1) Use, sell, manufacture or deliver any motor-vehicle fuels or special fuels at any place without having a valid, unsuspended and unrevoked license as required by this act;

(2) fail, neglect or refuse to render to the director at the director's office, within the time required by the provisions of this act, any report or statement required by or purporting to be under the provisions of this act, or purporting to be under the rules and regulations promulgated by the director under such provisions;

(3) fail, neglect or refuse to pay the director, within the time required by this act, any tax, taxes, interest or penalties for which such person is liable under the provisions of this act;

(4) fail, neglect or refuse to keep and maintain for a period of three years, or fail to make fully and freely accessible during business hours to the director, the director's deputy or agent, all books, papers and records required by this act to be kept and maintained and so made accessible;

(5) use any motor fuels purchased as exempt in a taxable manner;

(6) sell, receive, import or transport motor fuels without proper and correct manifests;

(7) sell or hold for sale dyed fuel that such person knows or has reason to know will not be used for a nontaxable purpose;

(8) violate any other provision of this act not specified in this section;

(9) aid and abet in violations contained in paragraphs (1) through (8);

(10) falsify, forge or willfully conceal from the director or director's agent, any books, papers and records required by this act;

(11) knowingly submit a false or forged application for licensure under this act;

(12) knowingly make any false or forged application for a refund permit or claim for refund or to knowingly make any false statement in any application for a refund permit, or in any claim for a refund;

(13) present, or cause to be presented, to the director for credit, or for refund, any false, forged or altered invoice of refund;

(14) falsify, forge or alter any documents associated with the use, sale, manufacture or delivery of any motor fuels;

(15) deliver or accept delivery, with the intent to evade the obligation of collecting, remitting or accounting for motor fuel tax to this state, any motor fuel, knowing that the manifest or bill of lading indicates that the motor fuel was intended to be delivered to a tax exempt entity or intended to be delivered to a location outside the state of Kansas;

(16) use dyed fuel other than for a nontaxable use;

(17) willfully alters or attempts to alter, the strength or composition of any dye in any dyed fuel; or

(18) aid and abet in violations contained in paragraphs (10) through (17).

(b) Violation of paragraphs (1) through (9) is a misdemeanor. Any person convicted of such violation shall be punished by a fine of not less than $1,000 nor more than $10,000, or imprisoned in the county jail for not less than 30 days nor more than one year, or by both such fine and imprisonment. Upon a second or subsequent conviction, such person shall be punished by a fine of not less than $5,000 nor more than $50,000, or by imprisonment in the county jail for not less than 60 days nor more than two years, or by both such fine and imprisonment.

(c) Violation of paragraphs (10) through (18) is a severity level 10, nonperson felony.

(d) For any violations of this section, the director may suspend or revoke any license issued to any person found to be in violation and assess an administrative penalty of $10 per gallon of motor fuels involved, or a penalty of not less than $1,000 nor more than $10,000; and upon a second or subsequent violation, a penalty of $25 per gallon of motor fuels involved or a penalty of not less than $5,000 nor more than $50,000.

History: L. 1995, ch. 262, § 11; L. 2006, ch. 81, § 11; April 13.

§ 79-3464f Certain sections part of motor-fuel tax law

K.S.A.

79-3464a

through

79-3464e

shall be a part of and supplemental to, the motor-fuel tax law, K.S.A.

79-3401

et seq., and amendments thereto.

History: L. 1995, ch. 262, § 12; July 1.

§§ 79-3465, 79-3466 Repealed

History: L. 1955, ch. 267, §§ 1, 2; Repealed, L. 1971, ch. 319, § 21; January 1, 1972.

§ 79-3467 Repealed

History: L. 1955, ch. 267, § 3; L. 1957, ch. 508, § 1; Repealed, L. 1971, ch. 319, § 21; January 1, 1972.

§ 79-3468 Repealed

History: L. 1955, ch. 267, § 4; L. 1965, ch. 532, § 1; Repealed, L. 1971, ch. 319, § 21; January 1, 1972.

§§ 79-3469 through 79-3473 Repealed

History: L. 1955, ch. 267, §§ 5 to 9; Repealed, L. 1971, ch. 319, § 21; January 1, 1972.

§ 79-3474 Repealed

History: L. 1959, ch. 397, § 1; L. 1969, ch. 462, § 4; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3475 Repealed

History: L. 1959, ch. 397, § 2; L. 1969, ch. 462, § 5; L. 1976, ch. 426, § 4; L. 1982, ch. 415, § 3; L. 1983, ch. 320, § 5; L. 1989, ch. 209, § 34; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3475a Repealed

History: L. 1969, ch. 462, § 6; L. 1976, ch. 426, § 5; L. 1983, ch. 320, § 6; L. 1989, ch. 209, § 35; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3476 Repealed

History: L. 1959, ch. 397, § 3; Repealed, L. 1969, ch. 462, § 19; July 1.

§ 79-3477 Repealed

History: L. 1959, ch. 397, § 4; L. 1969, ch. 462, § 7; L. 1982, ch. 415, § 4; L. 1988, ch. 356, § 336; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3478 Repealed

History: L. 1959, ch. 397, § 5; L. 1969, ch. 462, § 8; L. 1978, ch. 414, § 2; L. 1990, ch. 355, § 1; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3479 Repealed

History: L. 1959, ch. 397, § 6; Repealed, L. 1969, ch. 462, § 19; July 1.

§§ 79-3479a, 79-3479b Repealed

History: L. 1982, ch. 415, §§ 1, 2; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3479c Repealed

History: L. 1984, ch. 347, § 1; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3480 Repealed

History: L. 1959, ch. 397, § 7; L. 1969, ch. 462, § 9; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3480a Repealed

History: L. 1969, ch. 462, § 10; L. 1980, ch. 308, § 21; L. 1990, ch. 353, § 2; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3481 Repealed

History: L. 1959, ch. 397, § 8; L. 1963, ch. 488, § 1; L. 1969, ch. 462, § 11; L. 1988, ch. 356, § 337; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3482 Repealed

History: L. 1959, ch. 397, § 9; Repealed, L. 1969, ch. 462, § 19; July 1.

§ 79-3483 Repealed

History: L. 1959, ch. 397, § 10; L. 1969, ch. 462, § 12; L. 1972, ch. 342, § 109; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3484 Repealed

History: L. 1959, ch. 397, § 11; Repealed, L. 1969, ch. 462, § 19; July 1.

§ 79-3484a Repealed

History: L. 1969, ch. 462, § 13; L. 1988, ch. 356, § 338; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3485 Repealed

History: L. 1959, ch. 397, § 12; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3486 Repealed

History: L. 1959, ch. 397, § 13; L. 1969, ch. 462, § 14; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3487 Repealed

History: L. 1959, ch. 397, § 14; L. 1969, ch. 462, § 15; L. 1970, ch. 397, § 8; L. 1976, ch. 426, § 6; L. 1979, ch. 325, § 6; L. 1979, ch. 323, § 6; L. 1979, ch. 324, § 2; L. 1983, ch. 320, § 7; L. 1989, ch. 209, § 36; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3488 Repealed

History: L. 1959, ch. 397, § 15; L. 1969, ch. 462, § 16; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3489 Repealed

History: L. 1959, ch. 397, § 16; Repealed, L. 1992, ch. 106, § 33; July 1, 1993.

§ 79-3490 Citation of act; definitions

This act shall be known and may be cited as the "liquefied petroleum motor fuel tax law" and as so constituted shall be supplemental to the motor fuel tax law. The following words, terms and phrases, when used in this act shall have the meanings respectively ascribed to them herein:

(a) "Motor vehicle" means any self-propelled vehicle licensed for operation and operated upon the public highways, except for municipally owned vehicles used primarily for law enforcement purposes.

(b) "LP-gas" means liquefied gasses, including liquefied natural gas and compressed natural gas, composed predominantly of the hydrocarbons which exist in the gaseous state at a temperature of 60° Fahrenheit and at a pressure of 14.7 pounds per square inch absolute and which may be used for the purpose of operating or propelling motor vehicles upon the public roads, state highways, streets or alleys.

(c) "Public highways" means and includes every way or place of whatever nature generally open to the use of the public as a matter of right for the purposes of vehicular travel, including a toll highway and notwithstanding that the same shall have been temporarily closed for the purpose of construction, reconstruction, or repair.

(d) "Person" means any natural person, partnership, firm, association, joint stock company, syndicate or corporation, or any receiver, trustee, conservator or other officer appointed pursuant to law or by any court, state or federal.

(e) "Use" means the placing of LP-gas by an LP-gas dealer or LP-gas user into the fuel supply tank or tanks of any motor vehicle while such vehicle is within this state.

(f) "LP-gas dealer" means any person in the business of handling LP-gas who delivers any part thereof into the fuel supply tank or tanks of a motor vehicle not then owned or controlled by such person.

(g) "LP-gas user" means the person who is the owner or operator of a motor vehicle at the time LP-gas is placed in the fuel supply tank or tanks thereof while such vehicle is within this state.

(h) "Gallon" means one United States standard gallon.

(i) "Director" means the director of taxation or the director's duly authorized deputy, agent or representative.

(j) "Special LP-gas permit user" means any person causing the operation of one or more LP-gas motor vehicles in Kansas and who holds a special LP-gas user permit.

History: L. 1959, ch. 405, § 1; L. 1973, ch. 402, § 1; L. 1983, ch. 330, § 1; L. 1989, ch. 300, § 1; July 1.

§ 79-3491 Purpose of tax

The tax imposed by this act is levied for the purpose of producing revenue to be used by the state of Kansas to defray in whole, or in part, the cost of constructing, widening, purchasing of right-of-way, reconstructing, maintaining, surfacing, resurfacing and repairing the public highways, including the payment of bonds heretofore issued for highways included in the state system of the state, and the cost and expenses of the department of revenue of this state and its agents and employees incurred in administration and enforcement of this act and for no other purpose whatever.

History: L. 1959, ch. 405, § 2; L. 1973, ch. 402, § 2; July 1.

§ 79-3491a LP-gas owned on date rate of tax changed; inventory tax or refund

(a) A tax is hereby imposed on all LP-gas motor fuels owned at 12:01 a.m. July 1, 1999, and on July 1 of each year thereafter, by any LP-gas motor fuels user or LP-gas motor fuels dealer at a rate per gallon, or fraction thereof, equal to the amount, if any, by which the tax per gallon, or fraction thereof, in effect on such date as prescribed by K.S.A. 79-3492, and amendments thereto, exceeds the rate of tax per gallon actually paid upon such fuel. Such tax shall be paid by the LP-gas motor fuel user or LP-gas motor fuel dealer owning such LP-gas motor fuels at such time and date. On or before the 25th day of the month in which such tax is imposed under this section, every such LP-gas motor fuel user and LP-gas motor fuel dealer shall make a report to the director on a form prescribed and furnished by the director showing the total number of gallons, or fraction thereof, of such LP-gas motor fuels owned by the user or dealer at the time the tax is imposed under this section, and such report shall be accompanied by a remittance of the tax due.

Any LP-gas motor fuels user or LP-gas motor fuels dealer who shall fail to make such report or pay such tax, within the time prescribed, shall be subject to the same penalties and interest charges prescribed by the liquefied petroleum motor fuel tax law for failure of a licensed distributor to make monthly reports and payments of LP-gas motor fuel tax. The provisions of the liquefied petroleum motor fuel tax law relating to remedies for the collection of delinquent LP-motor fuel taxes from distributors shall apply to the collection of taxes imposed by this section which have become delinquent from LP-gas motor fuels users and LP-gas motor fuels dealers. All taxes, penalties and interest collected by the director under the tax imposed by this section shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the funds and in the amounts specified in K.S.A. 79-34,142, and amendments thereto.

The words and phrases used in this section shall have the meanings ascribed to them in K.S.A. 79-3490, and amendments thereto.

(b) Whenever the rate of tax upon LP-gas motor fuels fixed pursuant to K.S.A. 79-3492, and amendments thereto, which becomes effective on July 1, 1999, or on July 1 in any year thereafter, is less than the rate of tax upon such fuels in effect on the preceding day, the user or dealer owning such fuels at 12:01 a.m. on the date such reduction in taxes becomes effective shall be entitled to a refund of taxes paid upon such fuels in an amount equal to the amount by which taxes were reduced from the amount of tax per gallon, or fraction thereof, actually paid upon each gallon, or fraction thereof, of LP-gas motor fuels multiplied by the number of gallons of fuel owned by the user or dealer on such date. On or before the 25th day of the month in which such tax is reduced, every such user or dealer shall make a report to the director on a form prescribed and furnished by the director showing the total number of gallons of such LP-gas motor fuels owned by such user or dealer at 12:01 a.m. on the date upon which such tax was reduced. It shall be the duty of the director of taxation to examine all such claims and determine the amount to which any claimant is entitled. In the event any user or dealer entitled to such refund shall owe the state any LP-gas motor fuels tax, penalties or interest, the refund authorized by this section shall upon being determined by the director be credited upon the amount of such taxes, penalties and interest. Whenever the director shall determine that any user or dealer shall be entitled to a refund under any of the provisions of this section, and such refund cannot be effected by giving credit therefor, as hereinbefore provided, or against the future LP-gas motor fuel tax liability of such taxpayer the director shall certify the amount of the refund to the state director of accounts and reports, who shall draw a warrant for the amount so certified on the state treasurer in favor of the user or dealer entitled to such refund, and mail, or otherwise deliver, the same to the user or dealer entitled thereto. Such warrant shall be paid by the state treasurer to such user or dealer from the LP-gas motor fuels tax refund fund which is hereby established in the state treasury.

(c) A fund designated as the LP-gas motor fuels tax refund fund not to exceed $1,000,000 shall be set apart and maintained by the director of taxation from the LP-gas motor fuels tax collected under the provisions of article 34 of chapter 79 of Kansas Statutes Annotated, and amendments thereto, and held by the state treasurer for the payment of all refunds authorized by this section.

History: L. 1983, ch. 320, § 9; L. 1989, ch. 209, § 37; L. 1999, ch. 137, § 31; L. 2001, ch. 5, § 456; July 1.

§ 79-3492 LP-gas motor fuel tax; rate of tax; computation; tax imposed upon user or dealer

(a) Except as otherwise provided in this act, a tax per gallon, or fraction thereof, at the rate computed as prescribed in K.S.A. 79-34,141, and amendments thereto, is hereby imposed on the LP-gas user or LP-gas dealer who places such LP-gas fuel into the fuel supply tank or tanks of any motor vehicle while such vehicle is within this state except that in those instances in which LP-gas is withdrawn from the cargo tank of a motor vehicle for the operation thereof upon the public highways of the state, the tax shall be imposed upon and measured only by that volume of LP-gas so withdrawn and used multiplied by the tax rate per gallon provided in this act.

(b) The conversion formula to be used to convert compressed natural gas and liquefied natural gas per gallon for the tax imposed pursuant to K.S.A. 79-34,141, and amendments thereto, shall be as follows:

(1) For purposes of converting the energy equivalent of compressed natural gas to a gasoline gallon energy equivalent, 126.67 cubic feet or 5.66 pounds of compressed natural gas shall equal one gasoline gallon; or

(2) for purposes of converting the energy equivalent of liquefied natural gas to a diesel gallon energy equivalent, 6.06 pounds of liquefied natural gas shall equal one diesel gallon.

History: L. 1959, ch. 405, § 3; L. 1973, ch. 402, § 3; L. 1976, ch. 426, § 7; L. 1983, ch. 320, § 8; L. 1989, ch. 209, § 38; L. 2014, ch. 81, § 9; July 1.

§ 79-3492a Same; alternative method of computing tax; mileage basis; special permit decals

Alternatively to the methods otherwise set forth in this act, upon application to the director on forms prescribed by the director, the tax may be computed on a mileage basis by an LP-gas user. For the purpose of determining the amount of the tax computed on such basis, the number of gallons of LP-gas used on the highways of this state shall be determined by using the following schedule for calculating the number of miles per gallon which a gallon of LP-gas would propel motor vehicles:

| Gross weight | | | --- | --- | | 6,000 pounds or less | 12 miles per gallon | | More than 6,000 pounds and not more than 12,000 pounds | 10 miles per gallon | | More than 12,000 pounds and not more than 24,000 pounds | 7 miles per gallon | | More than 24,000 pounds and not more than 42,000 pounds | 6 miles per gallon | | More than 42,000 pounds and not more than 66,000 pounds | 4 miles per gallon | | More than 66,000 pounds | 3 miles per gallon |

The director shall issue special permit decals for each motor vehicle authorized to pay the tax on a mileage basis.

History: L. 1973, ch. 402, § 4; July 1.

§ 79-3492b LP-gas motor fuel tax; alternative method of computation and payment of tax

Alternatively to the methods otherwise set forth in this act, special LP-gas permit users operating motor vehicles on the public highways of this state may upon application to the director on forms prescribed by the director elect to pay taxes in advance on LP-gas for each and every motor vehicle owned or operated by them and propelled in whole or in part with LP-gas during the calendar year and thereafter to purchase LP-gas tax free in lieu of securing a bonded user's permit and filing monthly reports and tax payments and keeping the records otherwise provided for in this act. The amount of such tax for each motor vehicle shall, except as otherwise provided, be based upon the gross weight of the motor vehicle and the number of miles it was operated on the public highways of this state during the previous year pursuant to the following schedules:

| | less than 5,000 miles | 5,000 to 10,000 miles | 10,001 to 15,000 miles | 15,001 to 19,999 miles | 20,000 to 29,999 miles | 30,000 to 39,999 miles | 40,000 to 49,999 miles | 50,000 to 59,999 miles | 60,000 and over | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Class A: 3,000 pounds or less | $46.00 | $92.00 | $138.00 | $184.00 | $276.00 | $368.00 | $460.00 | $552.00 | $644.00 | | Class B: more than 3,000 pounds and not more than 4,500 pounds | $78.00 | $156.00 | $234.00 | $312.00 | $468.00 | $624.00 | $780.00 | $936.00 | $1,092.00 | | Class C: more than 4,500 pounds and not more than 12,000 pounds | $95.00 | $189.00 | $285.00 | $380.00 | $570.00 | $760.00 | $950.00 | $1,140.00 | $1,330.00 | | Class D: more than 12,000 pounds and not more than 16,000 pounds | $129.00 | $258.00 | $387.00 | $516.00 | $774.00 | $1,032.00 | $1,290.00 | $1,548.00 | $1,806.00 | | Class E: more than 16,000 pounds and not more than 24,000 pounds | $165.00 | $330.00 | $495.00 | $660.00 | $990.00 | $1,320.00 | $1,650.00 | $1,980.00 | $2,310.00 | | Class F: more than 24,000 pounds and not more than 36,000 pounds | $230.00 | $460.00 | $690.00 | $920.00 | $1,380.00 | $1,840.00 | $2,300.00 | $2,760.00 | $3,220.00 | | Class G: more than 36,000 pounds and not more than 48,000 pounds | $285.00 | $570.00 | $855.00 | $1,140.00 | $1,710.00 | $2,280.00 | $2,850.00 | $3,420.00 | $3,990.00 | | Class H: more than 48,000 pounds | $384.00 | $768.00 | $1,152.00 | $1,536.00 | $2,304.00 | $3,072.00 | $3,840.00 | $4,608.00 | $5,376.00 | | Class I: transit carrier vehicles operated by transit companies | | | | | | | | | $1,808.00 | | Class J: motor vehicles designed for carrying fewer than 10 passengers and used for the transportation of persons for compensation. | | | | | | | | | $939.00 |

In the event any additional motor vehicles equipped to use LP-gas as a fuel are placed in operation by a special LP-gas permit user after the first month of any calendar year, a tax shall become due and payable to this state and is hereby imposed at the tax rate prescribed herein prorated on the basis of the weight and mileage for the months operated in the calendar year. The director shall issue special permit decals for each motor vehicle on which taxes have been paid in advance as provided herein, which shall be affixed on each such vehicle in the manner prescribed by the director.

History: L. 1973, ch. 402, § 5; L. 1983, ch. 330, § 2; L. 1984, ch. 361, § 1; L. 1987, ch. 389, § 1; L. 1989, ch. 209, § 39; L. 1989, ch. 209, § 40; L. 1989, ch. 209, § 41; L. 1989, ch. 209, § 42; L. 1999, ch. 137, § 32; L. 2002, ch. 201, § 3; L. 2010, ch. 156, § 35; June 3.

§ 79-3492c Same; director may require higher mileage rate for a taxpayer

In authorizing a special LP-gas permit user to pay taxes in advance for the privilege of thereafter purchasing such product tax free without securing another user's permit and performing the functions required of each user, it is expressly provided that if the director determines that taxes paid in advance for a special LP-gas permit user's permit are wholly inadequate to compensate for the taxable gallons being used by the permittee on the public highways, the director may require such permittee to pay taxes based upon a higher mileage rate in the permit user's weight class which if not paid will be cause for revocation of the permit.

History: L. 1973, ch. 402, § 6; L. 1983, ch. 330, § 3; January 1, 1984.

§ 79-3492d Same; destruction or disposal of vehicle; notice to director; removal or transfer of decal

If any motor vehicle on which taxes have been paid in advance by a special LP-gas permit user for which a permit decal has been issued shall, prior to the end of the calendar year, be destroyed, sold, traded or otherwise disposed of, or for any reason the permittee ceases to be the owner or operator thereof, the permittee shall be required to remove such decal and immediately give notice in writing to the director of such destruction, sale or other disposition thereof. Failure to remove such permit decals and to notify the director in writing of such removals as above provided shall be grounds for cancellation of the special LP-gas user permit or for requiring such person to secure a user's license, except that when a motor vehicle upon which the tax has been paid in advance is sold or transferred by one special LP-gas permit user to another special LP-gas permit user or to a person who shall qualify for and obtain a special LP-gas user permit, the director may issue written authority to transfer the decal issued and attached to said motor vehicle and all rights and obligations thereunder to the purchasing special LP-gas permit user in such manner and form as may be required by the director.

History: L. 1973, ch. 402, § 7; L. 1983, ch. 330, § 4; January 1, 1984.

§ 79-3492e Same; refund of unused portion of advance taxes; affidavit to director

If a motor vehicle shall be destroyed or sold or transferred so that it shall no longer qualify for the special LP-gas user permit decal, then in that event the owner or operator shall be entitled to a return of the unused portion of the advance taxes theretofore paid to the director for that calendar year. The owner or operator shall submit to the director an affidavit identifying the vehicle, and stating the circumstances entitling him or her to a refund, the initial date of disuse or conversion, the permit and decal number assigned, mileage for the calendar year and all other information reasonably required by the director. Upon receipt of the affidavit and when satisfied as to the circumstances, the director shall cause to be refunded to the owner or operator that portion of his or her tax payment that corresponds to the number of complete months remaining in the calendar year for which the tax has been paid, beginning with the month following the date on which the vehicle was no longer utilized. No refund shall be made if the use of the vehicle ceased within the last month of the calendar year.

History: L. 1973, ch. 402, § 8; L. 1983, ch. 330, § 5; January 1, 1984.

§ 79-3493 Unlawful sales; signed statement of exclusive nonhighway use

Except in the case of tax-paid deliveries into the fuel supply tanks of motor vehicles, it shall be unlawful to make bulk sales of LP-gas to any person who: (a) Is not licensed as a dealer or user of LP-gas; (b) is not the holder of a valid special LP-gas user permit; or (c) who has not first furnished the seller a signed statement that such gas is purchased exclusively for nonhighway use or for use by municipally owned vehicles used primarily for law enforcement purposes and none of the LP-gas purchased or acquired in Kansas on which the Kansas tax has not been paid by the purchaser will be delivered by the purchaser into the fuel supply tanks of motor vehicles. Except as otherwise prescribed by rules and regulations of the secretary of revenue, such statement, when furnished to a licensed dealer, shall be effective as long as the licensed dealer continues to sell and deliver LP-gas to the purchaser, unless the statement is revoked in writing by the purchaser, dealer or director, or unless the dealer has knowledge that some of such fuel is used in a manner contrary to the signed statement. The provisions of this act shall not apply to deliveries made into storage facilities that do not have hoses and transfer equipment capable of filling the supply tank or tanks of a motor vehicle.

History: L. 1959, ch. 405, § 4; L. 1973, ch. 402, § 9; L. 1983, ch. 330, § 6; L. 1989, ch. 300, § 2; July 1.

§ 79-3494 Dual carburetion; presumption of exclusive use of LP-gas, when

Any person who operates a motor vehicle that is equipped to use motor-vehicle fuel and LP-gas interchangeably is presumed to have used LP-gas exclusively in the operation of said vehicle unless proof of the amount of motor-vehicle fuel used is maintained in such form as the director may reasonably require.

History: L. 1959, ch. 405, § 5; L. 1973, ch. 402, § 10; July 1.

§ 79-3495 User and dealer reports, monthly or annual; payment of tax, monthly or annual; interest and penalties; LP-gas user and dealer licenses; application; refusal of license; filing fee

(a) Each LP-gas user or LP-gas dealer subject to the provisions of this act must, on or before the 25th day of each calendar month, file with the director a report, certified to be true and correct, on a form prescribed and furnished by the director, showing the total number of gallons of LP-gas placed into fuel supply tank or tanks of any motor vehicle while such vehicle is within this state during the preceding calendar month, including the number of gallons on hand at the beginning and end of each month, the number of gallons received from any and all sources supported by detailed schedules of receipts, purchases and withdrawals for sale or use, and such other information as the director may require. Each LP-gas user or LP-gas dealer at the time of filing each monthly report must pay to the director the full amount of tax due for the preceding calendar month at the rate provided for in this act.

(b) Any tax imposed under the provisions of this act not paid on or before the 25th of the month succeeding the calendar month in which the LP-gas was used shall be deemed delinquent and shall bear interest at the rate per month, or fraction thereof prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from such due date until paid, and in addition thereto there is hereby imposed upon all amounts of such tax remaining due and unpaid after such due date a penalty in the amount of 5% thereof, and such penalty shall be by the director added to and collected as a part of such tax. If the LP-gas user or LP-gas dealer furnishes evidence to the director that the delinquency was due to causes beyond such user's or dealer's reasonable control, and if in the opinion of the director the delinquency was not the result of willful negligence of the LP-gas user or LP-gas dealer the penalty or interest or both may be waived or reduced by the director.

(c) The director, if satisfied that the enforcement of the act is not adversely affected, may exempt any LP-gas user or LP-gas dealer from the monthly reporting and payment requirements of this act and require in lieu thereof annual payment of the tax due hereunder and annual reporting on forms provided by the director.

(d) Whenever the secretary or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsection (b) was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

(e) It shall be unlawful for any LP-gas user or LP-gas dealer to use or sell any LP-gas within this state unless such LP-gas user or LP-gas dealer is a holder of an uncanceled, unsuspended or unrevoked license issued by the director, unless such user has remitted the tax to a licensed LP-gas dealer. To procure such license every applicant shall file with the director an application upon oath and in such form as the director may prescribe, setting forth the name and addresses, the kind of business, and the designation of the exact locations or places of business where LP-gas is delivered or placed into the fuel supply tank or tanks of a motor vehicle, and such other information as the director may require. Such application must also contain, as a condition to the issuance of the license, an agreement by the applicant to comply with the provisions and requirements of this act and the rules and regulations promulgated by the director. If the applicant is a partnership or association, the application shall set forth the name and address of each partner or person constituting the partnership, or association, and if a corporation, the names and addresses of the principal officers thereof, and any other information prescribed by the director for the purposes of identification. The application shall be signed and verified by oath or affirmation by the owner, if a natural person, and in case of partnership or association, by a partner or member thereof, and in case of a corporation, by an executive officer thereof or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of such person's authority. Any valid LP-gas user's or LP-gas dealer's license in effect on the effective date of this act shall remain in full force and effect and no new application need be made under this act.

(f) In the event that any application for a license to use LP-gas as an LP-gas user or LP-gas dealer in this state shall be filed by any person whose license shall at any time theretofore have been canceled for cause, or in case the director shall be of the opinion that such application is not filed in good faith, or that such application is filed by some person as a subterfuge for the real person in interest whose license or registration shall theretofore have been canceled for cause, then and in any of such events, the director may refuse to issue to such person a license in this state. Notice of such refusal shall be mailed to the applicant. Any applicant aggrieved by the order of the director refusing to issue a license may request a hearing of the director on such application by filing with the director a written request therefor. Upon such filing the director shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act. If the director finds upon such hearing that [the] applicant is entitled to a license, the director shall order its issuance, but if the director finds that such applicant is not entitled to a license, such director shall enter an order refusing issuance.

(g) Upon the filing of the application for a license, a filing fee of $5 shall be paid to the director. All such fees collected by the director shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. The application in proper form having been accepted for filing, the bond hereafter provided for having been accepted and approved by the director and the other conditions and requirements of this act having been complied with, the director shall issue to such applicant a license and such license shall be in force so long as the holder thereof has in force a bond as required by this act deposited with the director, or until such license is suspended, surrendered, or revoked for cause by the director. The license issued by the director shall not be assignable and shall be valid only for the LP-gas user or LP-gas dealer in whose name issued, and shall be displayed conspicuously by the LP-gas user or LP-gas dealer at the user's or dealer's principal place of business as set forth in the application.

(h) In the event a person qualifies for both a user's and dealer's license, only one license shall be required. A copy of such user's or dealer's license shall be required for each place of business of the licensee where LP-gas is sold or dispensed. No charge shall be made for additional copies of such user's or dealer's license when such copies are required for multiple business locations.

History: L. 1959, ch. 405, § 6; L. 1973, ch. 402, § 11; L. 1980, ch. 308, § 22; L. 1988, ch. 356, § 339; L. 1994, ch. 95, § 4; L. 2001, ch. 5, § 457; L. 2014, ch. 81, § 10; July 1.

§ 79-3495a Sales by licensed dealer to dealer or user; returns and payment of tax

Any LP-gas dealer or LP-gas user, upon application in writing to the director, and at the discretion of the director, with or without the requirement of a bond, may be authorized to purchase on a tax-paid basis from any licensed LP-gas dealer all LP-gas acquired by such dealer or user. Every LP-gas dealer who sells or delivers LP-gas on such basis to LP-gas dealers or LP-gas users, authorized as aforesaid, shall make a return of such tax-paid sales to the director, accompanied by payment of the LP-gas fuel tax on the tax-paid gallonage so sold or delivered. The return and payment shall be made at the same time as the dealer's LP-gas fuel tax return for the month in which the covered sales or deliveries were made.

History: L. 1973, ch. 402, § 12; July 1.

§ 79-3496 Bond of licensee; additional bonds; financial statements; release of surety, when; suspension or revocation of license; hearing

No license shall be granted and issued until the person applying therefor has filed with the director a bond, payable to the state of Kansas in such amount as shall be fixed by the director, but in no event less than $1,000, in such form as the director may prescribe. The director may at any time require any LP-gas user or LP-gas dealer to furnish such additional bond as shall be necessary to secure at all times the payment by such user or dealer to the state of all tax, penalties and interest due under the provisions of this act. If any LP-gas user or LP-gas dealer fails to file such additional bond within 10 days after receipt of written notice mailed or otherwise delivered to such dealer by the director, the director may suspend or revoke the license, issued to such dealer, and collect all tax, penalties and interest accrued against such LP-gas user or LP-gas dealer. Any person who is licensed as an LP-gas user or LP-gas dealer shall be required to file with the director a bond payable to the state of Kansas in such amount as shall be fixed by the director, but in no event less than $1,000. Such bond shall cover any LP-gas tax payable or accrued. Such bond shall be in such form as the director may prescribe. For the purpose of determining whether or not an existing bond is sufficient, the director may at any time, by written notice, mailed or otherwise delivered, require any LP-gas user or LP-gas dealer to furnish a financial statement in such form as the director may prescribe.

Upon failure of any LP-gas user or LP-gas dealer to furnish a sworn financial statement within 20 days after receipt of such written notice, the director may suspend or revoke any or all licenses issued to such dealer, and shall collect all tax, penalties, and interest accrued against such LP-gas user or LP-gas dealer. Any surety on a bond furnished by an LP-gas user or LP-gas dealer as provided herein shall be released and discharged from any and all liability to the state accruing on such bond after the expiration of 60 days from the date upon which such surety shall have lodged with the director a written request to be released and discharged, but this provision shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue before the expiration of the 60-day period. Upon receiving any such request, the director shall promptly notify the LP-gas user or LP-gas dealer who furnished the bond; and unless the LP-gas user or LP-gas dealer shall on or before the expiration of such 60-day period, file with the director a new bond fully complying with the provisions of this act, the director shall forthwith revoke and cancel such LP-gas user's or LP-gas dealer's license and notify the LP-gas user or LP-gas dealer thereof by registered mail or otherwise.

Whenever any LP-gas user or LP-gas dealer is 10 days delinquent in the making of any report, or the payment of any tax, penalty or interest, or makes any false report or statement or application purporting to be under the provisions of this act, or makes any false statement in any application, report or statement required by or purporting to be under the provisions of this act, or purporting to be under the rules and regulations promulgated by the secretary of revenue under such provisions, or the director has reason to believe that any LP-gas user or LP-gas dealer shall have willfully or persistently violated any of the provisions of this act or of any regulation made thereunder, the director may upon conducting a hearing as provided in this section and upon finding to the director's satisfaction upon such hearing that the LP-gas user or LP-gas dealer has been delinquent, or has violated provisions of this act, suspend the license issued to the LP-gas user or LP-gas dealer for a fixed time or until such LP-gas user or LP-gas dealer shall fully comply with such provisions of law. If such LP-gas user or LP-gas dealer remains delinquent, or fails or refuses to comply with, or violates, such requirements for a period of 10 days following the suspension of such license, the director may, upon conducting a hearing as provided in this section, if such a hearing be requested in writing by the LP-gas user or LP-gas dealer, revoke such license. All requests for hearing shall be filed with the director. Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act.

Upon any such hearing for revocation or suspension, the director may suspend the license of such LP-gas user or LP-gas dealer for such period as the director deems proper, or revoke such license. In the event that such director either suspends or revokes any license, the LP-gas user or LP-gas dealer to whom such license was issued shall immediately, upon service of the director's order, surrender the same to the director and cease using any LP-gas. Nothing in K.S.A. 79-34,103 and amendments thereto shall be construed to prevent the director from suspending or revoking any license issued under authority of the liquefied petroleum motor fuel tax law in the manner provided in this section, and conviction of a misdemeanor under K.S.A. 79-34,103 and amendments thereto or any other law shall not be a condition to or prerequisite to suspension or revocation of any license.

History: L. 1959, ch. 405, § 7; L. 1963, ch. 489, § 1; L. 1973, ch. 402, § 13; L. 1978, ch. 414, § 3; L. 1988, ch. 356, § 340; July 1, 1989.

§ 79-3497 Failure to file report; fraudulent report; investigations; determination of amount due; collection

Whenever any LP-gas user or LP-gas dealer shall neglect or refuse to make and file any report for any calendar month as required by this act, or shall file an incorrect or fraudulent report, the director shall determine, after an investigation, the number of gallons of LP-gas with respect to which the LP-gas user or LP-gas dealer has incurred liability under this act, for any particular month, months, year or years, and fix the amount of tax and penalties payable by the LP-gas user or LP-gas dealer under this act accordingly. The director shall forthwith take such steps as are necessary for the collection of the amount of tax, penalties and interest due as determined by such investigation. In any action or proceeding for the collection of the tax and any penalties or interest imposed in connection therewith, as assessment by the director of the amount of the tax due and the interest or penalties due to the state shall constitute prima facie evidence of the correctness of the claim of the state and the burden of proof shall be upon the LP-gas user or LP-gas dealer to show the assessment was incorrect and contrary to law.

History: L. 1959, ch. 405, § 8; L. 1973, ch. 402, § 14; July 1.

§ 79-3498 Discontinuance of operation as user or dealer; notice; tax; penalties and interest

Whenever any person to whom a license has been issued ceases operation as an LP-gas user or LP-gas dealer within this state, such person must notify the director in writing of such fact five (5) days prior to such discontinuance and surrender his or her license. All tax, penalties and interest on LP-gas on which the tax may be due shall become due and payable concurrently with such discontinuance.

History: L. 1959, ch. 405, § 9; L. 1973, ch. 402, § 15; July 1.

§ 79-3499 Records, invoices, bills of lading; preservation; examination of records and equipment; confidentiality required; extension of time limits

Each LP-gas user or LP-gas dealer shall maintain and keep for a period of three years, such record or records of LP-gas purchased, sold or placed into the fuel supply tank or tanks of motor vehicles within this state by such LP-gas user or LP-gas dealer, together with invoices, bills of lading and other pertinent records and papers as may be required by the director for the reasonable administration of the act.

Every person who sells LP-gas to any person must, at the time of such sale and delivery, make and deliver to the purchaser, consignee or an agent thereof, an invoice covering each such delivery showing the date, the name and address of the seller, the number of gallons of LP-gas, the place of delivery, the name and address of the buyer, and such other information as the director may require. Each invoice must be identified by consecutive numbers printed thereon, and each seller or consignor must be able to account for each numbered delivery invoice and each copy thereof.

Every person who purchases, accepts or receives any LP-gas must, at the time of delivery or acceptance of such LP-gas demand and receive an invoice as required by this section covering such LP-gas. All invoices required by this section must be furnished by the respective sellers and persons distributing such fuel.

The director or secretary of revenue, or any deputy or agent appointed in writing by either of them, is hereby authorized to examine the books, papers, records, storage tanks, and any other equipment of any LP-gas user or LP-gas dealer, or any other person, pertaining to the use, storage, transportation, or sale and delivery of LP-gas, to verify the accuracy of any report, statement, or payment made under the provisions of this act, or to ascertain whether or not all reports and tax payments required by this act have been made. Any information gained by the director, the secretary of revenue, their deputies or agents, as the result of the reports, investigation, and verifications required to be made, shall be confidential, and shall not be divulged by any person, except as shall be necessary in the administration and enforcement of this act or any rules and regulations promulgated by the director, pursuant thereto, or as provided in this act. Every LP-gas user or LP-gas dealer, and every person handling or possessing any such LP-gas shall give the director, the secretary of revenue, or their deputies or agents appointed in writing, full and free access during reasonable business hours to all the papers, records, and property mentioned, with full opportunity to examine the same.

Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for a refund, the director of taxation is authorized to enter into an agreement in writing with the LP-gas user or LP-gas dealer consenting to the extension of the periods of limitations as defined in this act for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the period of limitations. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

History: L. 1959, ch. 405, § 10; L. 1973, ch. 402, § 16; L. 1990, ch. 353, § 3; July 1.

§§ 79-34,100 Collection of delinquent LP-gas motor fuel taxes

The provisions of K.S.A. 79-3412 and 79-3413, and amendments thereto, shall apply to efforts of the director or the director's designee to make collections of taxes which are delinquent under the liquefied petroleum motor fuel tax law, K.S.A. 79-3490 et seq., and amendments thereto.

History: L. 1959, ch. 405, § 11; L. 1973, ch. 402, § 17; L. 1995, ch. 262, § 46; July 1.

§§ 79-34,101 Measurement, calibration and marking of containers

The director may require that all tanks or other containers in which L-P gas, as defined by this act, is transported be accurately measured, calibrated and marked.

History: L. 1959, ch. 405, § 12; July 1.

§§ 79-34,102 Enforcement of act; rules and regulations; duties of county attorneys

The director of taxation shall enforce the provisions of this act. The secretary of revenue shall adopt rules and regulations for the administration of this act. The director of taxation may call upon the peace officers of this state to perform their several duties within their respective jurisdiction, and it shall be the duty of each such peace officer to render aid in the enforcement of the provisions of this act. The county attorneys of the several counties of this state shall prosecute all violations of the provisions of this act, and all civil proceedings arising or pending in their respective counties for recovery of tax, penalties or interest, arising under the provisions of this act.

History: L. 1959, ch. 405, § 13; L. 1972, ch. 342, § 110; July 1.

§§ 79-34,103 Unlawful acts; penalties; revocation of licenses and permits

Any person who shall fail, neglect or refuse to render to the director at his or her office, within the time required by the provisions of this act, any report or statement required by the provisions of this act, or shall make any false report or statement of application purporting to be under the provisions of this act, or shall make any false statements in any application, report or statement required by or purporting to be under the provisions of this act, or purporting to be under the rules and regulations promulgated by the secretary of revenue under such provisions; and any person who shall neglect or refuse to surrender to the director any license held by him or her, upon being notified that such license has been suspended or revoked; and any person who shall fail, neglect or refuse to pay the said director as aforesaid, within the time by this act provided, any tax, interest or penalties for which such person is liable under the provisions of this act; and every person required to keep records, who shall fail, neglect or refuse to keep and maintain for a period of three (3) years, or to make fully and freely accessible during business hours to said director, secretary of revenue, their deputies or agents appointed as such by either of them in writing, all books, papers and records, required by this act to be kept and maintained and so made accessible; and every person who shall violate any other provision of this act not mentioned in this section, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than twenty-five dollars ($25) nor more than five hundred dollars ($500), or by imprisonment in the county jail for not less than ten (10) days nor more than six (6) months, or by both such fine and imprisonment; and upon a second or subsequent conviction of a violation of the provisions of this act shall be punished by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000), or by imprisonment in the county jail for not less than sixty (60) days nor more than one (1) year or by both such fine and imprisonment, and in addition thereto the license held under the provisions of this act by any person so convicted shall be revoked by the director and shall not be renewed nor shall a new license be issued to any such person until the expiration of a period of at least two (2) years after the date of such conviction. Each day or part thereof during which any person shall engage in business as an LP-gas user or LP-gas dealer without being the holder of an uncanceled, unsuspended or unrevoked license shall constitute a separate violation within the meaning of this section.

History: L. 1959, ch. 405, § 14; L. 1973, ch. 402, § 18; July 1.

§§ 79-34,104 Disposition of proceeds of tax

All amounts collected under the liquefied petroleum motor-fuel tax law, except amounts collected pursuant to K.S.A. 79-3491a, and amendments thereto, shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall credit such amounts as follows: To the state highway fund amounts specified in K.S.A. 79-34,142, and amendments thereto, and amounts specified in K.S.A. 79-34,142, and amendments thereto, to a special city and county highway fund to be apportioned and distributed in the manner provided in K.S.A. 79-3425c, and amendments thereto.

History: L. 1959, ch. 405, § 15; L. 1970, ch. 397, § 9; L. 1973, ch. 402, § 19; L. 1976, ch. 426, § 8; L. 1979, ch. 325, § 7; L. 1979, ch. 323, § 7; L. 1979, ch. 324, § 3; L. 1983, ch. 320, § 10; L. 1989, ch. 209, § 43; L. 1999, ch. 137, § 33; L. 2001, ch. 5, § 458; July 1.

§§ 79-34,105 Information to officials of other states

The director may, upon the request of the official of any other state entrusted with the enforcement of the fuel tax laws of such other state, forward to such official any information which he or she may have in his or her possession relative to the manufacture, receipt, sale, delivery, use, transportation or shipment by any person of LP-gas as defined in this act.

History: L. 1959, ch. 405, § 16; L. 1973, ch. 402, § 20; July 1.

§§ 79-34,106 Accrued liabilities not affected

Nothing contained in this act shall be deemed or construed to affect in any manner any tax on motor-vehicle fuel or other civil or criminal liabilities which have heretofore accrued or shall hereafter accrue or be discovered under any law.

History: L. 1959, ch. 405, § 17; July 1.

§§ 79-34,107 Invalidity of part

If any provision of this act or the application thereof to any person or circumstances is held invalid, the remainder of the act and the application of such provision to any other persons or circumstances shall not be affected thereby.

History: L. 1959, ch. 405, § 18; July 1.

§§ 79-34,108 Definitions

As used in this act, unless the context otherwise requires:

(a) "Motor fuel" means any liquid, regardless of its composition or properties, used to propel a motor vehicle, and includes the following types: Motor-vehicle fuels as defined in K.S.A. 79-3401, and amendments thereto, special fuels as defined in K.S.A. 79-3401, and amendments thereto, or liquefied petroleum gas as defined in K.S.A. 79-3490, and amendments thereto.

(b) "Commercial motor vehicle" means any of the following motor vehicles or combinations, if propelled by motor fuel and used, designed or maintained for the transportation of persons or property, and:

(1) Has two axles and a gross vehicle weight or registered gross weight exceeding 26,000 pounds or 12,000 kilograms;

(2) has three or more axles regardless of weight; or

(3) is used in combination when the weight of such combination exceeds 26,000 pounds or 12,000 kilograms gross vehicle weight or registered gross weight.

(c) "Interstate motor fuel user" means any person who operates or causes to be operated on highways within and without this state any commercial motor vehicle.

(d) "Highways" means the entire width between the boundary of every way publicly maintained when any part thereof is open to the use of the public for purposes of vehicular travel, including a toll highway, and notwithstanding that the same may be temporarily closed for the purpose of construction, reconstruction, maintenance or repair.

(e) "Operations" means the operation on any highway of one or more commercial motor vehicles, whether loaded or empty, whether for compensation or not for compensation, and whether owned by or leased to the operator thereof.

(f) "Person" means every natural person, firm, association or corporation.

(g) "Director" means the director of taxation of this state.

History: L. 1971, ch. 319, § 1; L. 1972, ch. 378, § 1; L. 1982, ch. 416, § 1; L. 1986, ch. 383, § 1; L. 1992, ch. 106, § 30; July 1, 1993.

§§ 79-34,109 Imposition of tax; rate; apportionment of tax liability

(a) There is hereby imposed on each interstate motor fuel user a tax on motor fuel used in operations on highways within this state by such interstate motor fuel user. Such tax shall be at the same rate as the current rate of tax applicable to the use or sale of the same motor fuel within this state. The number of gallons of motor fuel used in the operations of any interstate motor fuel user on highways within this state shall be deemed to be such proportion of the total number of gallons of such motor fuel used in its entire operations within and without this state, as the number of miles traveled on highways within this state bears to the total number of miles traveled within and without this state.

(b) Whenever an interstate motor fuel user uses more than one type of motor fuel upon which different rates of tax are imposed, the tax imposed by this section shall be computed separately for each type of motor fuel, and the sum of the amounts so obtained shall be the amount of the tax imposed by this section. For each type of motor fuel, only the gallons thereof used and the miles traveled therewith shall be counted in making the separate computations for such type of motor fuel.

(c) If the apportionment provisions of this section do not fairly represent the extent of an interstate motor fuel user's motor fuel use in this state, the interstate motor fuel user may petition for or the director may require in respect to all or any part of such interstate motor fuel user's operations, if reasonable, the employment of any other method to effectuate adequate apportionment of the interstate motor fuel user's tax liability under this act.

History: L. 1971, ch. 319, § 2; January 1, 1972.

§§ 79-34,110 Users' quarterly report; form and content; separate report for each type of motor fuel; annual report, when

(a) Except as hereinafter provided, every interstate motor fuel user shall on or before the last day of January, April, July and October of each year render to the director at the director's office in Topeka, upon a form prescribed and furnished by the director, a report certified to be true and correct showing for the quarter ending on the last day of the preceding month:

(1) The total number of miles that such interstate motor fuel user operates commercial motor vehicles within and without this state;

(2) the total number of gallons of motor fuel used by such interstate motor fuel user in operations of such commercial motor vehicles;

(3) the total number of miles that such interstate motor fuel user operates commercial motor vehicles within this state; and

(4) such further information as the director shall require.

(b) Whenever an interstate motor fuel user uses more than one type of motor fuel upon which different rates of tax are imposed, the reports required by this section shall be tabulated separately for each type of motor fuel. For each such type of motor fuel, the gallons used and the miles traveled shall be utilized in making the separate tabulation for such type of motor fuel.

(c) The director, if satisfied that the enforcement of the act and the revenues of this state will not be adversely affected, may exempt from the reporting requirements of subsection (a) any interstate motor fuel user whose operations during the current year are substantially within this state, whose operations into this state do not extend to a distance greater than 20 miles from the state boundary line, or whose tax liability under the act of which this section is amendatory for the preceding two years has been less than $100 in each year and allow in lieu thereof an annual report to be made on forms provided by the director. A fee of $10 may be charged for such annual report authorization forms, and any fee so charged shall be credited against any tax liability of the user shown by such annual report.

History: L. 1971, ch. 319, § 3; L. 1972, ch. 378, § 2; L. 1977, ch. 336, § 2; L. 1986, ch. 383, § 2; July 1.

§§ 79-34,111 Quarters established; payment of tax; delinquent taxes, interest and penalties; waiver

(a) For the purposes of making payment of taxes and making reports required by this act, the calendar year is divided into four quarters having three consecutive months each, and the first quarter shall consist of the months of January, February and March.

(b) The tax imposed by this act shall be paid by each interstate motor fuel user by payment to the director which shall accompany each report required under K.S.A. 79-34,110, and amendments thereto, in the amount of the tax liability accrued for the quarter or year being reported.

(c) All taxes imposed under this act which are not paid as provided in this section shall be delinquent and shall bear interest at the rate per month or fraction thereof prescribed by K.S.A. 79-2968(a), from the date due until paid, and in addition thereto there is hereby imposed upon all amounts of such taxes remaining due and unpaid after the due date a penalty in the amount of 5% thereof, and such interest and penalty shall be added to and collected as a part of such taxes.

(d) Whenever the secretary or the secretary's designee determines that the failure to file a report and pay the tax, within the time prescribed, was due to reasonable causes, the secretary or the secretary's designee may waive or reduce the penalty and interest provided for by subsection (c).

History: L. 1971, ch. 319, § 4; L. 1980, ch. 308, § 23; L. 1994, ch. 95, § 5; April 7.

§§ 79-34,112 Credit for motor fuel tax paid; evidence of payment; refunds; rules and regulations

Every interstate motor fuel user subject to the tax imposed by this act shall be entitled to a credit on such tax equivalent to the statutory gallon rate at the time purchased on all motor fuel purchased within this state by such interstate motor fuel user for operations within and without this state and upon which the tax imposed by this state has been paid by such interstate motor fuel user. Such evidence of the payment of such tax as may be required by or is satisfactory to the director shall be furnished by any interstate motor fuel user claiming the credit authorized by this section. When the amount of the credit under this section to which any interstate motor fuel user is entitled for any reporting period exceeds the amount of the tax for which such interstate motor fuel user is liable for the same period, such excess, under rules and regulations adopted by the secretary of revenue, shall be allowed as a credit on the tax for which such interstate motor fuel user would be otherwise liable for the current quarter or any of the seven consecutive succeeding quarters, or for the current year if the interstate motor fuel user is reporting annually. When the amount of credit under this section exceeds $10, the interstate motor fuel user may elect to have refunded to it the amount of such credit. The secretary of revenue shall adopt rules and regulations governing the application for credits and refunds under this section. Refunds shall be paid to the interstate motor fuel user entitled thereto from the motor vehicle fuel tax refund fund.

History: L. 1971, ch. 319, § 5; L. 1986, ch. 383, § 3; July 1.

§§ 79-34,113 Records or returns; inspection; destruction; information confidential, exceptions; extension of time limits

(a) Every interstate motor fuel user shall keep true and accurate records of all miles operated within this state and of all miles operated within and without this state, and of all motor fuel purchased by such user. All such records shall be safely preserved for a period of three years in such manner as to insure their security and availability for inspection by the authorized agents and representatives of the director. Upon application in writing stating the reasons therefor, the director may consent to the destruction of such records at an earlier time, provided an audit of the interstate motor fuel user's records has been made.

Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for a refund, the director of taxation is authorized to enter into an agreement in writing with the interstate motor fuel user consenting to the extension of the periods of limitations as defined in this act for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the period of limitations. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(b) The director and the director's authorized agents and representatives shall have the right during regular business hours to inspect the books and records of any interstate motor fuel user.

(c) Information gained by the director, or the director's representatives or agents, as the result of any audit or inspection or from reports filed in compliance with this act, shall be confidential, and shall not be divulged by any person, except as shall be necessary in the administration and enforcement of this act or any rules and regulations adopted hereunder, or as otherwise provided in this act. The director, or any deputy or agent appointed in writing by the director, shall examine returns and shall determine the correct amount of the tax. If the tax found due shall be greater than the amount paid, or if a claim for a refund is denied, notice shall be mailed to the taxpayer. Within 60 days after the mailing of such notice, the taxpayer may request a hearing of the director relating to the tax liability by filing a written request with the director. Based on the evidence presented at such hearing, the director shall make a final determination within a reasonable time and shall notify the taxpayer of such decision and, if additional amounts are found to be due, such decision shall be accompanied by a notice and demand for payment. Notice under this section shall be sent by first-class mail. The tax shall be paid within 20 days thereafter, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, on the additional tax from the date the tax was due unless an appeal is taken in the manner provided by law, but no additional tax shall be assessed for less than $5. Interest at such rate shall continue to accrue on any additional tax liability during the course of any appeal.

Whenever the director of taxation has reason to believe that a person liable for tax under any provisions of the motor-fuel tax law is about to depart from the state or to remove such person's property therefrom, or to conceal oneself or such person's property therein, or to do any other act tending to prejudice, jeopardize or render wholly or partly ineffectual the collection of such motor-fuel tax unless proceedings be brought without delay, the director shall immediately make an assessment for all motor-fuel tax due from such taxpayer, noting such finding on the assessment. The assessment shall be made on the basis of emergency proceedings in accordance with the provisions of K.S.A. 77-536, and amendments thereto. Thereupon a warrant shall be issued for the collection of the tax as provided in K.S.A. 79-3412, and amendments thereto. The taxpayer, within 15 days from the date of filing of such warrant, may request a hearing by the director on the correctness of the jeopardy assessment. Hearings under this section shall be conducted in accordance with the provisions of the Kansas administrative procedure act. Nothing in this act shall be construed to prohibit the publication of statistics. Nothing in this act shall be construed to prohibit the inspection of records or reports with the approval of the attorney general.

History: L. 1971, ch. 319, § 6; L. 1990, ch. 353, § 4; L. 1995, ch. 262, § 47; July 1.

§§ 79-34,114 Agreements with other states and federal government for cooperative audit; exchange of information and enforcement of act

The secretary of revenue may enter into agreements with the appropriate authorities of other states having statutes similar to this act, or with the federal government, for the cooperative audit of interstate motor fuel users' records, reports or returns, or for exchange of information contained in any such records, reports or returns. Officers and employees of other states or the federal government shall be deemed authorized agents of this state when auditing returns and reports under an agreement entered into by the secretary with any such state or the federal government, and such audits or parts thereof shall have the same effect as similar audits or parts thereof made by this state. The secretary may also enter into agreements with the appropriate authorities of other states having statutes similar to this act for the administration and enforcement of this act provided such agreements are not contradictory to this act. The secretary shall report to the governor and the legislature when the secretary enters into such agreements.

History: L. 1971, ch. 319, § 7; L. 1986, ch. 383, § 4; July 1.

§§ 79-34,115 License required; rules and regulations; fuel cards, number and information

(a) Except as otherwise provided in this act, no interstate motor fuel user shall conduct operations within this state without first having secured a license for such operation from the director: Provided, Interstate motor fuel users who are licensed under article 34 of chapter 79 of Kansas Statutes Annotated on the effective date of this act shall not be required to renew such licenses so long as the same remain valid and such licenses shall be sufficient under the provisions of this section. Such licenses shall be issued under rules and regulations adopted by the secretary of revenue and shall be in full force and effect at the time of every operation within this state.

(b) The director shall annually issue to each licensed interstate motor fuel user a fuel card upon which appears an identifying number specified by the director and such other information as the director shall require by rules and regulations. One of such fuel cards shall be carried in the passenger compartment of each commercial motor vehicle operated by such interstate motor fuel user at all times when such vehicle is within this state.

History: L. 1971, ch. 319, § 8; January 1, 1972.

§§ 79-34,116 Bond of licensee; release of surety

As a condition for the issuance of any license under K.S.A. 79-34,115, the director may require any interstate motor fuel user to file with the director a bond, payable to this state in such amount as may be fixed by the director, but in no event less than one thousand dollars ($1,000) in such form as the director may prescribe, conditioned that said interstate motor fuel user will pay all taxes, penalties and interest due and to become due under this act from the date of the bond until the bond is canceled as provided herein. Any surety on a bond given under this section shall be released and discharged from any and all liability due this state accruing on such bond after the expiration of sixty (60) days from the date upon which such surety shall have notified the director in writing that it wishes to be released and discharged, but this provision shall not operate to relieve, release or discharge the surety from any liability already accrued or which shall accrue before the expiration of the sixty-day period.

History: L. 1971, ch. 319, § 9; L. 1978, ch. 414, § 4; July 1.

§§ 79-34,117 Leased vehicles, application of law and regulations; waiver of license requirements; payment of taxes in a different manner; approval required

(a) Except as otherwise provided in this section every commercial motor vehicle leased to an interstate motor fuel user shall be subject to the provisions of this act and rules and regulations in force pursuant thereto, to the same extent and in the same manner as a commercial motor vehicle owned by such interstate motor fuel user.

(b) As to any commercial motor vehicle leased to a licensed interstate motor fuel user for 30 days or more and as to motor fuel used and miles traveled, the lessor shall exclude from its reports and liabilities under this act any such commercial motor vehicle and motor fuel used and miles traveled, and any such commercial motor vehicle and motor fuel used and miles traveled shall be included in the reports and liabilities of the lessee.

(c) Any commercial motor vehicle owned by a licensed interstate motor fuel user leased for less than 30 days to a licensed interstate motor fuel user, as to such commercial motor vehicle and as to motor fuel used and miles traveled, the lessee shall exclude from its reports and liabilities under this act such commercial motor vehicle and motor fuel used and miles traveled, and any such commercial motor vehicle and motor fuel used and miles traveled shall be included in the reports and liabilities of the lessor.

(d) The director may waive the licensing requirements of this act as to any person who has no tax liabilities under this act. Any such waiver shall immediately terminate if the circumstances of such person change in such a way that such person incurs any tax liability under this act. Nothing in this section shall be construed to exempt any interstate motor fuel user from the provisions of K.S.A. 79-34,112, 79-34,113 and 79-34,114, and amendments thereto.

(e) A lessor who is regularly engaged in the business of leasing commercial motor vehicles without drivers to others, may elect to be deemed an interstate motor fuel user when such lessor supplies or pays for the motor fuel consumed by such vehicles or makes rentals or other charges calculated to include the cost of fuel used, provided the lessor files proper application with the director. Such lessor shall file a copy of each lease agreement with the director.

(f) Any lessee may exclude from fuel use reports, motor vehicles such lessee leases from a lessor who has been deemed an interstate motor fuel user pursuant to this act or amendments thereto.

(g) Upon application made by a licensed interstate motor fuel user, the director may approve an agreement between a lessor and lessee which assigns responsibility for paying the tax imposed by this act in a manner different from that established in this section.

History: L. 1971, ch. 319, § 10; L. 1982, ch. 417, § 1; L. 1986, ch. 383, § 5; July 1.

§§ 79-34,118 24-hour or 72-hour motor fuel permits; fees; rules and regulations; contracts with private issuing agents

Upon application to the director of taxation and payment of the fee prescribed under this section any interstate motor fuel user may obtain a 24-hour motor fuel permit or a 72-hour motor fuel permit which shall authorize one commercial motor vehicle to be operated for a period of 24 hours or 72 hours, respectively, without compliance with the other provisions of the interstate motor fuel use act and in lieu of the tax imposed by K.S.A. 79-34,109, and amendments thereto. The fee for each 24-hour motor fuel permit issued under this section shall be $13. The fee for each 72-hour motor fuel permit issued under this section shall be $25. Motor fuel permits may be purchased in multiples of three upon making proper application and payment of the required fees. The secretary of revenue shall adopt rules and regulations specifying the conditions under which motor fuel permits will be issued and providing for the issuance thereof. The secretary may designate agents or contract with private individuals, firms or corporations to issue such motor fuel permits so that such permits will be obtainable at convenient locations.

History: L. 1971, ch. 319, § 11; L. 1977, ch. 304, § 10; L. 1983, ch. 320, § 12; L. 1989, ch. 209, § 44; L. 1989, ch. 209, § 45; L. 1989, ch. 209, § 46; L. 1989, ch. 209, § 47; L. 1999, ch. 137, § 34; L. 2002, ch. 201, § 4; L. 2006, ch. 119, § 1; July 1.

§§ 79-34,119 Temporary authorization; emergency; rules and regulations

Whenever the director is satisfied that unforeseen circumstances of an emergency nature have arisen which require an interstate motor fuel user to operate a commercial motor vehicle in this state and a permit has not been obtained therefor, and if the director is satisfied that prohibition of such operation would cause undue hardship, the director may provide the interstate motor fuel user with temporary authorization for the operation of such commercial motor vehicle. The conditions for the issuance of any such temporary authorization shall be established by rules and regulations adopted by the secretary of revenue.

History: L. 1971, ch. 319, § 12; January 1, 1972.

§§ 79-34,120 Vehicles not subject to provisions of act

Nothing in this act shall apply to any vehicle operated by or for: (a) This state or any of its agencies or subdivisions, or (b) the United States or any of its agencies, or (c) any agency of two or more states, or (d) any agency of one or more states and the United States. Nothing in this act shall apply to any school bus as defined by the laws of this state operated by, for or on behalf of a state, any subdivision thereof, or any private or privately operated school or schools. Nothing in this act shall apply to any vehicle having farm registration issued under authority of K.S.A. 8-143, and amendments thereto.

History: L. 1971, ch. 319, § 13; L. 1980, ch. 321, § 1; L. 1985, ch. 44, § 2; L. 2005, ch. 16, § 1; July 1.

§§ 79-34,121 Suspension or revocation of registration, permit or other evidence of right; hearing

In addition to any one or more other penalties imposed under this act, the director, after notice and hearing in accordance with the provisions of the Kansas administrative procedure act, may suspend or revoke any registration, permit or other evidence of right issued by the director under this act, of any interstate motor fuel user guilty of violation of any provision of this act or any rule or regulation adopted under authority thereof.

History: L. 1971, ch. 319, § 14; L. 1988, ch. 356, § 341; July 1, 1989.

§§ 79-34,122 Unlawful acts by interstate motor fuel users; penalties

(a) Any person who willfully makes a false statement orally, or in writing, or knowingly presents a fraudulent receipt for the sale of motor fuel, for the purpose of obtaining or attempting to obtain or to assist any other person, partnership or corporation to obtain or attempt to obtain a credit or refund or reduction of liability for taxes under this act shall be guilty of a misdemeanor, and: (1) For a first conviction thereof shall be fined not more than $500 or imprisoned in the county jail for not more than 30 days, or by both such fine and imprisonment; and (2) for a second or subsequent conviction thereof, within two years thereafter, shall be fined not more than $1,000 or imprisoned in the county jail for not more than 30 days, or by both such fine and imprisonment.

(b) Any interstate motor fuel user who engages in operations within this state without a valid license, motor fuel permit or temporary authorization issued by the director shall pay a fine in accordance with K.S.A. 8-2118, and amendments thereto.

History: L. 1971, ch. 319, § 15; L. 1980, ch. 44, § 4; L. 2004, ch. 114, § 9; L. 2006, ch. 119, § 2; July 1.

§§ 79-34,123 Administration and enforcement of act; rules and regulations

The director shall administer and enforce the provisions of this act. The secretary of revenue shall adopt rules and regulations for the administration of this act. In the performance of his or her duties under this act, the director may call upon the peace officers of this state to perform their several duties within their respective jurisdictions.

History: L. 1971, ch. 319, § 16; L. 1972, ch. 342, § 111; July 1.

§§ 79-34,124 Tax liability determined in absence of records; assessment

In the absence of adequate records of any interstate motor fuel user showing the number of miles operated in this state, the number of miles operated in all states and the total number of gallons of motor fuel used, the director shall determine, from all relevant information available to him or her, the tax liability under this act of such interstate motor fuel user, and shall assess the amount so determined against such interstate motor fuel user, and the amount so assessed, together with penalties and interest, shall be the tax liability under this act of such interstate motor fuel user.

History: L. 1971, ch. 319, § 17; January 1, 1972.

§§ 79-34,125 Citation of act

This act may be cited as the "interstate motor fuel use act."

History: L. 1971, ch. 319, § 18; January 1, 1972.

§§ 79-34,126 Disposition of moneys; international fuel tax agreement clearing fund

(a) All amounts collected under the interstate motor fuel use act shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall credit such amounts as follows: To the state highway fund amounts specified in K.S.A. 79-34,142, and amendments thereto, and amounts specified in K.S.A. 79-34,142, and amendments thereto, to a special city and county highway fund to be apportioned and distributed in the manner provided in K.S.A. 79-3425c, and amendments thereto.

(b) All amounts collected under the international fuel tax agreement shall be remitted by the director to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the international fuel tax agreement clearing fund which is hereby created. Payments due and owing to member jurisdictions under the international fuel tax agreement and refunds for overpayment of tax shall be made from such fund. The director shall reconcile such clearing fund monthly with balances remitted monthly in accordance with the provisions of subsection (a). The funds in the international fuel tax agreement clearing fund shall be invested in the same manner as provided in K.S.A. 68-2324, and amendments thereto, and all earnings shall be deposited in the state treasury and credited to the state highway fund.

History: L. 1971, ch. 319, § 19; L. 1983, ch. 320, § 13; L. 1989, ch. 209, § 48; L. 1992, ch. 93, § 1; L. 1999, ch. 137, § 35; L. 2001, ch. 5, § 459; July 1.

§§ 79-34,127 Invalidity of part

If any provisions of this act or the application thereof to any person or circumstances is held invalid, the remainder of the act and the application of such provision to any other persons or circumstances shall not be affected thereby.

History: L. 1971, ch. 319, § 20; January 1, 1972.

§§ 79-34,128 Delinquent tax; lien

Whenever the tax imposed by this act has been delinquent for a period of more than 30 days, the director may file a lien as provided for in K.S.A. 79-3413, and amendments thereto, in an amount equal to all tax, penalties and interest owing under this act.

History: L. 1986, ch. 383, § 6; July 1.

§§ 79-34,129 Collection of delinquent taxes under interstate motor fuel use act

(a) The provisions of K.S.A. 79-3412 and 79-3413, and amendments thereto, shall apply to efforts of the director or the director's designee to make collections of taxes which are delinquent under the interstate motor fuel use act, K.S.A. 79-34,108 et seq., and amendments thereto.

(b) This section shall be a part of and supplemental to, the interstate motor fuel use act, K.S.A. 79-34,1,108 [79-34,108] et seq., and amendments thereto.

History: L. 1995, ch. 262, § 13; July 1.

§§ 79-34,130 through 79-34,140 Reserved

§§ 79-34,141 Rates of tax per gallon on vehicle fuels

The tax imposed under this act shall be not less than:

(1) On motor-vehicle fuels other than E85 fuels, $.24 per gallon, or fraction thereof;

(2) on special fuels, $.26 per gallon, or fraction thereof;

(3) on LP-gas, other than compressed natural gas and liquefied natural gas, $.23 per gallon, or fraction thereof;

(4) on E85 fuels, $.17 per gallon, or fraction thereof;

(5) on compressed natural gas, $.24 per gallon, or fraction thereof; and

(6) on liquefied natural gas, $.26 per gallon, or fraction thereof.

History: L. 1983, ch. 320, § 11; L. 1985, ch. 329, § 1; L. 1989, ch. 209, § 49; L. 1989, ch. 209, § 50; L. 1989, ch. 209, § 51; L. 1989, ch. 209, § 52; L. 1999, ch. 137, § 36; L. 2002, ch. 201, § 5; L. 2006, ch. 81, § 2; L. 2010, ch. 156, § 36; L. 2014, ch. 81, § 11; July 1.

§§ 79-34,142 Distribution of proceeds of vehicle fuel taxes

The state treasurer shall credit amounts received pursuant to K.S.A. 79-3408, 79-3408c, 79-3491a, 79-3492 and 79-34,118, and amendments thereto, as follows: To the state highway fund 66.37% and to the special city and county highway fund 33.63%.

History: L. 1983, ch. 320, § 14; L. 1989, ch. 209, § 53; L. 1992, ch. 106, § 31; L. 1999, ch. 137, § 37; L. 2002, ch. 201, § 6; L. 2010, ch. 156, § 37; June 3.

§§ 79-34,143 Repealed

History: L. 1983, ch. 320, § 15; L. 1989, ch. 209, § 54; L. 1989, ch. 209, § 55; L. 1989, ch. 209, § 56; L. 1989, ch. 209, § 57; L. 1992, ch. 106, § 32; Repealed, L. 1999, ch. 137, § 42; July 1.

§§ 79-34,144 through 79-34,146 Repealed

History: L. 1983, ch. 320, §§ 16, 20, 21; Repealed, L. 1989, ch. 209, § 65; July 1.

§§ 79-34,147 Repealed

Revisor's Note: Section was amended twice in 1990 session, see also 79-34,147a. Section was amended twice in 1992 session, see also 79-34,147b.

History: L. 1983, ch. 320, § 22; L. 1987, ch. 390, § 1; L. 1988, ch. 380, § 6; L. 1989, ch. 209, § 58; L. 1990, ch. 28, § 18; L. 1992, ch. 280, § 64; L. 1993, ch. 292, § 75; L. 1994, ch. 239, § 9; L. 1995, ch. 199, § 10; L. 1996, ch. 23, § 52; L. 1996, ch. 191, § 155; L. 1997, ch. 123, § 116; L. 1998, ch. 203, § 166; L. 1999, ch. 137, § 38; L. 2000, ch. 1, § 73; L. 2000, ch. 130, § 106; L. 2000, ch. 183, § 71; L. 2001, ch. 144, § 170; L. 2002, ch. 204, § 164; L. 2003, ch. 138, § 129; Repealed, L. 2004, ch. 180, § 18; July 1.

§§ 79-34,147a Repealed

History: L. 1983, ch. 320, § 22; L. 1987, ch. 390, § 1; L. 1988, ch. 380, § 6; L. 1989, ch. 209, § 58; L. 1990, ch. 28, § 18; L. 1990, ch. 350, § 11; Repealed, L. 1992, ch. 280, § 68; July 1.

§§ 79-34,147b Repealed

History: L. 1983, ch. 320, § 22; L. 1987, ch. 390, § 1; L. 1988, ch. 380, § 6; L. 1989, ch. 209, § 58; L. 1990, ch. 28, § 18; L. 1992, ch. 327, § 86; Repealed, L. 1993, ch. 292, § 88; June 10.

§§ 79-34,148 Repealed

History: L. 1983, ch. 320, § 23; Repealed, L. 2004, ch. 90, § 6; July 1.

§§ 79-34,149 through 79-34,154 Reserved

§§ 79-34,155 Expired

History: L. 2006, ch. 137, § 1; L. 2007, ch. 180, § 15; Expired, July 1, 2016.

§§ 79-34,156 Expired

History: L. 2006, ch. 137, § 2; L. 2009, ch. 2, § 91; L. 2009, ch. 144, § 87; L. 2010, ch. 165, § 155; L. 2011, ch. 118, § 188; L. 2012, ch. 175, § 165; L. 2013, ch. 136, § 277; L. 2014, ch. 142, § 114; L. 2015, ch. 104, § 247; Expired, July 1, 2016.

§§ 79-34,157 Expired

History: L. 2006, ch. 137, § 3; Expired, July 1, 2016.

§§ 79-34,158 Expired

History: L. 2006, ch. 137, § 4; Expired, July 1, 2016.

§§ 79-34,159 Expiration date of incentives

The provisions of K.S.A. 79-34,155 through 79-34,158, and amendments thereto, shall expire on July 1, 2016.

History: L. 2006, ch. 137, § 5; July 1.

§§ 79-34,160 Expired

History: L. 1987, ch. 388, § 1; Expired, July 1, 2018.

§§ 79-34,161 Expired

History: L. 1987, ch. 388, § 2; L. 1999, ch. 137, § 39; L. 2001, ch. 53, § 2; L. 2011, ch. 23, § 1; L. 2016, ch. 12, § 112; Expired, July 1, 2018.

§§ 79-34,162 Expired

History: L. 1987, ch. 388, § 3; L. 1999, ch. 137, § 40; Expired, July 1, 2018.

§§ 79-34,163 Expired

History: L. 1987, ch. 388, § 4; L. 1988, ch. 385, § 1; L. 2001, ch. 53, § 3; L. 2011, ch. 23, § 2; Expired, July 1, 2018.

§§ 79-34,164 Expiration date of incentives

The provisions of K.S.A. 79-34,160 through 79-34,163, and amendments thereto, shall expire on July 1, 2018.

History: L. 1987, ch. 388, § 5; L. 1990, ch. 356, § 1; L. 1993, ch. 50, § 1; L. 1997, ch. 4, § 1; L. 2001, ch. 53, § 4; L. 2011, ch. 23, § 3; July 1.

§§ 79-34,165 International fuel tax agreements; rules and regulations

(a) The secretary of revenue may enter into international fuel tax agreements on behalf of the state of Kansas with the appropriate authorities of other states for the collection and refund of interstate fuel taxes levied pursuant to K.S.A. 79-34,108 through 79-34,128, and amendments thereto.

(b) The reporting requirements provided in the international fuel tax agreement shall take precedence over the reporting requirements provided in K.S.A. 79-34,108 through 79-34,128, and amendments thereto.

(c) Where the international fuel tax agreement and the provisions of K.S.A. 79-34,108 through 79-34,128, and amendments thereto, address the same matters, the provisions of the agreement shall take precedence.

(d) The secretary of revenue may adopt rules and regulations to implement the provisions of the international fuel tax agreement.

(e) A current copy of the international fuel tax agreement shall be maintained by the Kansas department of revenue.

(f) Interstate motor fuel users of a nonmember of the international fuel tax agreement shall be subject to the provisions of K.S.A. 79-34,108 through 79-34,128, and amendments thereto.

History: L. 1990, ch. 341, § 1; January 1, 1991.

§§ 79-34,166 through 79-34,169 Reserved

§§ 79-34,170 Definitions

As used in K.S.A. 79-34,170 through 79-34,175, and amendments thereto:

(a) "Biodiesel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel derived from vegetable oils or animal fats and that meets the specifications adopted by rules and regulations of the secretary of agriculture pursuant to K.S.A. 55-442, and amendments thereto. Such specification shall meet American society for testing and materials specification D6751-07 for biodiesel fuel (B100) blend stock for distillate fuels, but may be more stringent regarding biodiesel quality and usability than specification D6751-07;

(b) "diesel" means any liquid, other than gasoline and biodiesel, which is used as fuel for use in an internal combustion engine and ignited by pressure without the presence of an electric spark;

(c) "gasoline" means any liquid product sold as motor fuel for use in a spark-ignition internal combustion engine;

(d) "motor fuel" means any inflammable liquid by whatever name such liquid shall be known or sold, which is used, or practically or commercially usable, either alone or when mixed or combined in an internal combustion engine for the generation of power;

(e) "motor fuel pump" means a commercial measuring device used to measure and dispense motor fuel or special fuels on a retail basis at a fixed retail motor fuel site;

(f) "renewable fuels" means a combustible liquid derived from grain starch, oil seed, animal fat or other biomass; or produced from biogas source, including any nonfossilized, decaying, organic matter which is capable of powering spark-ignition machinery; and

(g) "retail dealer" means a licensed seller of motor fuel or special fuels at retail at a fixed retail motor fuel site.

History: L. 2007, ch. 180, § 7; July 1.

§§ 79-34,171 Kansas retail dealer incentive fund; transfers from state general fund; limitations on transfers; purposes; expenditures

(a) On January 1, 2009, and quarterly thereafter, the director of accounts and reports shall transfer $400,000 from the state general fund to the Kansas retail dealer incentive fund, except that no moneys shall be transferred pursuant to this section from the state general fund to the Kansas retail dealer incentive fund during the fiscal years ending June 30, 2025, June 30, 2026, or June 30, 2027. On and after July 1, 2009, the unobligated balance in the Kansas retail dealer incentive fund shall not exceed $1.5 million. If the unobligated balance of the fund exceeds $1.1 million at the time of a quarterly transfer, the transfer shall be limited to the amount necessary for the fund to reach a total of $1.5 million.

(b) There is hereby created in the state treasury the Kansas retail dealer incentive fund. All moneys in the Kansas retail dealer incentive fund shall be expended by the secretary of the department of revenue for the payment of incentives to Kansas retail dealers who sell and dispense renewable fuels or biodiesel through a motor fuel pump in accordance with the provisions of K.S.A. 79-34,170 through 79-34,175, and amendments thereto.

(c) All moneys remaining in the Kansas retail dealer incentive fund upon the expiration of K.S.A. 79-34,170 through 79-34,175, and amendments thereto, shall be credited by the state treasurer to the state general fund.

History: L. 2007, ch. 180, § 8; L. 2010, ch. 165, § 156; L. 2011, ch. 118, § 189; L. 2012, ch. 175, § 166; L. 2013, ch. 136, § 278; L. 2015, ch. 104, § 248; L. 2017, ch. 104, § 241; L. 2019, ch. 68, § 180; L. 2020, ch. 5, § 170; L. 2021, ch. 98, § 188; L. 2022, ch. 81, § 188; L. 2023, ch. 82, § 185; L. 2024, ch. 88, § 192; L. 2025, ch. 117, § 206; April 25.

§§ 79-34,172 Incentive for retail dealer selling or dispensing renewable fuels; eligibility and requirements; incentive calculation

(a) A retail dealer of motor fuel shall be paid an incentive for the selling or dispensing of renewable fuels through a motor fuel pump as provided in this section.

(b) In order to be eligible for such incentive all of the following must apply:

(1) The retail dealer sells and dispenses renewable fuels through a motor fuel pump in the quarter in which the incentive is claimed.

(2) The retail dealer complies with requirements of the department of revenue to administer this section.

(c) In order to receive the incentive, the retail dealer must calculate all of the following:

(1) The retail dealer's renewable fuels distribution percentage which is the sum of the retail dealer's total renewable fuels blended into gasoline expressed as a percentage of the retail dealer's total gasoline gallonage, in the retail dealer's applicable determination period.

(2) The retail dealer's renewable fuels threshold percentage is as follows:

(A) Ten percent for any quarter of the determination period beginning on January 1, 2009, and ending December 31, 2009;

(B) eleven percent for any quarter of the determination period beginning on January 1, 2010, and ending December 31, 2010;

(C) twelve percent for any quarter of the determination period beginning on January 1, 2011, and ending December 31, 2011;

(D) thirteen percent for any quarter of the determination period beginning on January 1, 2012, and ending December 31, 2012;

(E) fourteen percent for any quarter of the determination period beginning on January 1, 2013, and ending December 31, 2013;

(F) fifteen percent for any quarter of the determination period beginning on January 1, 2014, and ending December 31, 2014;

(G) sixteen percent for any quarter of the determination period beginning on January 1, 2015, and ending December 31, 2015;

(H) seventeen percent for any quarter of the determination period beginning on January 1, 2016, and ending December 31, 2016;

(I) eighteen percent for any quarter of the determination period beginning on January 1, 2017, and ending December 31, 2017;

(J) nineteen percent for any quarter of the determination period beginning on January 1, 2018, and ending December 31, 2018;

(K) twenty percent for any quarter of the determination period beginning on January 1, 2019, and ending December 31, 2019;

(L) twenty-one percent for any quarter of the determination period beginning on January 1, 2020, and ending December 31, 2020;

(M) twenty-two percent for any quarter of the determination period beginning on January 1, 2021, and ending December 31, 2021;

(N) twenty-three percent for any quarter of the determination period beginning on January 1, 2022, and ending December 31, 2022;

(O) twenty-four percent for any quarter of the determination period beginning on January 1, 2023, and ending December 31, 2023;

(P) twenty-five percent for any quarter of the determination period beginning on January 1, 2024, and ending December 31, 2024; and

(Q) twenty-five percent for any quarter of the determination period beginning on and after January 1, 2025.

(d) The incentive may be calculated separately for each retail motor fuel site from which the retail dealer sells and dispenses renewable fuel or may be calculated for all retail motor fuel sites which the retail dealer has in Kansas that sells and dispenses renewable fuels.

(e) The retail dealer's incentive is calculated by multiplying the retail dealer's total renewable fuel gallonage by an incentive rate, which may be adjusted based on the retail dealer's renewable fuels threshold percentage disparity. The incentive rate is as follows:

(1) For any quarter in which the retail dealer has attained a renewable fuels threshold percentage for the determination period, the incentive rate is 6½ cents.

(2) For any quarter in which the retail dealer has not attained a renewable fuels threshold percentage for the determination period, the incentive rate shall be adjusted based on the retail dealer's renewable fuels threshold percentage disparity. The amount of the adjusted incentive rate is as follows:

(A) If the retail dealer's renewable fuels threshold percentage disparity equals 2% or less, the incentive rate is 4½ cents.

(B) A retail dealer is not eligible for an incentive if the retail dealer's renewable fuels threshold percentage disparity equals more than 2%.

History: L. 2007, ch. 180, § 9; July 1.

§§ 79-34,173 Incentive for retail dealer selling or dispensing biodiesel; eligibility and requirements; incentive calculation

(a) A retail dealer of biodiesel shall be paid an incentive for the selling or dispensing of biodiesel as provided in this section.

(b) In order to be eligible for such incentive all of the following must apply:

(1) The retail dealer sells and dispenses biodiesel in the quarter in which the incentive is claimed.

(2) The retail dealer complies with requirements of the department of revenue to administer this section.

(c) In order to receive the incentive, the retail dealer must calculate the following:

(1) The retail dealer's biodiesel distribution percentage which is the sum of the retail dealer's total biodiesel gallonage expressed as a percentage of the retail dealer's total diesel and biodiesel gallonage, in the retail dealer's applicable determination period.

(2) The retail dealer's biodiesel threshold percentage is as follows:

(A) Two percent for any quarter of the determination period beginning on January 1, 2009, and ending December 31, 2009;

(B) four percent for any quarter of the determination period beginning on January 1, 2010, and ending December 31, 2010;

(C) six percent for any quarter of the determination period beginning on January 1, 2011, and ending December 31, 2011;

(D) eight percent for any quarter of the determination period beginning on January 1, 2012, and ending July [December] 1, 2012;

(E) ten percent for any quarter of the determination period beginning on January 1, 2013, and ending on December 31, 2013;

(F) twelve percent for any quarter of the determination period beginning on January 1, 2014, and ending on December 31, 2014;

(G) fourteen percent for any quarter of the determination period beginning on January 1, 2015, and ending on December 31, 2015;

(H) sixteen percent for any quarter of the determination period beginning on January 1, 2016, and ending on December 31, 2016;

(I) seventeen percent for any quarter of the determination period beginning on January 1, 2017, and ending on December 31, 2017;

(J) eighteen percent for any quarter of the determination period beginning on January 1, 2018, and ending on December 31, 2018;

(K) nineteen percent for any quarter of the determination period beginning on January 1, 2019, and ending on December 31, 2019;

(L) twenty percent for any quarter of the determination period beginning on January 1, 2020, and ending on December 31, 2020;

(M) twenty-one percent for any quarter of the determination period beginning on January 1, 2021, and ending on December 31, 2021;

(N) twenty-two percent for any quarter of the determination period beginning on January 1, 2022, and ending on December 31, 2022;

(O) twenty-three percent for any quarter of the determination period beginning on January 1, 2023, and ending on December 31, 2023;

(P) twenty-four percent for any quarter of the determination period beginning on January 1, 2024, and ending on December 31, 2024; and

(Q) twenty-five percent for any quarter of the determination period beginning on January 1, 2025, and ending on December 31, 2025.

(d) The incentive may be calculated separately for each retail motor fuel site from which the retail dealer sells and dispenses biodiesel or may be calculated for all retail motor fuel sites which the retail dealer has in Kansas that sells and dispenses biodiesel.

(e) The retail dealer's incentive is calculated by multiplying the retail dealer's biodiesel gallonage by the incentive rate for any quarter in which the retail dealer has attained a biodiesel threshold percentage for the determination period, the incentive rate is three cents.

History: L. 2007, ch. 180, § 10; July 1.

§§ 79-34,174 Electronic filing for incentive; rules and regulations

(a) The retail dealer shall file electronically for the incentive for selling or dispensing of renewable fuels or biodiesel beginning January 1, 2009, and quarterly thereafter in the manner required by the department of revenue. The retail dealer shall file such information as the secretary of revenue may require by rules and regulations, but shall include the total number of gallons of renewable fuels or biodiesel sold.

(b) The secretary of revenue may adopt rules and regulations necessary to administer the provisions of K.S.A. 79-34,170 through 79-34,175, and amendments thereto, including the development of a procedure for the payment of the incentive on a pro rata basis if the unobligated balance in the fund is insufficient to pay all incentives.

History: L. 2007, ch. 180, § 11; July 1.

§§ 79-34,175 Annual report to legislature of incentives claimed and fuels sold

The secretary of revenue shall annually submit a written report to the house appropriations and energy and utilities committees and to the senate ways and means and agriculture committees, or the successors to those committees, beginning with the 2010 legislative session. The report shall contain information regarding the amount of incentives claimed and paid pursuant to K.S.A. 79-34,170 through 79-34,175, and amendments thereto, and information regarding the amount of renewable fuels and biodiesel sold in the state. The secretary also may include in the report any recommendations for changes to law necessary to implement K.S.A. 79-34,170 through 79-34,175, and amendments thereto.

History: L. 2007, ch. 180, § 12; July 1.

§§ 79-34,176 Expiration date of renewable fuels and biodiesel incentives

The provisions of K.S.A. 79-34,170 through 79-34,175, and amendments thereto, shall expire on January 1, 2026.

History: L. 2007, ch. 180, § 13; July 1.

Article 35 Oleomargarine (Not in active use)

§ 79-3501 Repealed

History: L. 1933, ch. 321, § 1; L. 1945, ch. 368, § 1; L. 1963, ch. 492, § 1; Repealed, L. 1968, ch. 298, § 1; July 1.

§§ 79-3502 through 79-3504 Repealed

History: L. 1933, ch. 321, §§ 2, 4, 3; Repealed, L. 1968, ch. 298, § 1; July 1.

Article 36 Kansas Retailers’ Sales Tax

§ 79-3601 Title of act; additional to certain other taxes

This act shall be known as the "Kansas retailers' sales tax act" and the tax herein imposed shall be in addition to all other occupation or privilege taxes imposed by the state of Kansas or by any municipal corporation or by any political subdivision thereof.

History: L. 1937, ch. 374, § 1; April 9.

§ 79-3602 Definitions

Except as otherwise provided, as used in the Kansas retailers' sales tax act:

(a) "Agent" means a person appointed by a seller to represent the seller before the member states.

(b) "Agreement" means the multistate agreement entitled the streamlined sales and use tax agreement approved by the streamlined sales tax implementing states at Chicago, Illinois on November 12, 2002.

(c) "Alcoholic beverages" means beverages that are suitable for human consumption and contain 0.05% or more of alcohol by volume.

(d) "Certified automated system (CAS)" means software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state and maintain a record of the transaction.

(e) "Certified service provider (CSP)" means an agent certified under the agreement to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases.

(f) "Computer" means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions.

(g) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.

(h) "Delivered electronically" means delivered to the purchaser by means other than tangible storage media.

(i) "Delivery charges" means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating and packing. "Delivery charges" does not include charges for delivery of direct mail if the charges are separately stated on an invoice or similar billing document given to the purchaser.

(j) "Direct mail" means printed material delivered or distributed by United States mail or other delivery services to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. "Direct mail" does not include multiple items of printed material delivered to a single address.

(k) "Director" means the state director of taxation.

(l) "Educational institution" means any nonprofit school, college and university that offers education at a level above the 12th grade and conducts regular classes and courses of study required for accreditation by or membership in an accrediting agency or association recognized by the United States department of education in the database maintained by such department, the state board of education or that otherwise qualify as an "educational institution," as defined by K.S.A. 74-50,103, and amendments thereto. Such phrase shall include: (1) A group of educational institutions that operates exclusively for an educational purpose; (2) nonprofit endowment associations and foundations organized and operated exclusively to receive, hold, invest and administer moneys and property as a permanent fund for the support and sole benefit of an educational institution; (3) nonprofit trusts, foundations and other entities organized and operated principally to hold and own receipts from intercollegiate sporting events and to disburse such receipts, as well as grants and gifts, in the interest of collegiate and intercollegiate athletic programs for the support and sole benefit of an educational institution; and (4) nonprofit trusts, foundations and other entities organized and operated for the primary purpose of encouraging, fostering and conducting scholarly investigations and industrial and other types of research for the support and sole benefit of an educational institution.

(m) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.

(n) "Food and food ingredients" means substances, whether in liquid, concentrated, solid, frozen, dried or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food and food ingredients" includes bottled water, candy, dietary supplements, food sold through vending machines and soft drinks. "Food and food ingredients" does not include alcoholic beverages or tobacco.

(o) "Gross receipts" means the total selling price or the amount received as defined in this act, in money, credits, property or other consideration valued in money from sales at retail within this state; and embraced within the provisions of this act. The taxpayer, may take credit in the report of gross receipts for: (1) An amount equal to the selling price of property returned by the purchaser when the full sale price thereof, including the tax collected, is refunded in cash or by credit; and (2) an amount equal to the allowance given for the trade-in of property.

(p) "Ingredient or component part" means tangible personal property that is necessary or essential to, and that is actually used in and becomes an integral and material part of tangible personal property or services produced, manufactured or compounded for sale by the producer, manufacturer or compounder in its regular course of business. The following items of tangible personal property are hereby declared to be ingredients or component parts, but the listing of such property shall not be deemed to be exclusive nor shall such listing be construed to be a restriction upon, or an indication of, the type or types of property to be included within the definition of "ingredient or component part" as herein set forth:

(1) Containers, labels and shipping cases used in the distribution of property produced, manufactured or compounded for sale that are not to be returned to the producer, manufacturer or compounder for reuse.

(2) Containers, labels, shipping cases, paper bags, drinking straws, paper plates, paper cups, twine and wrapping paper used in the distribution and sale of property taxable under the provisions of this act by wholesalers and retailers and that is not to be returned to such wholesaler or retailer for reuse.

(3) Seeds and seedlings for the production of plants and plant products produced for resale.

(4) Paper and ink used in the publication of newspapers.

(5) Fertilizer used in the production of plants and plant products produced for resale.

(6) Feed for animals, fowl and aquatic plants and animals, the primary purpose of which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments thereto, the production of food for human consumption, the production of animal, dairy, poultry or aquatic plant and animal products, fiber or fur or the production of offspring for use for any such purpose or purposes.

(q) "Isolated or occasional sale" means the nonrecurring sale of tangible personal property or services taxable hereunder by a person not engaged at the time of such sale in the business of selling such property or services. Any religious organization that makes a nonrecurring sale of tangible personal property acquired for the purpose of resale shall be deemed to be not engaged at the time of such sale in the business of selling such property. "Isolated or occasional sale" includes: (1) Any sale by a bank, savings and loan institution, credit union or any finance company licensed under the provisions of the Kansas uniform consumer credit code of tangible personal property that has been repossessed by any such entity; and (2) any sale of tangible personal property made by an auctioneer or agent on behalf of not more than two principals or households if such sale is nonrecurring and any such principal or household is not engaged at the time of such sale in the business of selling tangible personal property.

(r) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A "lease or rental" may include future options to purchase or extend.

(1) "Lease or rental" does not include: (A) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;

(B) a transfer or possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of $100 or 1% of the total required payments; or

(C) providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this subsection, an operator shall do more than maintain, inspect or set-up the tangible personal property.

(2) "Lease or rental" includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).

(3) This definition shall be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the internal revenue code, the uniform commercial code, K.S.A. 84-1-101 et seq., and amendments thereto, or other provisions of federal, state or local law.

(4) This definition will be applied only prospectively from the effective date of this act and will have no retroactive impact on existing leases or rentals.

(s) "Load and leave" means delivery to the purchaser by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser.

(t) "Member state" means a state that has entered in the agreement, pursuant to provisions of article VIII of the agreement.

(u) "Model 1 seller" means a seller that has selected a CSP as its agent to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases.

(v) "Model 2 seller" means a seller that has selected a CAS to perform part of its sales and use tax functions, but retains responsibility for remitting the tax.

(w) "Model 3 seller" means a seller that has sales in at least five member states, has total annual sales revenue of at least $500,000,000, has a proprietary system that calculates the amount of tax due each jurisdiction and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. As used in this subsection a seller includes an affiliated group of sellers using the same proprietary system.

(x) "Municipal corporation" means any city incorporated under the laws of Kansas.

(y) "Nonprofit blood bank" means any nonprofit place, organization, institution or establishment that is operated wholly or in part for the purpose of obtaining, storing, processing, preparing for transfusing, furnishing, donating or distributing human blood or parts or fractions of single blood units or products derived from single blood units, whether or not any remuneration is paid therefor, or whether such procedures are done for direct therapeutic use or for storage for future use of such products.

(z) "Persons" means any individual, firm, copartnership, joint adventure, association, corporation, estate or trust, receiver or trustee, or any group or combination acting as a unit, and the plural as well as the singular number. "Persons" includes any city or other political subdivision of the state of Kansas engaging in a business or providing a service specifically taxable under the provisions of this act.

(aa) "Political subdivision" means any municipality, agency or subdivision of the state that is, or shall hereafter be, authorized to levy taxes upon tangible property within the state or that certifies a levy to a municipality, agency or subdivision of the state that is, or shall hereafter be, authorized to levy taxes upon tangible property within the state. "Political subdivision" includes any public building commission, housing, airport, port, metropolitan transit or similar authority established pursuant to law and the horsethief reservoir benefit district established pursuant to K.S.A. 82a-2201, and amendments thereto.

(bb) "Prescription" means an order, formula or recipe issued in any form of oral, written, electronic or other means of transmission by a duly licensed practitioner authorized by the laws of this state.

(cc) "Prewritten computer software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. "Prewritten computer software" includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the purchaser. Where a person modifies or enhances computer software of which the person is not the author or creator, the person shall be deemed to be the author or creator only of such person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software, except that where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such modification or enhancement, such modification or enhancement shall not constitute prewritten computer software.

(dd) "Property which is consumed" means tangible personal property that is essential or necessary to and that is used in the actual process of and consumed, depleted or dissipated within one year in: (1) The production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property; (2) the providing of services; (3) the irrigation of crops, for sale in the regular course of business; or (4) the storage or processing of grain by a public grain warehouse or other grain storage facility that is not reusable for such purpose. The following is a listing of tangible personal property, included by way of illustration but not of limitation, that qualifies as property that is consumed:

(A) Insecticides, herbicides, germicides, pesticides, fungicides, fumigants, antibiotics, biologicals, pharmaceuticals, vitamins and chemicals for use in commercial or agricultural production, processing or storage of fruit, vegetables, feeds, seeds, grains, animals or animal products whether fed, injected, applied, combined with or otherwise used;

(B) electricity, gas and water; and

(C) petroleum products, lubricants, chemicals, solvents, reagents and catalysts.

(ee) "Purchase price" applies to the measure subject to use tax and has the same meaning as sales price.

(ff) "Purchaser" means a person to whom a sale of personal property is made or to whom a service is furnished.

(gg) "Quasi-municipal corporation" means any county, township, school district, drainage district or any other governmental subdivision in the state of Kansas having authority to receive or hold moneys or funds.

(hh) "Registered under this agreement" means registration by a seller with the member states under the central registration system provided in article IV of the agreement.

(ii) "Retailer" means a seller regularly engaged in the business of selling, leasing or renting tangible personal property at retail or furnishing electrical energy, gas, water, services or entertainment and selling only to the user or consumer and not for resale.

(jj) "Retail sale" or "sale at retail" means any sale, lease or rental for any purpose other than for resale, sublease or subrent.

(kk) "Sale" or "sales" means the exchange of tangible personal property, as well as the sale thereof for money, and every transaction, conditional or otherwise, for a consideration, constituting a sale, including the sale or furnishing of electrical energy, gas, water, services or entertainment taxable under the terms of this act and including, except as provided in the following provision, the sale of the use of tangible personal property by way of a lease, license to use or the rental thereof regardless of the method by which the title, possession or right to use the tangible personal property is transferred. "Sale" or "sales" does not mean the sale of the use of any tangible personal property used as a dwelling by way of a lease or rental thereof for a term of more than 28 consecutive days.

(ll) (1) "Sales or selling price" applies to the measure subject to sales tax and means the total amount of consideration, including cash, credit, property and services, for which personal property or services are sold, leased or rented, valued in money, whether received in money or otherwise, without any deduction for the following:

(A) The seller's cost of the property sold;

(B) the cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller and any other expense of the seller;

(C) charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;

(D) (i) prior to July 1, 2023, delivery charges; and

(ii) on and after July 1, 2023, delivery charges that are not separately stated on the invoice, bill of sale or similar document given to the purchaser; and

(E) installation charges.

(2) "Sales or selling price" includes consideration received by the seller from third parties if:

(A) The seller actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;

(B) the seller has an obligation to pass the price reduction or discount through to the purchaser;

(C) the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and

(D) one of the following criteria is met:

(i) The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented;

(ii) the purchaser identifies to the seller that the purchaser is a member of a group or organization entitled to a price reduction or discount. A preferred customer card that is available to any patron does not constitute membership in such a group; or

(iii) the price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser.

(3) "Sales or selling price" does not include:

(A) Discounts, including cash, term or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;

(B) interest, financing and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale or similar document given to the purchaser;

(C) any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale or similar document given to the purchaser;

(D) the amount equal to the allowance given for the trade-in of property, if separately stated on the invoice, billing or similar document given to the purchaser;

(E) cash rebates granted by a manufacturer to a purchaser or lessee of a new motor vehicle if paid directly to the retailer as a result of the original sale;

(F) commencing on July 1, 2023, delivery charges that are separately stated on the invoice, bill of sale or similar document given to the purchaser; and

(G) notwithstanding the provisions of paragraph (2), coupons issued by a manufacturer, supplier or distributor of a product that entitle the purchaser to a reduction in sales price and allowed by the seller who is reimbursed by the manufacturer, supplier or distributor. When the seller accepts such coupons, only the amount paid by the purchaser is included in the sales price.

(mm) "Seller" means a person making sales, leases or rentals of personal property or services.

(nn) "Service" means those services described in and taxed under the provisions of K.S.A. 79-3603, and amendments thereto.

(oo) "Sourcing rules" means the rules set forth in K.S.A. 79-3670 through 79-3673, 12-191 and 12-191a, and amendments thereto, that shall apply to identify and determine the state and local taxing jurisdiction sales or use taxes to pay, or collect and remit on a particular retail sale.

(pp) "Tangible personal property" means personal property that can be seen, weighed, measured, felt or touched, or that is in any other manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam and prewritten computer software.

(qq) "Taxpayer" means any person obligated to account to the director for taxes collected under the terms of this act.

(rr) "Tobacco" means cigarettes, cigars, chewing or pipe tobacco or any other item that contains tobacco.

(ss) "Entity-based exemption" means an exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.

(tt) "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug as required by 21 C.F.R. § 201.66."Over-the-counter drug" label includes: (1) A drug facts panel; or (2) a statement of the active ingredients with a list of those ingredients contained in the compound, substance or preparation. "Over-the-counter drug" does not include grooming and hygiene products such as soaps, cleaning solutions, shampoo, toothpaste, antiperspirants and sun tan lotions and screens.

(uu) "Ancillary services" means services that are associated with or incidental to the provision of telecommunications services, including, but not limited to, detailed telecommunications billing, directory assistance, vertical service and voice mail services.

(vv) "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge.

(ww) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.

(xx) "Directory assistance" means an ancillary service of providing telephone number information or address information, or both.

(yy) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, that offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

(zz) "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. "Voice mail service" does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.

(aaa) "Telecommunications service" means the electronic transmission, conveyance or routing of voice, data, audio, video or any other information or signals to a point, or between or among points. "Telecommunications service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmissions, conveyance or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added. "Telecommunications service" does not include:

(1) Data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information;

(2) installation or maintenance of wiring or equipment on a customer's premises;

(3) tangible personal property;

(4) advertising, including, but not limited to, directory advertising;

(5) billing and collection services provided to third parties;

(6) internet access service;

(7) radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 C.F.R. § 20.3;

(8) ancillary services; or

(9) digital products delivered electronically, including, but not limited to, software, music, video, reading materials or ring tones.

(bbb) "800 service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name 800, 855, 866, 877 and 888 toll-free calling and any subsequent numbers designated by the federal communications commission.

(ccc) "900 service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge for collection services provided by the seller of the telecommunications services to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name 900 service and any subsequent numbers designated by the federal communications commission.

(ddd) "Value-added non-voice data service" means a service that otherwise meets the definition of telecommunications services in which computer processing applications are used to act on the form, content, code or protocol of the information or data primarily for a purpose other than transmission, conveyance or routing.

(eee) "International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively. United States includes the District of Columbia or a U.S. territory or possession.

(fff) "Interstate" means a telecommunications service that originates in one United States state, or a United States territory or possession, and terminates in a different United States state or a United States territory or possession.

(ggg) "Intrastate" means a telecommunications service that originates in one United States state or a United States territory or possession, and terminates in the same United States state or a United States territory or possession.

(hhh) "Cereal malt beverage" means the same as defined in K.S.A. 41-2701, and amendments thereto, except that for the purposes of the Kansas retailers' sales tax act and for no other purpose.* "Cereal malt beverage" includes beer containing not more than 6% alcohol by volume when such beer is sold by a retailer licensed under the Kansas cereal malt beverage act.

(iii) "Nonprofit integrated community care organization" means an entity that is:

(1) Exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(2) certified to participate in the medicare program as a hospice under 42 C.F.R. § 418 et seq. and focused on providing care to the aging and indigent population at home and through inpatient care, adult daycare or assisted living facilities and related facilities and services across multiple counties; and

(3) approved by the Kansas department for aging and disability services as an organization providing services under the program of all-inclusive care for the elderly as defined in 42 U.S.C. § 1396u-4 and regulations implementing such section.

(jjj) (1) "Bottled water" means water that is placed in a safety sealed container or package for human consumption. "Bottled water" is calorie free and does not contain sweeteners or other additives, except that it may contain:

(A) Antimicrobial agents;

(B) fluoride;

(C) carbonation;

(D) vitamins, minerals and electrolytes;

(E) oxygen;

(F) preservatives; or

(G) only those flavors, extracts or essences derived from a spice or fruit.

(2) "Bottled water" includes water that is delivered to the buyer in a reusable container that is not sold with the water.

(lll) (1) "Candy" means a preparation of sugar, honey or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops or pieces.

(2) "Candy" does not include any preparation containing flour and shall require no refrigeration.

(mmm) "Dietary supplement" means the same as defined in K.S.A. 79-3606(jjj), and amendments thereto.

(nnn) "Food sold through vending machines" means food dispensed from a machine or other mechanical device that accepts payment.

(ooo) (1) "Prepared food" means:

(A) Food sold in a heated state or heated by the seller;

(B) two or more food ingredients mixed or combined by the seller for sale as a single item; or

(C) food sold with eating utensils provided by the seller, including, but not limited to, plates, knives, forks, spoons, glasses, cups, napkins or straws. A plate does not include a container or packaging used to transport the food.

(2) "Prepared food" does not include:

(A) Food that is only cut, repackaged or pasteurized by the seller; or

(B) eggs, fish, meat, poultry or foods containing these raw animal foods that require cooking by the consumer as recommended by the food and drug administration in chapter 3, part 401.11 of the food and drug administration food code so as to prevent food borne illnesses.

(ppp) (1) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners.

(2) "Soft drinks" does not include beverages that contain milk or milk products, soy, rice or similar milk substitutes or beverages that are greater than 50% vegetable or fruit juice by volume.

History: L. 1937, ch. 374, § 2; L. 1941, ch. 382, § 1; L. 1947, ch. 463, § 1; L. 1953, ch. 447, § 1; L. 1957, ch. 509, § 1; L. 1960, ch. 58, § 1; L. 1963, ch. 493, § 1; L. 1967, ch. 499, § 1; L. 1968, ch. 383, § 1; L. 1970, ch. 389, § 1; L. 1971, ch. 321, § 1; L. 1977, ch. 337, § 1; L. 1978, ch. 415, § 1; L. 1980, ch. 322, § 1; L. 1981, ch. 389, § 1; L. 1982, ch. 418, § 1; L. 1985, ch. 330, § 1; L. 1988, ch. 386, § 1; L. 1989, ch. 301, § 1; L. 1992, ch. 280, § 58; L. 1994, ch. 2, § 1; L. 1995, ch. 118, § 1; L. 1995, ch. 242, § 2; L. 1998, ch. 130, § 29; L. 1998, ch. 181, § 1; L. 1999, ch. 154, § 1; L. 2000, ch. 140, § 8; L. 2003, ch. 147, § 5; L. 2006, ch. 202, § 1; L. 2007, ch. 155, § 3; L. 2009, ch. 41, § 1; L. 2015, ch. 99, § 6; L. 2015, ch. 102, § 5; L. 2017, ch. 99, § 8; L. 2018, ch. 115, § 1; L. 2019, ch. 65, § 9; L. 2021, ch. 83, § 1; L. 2022, ch. 63, § 44; L. 2022, ch. 98, § 17; L. 2024, ch. 94, § 4; L. 2025, ch. 14, § 6; July 1.

§ 79-3602a Repealed

History: L. 1937, ch. 374, § 2; L. 1941, ch. 382, § 1; L. 1947, ch. 463, § 1; L. 1953, ch. 447, § 1; L. 1957, ch. 509, § 1; L. 1960, ch. 58, § 1; L. 1963, ch. 493, § 1; L. 1967, ch. 499, § 1; L. 1968, ch. 383, § 1; L. 1970, ch. 389, § 1; L. 1971, ch. 321, § 1; L. 1977, ch. 337, § 1; L. 1978, ch. 415, § 1; L. 1980, ch. 322, § 1; L. 1981, ch. 389, § 1; L. 1982, ch. 418, § 1; L. 1985, ch. 330, § 1; L. 1988, ch. 386, § 1; L. 1989, ch. 301, § 1; L. 1992, ch. 102, § 7; Repealed, L. 1994, ch. 2, § 5; February 17.

§ 79-3602b Repealed

History: L. 1937, ch. 374, § 2; L. 1941, ch. 382, § 1; L. 1947, ch. 463, § 1; L. 1953, ch. 447, § 1; L. 1957, ch. 509, § 1; L. 1960, ch. 58, § 1; L. 1963, ch. 493, § 1; L. 1967, ch. 499, § 1; L. 1968, ch. 383, § 1; L. 1970, ch. 389, § 1; L. 1971, ch. 321, § 1; L. 1977, ch. 337, § 1; L. 1978, ch. 415, § 1; L. 1980, ch. 322, § 1; L. 1981, ch. 389, § 1; L. 1982, ch. 418, § 1; L. 1985, ch. 330, § 1; L. 1988, ch. 386, § 1; L. 1989, ch. 301, § 1; L. 1992, ch. 198, § 7; Repealed, L. 1994, ch. 2, § 5; February 17.

§ 79-3602c Repealed

History: L. 1937, ch. 374, § 2; L. 1941, ch. 382, § 1; L. 1947, ch. 463, § 1; L. 1953, ch. 447, § 1; L. 1957, ch. 509, § 1; L. 1960, ch. 58, § 1; L. 1963, ch. 493, § 1; L. 1967, ch. 499, § 1; L. 1968, ch. 383, § 1; L. 1970, ch. 389, § 1; L. 1971, ch. 321, § 1; L. 1977, ch. 337, § 1; L. 1978, ch. 415, § 1; L. 1980, ch. 322, § 1; L. 1981, ch. 389, § 1; L. 1982, ch. 418, § 1; L. 1985, ch. 330, § 1; L. 1988, ch. 386, § 1; L. 1989, ch. 301, § 1; L. 1992, ch. 280, § 58; L. 1994, ch. 2, § 1; L. 1995, ch. 118, § 1; L. 1995, ch. 242, § 2; L. 1998, ch. 130, § 29; L. 1998, ch. 181, § 1; L. 1999, ch. 154, § 1; L. 2000, ch. 140, § 8; L. 2003, ch. 147, § 5; L. 2006, ch. 202, § 1; L. 2007, ch. 155, § 3; L. 2009, ch. 41, § 1; L. 2015, ch. 99, § 6; L. 2015, ch. 102, § 5; L. 2017, ch. 99, § 8; L. 2018, ch. 115, § 1; L. 2019, ch. 65, § 9; L. 2021, ch. 83, § 1; L. 2022, ch. 89, § 5; Repealed, L. 2024, ch. 94, § 6; July 1.

§ 79-3603 Retailers' sales tax imposed; rate

For the privilege of engaging in the business of selling tangible personal property at retail in this state or rendering or furnishing any of the services taxable under this act, there is hereby levied and there shall be collected and paid a tax at the rate of 6.5%. On and after January 1, 2023, 17% and on and after January 1, 2025, 18% of the tax rate imposed pursuant to this section and the rate provided in K.S.A. 2025 Supp. 79-3603d, and amendments thereto, shall be levied for the state highway fund, the state highway fund purposes and those purposes specified in K.S.A. 68-416, and amendments thereto, and all revenue collected and received from such tax levy shall be deposited in the state highway fund.

Within a redevelopment district established pursuant to K.S.A. 74-8921, and amendments thereto, there is hereby levied and there shall be collected and paid an additional tax at the rate of 2% until the earlier of the date the bonds issued to finance or refinance the redevelopment project have been paid in full or the final scheduled maturity of the first series of bonds issued to finance any part of the project.

Such tax shall be imposed upon:

(a) The gross receipts received from the sale of tangible personal property at retail within this state;

(b) the gross receipts from intrastate, interstate or international telecommunications services and any ancillary services sourced to this state in accordance with K.S.A. 79-3673, and amendments thereto, except that telecommunications service does not include: (1) Any interstate or international 800 or 900 service; (2) any interstate or international private communications service as defined in K.S.A. 79-3673, and amendments thereto; (3) any value-added nonvoice data service; (4) any telecommunication service to a provider of telecommunication services which will be used to render telecommunications services, including carrier access services; or (5) any service or transaction defined in this section among entities classified as members of an affiliated group as provided by section 1504 of the federal internal revenue code of 1986, as in effect on January 1, 2001;

(c) the gross receipts from the sale or furnishing of gas, water, electricity and heat, which sale is not otherwise exempt from taxation under the provisions of this act, and whether furnished by municipally or privately owned utilities, except that, on and after January 1, 2006, for sales of gas, electricity and heat delivered through mains, lines or pipes to residential premises for noncommercial use by the occupant of such premises, and for agricultural use and also, for such use, all sales of propane gas, the state rate shall be 0%; and for all sales of propane gas, LP gas, coal, wood and other fuel sources for the production of heat or lighting for noncommercial use of an occupant of residential premises, the state rate shall be 0%, but such tax shall not be levied and collected upon the gross receipts from: (1) The sale of a rural water district benefit unit; (2) a water system impact fee, system enhancement fee or similar fee collected by a water supplier as a condition for establishing service; or (3) connection or reconnection fees collected by a water supplier;

(d) the gross receipts from the sale of meals or drinks furnished at any private club, drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public;

(e) the gross receipts from the sale of admissions to any place providing amusement, entertainment or recreation services including admissions to state, county, district and local fairs, but such tax shall not be levied and collected upon the gross receipts received from sales of admissions to any cultural and historical event which occurs triennially;

(f) the gross receipts from the operation of any coin-operated device dispensing or providing tangible personal property, amusement or other services except laundry services, whether automatic or manually operated;

(g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A. 36-501, and amendments thereto, or by accommodation brokers, as defined by K.S.A. 12-1692, and amendments thereto, but such tax shall not be levied and collected upon the gross receipts received from sales of such service to the federal government and any agency, officer or employee thereof in association with the performance of official government duties;

(h) the gross receipts from the service of renting or leasing of tangible personal property except such tax shall not apply to the renting or leasing of machinery, equipment or other personal property owned by a city and purchased from the proceeds of industrial revenue bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740 through 12-1749, and amendments thereto, and any city or lessee renting or leasing such machinery, equipment or other personal property purchased with the proceeds of such bonds who shall have paid a tax under the provisions of this section upon sales made prior to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid thereon;

(i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry services except laundry services rendered through a coin-operated device whether automatic or manually operated;

(j) the gross receipts from the rendering of the services of washing and washing and waxing of vehicles;

(k) the gross receipts from cable, community antennae and other subscriber radio and television services;

(l) (1) except as otherwise provided by paragraph (2), the gross receipts received from the sales of tangible personal property to all contractors, subcontractors or repairmen for use by them in erecting structures, or building on, or otherwise improving, altering, or repairing real or personal property.

(2) Any such contractor, subcontractor or repairman who maintains an inventory of such property both for sale at retail and for use by them for the purposes described by paragraph (1) shall be deemed a retailer with respect to purchases for and sales from such inventory, except that the gross receipts received from any such sale, other than a sale at retail, shall be equal to the total purchase price paid for such property and the tax imposed thereon shall be paid by the deemed retailer;

(m) the gross receipts received from fees and charges by public and private clubs, drinking establishments, organizations and businesses for participation in sports, games and other recreational activities, but such tax shall not be levied and collected upon the gross receipts received from: (1) Fees and charges by any political subdivision, by any organization exempt from property taxation pursuant to K.S.A. 79-201

Ninth,

and amendments thereto, or by any youth recreation organization exclusively providing services to persons 18 years of age or younger which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for participation in sports, games and other recreational activities; and (2) entry fees and charges for participation in a special event or tournament sanctioned by a national sporting association to which spectators are charged an admission which is taxable pursuant to subsection (e);

(n) the gross receipts received from dues charged by public and private clubs, drinking establishments, organizations and businesses, payment of which entitles a member to the use of facilities for recreation or entertainment, but such tax shall not be levied and collected upon the gross receipts received from: (1) Dues charged by any organization exempt from property taxation pursuant to K.S.A. 79-201

Eighth

and

Ninth,

and amendments thereto; and (2) sales of memberships in a nonprofit organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and whose purpose is to support the operation of a nonprofit zoo;

(o) the gross receipts received from the isolated or occasional sale of motor vehicles or trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a corporation or limited liability company solely in exchange for stock securities or membership interest in such corporation or limited liability company; (2) the transfer of motor vehicles or trailers by one corporation or limited liability company to another when all of the assets of such corporation or limited liability company are transferred to such other corporation or limited liability company; or (3) the sale of motor vehicles or trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq., and amendments thereto, by an immediate family member to another immediate family member. For the purposes of paragraph (3), immediate family member means lineal ascendants or descendants, and their spouses. Any amount of sales tax paid pursuant to the Kansas retailers sales tax act on the isolated or occasional sale of motor vehicles or trailers on and after July 1, 2004, which the base for computing the tax was the value pursuant to K.S.A. 79-5105(a), (b)(1) and (b)(2), and amendments thereto, when such amount was higher than the amount of sales tax which would have been paid under the law as it existed on June 30, 2004, shall be refunded to the taxpayer pursuant to the procedure prescribed by this section. Such refund shall be in an amount equal to the difference between the amount of sales tax paid by the taxpayer and the amount of sales tax which would have been paid by the taxpayer under the law as it existed on June 30, 2004. Each claim for a sales tax refund shall be verified and submitted not later than six months from the effective date of this act to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of tax paid as provided by this act. All such refunds shall be paid from the sales tax refund fund, upon warrants of the director of accounts and reports pursuant to vouchers approved by the director of taxation or the director's designee. No refund for an amount less than $10 shall be paid pursuant to this act. In determining the base for computing the tax on such isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by the purchaser to the seller may be deducted from the selling price;

(p) the gross receipts received for the service of installing or applying tangible personal property which when installed or applied is not being held for sale in the regular course of business, and whether or not such tangible personal property when installed or applied remains tangible personal property or becomes a part of real estate, except that no tax shall be imposed upon the service of installing or applying tangible personal property in connection with the original construction of a building or facility, the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence or the construction, reconstruction, restoration, replacement or repair of a bridge or highway.

For the purposes of this subsection:

(1) "Original construction" means the first or initial construction of a new building or facility. The term "original construction" shall include the addition of an entire room or floor to any existing building or facility, the completion of any unfinished portion of any existing building or facility and the restoration, reconstruction or replacement of a building, facility or utility structure damaged or destroyed by fire, flood, tornado, lightning, explosion, windstorm, ice loading and attendant winds, terrorism or earthquake, but such term, except with regard to a residence, shall not include replacement, remodeling, restoration, renovation or reconstruction under any other circumstances;

(2) "building" means only those enclosures within which individuals customarily are employed, or which are customarily used to house machinery, equipment or other property, and including the land improvements immediately surrounding such building;

(3) "facility" means a mill, plant, refinery, oil or gas well, water well, feedlot or any conveyance, transmission or distribution line of any cooperative, nonprofit, membership corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or municipal or quasi-municipal corporation, including the land improvements immediately surrounding such facility;

(4) "residence" means only those enclosures within which individuals customarily live;

(5) "utility structure" means transmission and distribution lines owned by an independent transmission company or cooperative, the Kansas electric transmission authority or natural gas or electric public utility; and

(6) "windstorm" means straight line winds of at least 80 miles per hour as determined by a recognized meteorological reporting agency or organization;

(q) the gross receipts received for the service of repairing, servicing, altering or maintaining tangible personal property which when such services are rendered is not being held for sale in the regular course of business, and whether or not any tangible personal property is transferred in connection therewith. The tax imposed by this subsection shall be applicable to the services of repairing, servicing, altering or maintaining an item of tangible personal property which has been and is fastened to, connected with or built into real property;

(r) the gross receipts from fees or charges made under service or maintenance agreement contracts for services, charges for the providing of which are taxable under the provisions of subsection (p) or (q);

(s) on and after January 1, 2005, the gross receipts received from the sale of prewritten computer software and the sale of the services of modifying, altering, updating or maintaining prewritten computer software, whether the prewritten computer software is installed or delivered electronically by tangible storage media physically transferred to the purchaser or by load and leave;

(t) the gross receipts received for telephone answering services;

(u) the gross receipts received from the sale of prepaid calling service and prepaid wireless calling service as defined in K.S.A. 79-3673, and amendments thereto;

(v) all sales of bingo cards, bingo faces and instant bingo tickets by licensees under K.S.A. 75-5171 et seq., and amendments thereto, shall be exempt from taxes imposed pursuant to this section;

(w) all sales of charitable raffle tickets in accordance with K.S.A. 75-5171 et seq., and amendments thereto, shall be exempt from taxes imposed pursuant to this section; and

(x) commencing on January 1, 2023, and thereafter, the state rate on the gross receipts from the sale of food and food ingredients shall be as set forth in K.S.A. 2025 Supp. 79-3603d, and amendments thereto.

History: L. 1937, ch. 374, § 3; L. 1947, ch. 463, § 2; L. 1951, ch. 497, § 1; L. 1957, ch. 509, § 2; L. 1958, ch. 31, § 1 (Special Session); L. 1964, ch. 38, § 1 (Budget Session); L. 1965, ch. 533, § 1; L. 1970, ch. 389, § 2; L. 1971, ch. 321, § 2; L. 1973, ch. 403, § 1; L. 1977, ch. 337, § 2; L. 1978, ch. 416, § 2; L. 1979, ch. 326, § 1; L. 1981, ch. 390, § 1; L. 1986, ch. 386, § 1; L. 1987, ch. 182, § 108; L. 1988, ch. 386, § 2; L. 1989, ch. 209, § 59; L. 1992, ch. 280, § 59; L. 1994, ch. 2, § 2; L. 1994, ch. 198, § 1; L. 1995, ch. 118, § 2; L. 1995, ch. 118, § 3; L. 1995, ch. 242, § 3; L. 1997, ch. 185, § 6; L. 1998, ch. 130, § 30; L. 1998, ch. 181, § 2; L. 1999, ch. 158, § 11; L. 2000, ch. 140, § 9; L. 2001, ch. 96, § 1; L. 2001, ch. 199, § 2; L. 2002, ch. 185, § 6; L. 2003, ch. 147, § 6; L. 2004, ch. 90, § 2; L. 2004, ch. 171, § 7; L. 2005, ch. 2, § 2; L. 2007, ch. 155, § 4; L. 2007, ch. 195, § 58; L. 2010, ch. 160, § 1; L. 2013, ch. 135, § 3; L. 2015, ch. 62, § 20; L. 2015, ch. 99, § 7; L. 2015, ch. 102, § 6; L. 2020, ch. 8, § 13; L. 2022, ch. 89, § 6; January 1, 2023.

§ 79-3603a Repealed

History: L. 1937, ch. 374, § 3; L. 1947, ch. 463, § 2; L. 1951, ch. 497, § 1; L. 1957, ch. 509, § 2; L. 1958, ch. 31, § 1 (Special Session); L. 1964, ch. 38, § 1 (Budget Session); L. 1965, ch. 533, § 1; L. 1970, ch. 389, § 2; L. 1971, ch. 321, § 2; L. 1973, ch. 403, § 1; L. 1977, ch. 337, § 2; L. 1978, ch. 416, § 2; L. 1979, ch. 326, § 1; L. 1981, ch. 390, § 1; L. 1986, ch. 386, § 1; L. 1987, ch. 182, § 108; L. 1988, ch. 386, § 2; L. 1989, ch. 209, § 59; L. 1992, ch. 280, § 59; L. 1994, ch. 2, § 2; L. 1994, ch. 198, § 1; L. 1995, ch. 118, § 2; L. 1995, ch. 118, § 3; L. 1995, ch. 242, § 3; L. 1997, ch. 185, § 6; L. 1998, ch. 199, § 14; Repealed, L. 1999, ch. 158, § 15; July 1.

§ 79-3603b Repealed

History: L. 1937, ch. 374, § 3; L. 1947, ch. 463, § 2; L. 1951, ch. 497, § 1; L. 1957, ch. 509, § 2; L. 1958, ch. 31, § 1 (Special Session); L. 1964, ch. 38, § 1 (Budget Session); L. 1965, ch. 533, § 1; L. 1970, ch. 389, § 2; L. 1971, ch. 321, § 2; L. 1973, ch. 403, § 1; L. 1977, ch. 337, § 2; L. 1978, ch. 416, § 2; L. 1979, ch. 326, § 1; L. 1981, ch. 390, § 1; L. 1986, ch. 386, § 1; L. 1987, ch. 182, § 108; L. 1988, ch. 386, § 2; L. 1989, ch. 209, § 59; L. 1992, ch. 280, § 59; L. 1994, ch. 2, § 2; L. 1994, ch. 198, § 1; L. 1995, ch. 118, § 2; L. 1995, ch. 118, § 3; L. 1995, ch. 242, § 3; L. 1997, ch. 185, § 6; L. 1998, ch. 130, § 30; L. 1998, ch. 181, § 2; L. 1999, ch. 158, § 11; L. 2000, ch. 173, § 26; Repealed, L. 2002, ch. 89, § 2; July 1.

§ 79-3603c Repealed

History: L. 1937, ch. 374, § 3; L. 1947, ch. 463, § 2; L. 1951, ch. 497, § 1; L. 1957, ch. 509, § 2; L. 1958, ch. 31, § 1 (Special Session); L. 1964, ch. 38, § 1 (Budget Session); L. 1965, ch. 533, § 1; L. 1970, ch. 389, § 2; L. 1971, ch. 321, § 2; L. 1973, ch. 403, § 1; L. 1977, ch. 337, § 2; L. 1978, ch. 416, § 2; L. 1979, ch. 326, § 1; L. 1981, ch. 390, § 1; L. 1986, ch. 386, § 1; L. 1987, ch. 182, § 108; L. 1988, ch. 386, § 2; L. 1989, ch. 209, § 59; L. 1992, ch. 280, § 59; L. 1994, ch. 2, § 2; L. 1994, ch. 198, § 1; L. 1995, ch. 118, § 2; L. 1995, ch. 118, § 3; L. 1995, ch. 242, § 3; L. 1997, ch. 185, § 6; L. 1998, ch. 130, § 30; L. 1998, ch. 181, § 2; L. 1999, ch. 158, § 11; L. 2000, ch. 140, § 9; L. 2001, ch. 96, § 1; L. 2001, ch. 199, § 2; L. 2002, ch. 185, § 6; L. 2003, ch. 150, § 1; Repealed, L. 2004, ch. 90, § 6; July 1.

§ 79-3603d Retailers' sales tax imposed on sale of food and food ingredients; rate

(a) There is hereby levied and there shall be collected and paid a tax upon the gross receipts from the sale of food and food ingredients. The rate of tax shall be as follows:

(1) Commencing on January 1, 2023, at the rate of 4%;

(2) commencing on January 1, 2024, at the rate of 2%; and

(3) commencing on January 1, 2025, and thereafter, at the rate of 0%.

(b) The provisions of this section shall not apply to prepared food unless sold without eating utensils provided by the seller and described below:

(1) Food sold by a seller whose proper primary NAICS classification is manufacturing in sector 311, except subsector 3118 (bakeries);

(2) (A) food sold in an unheated state by weight or volume as a single item; or

(B) only meat or seafood sold in an unheated state by weight or volume as a single item;

(3) bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies and tortillas; or

(4) food sold that ordinarily requires additional cooking, as opposed to just reheating, by the consumer prior to consumption.

(c) The provisions of this section shall be a part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2022, ch. 89, § 1; January 1, 2023.

§ 79-3604 Tax paid by consumer and collected by retailer; exceptions; fee

The tax levied under the Kansas retailers' sales tax act shall be paid by the consumer or user to the retailer and it shall be the duty of each and every retailer in this state to collect from the consumer or user, the full amount of the tax imposed or an amount equal as nearly as possible or practicable to the average equivalent thereof. Such tax shall be a debt from the consumer or user to the retailer, when so added to the original purchase price, and shall be recoverable at law in the same manner as other debts, except that the tax levied on isolated or occasional sales of motor vehicles or trailers within the state and upon the sales of taxable tangible personal property or services when the director shall determine the same to be necessary as hereinafter provided shall be paid and collected as herein provided for.

The tax on such isolated or occasional sales shall be paid to the director of taxation by the purchaser of the motor vehicle or trailer or to the county treasurer upon application for certificate of registration or ownership. The purchaser shall sign and present to the county treasurer or director of taxation a statement specifying the true and correct selling price of the motor vehicle or trailer and containing a warning to the purchaser of the consequences of making false statements or information or presenting falsified documents related thereto. Such statement shall be in a form promulgated by the director of taxation. If payment is made to the director of taxation, the director shall issue a receipt therefor. If the sales tax is not paid to the director of taxation, the county treasurer, upon application for certificate of registration or ownership, shall collect such sales tax payment from the applicant. The county treasurer shall charge the applicant a collection service fee of $.50, and shall give the applicant a receipt showing the tax and fee paid in full. The county treasurer shall transmit monthly all such sales tax moneys collected to the director of taxation and shall place the fees collected in the special fund provided in K.S.A. 8-145, and amendments thereto, to be used for the purpose of paying necessary extra help and expenses.

Whenever the director of taxation determines that in the retail sale of any tangible personal property or services because of the nature of the operation of the business including the turnover of independent contractors, the lack of a place of business in which to display a registration certificate or keep records, the lack of adequate records or because such retailers are minors or transients there is a likelihood that the state will lose tax funds due to the difficulty of policing such business operations, it shall be the duty of the vendor to such person to collect the full amount of the tax imposed by this act and to make a return and payment of the tax to the director of taxation in like manner as that provided for the making of returns and the payment of taxes by retailers under the provisions of this act. The director shall notify the vendor or vendors to such retailer of the duty to collect and make a return and payment of the tax.

In the event the full amount of the tax provided by this act is not paid to the retailer by the consumer or user, the director of taxation may proceed directly against the consumer or user to collect the full amount of the tax due on the retail sale.

History: L. 1937, ch. 374, § 4; L. 1957, ch. 509, § 3; L. 1960, ch. 58, § 2; L. 1961, ch. 50, § 2; L. 1970, ch. 389, § 3; L. 1988, ch. 388, § 1; L. 1994, ch. 2, § 3; L. 2005, ch. 2, § 3; March 3.

§ 79-3604a Repealed

History: L. 1937, ch. 374, § 4; L. 1957, ch. 509, § 3; L. 1960, ch. 58, § 2; L. 1961, ch. 50, § 2; L. 1970, ch. 389, § 3; L. 1988, ch. 387, § 1; Repealed, L. 1994, ch. 2, § 5; February 17.

§ 79-3605 Assumption of tax by retailer unlawful

It shall be unlawful for any retailer to advertise or hold out, or state to the public, or to any consumer, directly or indirectly, that the tax, or any part thereof, imposed by this act will be assumed or absorbed by the retailer, or that it will not be considered as an element in the price to the consumer, or if added, that it, or any part thereof, will be refunded.

History: L. 1937, ch. 374, § 5; April 9.

§ 79-3606 Exempt sales

The following shall be exempt from the tax imposed by this act:

(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has been paid, not subject to refund, under the laws of this state except cigarettes and electronic cigarettes as defined by K.S.A. 79-3301, and amendments thereto, including consumable material for such electronic cigarettes, cereal malt beverages and malt products as defined by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt, malt syrup and malt extract, that is not subject to taxation under the provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and laundry services taxed pursuant to K.S.A. 65-34,150, and amendments thereto, and gross receipts from regulated sports contests taxed pursuant to the Kansas professional regulated sports act, and amendments thereto;

(b) all sales of tangible personal property or service, including the renting and leasing of tangible personal property, purchased directly by the state of Kansas, a political subdivision thereof, other than a school or educational institution, or purchased by a public or private nonprofit hospital, public hospital authority, nonprofit blood, tissue or organ bank or nonprofit integrated community care organization and used exclusively for state, political subdivision, hospital, public hospital authority, nonprofit blood, tissue or organ bank or nonprofit integrated community care organization purposes, except when: (1) Such state, hospital or public hospital authority is engaged or proposes to engage in any business specifically taxable under the provisions of this act and such items of tangible personal property or service are used or proposed to be used in such business; or (2) such political subdivision is engaged or proposes to engage in the business of furnishing gas, electricity or heat to others and such items of personal property or service are used or proposed to be used in such business;

(c) all sales of tangible personal property or services, including the renting and leasing of tangible personal property, purchased directly by a public or private elementary or secondary school or public or private nonprofit educational institution and used primarily by such school or institution for nonsectarian programs and activities provided or sponsored by such school or institution or in the erection, repair or enlargement of buildings to be used for such purposes. The exemption herein provided shall not apply to erection, construction, repair, enlargement or equipment of buildings used primarily for human habitation, except that such exemption shall apply to the erection, construction, repair, enlargement or equipment of buildings used for human habitation by the cerebral palsy research foundation of Kansas located in Wichita, Kansas, multi community diversified services, incorporated, located in McPherson, Kansas, the Kansas state school for the blind and the Kansas state school for the deaf;

(d) all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school, a public or private nonprofit educational institution, state correctional institution including a privately constructed correctional institution contracted for state use and ownership, that would be exempt from taxation under the provisions of this act if purchased directly by such hospital or public hospital authority, school, educational institution or a state correctional institution; and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any political subdivision of the state or district described in subsection (s), the total cost of which is paid from funds of such political subdivision or district and that would be exempt from taxation under the provisions of this act if purchased directly by such political subdivision or district. Nothing in this subsection or in the provisions of K.S.A. 12-3418, and amendments thereto, shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any political subdivision of the state or any such district. As used in this subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a political subdivision" shall mean general tax revenues, the proceeds of any bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, reconstructing, repairing, enlarging, furnishing or remodeling facilities that are to be leased to the donor. When any political subdivision of the state, district described in subsection (s), public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school, public or private nonprofit educational institution, state correctional institution including a privately constructed correctional institution contracted for state use and ownership shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the political subdivision, district described in subsection (s), hospital or public hospital authority, school, educational institution or department of corrections concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. As an alternative to the foregoing procedure, any such contracting entity may apply to the secretary of revenue for agent status for the sole purpose of issuing and furnishing project exemption certificates to contractors pursuant to rules and regulations adopted by the secretary establishing conditions and standards for the granting and maintaining of such status. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, the political subdivision, district described in subsection (s), hospital or public hospital authority, school, educational institution or the contractor contracting with the department of corrections for a correctional institution concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(e) all sales of tangible personal property or services purchased by a contractor for the erection, repair or enlargement of buildings or other projects for the government of the United States, its agencies or instrumentalities, that would be exempt from taxation if purchased directly by the government of the United States, its agencies or instrumentalities. When the government of the United States, its agencies or instrumentalities shall contract for the erection, repair, or enlargement of any building or other project, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the government of the United States, its agencies or instrumentalities concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. As an alternative to the foregoing procedure, any such contracting entity may apply to the secretary of revenue for agent status for the sole purpose of issuing and furnishing project exemption certificates to contractors pursuant to rules and regulations adopted by the secretary establishing conditions and standards for the granting and maintaining of such status. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(f) tangible personal property purchased by a railroad or public utility for consumption or movement directly and immediately in interstate commerce;

(g) sales of aircraft including remanufactured and modified aircraft sold to persons using directly or through an authorized agent such aircraft as certified or licensed carriers of persons or property in interstate or foreign commerce under authority of the laws of the United States or any foreign government or sold to any foreign government or agency or instrumentality of such foreign government and all sales of aircraft for use outside of the United States and sales of aircraft repair, modification and replacement parts and sales of services employed in the remanufacture, modification and repair of aircraft;

(h) all rentals of nonsectarian textbooks by public or private elementary or secondary schools;

(i) the lease or rental of all films, records, tapes, or any type of sound or picture transcriptions used by motion picture exhibitors;

(j) meals served without charge or food used in the preparation of such meals to employees of any restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public if such employees' duties are related to the furnishing or sale of such meals or drinks;

(k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and delivered in this state to a bona fide resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will not remain in this state more than 10 days;

(l) all isolated or occasional sales of tangible personal property, services, substances or things, except isolated or occasional sale of motor vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and amendments thereto;

(m) all sales of tangible personal property that become an ingredient or component part of tangible personal property or services produced, manufactured or compounded for ultimate sale at retail within or without the state of Kansas; and any such producer, manufacturer or compounder may obtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for use as an ingredient or component part of the property or services produced, manufactured or compounded;

(n) all sales of tangible personal property that is consumed in the production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property, the treating of by-products or wastes derived from any such production process, the providing of services or the irrigation of crops for ultimate sale at retail within or without the state of Kansas; and any purchaser of such property may obtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for consumption in such production, manufacture, processing, mining, drilling, refining, compounding, treating, irrigation and in providing such services;

(o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments thereto, the production of food for human consumption, the production of animal, dairy, poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for use for any such purpose or purposes;

(p) all sales of drugs dispensed pursuant to a prescription order by a licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-1626, and amendments thereto. As used in this subsection, "drug" means a compound, substance or preparation and any component of a compound, substance or preparation, other than food and food ingredients, dietary supplements or alcoholic beverages, recognized in the official United States pharmacopeia, official homeopathic pharmacopoeia of the United States or official national formulary, and supplement to any of them, intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease or intended to affect the structure or any function of the body, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of drugs used in the performance or induction of an abortion, as defined in K.S.A. 65-6701, and amendments thereto;

(q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to a person for treatment of diabetes at the direction of a person licensed to practice medicine by the state board of healing arts;

(r) all sales of oxygen delivery equipment, kidney dialysis equipment, enteral feeding systems, prosthetic devices and mobility enhancing equipment prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry, and in addition to such sales, all sales of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto, and repair and replacement parts therefor, including batteries, by a person licensed in the practice of dispensing and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808, and amendments thereto. For the purposes of this subsection: (1) "Mobility enhancing equipment" means equipment including repair and replacement parts to same, but does not include durable medical equipment, which is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either in a home or a motor vehicle; is not generally used by persons with normal mobility; and does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer; and (2) "prosthetic device" means a replacement, corrective or supportive device including repair and replacement parts for same worn on or in the body to artificially replace a missing portion of the body, prevent or correct physical deformity or malfunction or support a weak or deformed portion of the body;

(s) except as provided in K.S.A. 82a-2101, and amendments thereto, all sales of tangible personal property or services purchased directly or indirectly by a groundwater management district organized or operating under the authority of K.S.A. 82a-1020 et seq., and amendments thereto, by a rural water district organized or operating under the authority of K.S.A. 82a-612, and amendments thereto, or by a water supply district organized or operating under the authority of K.S.A. 19-3501 et seq., 19-3522 et seq. or 19-3545, and amendments thereto, which property or services are used in the construction activities, operation or maintenance of the district;

(t) all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such machinery and equipment. For the purposes of this subsection the term "farm machinery and equipment or aquaculture machinery and equipment" shall include a work-site utility vehicle, as defined in K.S.A. 8-126, and amendments thereto, and is equipped with a bed or cargo box for hauling materials, and shall also include machinery and equipment used in the operation of Christmas tree farming but shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm machinery and equipment" includes precision farming equipment that is portable or is installed or purchased to be installed on farm machinery and equipment. "Precision farming equipment" includes the following items used only in computer-assisted farming, ranching or aquaculture production operations: Soil testing sensors, yield monitors, computers, monitors, software, global positioning and mapping systems, guiding systems, modems, data communications equipment and any necessary mounting hardware, wiring and antennas. Each purchaser of farm machinery and equipment or aquaculture machinery and equipment exempted herein must certify in writing on the copy of the invoice or sales ticket to be retained by the seller that the farm machinery and equipment or aquaculture machinery and equipment purchased will be used only in farming, ranching or aquaculture production. Farming or ranching shall include the operation of a feedlot and farm and ranch work for hire and the operation of a nursery;

(u) all leases or rentals of tangible personal property used as a dwelling if such tangible personal property is leased or rented for a period of more than 28 consecutive days;

(v) all sales of tangible personal property to any contractor for use in preparing meals for delivery to homebound elderly persons over 60 years of age and to homebound disabled persons or to be served at a group-sitting at a location outside of the home to otherwise homebound elderly persons over 60 years of age and to otherwise homebound disabled persons, as all or part of any food service project funded in whole or in part by government or as part of a private nonprofit food service project available to all such elderly or disabled persons residing within an area of service designated by the private nonprofit organization, and all sales of tangible personal property for use in preparing meals for consumption by indigent or homeless individuals whether or not such meals are consumed at a place designated for such purpose, and all sales of food products by or on behalf of any such contractor or organization for any such purpose;

(w) all sales of natural gas, electricity, heat and water delivered through mains, lines or pipes: (1) To residential premises for noncommercial use by the occupant of such premises; (2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the severing of oil; and (4) to any property which is exempt from property taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this paragraph, "severing" means the same as defined in K.S.A. 79-4216(k), and amendments thereto. For all sales of natural gas, electricity and heat delivered through mains, lines or pipes pursuant to the provisions of subsection (w)(1) and (w)(2), the provisions of this subsection shall expire on December 31, 2005;

(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production of heat or lighting for noncommercial use of an occupant of residential premises occurring prior to January 1, 2006;

(y) all sales of materials and services used in the repairing, servicing, altering, maintaining, manufacturing, remanufacturing, or modification of railroad rolling stock for use in interstate or foreign commerce under authority of the laws of the United States;

(z) all sales of tangible personal property and services purchased directly by a port authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418, and amendments thereto;

(aa) all sales of materials and services applied to equipment that is transported into the state from without the state for repair, service, alteration, maintenance, remanufacture or modification and that is subsequently transported outside the state for use in the transmission of liquids or natural gas by means of pipeline in interstate or foreign commerce under authority of the laws of the United States;

(bb) all sales of used mobile homes or manufactured homes. As used in this subsection: (1) "Mobile homes" and "manufactured homes" mean the same as defined in K.S.A. 58-4202, and amendments thereto; and (2) "sales of used mobile homes or manufactured homes" means sales other than the original retail sale thereof;

(cc) all sales of tangible personal property or services purchased prior to January 1, 2012, except as otherwise provided, for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail business that meets the requirements established in K.S.A. 74-50,115, and amendments thereto, and the sale and installation of machinery and equipment purchased for installation at any such business or retail business, and all sales of tangible personal property or services purchased on or after January 1, 2012, for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business that meets the requirements established in K.S.A. 74-50,115(e), and amendments thereto, and the sale and installation of machinery and equipment purchased for installation at any such business. When a person shall contract for the construction, reconstruction, enlargement or remodeling of any such business or retail business, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the owner of the business or retail business a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. As used in this subsection, "business" and "retail business" mean the same as defined in K.S.A. 74-50,114, and amendments thereto. Project exemption certificates that have been previously issued under this subsection by the department of revenue pursuant to K.S.A. 74-50,115, and amendments thereto, but not including K.S.A. 74-50,115(e), and amendments thereto, prior to January 1, 2012, and have not expired will be effective for the term of the project or two years from the effective date of the certificate, whichever occurs earlier. Project exemption certificates that are submitted to the department of revenue prior to January 1, 2012, and are found to qualify will be issued a project exemption certificate that will be effective for a two-year period or for the term of the project, whichever occurs earlier;

(dd) all sales of tangible personal property purchased with food stamps issued by the United States department of agriculture;

(ee) all sales of lottery tickets and shares made as part of a lottery operated by the state of Kansas;

(ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to the extent of 40% of the gross receipts, determined without regard to any trade-in allowance, received from such sale. As used in this subsection, "mobile homes" and "manufactured homes" mean the same as defined in K.S.A. 58-4202, and amendments thereto;

(gg) all sales of tangible personal property purchased in accordance with vouchers issued pursuant to the federal special supplemental food program for women, infants and children;

(hh) all sales of medical supplies and equipment, including durable medical equipment, purchased directly by a nonprofit skilled nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923, and amendments thereto, for the purpose of providing medical services to residents thereof. This exemption shall not apply to tangible personal property customarily used for human habitation purposes. As used in this subsection, "durable medical equipment" means equipment including repair and replacement parts for such equipment, that can withstand repeated use, is primarily and customarily used to serve a medical purpose, generally is not useful to a person in the absence of illness or injury and is not worn in or on the body, but does not include mobility enhancing equipment as defined in subsection (r), oxygen delivery equipment, kidney dialysis equipment or enteral feeding systems;

(ii) all sales of tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs and activities provided or sponsored by such organization, and all sales of tangible personal property by or on behalf of any such organization. This exemption shall not apply to tangible personal property customarily used for human habitation purposes;

(jj) all sales of tangible personal property or services, including the renting and leasing of tangible personal property, purchased directly on behalf of a community-based facility for people with intellectual disability or mental health center organized pursuant to K.S.A. 19-4001 et seq., and amendments thereto, and licensed in accordance with the provisions of K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible personal property or services purchased by contractors during the time period from July, 2003, through June, 2006, for the purpose of constructing, equipping, maintaining or furnishing a new facility for a community-based facility for people with intellectual disability or mental health center located in Riverton, Cherokee County, Kansas, that would have been eligible for sales tax exemption pursuant to this subsection if purchased directly by such facility or center. This exemption shall not apply to tangible personal property customarily used for human habitation purposes;

(kk) (1) (A) all sales of machinery and equipment that are used in this state as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility;

(B) all sales of installation, repair and maintenance services performed on such machinery and equipment; and

(C) all sales of repair and replacement parts and accessories purchased for such machinery and equipment.

(2) For purposes of this subsection:

(A) "Integrated production operation" means an integrated series of operations engaged in at a manufacturing or processing plant or facility to process, transform or convert tangible personal property by physical, chemical or other means into a different form, composition or character from that in which it originally existed. Integrated production operations shall include: (i) Production line operations, including packaging operations; (ii) preproduction operations to handle, store and treat raw materials; (iii) post production handling, storage, warehousing and distribution operations; and (iv) waste, pollution and environmental control operations, if any;

(B) "production line" means the assemblage of machinery and equipment at a manufacturing or processing plant or facility where the actual transformation or processing of tangible personal property occurs;

(C) "manufacturing or processing plant or facility" means a single, fixed location owned or controlled by a manufacturing or processing business that consists of one or more structures or buildings in a contiguous area where integrated production operations are conducted to manufacture or process tangible personal property to be ultimately sold at retail. Such term shall not include any facility primarily operated for the purpose of conveying or assisting in the conveyance of natural gas, electricity, oil or water. A business may operate one or more manufacturing or processing plants or facilities at different locations to manufacture or process a single product of tangible personal property to be ultimately sold at retail;

(D) "manufacturing or processing business" means a business that utilizes an integrated production operation to manufacture, process, fabricate, finish or assemble items for wholesale and retail distribution as part of what is commonly regarded by the general public as an industrial manufacturing or processing operation or an agricultural commodity processing operation. (i) Industrial manufacturing or processing operations include, by way of illustration but not of limitation, the fabrication of automobiles, airplanes, machinery or transportation equipment, the fabrication of metal, plastic, wood or paper products, electricity power generation, water treatment, petroleum refining, chemical production, wholesale bottling, newspaper printing, ready mixed concrete production, and the remanufacturing of used parts for wholesale or retail sale. Such processing operations shall include operations at an oil well, gas well, mine or other excavation site where the oil, gas, minerals, coal, clay, stone, sand or gravel that has been extracted from the earth is cleaned, separated, crushed, ground, milled, screened, washed or otherwise treated or prepared before its transmission to a refinery or before any other wholesale or retail distribution. (ii) Agricultural commodity processing operations include, by way of illustration but not of limitation, meat packing, poultry slaughtering and dressing, processing and packaging farm and dairy products in sealed containers for wholesale and retail distribution, feed grinding, grain milling, frozen food processing, and grain handling, cleaning, blending, fumigation, drying and aeration operations engaged in by grain elevators or other grain storage facilities. (iii) Manufacturing or processing businesses do not include, by way of illustration but not of limitation, nonindustrial businesses whose operations are primarily retail and that produce or process tangible personal property as an incidental part of conducting the retail business, such as retailers who bake, cook or prepare food products in the regular course of their retail trade, grocery stores, meat lockers and meat markets that butcher or dress livestock or poultry in the regular course of their retail trade, contractors who alter, service, repair or improve real property, and retail businesses that clean, service or refurbish and repair tangible personal property for its owner;

(E) "repair and replacement parts and accessories" means all parts and accessories for exempt machinery and equipment, including, but not limited to, dies, jigs, molds, patterns and safety devices that are attached to exempt machinery or that are otherwise used in production, and parts and accessories that require periodic replacement such as belts, drill bits, grinding wheels, grinding balls, cutting bars, saws, refractory brick and other refractory items for exempt kiln equipment used in production operations;

(F) "primary" or "primarily" mean more than 50% of the time.

(3) For purposes of this subsection, machinery and equipment shall be deemed to be used as an integral or essential part of an integrated production operation when used to:

(A) Receive, transport, convey, handle, treat or store raw materials in preparation of its placement on the production line;

(B) transport, convey, handle or store the property undergoing manufacturing or processing at any point from the beginning of the production line through any warehousing or distribution operation of the final product that occurs at the plant or facility;

(C) act upon, effect, promote or otherwise facilitate a physical change to the property undergoing manufacturing or processing;

(D) guide, control or direct the movement of property undergoing manufacturing or processing;

(E) test or measure raw materials, the property undergoing manufacturing or processing or the finished product, as a necessary part of the manufacturer's integrated production operations;

(F) plan, manage, control or record the receipt and flow of inventories of raw materials, consumables and component parts, the flow of the property undergoing manufacturing or processing and the management of inventories of the finished product;

(G) produce energy for, lubricate, control the operating of or otherwise enable the functioning of other production machinery and equipment and the continuation of production operations;

(H) package the property being manufactured or processed in a container or wrapping in which such property is normally sold or transported;

(I) transmit or transport electricity, coke, gas, water, steam or similar substances used in production operations from the point of generation, if produced by the manufacturer or processor at the plant site, to that manufacturer's production operation; or, if purchased or delivered from off-site, from the point where the substance enters the site of the plant or facility to that manufacturer's production operations;

(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil, solvents or other substances that are used in production operations;

(K) provide and control an environment required to maintain certain levels of air quality, humidity or temperature in special and limited areas of the plant or facility, where such regulation of temperature or humidity is part of and essential to the production process;

(L) treat, transport or store waste or other byproducts of production operations at the plant or facility; or

(M) control pollution at the plant or facility where the pollution is produced by the manufacturing or processing operation.

(4) The following machinery, equipment and materials shall be deemed to be exempt even though it may not otherwise qualify as machinery and equipment used as an integral or essential part of an integrated production operation: (A) Computers and related peripheral equipment that are utilized by a manufacturing or processing business for engineering of the finished product or for research and development or product design; (B) machinery and equipment that is utilized by a manufacturing or processing business to manufacture or rebuild tangible personal property that is used in manufacturing or processing operations, including tools, dies, molds, forms and other parts of qualifying machinery and equipment; (C) portable plants for aggregate concrete, bulk cement and asphalt including cement mixing drums to be attached to a motor vehicle; (D) industrial fixtures, devices, support facilities and special foundations necessary for manufacturing and production operations, and materials and other tangible personal property sold for the purpose of fabricating such fixtures, devices, facilities and foundations. An exemption certificate for such purchases shall be signed by the manufacturer or processor. If the fabricator purchases such material, the fabricator shall also sign the exemption certificate; (E) a manufacturing or processing business' laboratory equipment that is not located at the plant or facility, but that would otherwise qualify for exemption under subsection (3)(E); (F) all machinery and equipment used in surface mining activities as described in K.S.A. 49-601 et seq., and amendments thereto, beginning from the time a reclamation plan is filed to the acceptance of the completed final site reclamation.

(5) "Machinery and equipment used as an integral or essential part of an integrated production operation" shall not include:

(A) Machinery and equipment used for nonproduction purposes, including, but not limited to, machinery and equipment used for plant security, fire prevention, first aid, accounting, administration, record keeping, advertising, marketing, sales or other related activities, plant cleaning, plant communications and employee work scheduling;

(B) machinery, equipment and tools used primarily in maintaining and repairing any type of machinery and equipment or the building and plant;

(C) transportation, transmission and distribution equipment not primarily used in a production, warehousing or material handling operation at the plant or facility, including the means of conveyance of natural gas, electricity, oil or water, and equipment related thereto, located outside the plant or facility;

(D) office machines and equipment including computers and related peripheral equipment not used directly and primarily to control or measure the manufacturing process;

(E) furniture and other furnishings;

(F) buildings, other than exempt machinery and equipment that is permanently affixed to or becomes a physical part of the building, and any other part of real estate that is not otherwise exempt;

(G) building fixtures that are not integral to the manufacturing operation, such as utility systems for heating, ventilation, air conditioning, communications, plumbing or electrical;

(H) machinery and equipment used for general plant heating, cooling and lighting;

(I) motor vehicles that are registered for operation on public highways; or

(J) employee apparel, except safety and protective apparel that is purchased by an employer and furnished gratuitously to employees who are involved in production or research activities.

(6) Paragraphs (3) and (5) shall not be construed as exclusive listings of the machinery and equipment that qualify or do not qualify as an integral or essential part of an integrated production operation. When machinery or equipment is used as an integral or essential part of production operations part of the time and for nonproduction purposes at other times, the primary use of the machinery or equipment shall determine whether or not such machinery or equipment qualifies for exemption.

(7) The secretary of revenue shall adopt rules and regulations necessary to administer the provisions of this subsection;

(ll) all sales of educational materials purchased for distribution to the public at no charge by a nonprofit corporation organized for the purpose of encouraging, fostering and conducting programs for the improvement of public health, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of such materials purchased by a nonprofit corporation which performs any abortion, as defined in K.S.A. 65-6701, and amendments thereto;

(mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germicides, pesticides and fungicides; and services, purchased and used for the purpose of producing plants in order to prevent soil erosion on land devoted to agricultural use;

(nn) except as otherwise provided in this act, all sales of services rendered by an advertising agency or licensed broadcast station or any member, agent or employee thereof;

(oo) all sales of tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low-income individuals;

(pp) all sales of drill bits and explosives actually utilized in the exploration and production of oil or gas;

(qq) all sales of tangible personal property and services purchased by a nonprofit museum or historical society or any combination thereof, including a nonprofit organization that is organized for the purpose of stimulating public interest in the exploration of space by providing educational information, exhibits and experiences, that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(rr) all sales of tangible personal property that will admit the purchaser thereof to any annual event sponsored by a nonprofit organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of such tangible personal property purchased by a nonprofit organization which performs any abortion, as defined in K.S.A. 65-6701, and amendments thereto;

(ss) all sales of tangible personal property and services purchased by a public broadcasting station licensed by the federal communications commission as a noncommercial educational television or radio station;

(tt) all sales of tangible personal property and services purchased by or on behalf of a not-for-profit corporation that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing a Kansas Korean War memorial;

(uu) all sales of tangible personal property and services purchased by or on behalf of any rural volunteer fire-fighting organization for use exclusively in the performance of its duties and functions;

(vv) all sales of tangible personal property purchased by any of the following organizations that are exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the following purposes, and all sales of any such property by or on behalf of any such organization for any such purpose:

(1) The American heart association, Kansas affiliate, inc. for the purposes of providing education, training, certification in emergency cardiac care, research and other related services to reduce disability and death from cardiovascular diseases and stroke;

(2) the Kansas alliance for the mentally ill, inc. for the purpose of advocacy for persons with mental illness and to education, research and support for their families;

(3) the Kansas mental illness awareness council for the purposes of advocacy for persons who are mentally ill and for education, research and support for them and their families;

(4) the American diabetes association Kansas affiliate, inc. for the purpose of eliminating diabetes through medical research, public education focusing on disease prevention and education, patient education including information on coping with diabetes, and professional education and training;

(5) the American lung association of Kansas, inc. for the purpose of eliminating all lung diseases through medical research, public education including information on coping with lung diseases, professional education and training related to lung disease and other related services to reduce the incidence of disability and death due to lung disease;

(6) the Kansas chapters of the Alzheimer's disease and related disorders association, inc. for the purpose of providing assistance and support to persons in Kansas with Alzheimer's disease, and their families and caregivers;

(7) the Kansas chapters of the Parkinson's disease association for the purpose of eliminating Parkinson's disease through medical research and public and professional education related to such disease;

(8) the national kidney foundation of Kansas and western Missouri for the purpose of eliminating kidney disease through medical research and public and private education related to such disease;

(9) the heartstrings community foundation for the purpose of providing training, employment and activities for adults with developmental disabilities;

(10) the cystic fibrosis foundation, heart of America chapter, for the purposes of assuring the development of the means to cure and control cystic fibrosis and improving the quality of life for those with the disease;

(11) the spina bifida association of Kansas for the purpose of providing financial, educational and practical aid to families and individuals with spina bifida. Such aid includes, but is not limited to, funding for medical devices, counseling and medical educational opportunities;

(12) the CHWC, Inc., for the purpose of rebuilding urban core neighborhoods through the construction of new homes, acquiring and renovating existing homes and other related activities, and promoting economic development in such neighborhoods;

(13) the cross-lines cooperative council for the purpose of providing social services to low income individuals and families;

(14) the dreams work, inc., for the purpose of providing young adult day services to individuals with developmental disabilities and assisting families in avoiding institutional or nursing home care for a developmentally disabled member of their family;

(15) the KSDS, Inc., for the purpose of promoting the independence and inclusion of people with disabilities as fully participating and contributing members of their communities and society through the training and providing of guide and service dogs to people with disabilities, and providing disability education and awareness to the general public;

(16) the lyme association of greater Kansas City, Inc., for the purpose of providing support to persons with lyme disease and public education relating to the prevention, treatment and cure of lyme disease;

(17) the dream factory, inc., for the purpose of granting the dreams of children with critical and chronic illnesses;

(18) the Ottawa Suzuki strings, inc., for the purpose of providing students and families with education and resources necessary to enable each child to develop fine character and musical ability to the fullest potential;

(19) the international association of lions clubs for the purpose of creating and fostering a spirit of understanding among all people for humanitarian needs by providing voluntary services through community involvement and international cooperation;

(20) the Johnson county young matrons, inc., for the purpose of promoting a positive future for members of the community through volunteerism, financial support and education through the efforts of an all volunteer organization;

(21) the American cancer society, inc., for the purpose of eliminating cancer as a major health problem by preventing cancer, saving lives and diminishing suffering from cancer, through research, education, advocacy and service;

(22) the community services of Shawnee, inc., for the purpose of providing food and clothing to those in need;

(23) the angel babies association, for the purpose of providing assistance, support and items of necessity to teenage mothers and their babies; and

(24) the Kansas fairgrounds foundation for the purpose of the preservation, renovation and beautification of the Kansas state fairgrounds;

(ww) all sales of tangible personal property purchased by the habitat for humanity for the exclusive use of being incorporated within a housing project constructed by such organization;

(xx) all sales of tangible personal property and services purchased by a nonprofit zoo that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, or on behalf of such zoo by an entity itself exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986 contracted with to operate such zoo and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any nonprofit zoo that would be exempt from taxation under the provisions of this section if purchased directly by such nonprofit zoo or the entity operating such zoo. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any nonprofit zoo. When any nonprofit zoo shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the nonprofit zoo concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, the nonprofit zoo concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(yy) all sales of tangible personal property and services purchased by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization;

(zz) all sales of machinery and equipment purchased by over-the-air, free access radio or television station that is used directly and primarily for the purpose of producing a broadcast signal or is such that the failure of the machinery or equipment to operate would cause broadcasting to cease. For purposes of this subsection, machinery and equipment shall include, but not be limited to, that required by rules and regulations of the federal communications commission, and all sales of electricity which are essential or necessary for the purpose of producing a broadcast signal or is such that the failure of the electricity would cause broadcasting to cease;

(aaa) all sales of tangible personal property and services purchased by a religious organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and used exclusively for religious purposes, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization that would be exempt from taxation under the provisions of this section if purchased directly by such organization. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization. When any such organization shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to such organization concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after July 1, 1998, but prior to the effective date of this act upon the gross receipts received from any sale exempted by the amendatory provisions of this subsection shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee;

(bbb) all sales of food for human consumption by an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, pursuant to a food distribution program that offers such food at a price below cost in exchange for the performance of community service by the purchaser thereof;

(ccc) on and after July 1, 1999, all sales of tangible personal property and services purchased by a primary care clinic or health center the primary purpose of which is to provide services to medically underserved individuals and families, and that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such clinic or center that would be exempt from taxation under the provisions of this section if purchased directly by such clinic or center, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of such tangible personal property and services purchased by a primary care clinic or health center which performs any abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such clinic or center. When any such clinic or center shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to such clinic or center concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such clinic or center concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(ddd) on and after January 1, 1999, and before January 1, 2000, all sales of materials and services purchased by any class II or III railroad as classified by the federal surface transportation board for the construction, renovation, repair or replacement of class II or III railroad track and facilities used directly in interstate commerce. In the event any such track or facility for which materials and services were purchased sales tax exempt is not operational for five years succeeding the allowance of such exemption, the total amount of sales tax that would have been payable except for the operation of this subsection shall be recouped in accordance with rules and regulations adopted for such purpose by the secretary of revenue;

(eee) on and after January 1, 1999, and before January 1, 2001, all sales of materials and services purchased for the original construction, reconstruction, repair or replacement of grain storage facilities, including railroad sidings providing access thereto;

(fff) all sales of material handling equipment, racking systems and other related machinery and equipment that is used for the handling, movement or storage of tangible personal property in a warehouse or distribution facility in this state; all sales of installation, repair and maintenance services performed on such machinery and equipment; and all sales of repair and replacement parts for such machinery and equipment. For purposes of this subsection, a warehouse or distribution facility means a single, fixed location that consists of buildings or structures in a contiguous area where storage or distribution operations are conducted that are separate and apart from the business' retail operations, if any, and that do not otherwise qualify for exemption as occurring at a manufacturing or processing plant or facility. Material handling and storage equipment shall include aeration, dust control, cleaning, handling and other such equipment that is used in a public grain warehouse or other commercial grain storage facility, whether used for grain handling, grain storage, grain refining or processing, or other grain treatment operation;

(ggg) all sales of tangible personal property and services purchased by or on behalf of the Kansas academy of science, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and used solely by such academy for the preparation, publication and dissemination of education materials;

(hhh) all sales of tangible personal property and services purchased by or on behalf of all domestic violence shelters that are member agencies of the Kansas coalition against sexual and domestic violence;

(iii) all sales of personal property and services purchased by an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and such personal property and services are used by any such organization in the collection, storage and distribution of food products to nonprofit organizations that distribute such food products to persons pursuant to a food distribution program on a charitable basis without fee or charge, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities used for the collection and storage of such food products for any such organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, that would be exempt from taxation under the provisions of this section if purchased directly by such organization. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization. When any such organization shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to such organization concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in such facilities or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in such facilities reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after July 1, 2005, but prior to the effective date of this act upon the gross receipts received from any sale exempted by the amendatory provisions of this subsection shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee;

(jjj) all sales of dietary supplements dispensed pursuant to a prescription order by a licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-1626, and amendments thereto. As used in this subsection, "dietary supplement" means any product, other than tobacco, intended to supplement the diet that: (1) Contains one or more of the following dietary ingredients: A vitamin, a mineral, an herb or other botanical, an amino acid, a dietary substance for use by humans to supplement the diet by increasing the total dietary intake or a concentrate, metabolite, constituent, extract or combination of any such ingredient; (2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap or liquid form, or if not intended for ingestion, in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and (3) is required to be labeled as a dietary supplement, identifiable by the supplemental facts box found on the label and as required pursuant to 21 C.F.R. § 101.36;

(lll) all sales of tangible personal property and services purchased by special olympics Kansas, inc. for the purpose of providing year-round sports training and athletic competition in a variety of olympic-type sports for individuals with intellectual disabilities by giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy and participate in a sharing of gifts, skills and friendship with their families, other special olympics athletes and the community, and activities provided or sponsored by such organization, and all sales of tangible personal property by or on behalf of any such organization;

(mmm) all sales of tangible personal property purchased by or on behalf of the Marillac center, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing psycho-social-biological and special education services to children, and all sales of any such property by or on behalf of such organization for such purpose;

(nnn) all sales of tangible personal property and services purchased by the west Sedgwick county-sunrise rotary club and sunrise charitable fund for the purpose of constructing a boundless playground which is an integrated, barrier free and developmentally advantageous play environment for children of all abilities and disabilities;

(ooo) all sales of tangible personal property by or on behalf of a public library serving the general public and supported in whole or in part with tax money or a not-for-profit organization whose purpose is to raise funds for or provide services or other benefits to any such public library;

(ppp) all sales of tangible personal property and services purchased by or on behalf of a homeless shelter that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal income tax code of 1986, and used by any such homeless shelter to provide emergency and transitional housing for individuals and families experiencing homelessness, and all sales of any such property by or on behalf of any such homeless shelter for any such purpose;

(qqq) all sales of tangible personal property and services purchased by TLC for children and families, inc., hereinafter referred to as TLC, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and such property and services are used for the purpose of providing emergency shelter and treatment for abused and neglected children as well as meeting additional critical needs for children, juveniles and family, and all sales of any such property by or on behalf of TLC for any such purpose; and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for the operation of services for TLC for any such purpose that would be exempt from taxation under the provisions of this section if purchased directly by TLC. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities for TLC. When TLC contracts for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to TLC a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, TLC shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(rrr) all sales of tangible personal property and services purchased by any county law library maintained pursuant to law and sales of tangible personal property and services purchased by an organization that would have been exempt from taxation under the provisions of this subsection if purchased directly by the county law library for the purpose of providing legal resources to attorneys, judges, students and the general public, and all sales of any such property by or on behalf of any such county law library;

(sss) all sales of tangible personal property and services purchased by catholic charities or youthville, hereinafter referred to as charitable family providers, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such property and services are used for the purpose of providing emergency shelter and treatment for abused and neglected children as well as meeting additional critical needs for children, juveniles and family, and all sales of any such property by or on behalf of charitable family providers for any such purpose; and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for the operation of services for charitable family providers for any such purpose which would be exempt from taxation under the provisions of this section if purchased directly by charitable family providers. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities for charitable family providers. When charitable family providers contracts for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to charitable family providers a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, charitable family providers shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(ttt) all sales of tangible personal property or services purchased by a contractor for a project for the purpose of restoring, constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a home or facility owned by a nonprofit museum that has been granted an exemption pursuant to subsection (qq), which such home or facility is located in a city that has been designated as a qualified hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and amendments thereto, and which such project is related to the purposes of K.S.A. 75-5071 et seq., and amendments thereto, and that would be exempt from taxation under the provisions of this section if purchased directly by such nonprofit museum. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the restoring, constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a home or facility for any such nonprofit museum. When any such nonprofit museum shall contract for the purpose of restoring, constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a home or facility, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to such nonprofit museum a sworn statement on a form to be provided by the director of taxation that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in a home or facility or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such nonprofit museum shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(uuu) all sales of tangible personal property and services purchased by Kansas children's service league, hereinafter referred to as KCSL, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such property and services are used for the purpose of providing for the prevention and treatment of child abuse and maltreatment as well as meeting additional critical needs for children, juveniles and family, and all sales of any such property by or on behalf of KCSL for any such purpose; and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for the operation of services for KCSL for any such purpose that would be exempt from taxation under the provisions of this section if purchased directly by KCSL. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities for KCSL. When KCSL contracts for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to KCSL a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, KCSL shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(vvv) all sales of tangible personal property or services, including the renting and leasing of tangible personal property or services, purchased by jazz in the woods, inc., a Kansas corporation that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing jazz in the woods, an event benefiting children-in-need and other nonprofit charities assisting such children, and all sales of any such property by or on behalf of such organization for such purpose;

(www) all sales of tangible personal property purchased by or on behalf of the Frontenac education foundation, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing education support for students, and all sales of any such property by or on behalf of such organization for such purpose;

(xxx) all sales of personal property and services purchased by the booth theatre foundation, inc., an organization, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such personal property and services are used by any such organization in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling of the booth theatre, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling the booth theatre for such organization, that would be exempt from taxation under the provisions of this section if purchased directly by such organization. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization. When any such organization shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to such organization concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in such facilities or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in such facilities reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after January 1, 2007, but prior to the effective date of this act upon the gross receipts received from any sale which would have been exempted by the provisions of this subsection had such sale occurred after the effective date of this act shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee;

(yyy) all sales of tangible personal property and services purchased by TLC charities foundation, inc., hereinafter referred to as TLC charities, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such property and services are used for the purpose of encouraging private philanthropy to further the vision, values, and goals of TLC for children and families, inc.; and all sales of such property and services by or on behalf of TLC charities for any such purpose and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for the operation of services for TLC charities for any such purpose that would be exempt from taxation under the provisions of this section if purchased directly by TLC charities. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities for TLC charities. When TLC charities contracts for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to TLC charities a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be incorporated into the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, TLC charities shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(zzz) all sales of tangible personal property purchased by the rotary club of shawnee foundation, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, as amended, used for the purpose of providing contributions to community service organizations and scholarships;

(aaaa) all sales of personal property and services purchased by or on behalf of victory in the valley, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing a cancer support group and services for persons with cancer, and all sales of any such property by or on behalf of any such organization for any such purpose;

(bbbb) all sales of entry or participation fees, charges or tickets by Guadalupe health foundation, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for such organization's annual fundraising event which purpose is to provide health care services for uninsured workers;

(cccc) all sales of tangible personal property or services purchased by or on behalf of wayside waifs, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing such organization's annual fundraiser, an event whose purpose is to support the care of homeless and abandoned animals, animal adoption efforts, education programs for children and efforts to reduce animal over-population and animal welfare services, and all sales of any such property, including entry or participation fees or charges, by or on behalf of such organization for such purpose;

(dddd) all sales of tangible personal property or services purchased by or on behalf of goodwill industries or Easter seals of Kansas, inc., both of which are exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing education, training and employment opportunities for people with disabilities and other barriers to employment;

(eeee) all sales of tangible personal property or services purchased by or on behalf of all American beef battalion, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of educating, promoting and participating as a contact group through the beef cattle industry in order to carry out such projects that provide support and morale to members of the United States armed forces and military services;

(ffff) all sales of tangible personal property and services purchased by sheltered living, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such property and services are used for the purpose of providing residential and day services for people with developmental disabilities or intellectual disability, or both, and all sales of any such property by or on behalf of sheltered living, inc., for any such purpose; and all sales of tangible personal property or services purchased by a contractor for the purpose of rehabilitating, constructing, maintaining, repairing, enlarging, furnishing or remodeling homes and facilities for sheltered living, inc., for any such purpose that would be exempt from taxation under the provisions of this section if purchased directly by sheltered living, inc. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such homes and facilities for sheltered living, inc. When sheltered living, inc., contracts for the purpose of rehabilitating, constructing, maintaining, repairing, enlarging, furnishing or remodeling such homes and facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to sheltered living, inc., a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, sheltered living, inc., shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(gggg) all sales of game birds for which the primary purpose is use in hunting;

(hhhh) all sales of tangible personal property or services purchased on or after July 1, 2014, for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business identified under the North American industry classification system (NAICS) subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and installation of machinery and equipment purchased for installation at any such business. The exemption provided in this subsection shall not apply to projects that have actual total costs less than $50,000. When a person contracts for the construction, reconstruction, enlargement or remodeling of any such business, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to the owner of the business a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor of the contractor, who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(iiii) all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for the operation of services for Wichita children's home for any such purpose that would be exempt from taxation under the provisions of this section if purchased directly by Wichita children's home. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities for Wichita children's home. When Wichita children's home contracts for the purpose of constructing, maintaining, repairing, enlarging, furnishing or remodeling such facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to Wichita children's home a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, Wichita children's home shall be liable for the tax on all materials purchased for the project, and upon payment, it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(jjjj) all sales of tangible personal property or services purchased by or on behalf of the beacon, inc., that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of providing those desiring help with food, shelter, clothing and other necessities of life during times of special need;

(kkkk) all sales of tangible personal property and services purchased by or on behalf of reaching out from within, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, for the purpose of sponsoring self-help programs for incarcerated persons that will enable such incarcerated persons to become role models for non-violence while in correctional facilities and productive family members and citizens upon return to the community;

(llll) all sales of tangible personal property and services purchased by Gove county healthcare endowment foundation, inc., which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and which such property and services are used for the purpose of constructing and equipping an airport in Quinter, Kansas, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing and equipping an airport in Quinter, Kansas, for such organization, that would be exempt from taxation under the provisions of this section if purchased directly by such organization. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing or equipping of facilities for such organization. When such organization shall contract for the purpose of constructing or equipping an airport in Quinter, Kansas, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to such organization concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in such facilities or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in such facilities reported and paid by such contractor to the director of taxation no later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. The provisions of this subsection shall expire and have no effect on and after July 1, 2019;

(mmmm) all sales of gold or silver coins; and palladium, platinum, gold or silver bullion. For the purposes of this subsection, "bullion" means bars, ingots or commemorative medallions of gold, silver, platinum, palladium, or a combination thereof, for which the value of the metal depends on its content and not the form;

(nnnn) all sales of tangible personal property or services purchased by friends of hospice of Jefferson county, an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the purpose of providing support to the Jefferson county hospice agency in end-of-life care of Jefferson county families, friends and neighbors, and all sales of entry or participation fees, charges or tickets by friends of hospice of Jefferson county for such organization's fundraising event for such purpose;

(oooo) all sales of tangible personal property or services purchased for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a qualified business facility by a qualified firm or qualified supplier that meets the requirements established in K.S.A. 2025 Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has been approved for a project exemption certificate by the secretary of commerce, and the sale and installation of machinery and equipment purchased by such qualified firm or qualified supplier for installation at any such qualified business facility. When a person shall contract for the construction, reconstruction, enlargement or remodeling of any such qualified business facility, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to the owner of the qualified firm or qualified supplier a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. As used in this subsection, "qualified business facility," "qualified firm" and "qualified supplier" mean the same as defined in K.S.A. 2025 Supp. 74-50,311, and amendments thereto;

(pppp) (1) all sales of tangible personal property or services purchased by a not-for-profit corporation that is designated as an area agency on aging by the secretary for aging and disabilities services and is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code for the purpose of coordinating and providing seniors and those living with disabilities with services that promote person-centered care, including home-delivered meals, congregate meal settings, long-term case management, transportation, information, assistance and other preventative and intervention services to help service recipients remain in their homes and communities or for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for such area agency on aging; and

(2) all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for an area agency on aging that would be exempt from taxation under the provisions of this section if purchased directly by such area agency on aging. Nothing in this paragraph shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for an area agency on aging. When an area agency on aging contracts for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and such contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to such area agency on aging a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, the area agency on aging concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof, the area agency on aging may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

(qqqq) all sales of tangible personal property or services purchased by Kansas suicide prevention HQ, inc., an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the purpose of bringing suicide prevention training and awareness to communities across the state;

(rrrr) all sales of the services of slaughtering, butchering, custom cutting, dressing, processing and packaging of an animal for human consumption when the animal is delivered or furnished by a customer that owns the animal and such meat or poultry is for use or consumption by such customer;

(ssss) all sales of tangible personal property or services purchased by or on behalf of doorstep inc., an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the purpose of providing short-term emergency aid to families and individuals in need, including assistance with food, clothing, rent, prescription medications, transportation and utilities, and providing information on services to promote long-term self-sufficiency;

(tttt) on and after January 1, 2024, all sales of tangible personal property or services purchased by exploration place, inc., an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and which such property and services are used for the purpose of constructing, remodeling, furnishing or equipping a riverfront amphitheater, a destination playscape, an education center and indoor renovations at exploration place in Wichita, Kansas, all sales of tangible personal property or services purchased by Kansas children's discovery center inc. in Topeka, Kansas, and which such property and services are used for the purpose of constructing, remodeling, furnishing or equipping projects that include indoor-outdoor classrooms, an expanded multi-media gallery, a workshop and loading dock and safety upgrades such as a tornado shelter, lactation room, first aid room and sensory room and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, remodeling, furnishing or equipping such projects, for such organizations, that would be exempt from taxation under the provisions of this section if purchased directly by such organizations. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, remodeling, furnishing or equipping of facilities for such organization. When such organization shall contract for the purpose of constructing, remodeling, furnishing or equipping such projects, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to such organization a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in such facilities or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in such facilities reported and paid by such contractor to the director of taxation no later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization shall be liable for tax on all materials purchased for the project, and upon payment thereof may recover the same from the contractor together with reasonable attorney fees. Any contractor or agent, employee or subcontractor thereof, who purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after January 1, 2024, but prior to the effective date of this act, upon the gross receipts received from any sale exempted by the amendatory provisions of this subsection shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee. The provisions of this subsection shall expire and have no effect on and after December 31, 2030;

(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary components, appurtenances, accessories or other infrastructure purchased for use in the provision of communications services; and

(B) all services purchased by a provider in the provision of the communications service used in the repair, maintenance or installation in such communications service.

(2) As used in this subsection:

(A) "Communications service" means internet access service, telecommunications service, video service or any combination thereof.

(B) "Equipment, machinery, software, ancillary components, appurtenances, accessories or other infrastructure" includes, but is not limited to:

(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials and cases, power equipment, backup power equipment, diagnostic equipment, storage devices, modems, cable modem termination systems and servers;

(ii) other general central office or headend equipment, such as channel cards, frames and cabinets;

(iii) equipment used in successor technologies, including items used to monitor, test, maintain, enable or facilitate qualifying equipment, machinery, software, ancillary components, appurtenances and accessories; and

(iv) other infrastructure that is used in whole or in part to provide communications services, including broadcasting, distributing, sending, receiving, storing, transmitting, retransmitting, amplifying, switching, providing connectivity for or routing communications services.

(C) "Internet access service" means the same as internet access as defined in section 1105 of the internet tax freedom act amendments of 2007, public law 110-108.

(D) "Provider" means a person or entity that sells communications service, including an affiliate or subsidiary.

(E) "Telecommunications service" means the same as defined in K.S.A. 79-3602, and amendments thereto.

(F) "Video service" means the same as defined in K.S.A. 12-2022, and amendments thereto.

(3) The provisions of this subsection shall expire and have no effect on and after July 1, 2029;

(vvvv) (1) all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a building that is operated by, or is intended to be operated by, the Kansas fairgrounds foundation, a not-for-profit corporation exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and located on the grounds of the Kansas state fair, and such tangible personal property would be exempt from taxation under the provisions of this paragraph if purchased directly by such eligible not-for-profit corporation. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a building for such eligible not-for-profit corporation. When such eligible not-for-profit corporation contracts for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling a building, such corporation shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and such contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering such purchases bearing the number of such certificate. Upon completion of the project, the contractor shall furnish to such eligible not-for-profit corporation a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or returned for credit, the contractor shall report and pay the sales or compensating tax to the director of taxation not later than the 20th day of the month following the close of the month in which it is determined that such materials will not be used for the purpose for which such certificate was issued. The eligible not-for-profit corporation concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof, the eligible not-for-profit corporation may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto.

(2) Sales tax paid on and after May 19, 2023, but prior to the effective date of this act upon the gross receipts received from any sale which would have been exempted by the provisions of this subsection had such sale occurred after the effective date of this act shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee;

(wwww) (1) all sales of tangible personal property or services purchased by a pregnancy resource center or residential maternity facility.

(2) As used in this subsection, "pregnancy resource center" or "residential maternity facility" means an organization that is:

(A) Exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(B) a nonprofit organization organized under the laws of this state; and

(C) a pregnancy resource center or residential maternity facility that:

(i) Maintains a dedicated phone number for clients;

(ii) maintains in this state its primary physical office, clinic or residential home that is open for clients for a minimum of 20 hours per week, excluding state holidays;

(iii) offers services, at no cost to the client, for the express purpose of providing assistance to women in order to carry their pregnancy to term, encourage parenting or adoption, prevent abortion and promote healthy childbirth; and

(iv) utilizes trained healthcare providers, as defined by K.S.A. 2025 Supp. 79-32,316, and amendments thereto, to perform any available medical procedures; and

(xxxx) all sales of tangible personal property or services purchased for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a qualified data center by a qualified firm that meets the requirements established in K.S.A. 2025 Supp. 74-50,331 through 74-50,333, and amendments thereto, and has been approved and certified for a project exemption certificate by the secretary of commerce, the sale and installation of machinery and data center equipment and eligible data center costs purchased by such qualified firm for such qualified data center and labor services to install, apply, repair, service, alter or maintain data center equipment of such qualified firm at such qualified data center. When a person contracts for the construction, reconstruction, enlargement or remodeling of any such qualified data center, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering such purchases bearing the number of such certificates. Upon completion of the project, the contractor shall furnish to the owner of the qualified firm a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. As used in this subsection, "data center equipment," "eligible data center costs," "qualified data center" and "qualified firm" mean the same as defined in K.S.A. 2025 Supp. 74-50,331, and amendments thereto.

History: L. 1937, ch. 374, § 6; L. 1938, ch. 77, § 1; L. 1941, ch. 382, § 2; L. 1947, ch. 463, § 3; L. 1949, ch. 488, § 1; L. 1957, ch. 509, § 4; L. 1961, ch. 457, § 1; L. 1961, ch. 458, § 1; L. 1963, ch. 494, § 1; L. 1964, ch. 39, § 1 (Budget Session); L. 1965, ch. 534, § 1; L. 1966, ch. 47, § 1 (Budget Session); L. 1967, ch. 500, § 1; L. 1970, ch. 389, § 4; L. 1971, ch. 320, § 1; L. 1971, ch. 321, § 3; L. 1977, ch. 337, § 3; L. 1978, ch. 416, § 1; L. 1978, ch. 415, § 2; L. 1979, ch. 326, § 2; L. 1979, ch. 327, § 1; L. 1980, ch. 323, § 1; L. 1980, ch. 322, § 2; L. 1981, ch. 376, § 5; L. 1981, ch. 391, § 1; L. 1982, ch. 420, § 1; L. 1982, ch. 419, § 1; L. 1982, ch. 421, § 1; L. 1984, ch. 362, § 1; L. 1985, ch. 331, § 1; L. 1986, ch. 384, § 1; L. 1986, ch. 385, § 6; L. 1987, ch. 292, § 32; L. 1987, ch. 64, § 1; L. 1988, ch. 386, § 3; L. 1989, ch. 302, § 1; L. 1991, ch. 33, § 42; L. 1992, ch. 280, § 60; L. 1994, ch. 2, § 4; L. 1994, ch. 325, § 1; L. 1995, ch. 242, § 4; L. 1996, ch. 264, § 7; L. 1997, ch. 126, § 32; L. 1997, ch. 185, § 7; L. 1998, ch. 12, § 27; L. 1998, ch. 130, § 31; L. 1998, ch. 188, § 7; L. 1999, ch. 154, § 6; L. 1999, ch. 154, § 75; L. 2000, ch. 123, § 1; L. 2000, ch. 140, § 10; L. 2001, ch. 146, § 1; L. 2001, ch. 199, § 3; L. 2003, ch. 147, § 7; L. 2004, ch. 88, § 18; L. 2004, ch. 171, § 8; L. 2005, ch. 50, § 1; L. 2006, ch. 135, § 4; L. 2006, ch. 202, § 2; L. 2007, ch. 155, § 5; L. 2008, ch. 182, § 24; L. 2009, ch. 142, § 8; L. 2011, ch. 116, § 12; L. 2012, ch. 91, § 74; L. 2013, ch. 119, § 22; L. 2014, ch. 86, § 8; L. 2014, ch. 132, § 6; L. 2015, ch. 99, § 33; L. 2015, ch. 102, § 7; L. 2016, ch. 84, § 6; L. 2018, ch. 71, § 30; L. 2019, ch. 63, § 3; L. 2021, ch. 83, § 2; L. 2022, ch. 3, § 16; L. 2023, ch. 92, § 9; L. 2024, ch. 94, § 5; L. 2024, ch. 100, § 15; L. 2025, ch. 124, § 6; July 1.

§ 79-3606a Repealed

History: L. 1937, ch. 374, § 6; L. 1938, ch. 77, § 1; L. 1941, ch. 382, § 2; L. 1947, ch. 463, § 3; L. 1949, ch. 488, § 1; L. 1957, ch. 509, § 4; L. 1961, ch. 457, § 1; L. 1961, ch. 458, § 1; L. 1963, ch. 494, § 1; L. 1964, ch. 39, § 1 (Budget Session); L. 1965, ch. 534, § 1; L. 1966, ch. 47, § 1 (Budget Session); L. 1967, ch. 500, § 1; L. 1970, ch. 389, § 4; L. 1971, ch. 320, § 1; L. 1971, ch. 321, § 3; L. 1977, ch. 337, § 3; L. 1978, ch. 416, § 1; L. 1978, ch. 415, § 2; L. 1979, ch. 326, § 2; L. 1979, ch. 327, § 1; L. 1980, ch. 323, § 1; L. 1980, ch. 322, § 2; L. 1981, ch. 376, § 5; L. 1981, ch. 391, § 1; L. 1982, ch. 420, § 1; L. 1982, ch. 419, § 1; L. 1982, ch. 421, § 1; L. 1984, ch. 362, § 1; L. 1985, ch. 331, § 1; L. 1986, ch. 384, § 1; L. 1986, ch. 385, § 6; L. 1987, ch. 292, § 32; L. 1987, ch. 64, § 1; L. 1988, ch. 386, § 3; L. 1989, ch. 302, § 1; L. 1991, ch. 33, § 42; L. 1992, ch. 202, § 13; Repealed, L. 1994, ch. 2, § 5; February 17.

§ 79-3606b Repealed

History: L. 1937, ch. 374, § 6; L. 1938, ch. 77, § 1; L. 1941, ch. 382, § 2; L. 1947, ch. 463, § 3; L. 1949, ch. 488, § 1; L. 1957, ch. 509, § 4; L. 1961, ch. 457, § 1; L. 1961, ch. 458, § 1; L. 1963, ch. 494, § 1; L. 1964, ch. 39, § 1 (Budget Session); L. 1965, ch. 534, § 1; L. 1966, ch. 47, § 1 (Budget Session); L. 1967, ch. 500, § 1; L. 1970, ch. 389, § 4; L. 1971, ch. 320, § 1; L. 1971, ch. 321, § 3; L. 1977, ch. 337, § 3; L. 1978, ch. 416, § 1; L. 1978, ch. 415, § 2; L. 1979, ch. 326, § 2; L. 1979, ch. 327, § 1; L. 1980, ch. 323, § 1; L. 1980, ch. 322, § 2; L. 1981, ch. 376, § 5; L. 1981, ch. 391, § 1; L. 1982, ch. 420, § 1; L. 1982, ch. 419, § 1; L. 1982, ch. 421, § 1; L. 1984, ch. 362, § 1; L. 1985, ch. 331, § 1; L. 1986, ch. 384, § 1; L. 1986, ch. 385, § 6; L. 1987, ch. 292, § 32; L. 1987, ch. 64, § 1; L. 1988, ch. 386, § 3; L. 1989, ch. 302, § 1; L. 1991, ch. 33, § 42; L. 1992, ch. 102; § 9; L. 1992, ch. 279, § 5; Repealed, L. 1994, ch. 2, § 5; February 17.

§ 79-3606c Repealed

History: L. 1937, ch. 374, § 6; L. 1938, ch. 77, § 1; L. 1941, ch. 382, § 2; L. 1947, ch. 463, § 3; L. 1949, ch. 488, § 1; L. 1957, ch. 509, § 4; L. 1961, ch. 457, § 1; L. 1961, ch. 458, § 1; L. 1963, ch. 494, § 1; L. 1964, ch. 39, § 1 (Budget Session); L. 1965, ch. 534, § 1; L. 1966, ch. 47, § 1 (Budget Session); L. 1967, ch. 500, § 1; L. 1970, ch. 389, § 4; L. 1971, ch. 320, § 1; L. 1971, ch. 321, § 3; L. 1977, ch. 337, § 3; L. 1978, ch. 416, § 1; L. 1978, ch. 415, § 2; L. 1979, ch. 326, § 2; L. 1979, ch. 327, § 1; L. 1980, ch. 323, § 1; L. 1980, ch. 322, § 2; L. 1981, ch. 376, § 5; L. 1981, ch. 391, § 1; L. 1982, ch. 420, § 1; L. 1982, ch. 419, § 1; L. 1982, ch. 421, § 1; L. 1984, ch. 362, § 1; L. 1985, ch. 331, § 1; L. 1986, ch. 384, § 1; L. 1986, ch. 385, § 6; L. 1987, ch. 292, § 32; L. 1987, ch. 64, § 1; L. 1988, ch. 386, § 3; L. 1989, ch. 302, § 1; L. 1991, ch. 33, § 42; L. 1992, ch. 280, § 60; L. 1994, ch. 2, § 4; L. 1994, ch. 354, § 5; Repealed, L. 1995, ch. 242, § 6; July 1.

§ 79-3606d Exempt sales of fencing materials and services; exemption certificate

(a) (1) The following shall be exempt from the tax imposed by the Kansas retailers' sales tax act: All sales of tangible personal property and services purchased on and after January 1, 2021, and purchased within two years of the date of the applicable disaster declaration necessary to reconstruct, repair or replace any fence that was damaged or destroyed by a wildfire, flood, tornado or other natural disaster occurring on and after January 1, 2021, and the purpose for which is to enclose land devoted to agricultural use.

(2) A taxpayer shall be eligible for the exemption pursuant to this section if the affected property containing the damaged or destroyed fencing is located within an area declared to be a disaster by the federal, state or local government.

(3) Sales tax paid on and after January 1, 2021, upon the gross receipts received from any such sale shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this section. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee. Any person reconstructing, repairing or replacing such property, or any person who shall contract for the reconstruction, repair or replacement of any such property shall obtain from the state an exemption certificate for the project involved. The certificate shall be furnished to the person or contractor to purchase materials and lease machinery and equipment for such project. The person or contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the person that obtained the exemption certificate, a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection.

(4) As used in this subsection, "wildfire" means a fire that spreads rapidly over grassland, woodland or brush creating unwanted and unplanned destruction.

(b) On and after July 1, 2022, all sales of tangible personal property and services necessary to construct, reconstruct, repair or replace any fence that is used to enclose land devoted to agricultural use shall be exempt from the tax imposed by the Kansas retailers' sales tax act.

(c) The provisions of this section shall be a part of and supplemental to the Kansas retailers' sales tax act.

History: L. 1996, ch. 237, § 1; L. 2016, ch. 84, § 7; L. 2017, ch. 4, § 1; L. 2022, ch. 63, § 45; July 1.

§ 79-3606e Exemption for sales and services used in rebuilding or replacing business property damaged by severe weather on May 4, 2007; exemption certificate

The following shall be exempt from the tax imposed under the Kansas retailers' sales tax act: All sales of tangible personal property or services purchased for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business facility that was previously located in Kiowa County, Kansas, prior to May 4, 2007, and that has been damaged or destroyed by tornado and other severe weather on May 4, 2007, and the sale and installation of machinery and equipment purchased for installation at any such business facility, including any fence, the purpose for which is to enclose land devoted to agricultural use. Any person constructing, reconstructing, remodeling or enlarging a business facility in Kiowa County, Kansas, who had leased such a facility to a business in Kiowa County, Kansas, prior to May 4, 2007, and that such business has been damaged or destroyed by tornado and other severe weather on May 4, 2007, and which such facility shall be leased in whole or in part, to a business that was previously located in Kiowa County, Kansas, prior to May 4, 2007, and that such business has been damaged by tornado and other severe weather on May 4, 2007, that would be eligible for a sales tax exemption hereunder if such business had constructed, reconstructed, enlarged or remodeled such facility or portion thereof itself shall be entitled to the sales tax exemption under the provisions of this section. When a person shall contract for the construction, reconstruction, enlargement or remodeling of any such business facility, such person shall obtain from the state prior to June 30, 2009, an exemption certificate for the project involved. The certificate shall be furnished to the contractor to purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the person that obtained the exemption certificate, a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) [(h)] of K.S.A. 79-3615, and amendments thereto. The provisions of this section shall be part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2007, ch. 202, § 2; L. 2008, ch. 182, § 25; June 5.

§ 79-3606f Exemption for sales and services used rebuilding or replacing business property damaged by flooding and other severe weather subject to major disaster declaration DR 1711; exemption certificate

The following shall be exempt from the tax imposed under the Kansas retailers' sales tax act: All sales of tangible personal property or services purchased for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business facility that was previously located in any county declared or designated by the president to be in a state of disaster emergency pursuant to major disaster declaration DR 1711, and that has been damaged or destroyed by flooding and other severe weather as a result of such disaster, and the sale and installation of machinery and equipment purchased for installation at any such business facility, including any fence, the purpose for which is to enclose land devoted to agricultural use. Any person constructing, reconstructing, remodeling or enlarging a business facility in any such county, who had leased such a facility to a business in any such county prior to the occurrence of such disaster, and that such business has been damaged or destroyed by flooding and other severe weather as a result of such disaster, and which such facility shall be leased in whole or in part, to a business that was previously located in any such county, prior to the occurrence of such disaster and that such business has been damaged by flooding and other severe weather as a result of such disaster, that would be eligible for a sales tax exemption hereunder if such business had constructed, reconstructed, enlarged or remodeled such facility or portion thereof itself shall be entitled to the sales tax exemption under the provisions of this section. When a person shall contract for the construction, reconstruction, enlargement or remodeling of any such business facility, such person shall obtain from the state prior to June 30, 2009, an exemption certificate for the project involved. The certificate shall be furnished to the contractor to purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the person that obtained the exemption certificate, a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) [(h)] of K.S.A. 79-3615, and amendments thereto. Sales tax paid on and after the occurrence of the disaster provided for in this section, but prior to the effective date of this act upon the gross receipts received from any sale which would have been exempted by the provisions of this subsection had such sale occurred after the effective date of this act shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee. The provisions of this section shall be part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2008, ch. 182, § 11; June 5.

§ 79-3606g Repealed

History: L. 1937, ch. 374, § 6; L. 1938, ch. 77, § 1; L. 1941, ch. 382, § 2; L. 1947, ch. 463, § 3; L. 1949, ch. 488, § 1; L. 1957, ch. 509, § 4; L. 1961, ch. 457, § 1; L. 1961, ch. 458, § 1; L. 1963, ch. 494, § 1; L. 1964, ch. 39, § 1 (Budget Session); L. 1965, ch. 534, § 1; L. 1966, ch. 47, § 1 (Budget Session); L. 1967, ch. 500, § 1; L. 1970, ch. 389, § 4; L. 1971, ch. 320, § 1; L. 1971, ch. 321, § 3; L. 1977, ch. 337, § 3; L. 1978, ch. 416, § 1; L. 1978, ch. 415, § 2; L. 1979, ch. 326, § 2; L. 1979, ch. 327, § 1; L. 1980, ch. 323, § 1; L. 1980, ch. 322, § 2; L. 1981, ch. 376, § 5; L. 1981, ch. 391, § 1; L. 1982, ch. 420, § 1; L. 1982, ch. 419, § 1; L. 1982, ch. 421, § 1; L. 1984, ch. 362, § 1; L. 1985, ch. 331, § 1; L. 1986, ch. 384, § 1; L. 1986, ch. 385, § 6; L. 1987, ch. 292, § 32; L. 1987, ch. 64, § 1; L. 1988, ch. 386, § 3; L. 1989, ch. 302, § 1; L. 1991, ch. 33, § 42; L. 1992, ch. 280, § 60; L. 1994, ch. 2, § 4; L. 1994, ch. 325, § 1; L. 1995, ch. 242, § 4; L. 1996, ch. 264, § 7; L. 1997, ch. 126, § 32; L. 1997, ch. 185, § 7; L. 1998, ch. 12, § 27; L. 1998, ch. 130, § 31; L. 1998, ch. 188, § 7; L. 1999, ch. 154, § 6; L. 1999, ch. 154, § 75; L. 2000, ch. 123, § 1; L. 2000, ch. 140, § 10; L. 2001, ch. 146, § 1; L. 2001, ch. 199, § 3; L. 2003, ch. 147, § 7; L. 2004, ch. 88, § 18; L. 2004, ch. 171, § 8; L. 2005, ch. 50, § 1; L. 2006, ch. 135, § 4; L. 2006, ch. 202, § 2; L. 2007, ch. 155, § 5; L. 2008, ch. 182, § 24; L. 2009, ch. 142, § 8; L. 2011, ch. 115, § 15; Repealed, L. 2012, ch. 91, § 75; July 1.

§ 79-3606h Exempt sales for purchases made by 100% disabled residents who have been honorably discharged from the armed forces

(a) On and after July 1, 2026, notwithstanding any provision of law to the contrary, all sales of tangible personal property or services, except sales of motor vehicles, alcoholic beverages, tobacco, electronic cigarettes as defined by K.S.A. 79-3301, and amendments thereto, and consumable material as defined by K.S.A. 79-3399, and amendments thereto, for such electronic cigarettes, to persons who are residents of this state and have been honorably discharged from active service in any branch of the armed forces of the United States and who are certified by the United States department of veterans affairs or its successor to have a 100% disability or be deemed totally disabled or unemployable, provided that the disability is permanent and was sustained through military action or accident or resulted from disease contracted while in such active service, shall be exempt from the tax imposed by the Kansas retailers' sales tax act. Sales of items or services for the benefit of the eligible person, as provided by this section, that are purchased on behalf of such eligible person by a spouse or by a member of the household in which the eligible person resides and who is authorized to make purchases on the eligible person's behalf shall also be exempt for purposes of this section. The surviving spouse of an eligible person who was receiving an exemption pursuant to this section at the time of such person's death shall be eligible to continue to receive such exemption until the surviving spouse remarries. This exemption shall apply only to such property and services that are used or will be used for the personal use of the eligible person or such person's spouse or surviving spouse and not used for the production of income.

(b) Sales qualifying for the exemption authorized by this section shall not exceed $24,000 per year per eligible person.

(c) Prior to claiming any such exemption, an eligible person claiming an exemption pursuant to this section shall apply to and obtain from the secretary of revenue a veteran exemption identification number. The secretary shall prescribe the application form for such number, and such eligible person shall provide with the application information sufficient to establish that such eligible person qualifies for the sales tax exemption. The department of revenue shall also provide to each qualifying eligible person an exemption certificate in the form of a driver's-license-size card that includes the veteran exemption identification number of such eligible person and any other information necessary to prove eligibility to any retailer. Such eligible person shall present the exemption certificate card or enter the issued identification number on any exemption certificate presented to any retailer when claiming the sales tax exemption on any qualifying purchases.

(d) Upon request of the secretary, an eligible person asserting or claiming the exemption authorized by this section shall provide a statement, executed under oath, that the total sales amounts for which the exemption is applicable have not exceeded the individual taxpayer's yearly limit prescribed by this section. If the amount of such exempt sales exceeds such prescribed limit, the sales tax in excess of the authorized amount shall be treated as a direct sales tax liability and may be recovered by the department of revenue in the same manner as provided by the Kansas retailers' sales tax act.

(e) This section shall be a part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2024, ch. 94, § 1; July 1.

§ 79-3607 Time for returns and payment of tax; forms; extension of time; exceptions; electronic filing

(a) Retailers shall make returns to the director at the times prescribed by this section in the manner prescribed by the director, including electronic filing, upon forms or format prescribed by the director stating: (1) The name and address of the retailer; (2) the total amount of gross sales of all tangible personal property and taxable services rendered by the retailer during the period for which the return is made; (3) the total amount received during the period for which the return is made on charge and time sales of tangible personal property made and taxable services rendered prior to the period for which the return is made; (4) deductions allowed by law from such total amount of gross sales and from total amount received during the period for which the return is made on such charge and time sales; (5) receipts during the period for which the return is made from the total amount of sales of tangible personal property and taxable services rendered during such period in the course of such business, after deductions allowed by law have been made; (6) receipts during the period for which the return is made from charge and time sales of tangible personal property made and taxable services rendered prior to such period in the course of such business, after deductions allowed by law have been made; (7) gross receipts during the period for which the return is made from sales of tangible personal property and taxable services rendered in the course of such business upon the basis of which the tax is imposed. The return shall include such other pertinent information as the director may require. In making such return, the retailer shall determine the market value of any consideration, other than money, received in connection with the sale of any tangible personal property in the course of the business and shall include such value in the return. Such value shall be subject to review and revision by the director as hereinafter provided. Refunds made by the retailer during the period for which the return is made on account of tangible personal property returned to the retailer shall be allowed as a deduction under paragraph (4) in case the retailer has theretofore included the receipts from such sale in a return made by such retailer and paid taxes therein imposed by this act. The retailer shall, at the time of making such return, pay to the director the amount of tax herein imposed, except as otherwise provided in this section. The director may extend the time for making returns and paying the tax required by this act for any period not to exceed 60 days under such rules and regulations as the secretary of revenue may prescribe.

(b) (1) When the total tax for which any retailer is liable under this act, does not exceed the sum of $400 in any calendar year, the retailer shall file an annual return on or before January 25 of the following year. When the total tax liability does not exceed $4,000 in any calendar year, the retailer shall file returns quarterly on or before the 25th day of the month following the end of each calendar quarter. When the total tax liability exceeds $4,000 in any calendar year, the retailer shall file a return for each month on or before the 25th day of the following month. The provisions of this paragraph shall expire on December 31, 2023.

(2) On and after January 1, 2024, the retailer shall file:

(A) An annual return on or before January 25 of the following year when the total tax for which any retailer is liable under this act does not exceed the sum of $1,000 in any calendar year;

(B) returns quarterly on or before the 25th day of the month following the end of each calendar quarter when the total tax liability does not exceed $5,000 in any calendar year; or

(C) a return for each month on or before the 25th day of the following month when the total tax liability exceeds $5,000 in any calendar year.

(3) Determinations of amounts of liability in a calendar year for purposes of determining filing requirements shall be made by the director upon the basis of amounts of liability by those retailers during the preceding calendar year or by estimates in cases of retailers having no previous sales tax histories. The director is hereby authorized to modify the filing schedule for any retailer when it is apparent that the original determination was inaccurate.

(c) All model 1, model 2 and model 3 sellers are required to file returns electronically. Any model 1, model 2 or model 3 seller may submit its sales and use tax returns in a simplified format approved by the director. Any seller that is registered under the agreement, which does not have a legal requirement to register in this state, and is not a model 1, model 2 or model 3 seller, may submit its sales and use tax returns as follows:

(1) Upon registration, the director shall provide to the seller the returns required;

(2) seller shall file a return anytime within one year of the month of initial registration, and future returns are required on an annual basis in succeeding years; and

(3) in addition to the returns required in subsection (c)(2), sellers are required to submit returns in the month following any month in which they have accumulated state and local sales tax funds for this state in the amount of $1,600 or more.

History: L. 1937, ch. 374, § 7; L. 1938, ch. 78, § 1; L. 1965, ch. 533, § 2; L. 1967, ch. 501, § 1; L. 1978, ch. 417, § 1; L. 1983, ch. 331, § 1; L. 1986, ch. 386, § 2; L. 2003, ch. 147, § 8; L. 2004, ch. 171, § 9; L. 2010, ch. 123, § 11; L. 2017, ch. 99, § 9; L. 2022, ch. 98, § 18; July 1.

§ 79-3608 Registration certificates; application; display; revocation by director, when, notice, hearing; appointment of agent; sellers registering under streamlined sales and use tax agreement; unlawful acts

(a) Except as otherwise provided, it shall be unlawful for any person to engage in the business of selling tangible personal property at retail or furnishing taxable services in this state without a registration certificate from the director of taxation. Application for such certificate shall be made to the director upon forms furnished by the director, and shall state the name of the applicant, the address or addresses at which the applicant proposes to engage in such business, and the character of such business. Utilities taxable under this act shall not be required to register but shall comply with all other provisions of this act. The taxpayer may be registered by an agent. Such appointment of the agent by the taxpayer shall be in writing and submitted to the director. The taxpayer shall be issued a registration certificate to engage in the business for which application is made unless the applicant at the time of making such application owes any sales tax, penalty or interest, and in such case, before a registration certificate is issued, the director of taxation shall require the applicant to pay the amount owed.

(b) A separate registration certificate shall be issued for each place of business, and shall be conspicuously displayed therein.

(c) A seller registering under the agreement is considered registered in this state and shall not be required to pay any registration fees or other charges to register in this state if the seller has no legal requirement to register. A written signature from the seller registering under the agreement is not required. An agent may register a seller under uniform procedures determined by the secretary. A seller may cancel its registration under the system at any time under uniform procedures determined by the secretary. Cancellation does not relieve the seller of its liability for remitting to this state any taxes collected.

(d) The secretary may suspend or revoke the registration certificate of any taxpayer found in default for a period of at least 60 days in the payment of any retailer's sales tax or in the filing of any return. Prior to taking any action, the secretary shall provide the taxpayer 30 days' notice of the time and place of a hearing to be conducted pursuant to the Kansas administrative procedure act to show cause why such registration certificate should not be suspended or revoked. A suspended or revoked registration certificate shall not be reinstated until all outstanding tax, penalty and interest liabilities are satisfied. A suspension or revocation pursuant to this subsection shall be applicable to any individual who is a responsible party for the collection or payment of retailer's sales tax as provided by subsection (a) of K.S.A. 79-3643, and amendments thereto.

(e) It shall be unlawful for any person to engage in the business of selling tangible personal property at retail or furnishing taxable services in this state after such person's registration certificate has been suspended or revoked.

History: L. 1937, ch. 374, § 8; L. 1943, ch. 290, § 8; L. 1947, ch. 463, § 4; L. 1957, ch. 429, § 29; L. 1988, ch. 389, § 3; L. 1992, ch. 198, § 1; L. 2003, ch. 147, § 9; L. 2007, ch. 155, § 18; July 1.

§ 79-3608a Repealed

History: L. 1937, ch. 374, § 8; L. 1943, ch. 290, § 8; L. 1947, ch. 463, § 4; L. 1957, ch. 429, § 29; L. 1988, ch. 356, § 342; Repealed, L. 1992, ch. 198, § 8; July 1.

§ 79-3609 Books and records; inspection; preservation; actions for collection; exemption certificates, requirements; refunds and credits; limitations; extension of period for making assessment or filing refund claim; interest on overpayments; payment of certain refunds of tax paid on manufacturing and processing equipment

(a) Every person engaged in the business of selling tangible personal property at retail or furnishing services taxable in this state, shall keep records and books of all such sales, together with invoices, bills of lading, sales records, copies of bills of sale and other pertinent papers and documents. Such books and records and other papers and documents shall, at all times during business hours of the day, be available for and subject to inspection by the director, or the director's duly authorized agents and employees, for a period of three years from the last day of the calendar year or of the fiscal year of the retailer, whichever comes later, to which the records pertain. Such records shall be preserved during the entire period during which they are subject to inspection by the director, unless the director in writing previously authorizes their disposal. Any person selling tangible personal property or furnishing taxable services shall be prohibited from asserting that any sales are exempt from taxation unless the retailer has in the retailer's possession a properly executed exemption certificate provided by the consumer claiming the exemption, except as follows: (1) A retailer is relieved of liability for tax otherwise applicable if the retailer obtains a fully completed exemption certificate or captures the relevant data elements required by the director within 90 days subsequent to the date of the sale; or (2) if the retailer has not obtained an exemption certificate or all relevant data elements, the retailer, within 120 days subsequent to a request for substantiation by the director, either may obtain a fully completed exemption certificate from the purchaser, taken in good faith which meets the requirements specified in this subsection, or obtain other information establishing that the transaction was not subject to tax. Otherwise, the sales shall be deemed to be taxable sales under this act. The seller shall obtain an exemption certificate that claims an exemption that was authorized pursuant to Kansas law on the date of the transaction in the jurisdiction where the transaction is sourced pursuant to law, could be applicable to the item being purchased and is reasonable for the purchaser's type of business. If the seller obtains an exemption certificate or other information as described in this subsection, the seller is relieved of any liability for the tax on the transaction unless it is discovered through the audit process that the seller had knowledge or had reason to know at the time such information was provided that the information relating to the exemption claimed was materially false or the seller otherwise knowingly participated in activity intended to purposefully evade the tax that is properly due on the transaction, and it must be established that the seller had knowledge or had reason to know at the time the information was provided that the information was materially false.

(b) The amount of tax imposed by this act is to be assessed within three years after the return is filed, and no proceedings in court for the collection of such taxes shall begin after the expiration of such period. In the case of a false or fraudulent return with intent to evade tax, the tax may be assessed or a proceeding in court for collection of such tax may begin at any time within two years from the discovery of such fraud. No assessment shall be made for any period preceding the date of registration of the retailer by more than three years except in cases of fraud. For any refund or credit claim filed after July 1, 2011, no refund or credit shall be allowed by the director after three years from the due date of the return for the reporting period as provided by K.S.A. 79-3607, and amendments thereto, unless before the expiration of such period a claim therefor is filed by the taxpayer, and, except as otherwise provided in K.S.A. 79-3694, and amendments thereto, no suit or action to recover on any claim for refund shall be commenced, until after the expiration of six months from the date of filing such claim satisfying the requirements specified by K.S.A. 79-3693, and amendments thereto, therefor with the director. A refund claim shall not be deemed filed unless such claim is complete as required by K.S.A. 79-3693, and amendments thereto. For all mailed returns, including refund claims, each return or refund claim shall be presumed to have been filed with the department on the postmark date of such return or refund claim or if such date is illegible, the date three days prior to the date such return or refund claim is received.

(c) Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for refund, the director is hereby authorized to enter into an agreement in writing with the taxpayer consenting to the extension of the periods of limitations for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the period of limitations. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. In consideration of such agreement or agreements, interest due in excess of 48 months on any additional tax shall be waived.

(d) Interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto, shall be allowed on any overpayment of tax computed from the filing date of the return claiming the refund, except that no interest shall be allowed on any such refund if the same is paid within 120 days after the filing date of the return claiming the refund or the date of payment, whichever is later, provided that such return or refund claim satisfies the requirements specified by K.S.A. 79-3693, and amendments thereto, at the time the return or refund claim is received.

(e) Notwithstanding any other provision of this section or the provisions of the Kansas compensating tax act:

(1) (A) Any claim for refund of tax imposed by the Kansas retailers' sales tax act or the Kansas compensating tax act based upon the provisions of subsection (kk) of K.S.A. 79-3606 in existence prior to its amendment by this act which is without dispute shall be allowed, but, with respect to any claim exceeding $10,000, the refund associated therewith shall not be paid until after 510 days from the date such claim was filed and shall not include interest from such date. As used in this subparagraph, a claim for refund without dispute shall not include any claim the basis for which is a judicial or quasi-judicial interpretation of such subsection occurring after the effective date of this act.

(B) Any refund of tax resulting from a final determination or adjudication with regard to any claim submitted or to be submitted for refund of tax imposed by the Kansas retailers' sales tax act or the Kansas compensating tax act based upon the provisions of subsection (kk) of K.S.A. 79-3606 in existence prior to its amendment by this act not described by subparagraph (A) shall, with respect to any refund exceeding $50,000, be paid in equal annual installments over 10 years commencing with the year of such final determination or adjudication. Interest shall not accrue during the time period of such payment.

(2) No claim for refund of tax imposed by the Kansas retailers' sales tax act or the Kansas compensating tax act based upon the application of the provisions of subsection (n) of K.S.A. 79-3606, and amendments thereto, pursuant to its interpretation by the court of appeals of the state of Kansas in its opinion filed on August 13, 1999, in the case entitled In re appeal of Water District No. 1 of Johnson County shall be allowed for tax paid prior to the effective date of this act. The provisions of this subsection shall not be applicable to water district no. 1 of Johnson county.

History: L. 1937, ch. 374, § 9; L. 1947, ch. 463, § 5; L. 1969, ch. 465, § 1; L. 1977, ch. 339, § 1; L. 1988, ch. 386, § 5; L. 1992, ch. 198, § 2; L. 1997, ch. 126, § 2; L. 2000, ch. 123, § 2; L. 2007, ch. 155, § 6; L. 2009, ch. 142, § 9; L. 2010, ch. 123, § 12; L. 2011, ch. 88, § 6; July 1.

§§ 79-3609a through 79-3609d Repealed

History: L. 1963, ch. 496, §§ 1 to 4; Repealed, L. 1964, ch. 40, § 6 (Budget Session); L. 1965, ch. 533, § 4; May 1.

§ 79-3610 Examination of returns; final determinations; notice; informal conferences; jeopardy assessments

The director of taxation shall examine all returns filed under the provisions of this act, and shall issue final determinations of tax liability hereunder in the manner prescribed by K.S.A. 79-3226, and amendments thereto, relating to income taxes. Any determination may be made on the basis of a generally recognized valid and reliable sampling technique, whether or not the person being audited has complete records of transactions and whether or not such person consents. In any such case, the director shall notify the taxpayer in writing of the sampling technique to be utilized, including the design and population of such sample. If the taxpayer demonstrates that any such technique used was not in accordance with generally recognized sampling techniques, the audit shall be dismissed with respect to that portion of the audit based upon such technique, and a new audit shall be performed. Within 60 days after the mailing of notice of the director's determination any taxpayer may request an informal conference with the secretary of revenue or the secretary's designee relating to such taxpayer's tax liability, including the issue of whether the use of a generally recognized sampling technique achieved a result that was reflective of the taxpayer's actual tax liability, and an informal conference thereon shall be conducted and the secretary of revenue or the secretary's designee shall make a final determination and give the taxpayer notice thereof. In case any person required by the provisions of this act to make a return fails or refuses to do so, the secretary of revenue or the secretary's designee, after notice to such person, shall make a final determination of the amount of such tax according to the best judgment and information of the secretary of revenue or the secretary's designee.

Whenever the director of taxation has reason to believe that a person liable for tax under any provisions of the Kansas retailers' sales tax act is about to depart from the state or to remove such person's property therefrom, or to conceal oneself or such person's property therein, or to do any other act tending to prejudice, jeopardize or render wholly or partly ineffectual the collection of such sales tax unless proceedings be brought without delay, the director shall immediately make an assessment for all sales taxes due from such taxpayer, noting such finding on the assessment. The assessment shall be made on the basis of emergency proceedings in accordance with the provisions of K.S.A. 77-536 and amendments thereto. Thereupon a warrant shall forthwith be issued for the collection of the tax as provided in K.S.A. 79-3235, and amendments thereto. The taxpayer may within 15 days from the date of filing of such warrant request an informal conference with the secretary or the secretary's designee on the correctness of the jeopardy assessment.

History: L. 1937, ch. 374, § 10; L. 1943, ch. 290, § 9; L. 1947, ch. 463, § 6; L. 1957, ch. 429, § 30; L. 1987, ch. 391, § 1; L. 1988, ch. 356, § 343; L. 1992, ch. 65, § 2; L. 1997, ch. 126, § 12; July 1.

§ 79-3611 Investigations and hearings

For the purpose of ascertaining the correctness of any return, or for the purpose of determining the amount of tax due from any person engaged in the business of selling tangible personal property at retail, or furnishing services taxable hereunder, the director of taxation, or any officer or employee of the director of taxation designated, in writing, may hold investigations and hearings concerning any matters covered by this act, and may examine any books, papers, records, or memoranda bearing upon such sales of any such person, and may require the attendance of such person or any officer or employee of such person, or of any person having knowledge of such sales, and may take testimony and require proof for its information. In the conduct of any investigation or hearing, neither the director nor any officer or employee thereof shall be bound by the technical rules of evidence, and no informality in any proceeding, or in the manner of taking testimony, shall invalidate any order or decision made or approved by the director. The director, or any officer or employee thereof, shall have power to administer oaths to such persons.

History: L. 1937, ch. 374, § 11; L. 1957, ch. 429, § 31; July 1.

§ 79-3612 Lien upon property upon sale of business; duties and liability of purchaser

The tax imposed by this act shall be a lien upon the property of any person who shall sell his or her business consisting of tangible personal property. The person acquiring such business or property shall withhold a sufficient amount of the purchase price thereof to cover the amount of any taxes due and unpaid by the seller, until the seller shall furnish the purchaser with a receipt from the director of taxation, as herein provided, showing that such taxes have been paid. The purchaser shall be personally liable for the payment of any unpaid taxes of the seller, to the extent of the value of the property received by the purchaser, and if a receipt is not furnished by such seller within twenty (20) days from the date of sale of such business, the purchaser shall remit the amount of such unpaid taxes to the director of taxation on or before the twentieth (20th) day of the month succeeding that in which he or she acquired such business or property.

History: L. 1937, ch. 374, § 12; April 9.

§ 79-3613 Sufficiency of notice to taxpayer

All notices required to be mailed to the taxpayer under the provisions of this act, if mailed to him or her at his or her last known address as shown on the records of the director of taxation, shall be sufficient for the purposes of this act.

History: L. 1937, ch. 374, § 13; April 9.

§ 79-3614 Confidentiality requirements

Any information obtained by the department of revenue in connection with administration of the Kansas retailer's sales tax act is subject to the confidentiality provisions as set forth in K.S.A. 75-5133, and amendments thereto.

History: L. 1937, ch. 374, § 14; L. 1943, ch. 307, § 4; L. 1977, ch. 186, § 8; L. 1983, ch. 289, § 14; L. 1994, ch. 188, § 4; L. 1997, ch. 126, § 47; L. 2005, ch. 110, § 6; July 1.

§ 79-3615 Interest and penalties

(a) If any taxpayer shall fail to pay the tax required under this act at the time required by or under the provisions of this act, there shall be added to the unpaid balance of the tax, interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(b) For all taxable years ending prior to January 1, 2002, if any taxpayer due to negligence or intentional disregard fails to file a return or pay the tax due at the time required by or under the provisions of this act, there shall be added to the tax a penalty in an amount equal to 10% of the unpaid balance of tax due.

(c) For all taxable years ending prior to January 1, 2002, if any person fails to make a return, or to pay any tax, within six months from the date the return or tax was due, except in the case of an extension of time granted by the secretary of revenue or the secretary's designee, there shall be added to the tax due a penalty equal to 25% of the unpaid balance of such tax due. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in the amount of 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(d) For all taxable years ending after December 31, 2001, if any taxpayer fails to file a return or pay the tax if one is due, at the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to 1% of the unpaid balance of the tax due for each month or fraction thereof during which such failure continues, not exceeding 24% in the aggregate, plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in an amount of 1% per month not exceeding 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(e) If any taxpayer, with fraudulent intent, fails to pay any tax or make, render or sign any return, or to supply any information, within the time required by or under the provisions of this act, there shall be added to the tax a penalty in an amount equal to 50% of the unpaid balance of tax due.

(f) Penalty or interest applied under the provisions of subsections (a) and (d) shall be in addition to the penalty added under any other provisions of this section, but the provisions of subsections (b) and (c) shall be mutually exclusive of each other.

(g) Whenever the secretary or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsections (a), (b), (c) and (d) of this section was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

(h) In addition to all other penalties provided by this section, any person who willfully fails to make a return or to pay any tax imposed under the Kansas retailers' sales tax act, or who makes a false or fraudulent return, or fails to keep any books or records prescribed by this act, or who willfully violates any regulations of the secretary of revenue, for the enforcement and administration of this act, or who aids and abets another in attempting to evade the payment of any tax imposed by this act, or who violates any other provision of this act, shall, upon conviction thereof, be fined not less than $500, nor more than $10,000, or be imprisoned in the county jail not less than one month, nor more than six months, or be both so fined and imprisoned, in the discretion of the court.

(i) No penalty assessed hereunder shall be collected if the taxpayer has had the tax abated on appeal, and any penalty collected upon such tax shall be refunded.

(j) A person applying to the department for a refund of any tax imposed under the Kansas retailers' sales tax act that was not previously collected by the retailer, or that the retailer has already refunded to such person, shall be subject to a penalty of 50% of the amount of any such tax sought to be refunded. No such penalty shall be imposed against such person if the retailer collected the tax but did not remit such tax to the department.

History: L. 1937, ch. 374, § 15; L. 1938, ch. 79, § 1; L. 1980, ch. 308, § 24; L. 1982, ch. 422, § 1; L. 1988, ch. 390, § 1; L. 1989, ch. 291, § 6; L. 1994, ch. 95, § 6; L. 1997, ch. 126, § 20; L. 2000, ch. 184, § 19; L. 2007, ch. 155, § 7; July 1.

§ 79-3616 Bond requirements; amount

When, in the judgment of the director of taxation after evidence is documented relating to the probable risk in the ability of the person to collect and remit taxes as required by this act, it is necessary, in order to secure the collection of any tax, penalties or interest due, or to become due, the director may require any person subject to such tax to file a bond with the director of taxation in such form and amount as the director of taxation may prescribe. In any such case, any person who is required to report and pay sales tax liability on an annual basis shall only be required to file a bond in the amount of $25.

History: L. 1937, ch. 374, § 16; L. 1987, ch. 392, § 1; L. 1988, ch. 389, § 2; July 1.

§ 79-3617 Collection of delinquent taxes; tax lien

Whenever any taxpayer liable to pay any sales or compensating tax, refuses or neglects to pay the tax, the amount, including any interest or penalty, shall be collected in the following manner. The secretary of revenue or the secretary's designee shall issue a warrant under the hand of the secretary or the secretary's designee and official seal directed to the sheriff of any county of the state commanding the sheriff to levy upon and sell the real and personal property of the taxpayer found within the sheriff's county to satisfy the tax, including penalty and interest, and the cost of executing the warrant and to return such warrant to the secretary or the secretary's designee and pay to the secretary or the secretary's designee the money collected by virtue thereof not more than 90 days from the date of the warrant. Firearms seized may be appraised and disposed of in the same manner prescribed in K.S.A. 79-5212, and amendments thereto. The sheriff shall, within five days, after the receipt of the warrant file with the clerk of the district court of the county a copy thereof, and thereupon the clerk shall either enter in the appearance docket the name of the taxpayer mentioned in the warrant, the amount of the tax or portion of it, interest and penalties for which the warrant is issued and the date such copy is filed and note the taxpayer's name in the general index. No fee shall be charged for either such entry. The amount of such warrant so docketed shall thereupon become a lien upon the title to, and interest in, the real property of the taxpayer against whom it is issued. The sheriff shall proceed in the same manner and with the same effect as prescribed by law with respect to executions issued against property upon judgments of a court of record, and shall be entitled to the same fees for services.

The court in which the warrant is docketed shall have jurisdiction over all subsequent proceedings as fully as though a judgment had been rendered in the court. A warrant of similar terms, force and effect may be issued by the secretary or the secretary's designee and directed to any officer or employee of the secretary or the secretary's designee, and in the execution thereof such officer or employee shall have all the powers conferred by law upon sheriffs with respect to executions issued against property upon judgments of a court of record and the subsequent proceedings thereunder shall be the same as provided where the warrant is issued directly to the sheriff. The taxpayer shall have the right to redeem the real estate within a period of 18 months from the date of such sale. If a warrant is returned, unsatisfied in full, the secretary or the secretary's designee shall have the same remedies to enforce the claim for taxes as if the state of Kansas had recovered judgment against the taxpayer for the amount of the tax. No law exempting any goods and chattels, land and tenements from forced sale under execution shall apply to a levy and sale under any of the warrants or upon any execution issued upon any judgment rendered in any action for sales or compensating taxes. Except as provided further, the secretary or the secretary's designee shall have the right after a warrant has been returned unsatisfied, or satisfied only in part, to issue alias warrants until the full amount of the tax is collected. No costs incurred by the sheriff or the clerk of the court shall be charged to the secretary or the secretary's designee.

If execution is not issued within 10 years from the date of the docketing of any such warrant, or if 10 years shall have intervened between the date of the last execution issued on such warrant, and the time of issuing another writ of execution thereon, such warrant shall become dormant, and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such dormant warrant may be revived in like manner as dormant judgments under the code of civil procedure.

History: L. 1937, ch. 374, § 17; L. 1953, ch. 448, § 1; L. 1976, ch. 145, § 245; L. 1977, ch. 109, § 42; L. 1984, ch. 147, § 23; L. 1989, ch. 291, § 9; L. 1998, ch. 130, § 35; L. 2005, ch. 141, § 6; July 1.

§ 79-3618 Administration; rules and regulations; payment upon basis of gross receipts, when; appointment of agents and employees; abatement of taxes

(a) The secretary of revenue or the secretary's designee shall administer and enforce this act. The secretary shall adopt rules and regulations for the administration of this act. The secretary or the secretary's designee may upon application of any taxpayer give such applicant the privilege of paying the tax levied by this act upon the basis of gross receipts accrued but not received provided such applicant's books are regularly kept on such basis. The secretary or the secretary's designee shall appoint agents and employees for the enforcement and administration of this act.

(b) The secretary of revenue or the secretary's designee may abate all or part of any final sales tax and compensating tax liabilities in the same manner and to the same extent as provided for final income tax liabilities at K.S.A. 79-3233a through K.S.A. 79-3233i, and amendments thereto.

History: L. 1937, ch. 374, § 18; L. 1972, ch. 342, § 112; L. 1989, ch. 291, § 10; L. 1999, ch. 94, § 7; July 1.

§ 79-3619 Payment, collection and accounting; rules and regulations

(a) For the purposes of more efficiently securing the payment, collection and accounting for the taxes provided for under this act, agreements between competing retailers or the adoption of appropriate rules and regulations by organizations or associations of retailers to provide uniform methods for adding and collecting the full amount of the tax imposed by this act, or an amount equal as nearly as possible or practicable to the average equivalent thereof, and which do not involve price-fixing agreements otherwise unlawful, and which shall first have the approval of the director of taxation, are expressly authorized and shall be held not to be in violation of any antitrust laws of this state. It shall be the duty of the director of taxation to cooperate with such retailers, organizations, or associations in formulating such agreements, rules and regulations. The secretary of revenue shall adopt rules and regulations for adding and collecting such tax, or an amount equal as nearly as possible or practicable to the average equivalent thereof, by providing different methods applying uniformly to retailers within the same general classification for the purpose of enabling such retailers to add and collect, as far as practicable, the amount of such tax.

(b) The secretary of revenue may adopt rules and regulations to provide for the issuance of permits to certain businesses which grant direct payment authority that allows certain purchases to be made without the payment of retailers' sales or use tax to the vendor or service provider and requires the permit holder to self-accrue any state and local tax that is due and pay such tax directly to the department of revenue. The secretary shall be accorded broad discretion in establishing qualification standards for direct pay authority, in entering into agreement with permit holders that fix accounting and reporting requirements, in granting and canceling the direct pay privilege, and in establishing other requirements for administration of this section.

History: L. 1937, ch. 374, § 19; L. 1939, ch. 332, § 1; L. 1972, ch. 342, § 113; L. 1998, ch. 130, § 37; July 1.

§ 79-3620 Disposition of moneys; sales tax refund fund; credit to state highway fund; credit to city bond finance fund; intermodal facility district, definition, disposition, requirements and procedures for certain sales tax revenue on utility sales

(a) All revenue collected or received by the director of taxation from the taxes imposed by this act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury, less amounts withheld as provided in subsection (b) and amounts credited as provided in subsections (c), (d) and (e), to the credit of the state general fund.

(b) A refund fund, designated as "sales tax refund fund" not to exceed $100,000 shall be set apart and maintained by the director from sales tax collections and estimated tax collections and held by the state treasurer for prompt payment of all sales tax refunds. Such fund shall be in such amount, within the limit set by this section, as the director shall determine is necessary to meet current refunding requirements under this act. In the event such fund as established by this section is, at any time, insufficient to provide for the payment of refunds due claimants thereof, the director shall certify the amount of additional funds required to the director of accounts and reports who shall promptly transfer the required amount from the state general fund to the sales tax refund fund, and notify the state treasurer, who shall make proper entry in the records.

(c) (1) On January 1, 2023, the state treasurer shall credit 17% of the revenue collected and received from the tax imposed by K.S.A. 79-3603, and amendments thereto, at the rates provided in K.S.A. 79-3603, and amendments thereto, and K.S.A. 2025 Supp. 79-3603d, and amendments thereto, and deposited as provided by subsection (a), exclusive of amounts credited pursuant to subsection (d), in the state highway fund.

(2) On January 1, 2025, and thereafter, the state treasurer shall credit 18% of the revenue collected and received from the tax imposed by K.S.A. 79-3603, and amendments thereto, at the rates provided in K.S.A. 79-3603, and amendments thereto, and K.S.A. 2025 Supp. 79-3603d, and amendments thereto, and deposited as provided by subsection (a), exclusive of amounts credited pursuant to subsection (d), in the state highway fund.

(d) The state treasurer shall credit all revenue collected or received from the tax imposed by K.S.A. 79-3603, and amendments thereto, as certified by the director, from taxpayers doing business within that portion of a STAR bond project district occupied by a STAR bond project or taxpayers doing business with such entity financed by a STAR bond project as defined in K.S.A. 12-17,162, and amendments thereto, that was determined by the secretary of commerce to be of statewide as well as local importance or will create a major tourism area for the state or the project was designated as a STAR bond project as defined in K.S.A. 12-17,162, and amendments thereto, to the city bond finance fund, which fund is hereby created. The provisions of this subsection shall expire when the total of all amounts credited hereunder and under K.S.A. 79-3710(d), and amendments thereto, is sufficient to retire the special obligation bonds issued for the purpose of financing all or a portion of the costs of such STAR bond project.

(e) All revenue certified by the director of taxation as having been collected or received from the tax imposed by K.S.A. 79-3603(c), and amendments thereto, on the sale or furnishing of gas, water, electricity and heat for use or consumption within the intermodal facility district described in this subsection, shall be credited by the state treasurer to the state highway fund. Such revenue may be transferred by the secretary of transportation to the rail service improvement fund pursuant to law. The provisions of this subsection shall take effect upon certification by the secretary of transportation that a notice to proceed has been received for the construction of the improvements within the intermodal facility district, but not later than December 31, 2010, and shall expire when the secretary of revenue determines that the total of all amounts credited hereunder and pursuant to K.S.A. 79-3710(e), and amendments thereto, is equal to $53,300,000, but not later than December 31, 2045. Thereafter, all revenues shall be collected and distributed in accordance with applicable law. For all tax reporting periods during which the provisions of this subsection are in effect, none of the exemptions contained in K.S.A. 79-3601 et seq., and amendments thereto, shall apply to the sale or furnishing of any gas, water, electricity and heat for use or consumption within the intermodal facility district. As used in this subsection, "intermodal facility district" shall consist of an intermodal transportation area as defined by K.S.A. 12-1770a(oo), and amendments thereto, located in Johnson county within the polygonal-shaped area having Waverly Road as the eastern boundary,

191st Street as the southern boundary, Four Corners Road as the western boundary, and Highway 56 as the northern boundary, and the polygonal-shaped area having Poplar Road as the eastern boundary, 183rd Street as the southern boundary, Waverly Road as the western boundary, and the BNSF mainline track as the northern boundary, that includes capital investment in an amount exceeding $150 million for the construction of an intermodal facility to handle the transfer, storage and distribution of freight through railway and trucking operations.

History: L. 1937, ch. 374, § 20; L. 1957, ch. 429, § 32; L. 1958, ch. 31, § 2 (Special Session); L. 1965, ch. 530, § 2; L. 1967, ch. 502, § 1; L. 1978, ch. 56, § 19; L. 1982, ch. 423, § 1; L. 1989, ch. 209, § 60; L. 1993, ch. 213, § 5; L. 1998, ch. 17, § 8; L. 2001, ch. 167, § 10; L. 2001, ch. 167, § 11; L. 2002, ch. 185, § 7; L. 2003, ch. 150, § 2; L. 2004, ch. 90, § 3; L. 2009, ch. 95, § 3; L. 2010, ch. 160, § 2; L. 2013, ch. 87, § 6; L. 2013, ch. 135, § 12; L. 2015, ch. 99, § 8; L. 2015, ch. 102, § 8; L. 2022, ch. 89, § 7; January 1, 2023.

§ 79-3620a Repealed

History: L. 1957, ch. 509, § 5; Repealed, L. 1958, ch. 67, § 1 (Budget Session); March 12.

§ 79-3620b City bond finance fund moneys, distribution to cities

Moneys credited to the city bond finance fund in accordance with the provisions of subsections (d) of K.S.A. 79-3620 and (d) of K.S.A. 79-3710, and amendments thereto, shall be distributed biannually to cities which have issued special obligation bonds to finance, in whole or in part, a STAR bond project which was determined by the secretary of commerce to be of statewide as well as local importance or will create a major tourism area for the state as defined in K.S.A. 12-17,162, and amendments thereto. The state treasurer shall make such biannual distributions on such dates as mutually agreed to by the city and the state treasurer. The total of all distributions under this section shall not exceed an amount determined to be sufficient to retire the principal and interest payable on such special obligation bonds. Moneys paid to cities hereunder shall be deposited in a special fund of the city to pay the costs described herein.

History: L. 1993, ch. 213, § 7; L. 1998, ch. 17, § 9; L. 2001, ch. 103, § 17; L. 2003, ch. 154, § 99; L. 2009, ch. 95, § 4; July 1.

§ 79-3620c Repealed

History: L. 1937, ch. 374, § 20; L. 1957, ch. 429, § 32; L. 1958, ch. 31, § 2 (Special Session); L. 1965, ch. 530, § 2; L. 1967, ch. 502, § 1; L. 1978, ch. 56, § 19; L. 1982, ch. 423, § 1; L. 1989, ch. 209, § 60; L. 1993, ch. 213, § 5; L. 1998, ch. 17, § 8; L. 2001, ch. 167, § 10; L. 2001, ch. 167, § 11; L. 2002, ch. 185, § 7; L. 2003, ch. 97, § 5; L. 2003, ch. 154, § 98; Repealed, L. 2004, ch. 90, § 6; July 1.

§ 79-3620d Disposition of moneys collected on Kansas state fairgrounds

(a) Notwithstanding any provision to the contrary in the Kansas retailers' sales tax act, state sales tax levied pursuant to K.S.A. 79-3603, and amendments thereto, and collected by the Kansas state fair or any retailer upon the gross receipts received from the sale of tangible personal property at retail while on the Kansas state fairgrounds, shall be remitted to the director of taxation who shall remit all such state sales tax revenue to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury and credit to the state highway fund the same percentage in effect and credited pursuant to K.S.A. 79-3620(c), and amendments thereto, of the sales tax revenue collected and the remainder to be credited to the state fair capital improvements fund established pursuant to K.S.A. 2-223, and amendments thereto. The provisions of this section shall expire and have no effect if the state fair is located outside the city limits of the city of Hutchinson, Kansas.

(b) The provisions of this section shall be part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2018, ch. 111, § 2; July 1.

§ 79-3621 Repealed

History: L. 1937, ch. 374, § 21; L. 1938, ch. 80, § 1; L. 1939, ch. 334, § 1; L. 1941, ch. 383, § 1; L. 1943, ch. 310, § 1; L. 1945, ch. 369, § 1; L. 1947, ch. 464, § 1; L. 1949, ch. 489, § 1; L. 1951, ch. 498, § 1; L. 1953, ch. 449, § 1; L. 1955, ch. 424, § 1; L. 1956, ch. 63, § 1; L. 1957, ch. 510, § 1; L. 1958, ch. 33, § 1 (Special Session); L. 1959, ch. 400, § 1; L. 1960, ch. 60, § 1; L. 1961, ch. 459, § 1; L. 1962, ch. 43, § 1; L. 1963, ch. 495, § 1; L. 1964, ch. 40, § 1 (Budget Session); Repealed, L. 1965, ch. 530, § 10; July 1.

§ 79-3621a Repealed

History: L. 1947, ch. 464, § 2; L. 1949, ch. 489, § 2; Repealed, L. 1965, ch. 530, § 10; July 1.

§ 79-3622 Repealed

History: L. 1937, ch. 374, § 22; L. 1938, ch. 80, § 2; Repealed, L. 1965, ch. 530, § 10; July 1.

§ 79-3623 Invalidity of part

If any section, subsection, clause, sentence or phrase of this act is for any reason held to be unconstitutional and invalid, such decision shall not affect the validity of the remaining portions of this act.

History: L. 1937, ch. 374, § 23; April 9.

§ 79-3624 Invalidity of part of K.S.A. 79-3621, 79-3622

If any section, subsection, clause, sentence or phrase of this act is for any reason held to be unconstitutional and invalid, such decision shall not affect the validity of the remaining portions of this act.

History: L. 1938, ch. 80, § 3; March 7.

§ 79-3625 Invalidity of part of K.S.A. 79-3619

If any section, subsection, clause, sentence, part, phrase or word of this act is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this act.

History: L. 1939, ch. 332, § 2; July 1.

§ 79-3626 Repealed

History: L. 1964, ch. 40, § 5 (Budget Session); Repealed, L. 1965, ch. 530, § 10; July 1.

§§ 79-3627, 79-3628 Repealed

Revisor's Note: Later act, see 79-2959.

History: L. 1964, ch. 40, §§ 2, 3 (Budget Session); Repealed, L. 1965, ch. 530, § 10; July 1.

§ 79-3629 Repealed

History: L. 1964, ch. 41, § 1 (Budget Session); Repealed, L. 1965, ch. 43, § 14; July 1.

§ 79-3630 Authorization to enjoin certain persons from engaging in business; restraining order; bond

The secretary of revenue or the secretary's designee is hereby authorized to enjoin any person from engaging in the business of selling tangible personal property at retail or rendering or furnishing things or services taxable under the provisions of the Kansas retailers' sales tax act who is found to be in violation of such act and the secretary or the secretary's designee shall be entitled, in any proceeding brought for such purpose to have an order restraining such person from engaging in such business in violation of the provisions of K.S.A. 79-3601 et seq., and amendments thereto, and no bond shall be required for any such restraining order, nor for any temporary or permanent injunction issued in such proceedings.

History: L. 1968, ch. 343, § 1; L. 1989, ch. 291, § 5; L. 1992, ch. 198, § 3; July 1.

§ 79-3631 Use of courts for purpose of enforcement of certain contractual obligations not allowed; exception

The use of Kansas courts for the purpose of enforcing any contractual obligations arising from the sale at retail of tangible personal property, things or services taxable under K.S.A. 79-3601 et seq., or K.S.A. 79-3701 et seq., after April 1, 1968, which gives rise to a Kansas sales or compensating tax liability upon the part of the purchaser by reason of delivery of such tangible personal property, things or services to the purchaser within the state of Kansas shall be denied and no judgment, decree or order for the enforcement thereof shall be rendered, made or entered in or by any court of this state, unless the retailer is or becomes registered for the collection of such sales or compensating taxes and reports and pays the same in accordance with the provision of K.S.A. 79-3601 et seq., or K.S.A. 79-3701 et seq.

History: L. 1968, ch. 286, § 1; March 27.

§ 79-3632 Repealed

History: L. 1978, ch. 56, § 11; Repealed, L. 2013, ch. 87, § 19; April 25.

§ 79-3633 Repealed

History: L. 1978, ch. 56, § 12; L. 1982, ch. 152, § 28; L. 1986, ch. 386, § 4; L. 1998, ch. 130, § 32; L. 2000, ch. 140, § 11; L. 2010, ch. 160, § 6; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3634 Repealed

History: L. 1978, ch. 56, § 13; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3635 Repealed

History: L. 1978, ch. 56, § 14; L. 1986, ch. 386, § 5; L. 1997, ch. 126, § 53; L. 1998, ch. 130, § 33; L. 2000, ch. 140, § 12; L. 2002, ch. 185, § 8; L. 2006, ch. 202, § 4; L. 2010, ch. 160, § 7; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3636 Repealed

History: L. 1978, ch. 56, § 15; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3637 Repealed

History: L. 1978, ch. 56, § 16; L. 2011, ch. 115, § 5; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3638 Repealed

History: L. 1978, ch. 56, § 17; L. 1980, ch. 308, § 30; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3639 Repealed

History: L. 1978, ch. 56, § 18; L. 2001, ch. 56, § 1; Repealed, L. 2012, ch. 135, § 40; January 1, 2013.

§ 79-3639a Repealed

History: L. 2011, ch. 115, § 4; Repealed, L. 2013, ch. 87, § 19; April 25.

§ 79-3640 Refund of sales tax paid upon property or services purchased for certain political subdivision projects; contents of claim; payment of refund

That portion of the sales tax paid on the sale of tangible personal property or services purchased for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities the cost of which is paid in part from funds of a political subdivision which in proportion to the total sales tax paid equals the proportion of such funds to the total cost of the project shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this section. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director or the director's designee.

History: L. 1981, ch. 391, § 2; July 1.

§ 79-3641 Repealed

History: L. 1982, ch. 75, § 13; L. 1983, ch. 67, § 5; Repealed, L. 1986, ch. 385, § 11; July 1.

§ 79-3642 Expired

History: L. 1984, ch. 362, § 2; L. 1986, ch. 387, § 1; L. 1988, ch. 386, § 6; July 1; Expired, January 1, 1989.

§ 79-3643 Personal liability for individuals responsible for collection of sales or compensating taxes

(a) Any individual who is responsible for collection or payment of sales or compensating tax or control, receipt, custody or disposal of funds due and owing under the Kansas retailers' sales and compensating tax acts who willfully fails to collect such tax, or account for and pay over such tax, or attempts in any manner to evade or defeat such tax or the payment thereof shall be personally liable for the total amount of the tax evaded, or not collected, or not accounted for and paid over, together with any interest and penalty imposed thereon. The provisions of this section shall apply regardless of the: (1) Relationship with the retailer held by such individual; (2) form under which the retailer conducts business, whether a sole proprietorship, partnership or corporation; or (3) dissolution of the business. As used in this section, "willfully" has the same meaning as such term has for federal tax purposes in 26 U.S.C. § 6672.

(b) A notice of assessment issued to a responsible individual shall be considered to be a proceeding for the collection of the tax liability of the business. If the liability of the business is determined in a proceeding that has become final, any notice of assessment against a responsible individual must be issued within three years after the proceeding against the business has become final.

(c) Within 60 days after the mailing of a notice of assessment against a responsible individual, the person assessed may request an informal conference with the secretary of revenue under K.S.A. 79-3226, and amendments thereto, for a determination of whether such person is a responsible individual under subsection (a) and for a determination of the tax liability of the business.

(d) If notice of assessment and warrant are issued to a responsible individual pursuant to K.S.A. 79-3610, and amendments thereto, or any other jeopardy provision of chapter 79 of the Kansas Statutes Annotated, the person assessed may request that the informal conference held pursuant to subsection (c) be expedited. When such a request is made, the secretary shall schedule the conference to be held within 21 days after receipt of the request and shall issue a written final determination within 21 days after the close of the conference.

(e) The provisions of this section shall be deemed to be supplemental to the Kansas retailers' sales and compensating tax acts.

History: L. 1986, ch. 363, § 1; L. 1999, ch. 94, § 10; L. 2010, ch. 123, § 13; April 29.

§ 79-3644 Payment of local and state sales and compensating taxes on vessels; proof of payment; disposition of revenue

(a) In any case where any tax imposed under the provisions of K.S.A. 12-187, and amendments thereto, and 12-198, and amendments thereto, the Kansas retailers' sales tax act or the Kansas compensating tax act upon the sale or use of any vessel is not paid to a retailer, the purchaser of such vessel shall pay such tax to the director of taxation or to the county treasurer of the county wherein such purchaser resides. Upon payment of all such taxes, the director or the county treasurer, as the case requires, shall issue to such purchaser proof of payment thereof upon the forms devised by the department of revenue for such purpose. In addition to such taxes, the county treasurer shall charge a collection service fee of $.50 and shall credit the same to the special fund provided in K.S.A. 8-1545, and amendments thereto. The county treasurer shall remit monthly all local and state sales and compensating use taxes collected under this section to the director of taxation. All moneys received from local sales and compensating use taxes shall be deposited in the state treasury to the credit of the county and city retailers' sales tax fund or the city and county compensating use tax fund, as the case requires, and shall be apportioned and remitted by the state treasurer to the county and city treasurers in the manner prescribed by K.S.A. 12-189, and amendments thereto, or 12-198, and amendments thereto, as the case requires. All moneys received from state sales and compensating use taxes shall be deposited as provided in K.S.A. 79-3620, and amendments thereto.

(b) As used in this section, "vessel" shall have the meaning ascribed thereto by K.S.A. 32-1102, and amendments thereto.

History: L. 1987, ch. 65, § 3; July 1.

§ 79-3645 Refund of sales tax paid upon seeds, fertilizers, insecticides and services; procedure for claims

(a) The retailers' sales tax paid pursuant to the Kansas retailers' sales tax act on the sale of seeds and tree seedlings; fertilizers, insecticides, herbicides, germicides, pesticides and fungicides; and services, purchased and used for the purpose of producing plants in order to prevent soil erosion on land devoted to agricultural use which is subject to the federal conservation reserve program shall be refunded as provided in this section.

(b) Each claim for refund of sales tax paid shall be verified and submitted to the director of taxation within one year after the effective date of this act upon forms furnished by the director and shall be accompanied by any additional documentation required by the director. The director shall review each claim and shall refund within 90 days after receipt of such claim that amount of sales tax paid as determined pursuant to this section. All refunds shall be paid from the sales tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director.

History: L. 1988, ch. 386, § 4; July 1.

§ 79-3646 Letter rulings issued by the department of revenue, when

Any person required or who may be required to collect sales tax as a retailer pursuant to K.S.A. 79-3604, and amendments thereto, may request from the department of revenue a letter ruling which shall delineate such person's duties and responsibilities under the Kansas retailer's sales tax act with respect to such person's business. Such ruling shall be issued within 30 days after receipt of the request and any other information necessary for the department to make a ruling.

History: L. 1988, ch. 389, § 1; July 1.

§ 79-3647 Gross receipts not inclusive of water protection fees

The water protection fees imposed by K.S.A. 82a-954 and amendments thereto shall not be included in gross receipts for the purpose of taxation under the Kansas retailers' sales tax act.

History: L. 1990, ch. 342, § 1; July 1.

§ 79-3648 Separate statement of tax on invoice or billing; presumption of noncollection

The amount of tax imposed under this act on a sale either shall be separately stated on the invoice or billing or the invoice or billing shall bear the statement: "All applicable sales tax is included." If the invoice or billing does not reflect the amount of the tax imposed under this act on the sale or contain a statement that all applicable sales tax is included, then it shall be presumed that the tax was not collected by the retailer.

History: L. 1992, ch. 198, § 4; July 1.

§ 79-3649 Sales tax liability assessments on youth sports participation fees null and void

Any determination or assessment of sales tax liability against any youth recreation organization described in subsection (m) of K.S.A. 79-3603, and amendments thereto, for payment of sales tax imposed thereunder which was made or levied prior to the effective date of this act is hereby declared to be null and void.

History: L. 1994, ch. 198, § 2; July 1.

§ 79-3650 Direct refunds of sales tax, when; over-collected sales or use taxes

(a) A refund request for an amount equal to or exceeding $50 may be filed directly by a consumer or purchaser if the consumer or purchaser: (1) Paid the tax directly to the department; (2) provides evidence that the retailer refused or was unavailable to refund the tax; (3) provides evidence that the retailer did not act upon its refund request in a timely manner as provided in subsection (b), or; (4) provides a notarized statement to the department from the retailer that the retailer: (A) Will not claim a refund of the same tax included in the purchaser's or consumer's refund request; (B) agrees to provide to the consumer or purchaser any information or documentation in the retailer's possession needed for submission to the department to support or prove the refund claim; (C) has remitted to the state the tax sought to be refunded; and (D) has not taken or will not take a credit for such tax. A retailer providing false information in any such statement shall be subject to penalties prescribed by K.S.A. 79-3615(h), and amendments thereto.

(b) A cause of action against the seller for the over-collected sales or use taxes does not accrue until a purchaser has provided written notice to a seller and the seller has had 60 days to respond. Such notice to the seller must contain the information necessary to determine the validity of the request. In connection with a purchaser's request from a seller for over-collected sales or use taxes, a seller shall be presumed to have a reasonable business practice, if in the collection of such sales or use taxes, the seller uses either a provider or a system, including a proprietary system, that is certified by the state and has remitted to the state all taxes collected less any deductions, credits or collection allowances. If the director of taxation finds upon proper showing that a consumer or purchaser submitted a refund request to a retailer that was not acted upon by the retailer in a timely manner, the director shall extend the time for filing the request with the department beyond the three year limitation period that is otherwise provided by the time attributed to the delay caused by the retailer.

History: L. 1997, ch. 126, § 18; L. 2002, ch. 186, § 5; L. 2003, ch. 147, § 10; L. 2007, ch. 155, § 8; July 1.

§ 79-3651 Presumptions relating to exemption certificates; form of certificates; payment requirements; duties of presenters of exemption certificates; requirements when issued based on status of entity; criminal penalty for nonpayment of sales tax; exception to exemption certificate requirements

(a) For the purpose of the proper administration of the Kansas retailers' sales tax act and to prevent evasion of the tax imposed thereunder, it shall be presumed that all gross receipts from the sale of tangible personal property or enumerated services are subject to tax until the contrary is established. The burden of proving that a sale is not subject to tax is upon the seller unless the seller takes from the purchaser an exemption certificate to the effect that the property or service purchased is not subject to tax.

(b) An exemption certificate shall relieve the seller from collecting and remitting tax if the seller has obtained the required identifying information as determined by the director, from the purchaser and the reason for claiming the exemption at the time of purchase and has maintained proper records of exempt transactions pursuant to K.S.A. 79-3609(a), and amendments thereto, and provided them to the director when requested, except that no such relief from liability shall apply to a seller who: Fraudulently fails to collect the tax; solicits purchasers to participate in the unlawful claim of an exemption; accepts an exemption certificate claiming an entity based exemption when the subject of the transaction is actually received by the purchaser at a location operated by the seller and the director provides an exemption certificate that clearly and affirmatively indicates that the claimed exemption is not available. The seller shall obtain the same information for proof of a claimed exemption regardless of the medium in which the transaction occurred. The purchaser improperly claiming an exemption shall remain liable for the nonpayment of tax.

(c) The exemption certificate shall be substantially in such form as the director may prescribe. The seller shall use the standard form for claiming an exemption electronically as adopted by the director. A seller may require a purchaser to provide a copy of the purchaser's sales tax registration certificate with a resale certificate as a condition for honoring the purchaser's resale exemption claim, except that in the case of drop shipment sales into this state, the third party vendor may claim a resale exemption based on an exemption certificate provided by its customer, re-seller, or any other information acceptable to the secretary available to the third party vendor evidencing qualification for a resale exemption, regardless of whether the customer, re-seller, is registered to collect and remit sales and use tax in this state. A purchaser is not required to provide a signature to claim an exemption from tax unless a paper exemption certificate is used. A seller is relieved of liability for the tax otherwise applicable if it obtains a blanket exemption certificate for a purchaser with which the seller has a recurring business relationship. Such blanket certificate need not be renewed or updated by the seller for exemption certificate information or data elements when there is a recurring business relationship between the buyer and seller. For purposes of this subsection, a recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

(d) To lawfully present a resale exemption certificate the purchaser must be engaged in the business of selling property or services of the same kind that is purchased, hold a registration certificate, except as otherwise permitted in subsection (c) for drop shipment sales into this state, and at the time of purchase, either intend to resell the property in the regular course of business or be unable to ascertain whether the property will be resold or used for some other purpose. A resale exemption certificate may be used for resale of services to tangible personal property and not for services to real property.

(e) Any person who issues a resale certificate or other exemption certificate in order to unlawfully avoid payment of tax for business or personal gain shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $1,000 or imprisonment for not more than one year, or by both. In addition, if the director determines that a person issued a resale certificate in order to unlawfully avoid payment of tax for business or personal gain, the director shall increase any penalty that is due from the person under K.S.A. 79-3615, and amendments thereto, by $250 or 10 times the tax due, whichever is greater, on each transaction where the misuse of a resale certificate occurred.

(f) Exemption certificates issued by an entity claiming a specific exemption under K.S.A. 79-3606, and amendments thereto, based on the status of the entity shall bear the name, address of the entity and identification number issued to the entity pursuant to K.S.A. 79-3692, and amendments thereto. Such certificate shall be signed by an authorized person of the nonprofit entity, if in paper form, and contain the tax identification number of the entity. The certificate shall be substantially in such form as the director may prescribe. A seller may require that payments be made on an exempt entity's check, warrant, voucher or charged to the entity's account as a condition for honoring the entity's exemption claim.

(g) It shall be the duty of every person who purchases tangible personal property or services that are taxable under this act to pay the full amount of tax that is lawfully due to the retailer making the sale. Any person who willfully and intentionally refuses to pay such tax to the retailer shall be guilty of a misdemeanor and upon conviction shall be punished and fined as provided by K.S.A. 79-3615(h), and amendments thereto.

(h) On and after July 1, 2024, notwithstanding any provisions to the contrary in this section or any other provision of law, purchasers claiming an exemption pursuant to K.S.A. 79-3606(rrrr), and amendments thereto, shall not be required to provide an exemption certificate or form to the seller, and the seller shall not be required to receive and maintain a completed exemption certificate or form for such exempt transactions. If the seller in the ordinary course of business believes that the service qualifies for the exemption pursuant to K.S.A. 79-3606(rrrr), and amendments thereto, the seller shall be relieved from collecting and remitting the tax and shall not have the burden of proving that the service is not subject to tax pursuant to subsection (a). A purchaser improperly claiming the exemption shall remain liable for the nonpayment of tax.

History: L. 1997, ch. 126, § 19; L. 2003, ch. 147, § 11; L. 2004, ch. 173, § 16; L. 2005, ch. 91, § 1; L. 2007, ch. 155, § 9; L. 2010, ch. 123, § 14; L. 2025, ch. 126, § 4; May 8.

§ 79-3652 Rights and privileges of audited taxpayers

In addition to any other rights and privileges provided by law under the Kansas retailers' sales tax and Kansas compensating tax acts, the secretary of revenue shall promulgate rules and directives under which the taxpayer shall be provided:

(a) A copy of all work-papers compiled as a result of an audit of such taxpayer;

(b) a personal or telephonic conference conducted by the director of taxation or agent of the director with the taxpayer or a representative of the taxpayer after completion of audit field work; and, if additional audit desk work is performed in the office subsequent to audit field work, a telephonic conference conducted by the director or agent of the director with the taxpayer or a representative of the taxpayer after completion of such subsequent audit desk work; and

(c) consideration of the taxpayer's convenience, normal hours of operation, and the availability of administrative personnel resources in the scheduling of an audit by the director.

History: L. 1997, ch. 126, § 52; July 1.

§ 79-3653 Streamlined sales tax system for the 21st century act; citation

The provisions of K.S.A. 79-3653 through 79-3659, and amendments thereto, of this act may be cited as the streamlined sales tax system for the 21st century act.

History: L. 2000, ch. 140, § 13; July 1.

§ 79-3654 Same; legislative findings

The legislature finds that:

(a) State and local tax systems should treat transactions in a competitively neutral manner;

(b) a simplified sales and use tax system that treats all transactions in a competitively neutral manner will strengthen and preserve the sales and use tax as vital state and local revenue sources and preserve state fiscal sovereignty;

(c) remote sellers should not receive preferential tax treatment at the expense of local "main street" merchants, nor should such vendors be burdened with special, discriminatory or multiple taxes;

(d) the state should simplify sales and use taxes to reduce the administrative burden of collection; and

(e) while states have the sovereign right to set their own tax policies, states working together have the opportunity to develop a more simple, uniform, and fair system of state sales and use taxation without federal government mandates of interference.

History: L. 2000, ch. 140, § 14; July 1.

§ 79-3655 Same; department of revenue discussions with other states; topics included

The department of revenue shall enter into discussions with states regarding development of a multi-state, voluntary, streamlined system for sales and use tax collection and administration. These discussions shall focus on a system that would have the capability to determine whether the transaction is taxable or tax exempt, the appropriate tax rate applied to the transaction, and the total tax due on the transaction, and shall provide a method of collecting and remitting sales and use taxes to the state. Such system may provide compensation for the costs of collecting and remitting sales and use taxes. Discussions between the department and other states may include, but are not limited to:

(a) The development of a "joint request for information" from potential public and private parties governing the specifications for such system;

(b) the mechanism for compensating parties for the development and operation of such system;

(c) establishment of minimum statutory simplification measures necessary for state participation in such system; and

(d) measures to preserve confidentiality of taxpayer information and privacy rights of consumers.

Following these discussions, the department may proceed to issue a joint request for information.

History: L. 2000, ch. 140, § 15; July 1.

§ 79-3656 Same; pilot projects with other states; agreements, provisions

The department is authorized to participate in a sales tax pilot project with other states and selected businesses to test means for simplifying sales and use tax administration and may enter into joint agreements for that purpose.

(a) Agreements to participate in the test shall establish provisions for the administration, imposition and collection of sales and use taxes resulting in revenues paid that are the same as would be paid under articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated.

(b) Parties to the agreements are excused from complying with the provisions of articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated to the extent a different procedure is required by the agreements, except for confidentiality of taxpayer information as detailed in K.S.A. 79-3657, and amendments thereto.

(c) Agreements authorized under this section shall terminate no later than December 31, 2001.

History: L. 2000, ch. 140, § 16; July 1.

§ 79-3657 Same; return information confidential

Return information submitted to any party or parties acting for and on behalf of the state shall be treated as confidential. Disclosure of such information necessary under K.S.A. 79-3655 and 79-3656, and amendments thereto, shall be pursuant to a written agreement between the department and the party or parties. Such party or parties shall be bound by the same requirements of confidentiality as the department, under K.S.A. 75-5133, and amendments thereto.

History: L. 2000, ch. 140, § 17; L. 2005, ch. 110, § 7; July 1.

§ 79-3658 Same; legislative oversight committee established; composition; authorities and duties

There is hereby created a legislative oversight committee which shall consist of the chairpersons and minority party leaders of the standing committees on taxation of the senate and the house of representatives. The department shall provide testimony and information as requested by the committee. The department shall provide quarterly reports to the governor, the speaker of the house, minority leader of the house, president of the senate and senate minority leader and to the members of the legislative oversight committee on the progress of multi-state discussions.

History: L. 2000, ch. 140, § 18; July 1.

§ 79-3659 Same; department of revenue report required

By March 1, 2001, the department shall report to the governor and to the speaker of the house, minority leader of the house, president of the senate and senate minority leader and to the members of the legislative oversight committee on the status of multi-state discussions and, if a proposed system has been agreed upon by participating states, shall also recommend whether the state should participate in such system.

History: L. 2000, ch. 140, § 19; July 1.

§ 79-3660 Sales taxation managed audit program; definitions

For purposes of K.S.A. 79-3660 through 79-3664:

(a) "Eligible taxpayer" means any person who is required to file any return or to pay or remit any tax under the provisions of K.S.A. 79-3601 et seq., and amendments thereto, or 79-3701 et seq., and amendments thereto, and who, in the opinion of the director has demonstrated a willingness and ability to comply with the tax laws of this state and has maintained an acceptable system of business records;

(b) "Managed audit agreement" means an agreement between the director and an eligible taxpayer consisting of an audit plan developed by the director and the eligible taxpayer wherein the eligible taxpayer agrees to review selected sales and purchase records and to calculate and determine its liability for sales and use taxes; and

(c) "Director" means the director of taxation.

History: L. 2000, ch. 184, § 1; July 1.

§ 79-3661 Same; authorities and duties of director of taxation

The director of taxation may enter into a managed audit agreement with an eligible taxpayer. Under a managed audit agreement, the director shall:

(a) Agree to accept, upon verification and subject to the provisions of K.S.A. 79-3663, and amendments thereto, the eligible taxpayer's determinations for purposes of making a deficiency assessment or otherwise determining the taxpayer's liability for the audit period under review;

(b) provide written procedural guidelines to be included as part of the managed audit agreement, including, but not limited to: (1) The audit period covered by the managed audit; (2) the general scope of the managed audit; (3) what records will be examined and what types of sampling techniques will be used; (4) the specific procedures the taxpayer is to follow in determining any liability; (5) the time period for completion of the managed audit; and (6) the time period for payment of the tax, penalty and interest;

(c) review the results of the managed audit with the eligible taxpayer and issue a final determination of tax liability in the manner prescribed by K.S.A. 79-3226, and amendments thereto; and

(d) recognize the taxpayer's right to request an informal conference in accordance with the provisions of K.S.A. 79-3610, and amendments thereto.

History: L. 2000, ch. 184, § 2; July 1.

§ 79-3662 Same; selection of participants by director

The director shall determine, consistent with the efficient use of audit resources, which accounts are to be selected for the managed audit program, except that no taxpayer shall be required to participate in the managed audit program. If a taxpayer's account is selected for a managed audit, the taxpayer shall review and examine its books and records to determine any unreported liability for the audit period, and shall make available all computations and records reviewed for verification by the director.

History: L. 2000, ch. 184, § 3; July 1.

§ 79-3663 Same; taxpayer duties in managed audit

Information provided by the taxpayer as part of the managed audit shall be the same information that is required for the completion of any other audit the director may conduct. The director may terminate a managed audit agreement and conduct an audit of an eligible taxpayer under K.S.A. 79-3609, and amendments thereto, if the eligible taxpayer fails to fulfill any of the terms of a managed audit agreement, or if the director believes that a managed audit should not be conducted for any other reason.

History: L. 2000, ch. 184, § 4; July 1.

§ 79-3664 Same; interest on liabilities reduced

Upon completion of the managed audit and verification by the director, interest shall be computed at 50% of the rate that would otherwise be imposed for liabilities covered by the audit period. Payment of the tax, penalty and interest shall be made within the time period specified by the director.

History: L. 2000, ch. 184, § 5; July 1.

§ 79-3665 Interstate streamlined sales tax project; participation by the department of revenue; legislative participation

(a) The department of revenue is authorized to become a signatory to an agreement with one or more states for the purpose of providing a multi-state, voluntary, streamlined system for sales and use tax collection and administration to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce, at such time as the legislature takes further action to bring the state's laws in compliance with the requirements of the agreement. The department of revenue is further authorized to participate in the streamlined sales tax project, identify all changes in this state's sales and use tax laws and rules and regulations that would be required in order to comply with such agreement, take such other actions reasonably required to prepare this state for entry into such agreement.

(b) The secretary of revenue, or the secretary's designee, is authorized to represent this state before other states that are participating in the streamlined sales tax project or that are signatories to such agreement. In addition, the president and the minority leader of the senate and the speaker and the minority leader of the house of representatives may each appoint a person who is also authorized to so represent this state. All such appointees attending meetings shall be paid compensation, subsistence allowances, mileage and other expenses as provided in K.S.A. 75-3223, and amendments thereto.

History: L. 2002, ch. 186, § 1; July 1.

§ 79-3666 Streamlined sales and use tax agreement conformity act; state sales tax rate changes, effect; notice; sellers relieved from liability to collect in certain circumstances, exceptions

State sales tax rate changes must take effect on the first day of a calendar quarter. The secretary shall make a reasonable effort to provide sellers with as much advance notice as practicable of any rate changes, legislative change in the tax base and amendments to sales and use tax rules and regulations. Failure of a seller to receive such notice or failure of the secretary to provide such notice to a seller or limit the effective date of a rate change shall not relieve the seller of its obligation to collect sales or use tax or otherwise comply with any such legislative, rule or regulatory changes. Whenever there is less than 30 days between the effective date of any amendments to K.S.A. 79-3603 and 79-3703, which make a change in the retailers' sales tax or compensating use tax rate and the date such rate change takes effect as provided by this section, the seller shall be relieved from liability for failing to collect tax at the changed rate if:

(a) The seller collected tax at the immediately proceeding rate during such time period; and

(b) the seller's failure to collect at the changed rate does not extend beyond 30 days after such effective date.

When the seller fraudulently failed to collect at the new sales tax rate or solicits purchasers based on the immediately preceding effective rate, such relief from liability does not apply to such seller.

History: L. 2003, ch. 147, § 12; L. 2010, ch. 123, § 15; April 29.

§ 79-3667 Same; liability for errors in sales tax collection of sellers and certified service providers; database use and requirements

On and after the databases are developed pursuant to subsections (a), (b) and (c) of K.S.A. 79-3668, and amendments thereto, and after the state has joined and become a member of the agreement, sellers and certified service providers (CSPs) using databases pursuant to subsections (c) and (d) of K.S.A. 79-3668, and amendments thereto, are relieved from liability for state and local sales and use tax for having charged and collected the incorrect amount of sales tax resulting from the seller or certified service provider relying on erroneous data provided by the secretary on tax rates, boundaries or taxing jurisdiction assignments. If the secretary provides an address-based database for assigning taxing jurisdictions that meets the requirements developed pursuant [to] subsection (d) of K.S.A. 79-3668, and amendments thereto, and after the secretary has provided adequate notice as determined by the secretary, no liability relief is provided to sellers or certified service providers for errors resulting from reliance on the information provided under the provisions of subsection (c) of K.S.A. 79-3668, and amendments thereto. If a seller demonstrates that requiring the use of the address-based database would create an undue hardship, the secretary may extend the relief from liability to such seller for a designated period of time.

History: L. 2003, ch. 147, § 13; L. 2007, ch. 155, § 10; July 1.

§ 79-3668 Same; taxing jurisdiction and rate database, requirements

(a) The secretary shall provide and maintain a database that describes boundary changes for all taxing jurisdictions. This database shall include a description of the change and the effective date of the change for sales and use tax purposes.

(b) The secretary shall provide and maintain a database of all sales and use tax rates for all taxing jurisdictions. For the identification of counties and cities, codes corresponding to the rates must be provided according to federal information processing standards (FIPS) as developed by the national institute of standards and technology. For the identification of all other jurisdictions, codes corresponding to the rates must be in the format determined by the secretary.

(c) The secretary must provide and maintain a database that assigns each five- and nine-digit zip code to the proper rates and taxing jurisdictions. The lowest combined tax rate imposed in the zip code area shall apply if the area includes more than one tax rate in any level of taxing jurisdiction. If a nine-digit zip code designation is not available for a street address, or if a seller or a CSP is unable to determine the nine-digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or CSP may apply the rate for the five-digit zip code area. For purposes of this section, there is a rebuttable presumption that a seller or CSP has exercised due diligence if the seller has attempted to determine the nine-digit zip code designation by utilizing software approved by the secretary that makes this designation from the street address and the five-digit zip code applicable to a purchase.

(d) The secretary may provide address-based boundary database records for assigning taxing jurisdictions and associated rates which shall be in addition to the requirements of subsection (c). The database records shall be in the same approved format as the database records pursuant to subsection (c) and shall meet the requirements developed pursuant to the federal mobile telecommunications sourcing act (4 U.S.C. § 119(a)). If the secretary develops address-based assignment database records pursuant to the agreement, sellers that register under the agreement are required to use such database. A seller or CSP shall use such database records in place of the five- and nine-digit zip code database records provided for in subsection (c). If a seller or CSP is unable to determine the applicable rate and jurisdiction using an address-based database record after exercising due diligence, the seller or CSP may apply the nine-digit zip code designation applicable to a purchase. If a nine-digit zip code designation is not available for a street address or if a seller or CSP is unable to determine the nine-digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or CSP may apply the rate for the five-digit zip code area. For the purposes of this section, there is a rebuttable presumption that a seller or CSP has exercised due diligence if the seller or CSP has attempted to determine the tax rate and jurisdiction by utilizing software approved by the secretary that makes this assignment from the address and zip code information applicable to the purchase. If the secretary has met the requirements of subsection (c), the secretary may also elect to certify vendor provided address-based databases for assigning tax rates and jurisdictions. The databases must be in the same approved format as the database records pursuant to this subsection and must meet the requirements development pursuant to the federal mobile telecommunications sourcing act (4 U.S.C.A. Sec. 119(a)). If the secretary certifies a vendor address-based database, a seller or CSP may use that database in place of the database provided for in this subsection.

(e) The electronic databases provided for in subsections (a), (b), (c) and (d) shall be in downloadable format as determined by the secretary. The databases may be directly provided by the secretary or provided by a vendor as designated by the secretary. A database provided by a vendor as designated by the secretary shall be applicable to and subject to all provisions of K.S.A. 79-3667, and amendments thereto, and this section. These databases shall be provided at no cost to the user of the database. The provisions of subsections (c) and (d) do not apply when the purchased product is received by the purchaser at the business location of the seller.

History: L. 2003, ch. 147, § 14; L. 2007, ch. 155, § 11; July 1.

§ 79-3669 Same; sourcing of retail sales; application of sourcing rules

(a) The retail sale of a product shall be sourced in accordance with K.S.A. 79-3670, and amendments thereto. The provisions of K.S.A. 79-3670, and amendments thereto, apply regardless of the characterization of a product as tangible personal property, a digital good or a service. The provisions of K.S.A. 79-3670, and amendments thereto, only apply to determine a seller's obligation to pay or collect and remit a sales or use tax with respect to the seller's retail sale of a product. These provisions do not affect the obligation of a purchaser or lessee to remit tax on the use of the product to the taxing jurisdictions of that use.

(b) K.S.A. 79-3670, and amendments thereto, does not apply to sales or use taxes levied on the following: (1) The retail sale or transfer of water craft, modular homes, manufactured homes or mobile homes. The retail sale of these items shall be sourced according to K.S.A. 12-191, and amendments thereto;

(2) the retail sales, excluding lease or rental, of motor vehicles, trailers, semi-trailers or aircraft that do not qualify as transportation equipment, as defined in subsection (d) of K.S.A. 79-3670, and amendments thereto. The retail sale of these items shall be sourced according to K.S.A. 12-191, and amendments thereto, and the lease or rental of these items must be sourced according to subsection (c) of K.S.A. 79-3670, and amendments thereto; and

(3) telecommunications services, as set out in K.S.A. 79-3673, and amendments thereto, and ancillary services, as defined in K.S.A. 79-3602, and amendments thereto, shall be sourced in accordance with K.S.A. 79-3673, and amendments thereto.

History: L. 2003, ch. 147, § 15; L. 2007, ch. 155, § 12; July 1.

§ 79-3670 Same; sourcing rules

(a) The retail sale, excluding lease or rental, of a product shall be sourced as follows: (1) When the product is received by the purchaser at a business location of the seller, the sale is sourced to that business location;

(2) when the product is not received by the purchaser at a business location of the seller, the sale is sourced to the location where receipt by the purchaser, or the purchaser's donee, designated as such by the purchaser, occurs, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller;

(3) when subsection (a)(1) and (a)(2) do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith;

(4) when subsections (a)(1), (a)(2) and (a)(3) do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith;

(5) when none of the previous rules of subsection (a)(1), (a)(2), (a)(3) or (a)(4) apply, including the circumstance in which the seller is without sufficient information to apply the previous rules, then the location will be determined by the address from which tangible personal property was shipped, from which the digital good or the computer software delivered electronically was first available for transmission by the seller, or from which the service was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold.

(b) The lease or rental of tangible personal property, other than property identified in subsection (c) or (d), shall be sourced as follows: (1) For a lease or rental that requires recurring periodic payments, the first periodic payment is sourced the same as a retail sale in accordance with the provisions of subsection (a). Periodic payments made subsequent to the first payment are sourced to the primary property location for each period covered by the payment. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. The property location shall not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls;

(2) for a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsection (a); and

(3) this subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.

(c) The lease or rental of motor vehicles, trailers, semi-trailers or aircraft that do not qualify as transportation equipment, as defined in subsection (d), shall be sourced as follows: (1) For a lease or rental that requires recurring periodic payments, each periodic payment is sourced to the primary property location. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. This location shall not be altered by intermittent use at different locations;

(2) for a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsection (a); and

(3) this subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis or on the acquisition of property for lease.

(d) The retail sale, including lease or rental, of transportation equipment shall be sourced the same as a retail sale in accordance with the provisions of subsection (a), notwithstanding the exclusion of lease or rental in subsection (a). "Transportation equipment" means any of the following: (1) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce;

(2) trucks and truck-tractors with a gross vehicle weight rating (GVWR) of 10,001 pounds or greater, trailers, semi-trailers or passenger buses that are: (A) Registered through the international registration plan; and

(B) operated under authority of a carrier authorized and certificated by the United States department of transportation or another federal or a foreign authority to engage in the carriage of persons or property in interstate or foreign commerce;

(3) aircraft that are operated by air carriers authorized and certificated by the United States department of transportation or another federal or a foreign authority to engage in the carriage of persons or property in interstate or foreign commerce; and

(4) containers designed for use on and component parts attached or secured on the items set forth in subsection (d)(1), (d)(2) and (d)(3).

(e) As used in this section, the terms "receive" and "receipt" mean:

(1) Taking possession of tangible personal property;

(2) making first use of services; or

(3) taking possession or making first use of digital goods, whichever comes first. The terms receive and receipt do not include possession by a shipping company on behalf of the purchaser.

History: L. 2003, ch. 147, § 16; May 22.

§ 79-3671 Repealed

History: L. 2003, ch. 147, § 17; Repealed, L. 2007, ch. 155, § 19; July 1.

§ 79-3672 Same; advertising and promotional direct mail and other direct mail, requirements and procedures; sourcing; bundled transactions

(a) Notwithstanding the provisions of K.S.A. 79-3670, and amendments thereto, the following provisions apply to sales of "advertising and promotional direct mail":

(1) A purchaser of "advertising and promotional direct mail" may provide the seller with either:

(A) A direct pay permit;

(B) an exemption certificate, or other statement approved, authorized or accepted by the secretary, claiming "direct mail"; or

(C) information showing the jurisdictions to which the "advertising and promotional direct mail" is to be delivered to recipients.

(2) If the purchaser provides the permit, certificate or statement referred to in subsections (a)(1)(A) or (a)(1)(B), the seller, in the absence of bad faith, is relieved of all obligations to collect, pay or remit any tax on any transaction involving "advertising and promotional direct mail" to which the permit, certificate or statement applies. The purchaser shall source the sale to the jurisdictions to which the "advertising and promotional direct mail" is to be delivered to the recipients and shall report and pay any applicable tax due.

(3) If the purchaser provides the seller information showing the jurisdictions to which the "advertising and promotional direct mail" is to be delivered to recipients, the seller shall source the sale to the jurisdictions to which the "advertising and promotional direct mail" is to be delivered and shall collect and remit the applicable tax. In the absence of bad faith, the seller is relieved of any further obligation to collect any additional tax on the sale of "advertising and promotional direct mail" where the seller has sourced the sale according to the delivery information provided by the purchaser.

(4) If the purchaser does not provide the seller with any of the items listed in subsections (a)(1)(A), (a)(1)(B) or (a)(1)(C), the sale shall be sourced according to subsection (a)(5) of K.S.A. 79-3670, and amendments thereto.

(b) Notwithstanding the provisions of K.S.A. 79-3670, and amendments thereto, the following provisions apply to sales of "other direct mail":

(1) Except as otherwise provided in this subsection, sales of "other direct mail" are sourced in accordance with subsection (a)(3) of K.S.A. 79-3670, and amendments thereto.

(2) A purchaser of "other direct mail" may provide the seller with either:

(A) A direct pay permit; or

(B) an exemption certificate, or other statement approved, authorized or accepted by the secretary, claiming "direct mail."

(3) If the purchaser provides the permit, certificate or statement referred to in subsection (b)(2)(A) or (b)(2)(B), the seller, in the absence of bad faith, is relieved of all obligations to collect, pay or remit any tax on any transaction involving "other direct mail" to which the permit, certificate or statement apply. Notwithstanding subsection (b)(1) the sale shall be sourced to the jurisdictions to which the "other direct mail" is to be delivered to the recipients and the purchaser shall report and pay any applicable tax due.

(c) For purposes of this section:

(1) "Advertising and promotional direct mail" means:

(A) Printed material that meets the definition of "direct mail"; and

(B) the primary purpose of which is to attract public attention to a product, person, business or organization, or to attempt to sell, popularize or secure financial support for a product, person, business or organization. As used in this subsection, the word "product" means tangible personal property, a product transferred electronically or a service;

(2) "other direct mail" means any direct mail that is not "advertising and promotional direct mail" regardless of whether "advertising and promotional direct mail" is included in the same mailing. The term includes, but is not limited to:

(A) Transactional direct mail that contains personal information specific to the addressee including, but not limited to, invoices, bills, statements of account and payroll advices;

(B) any legally required mailings including, but not limited to, privacy notices, tax reports and stockholder reports; and

(C) other non-promotional direct mail delivered to existing or former shareholders, customers, employees or agents including, but not limited to, newsletters and informational pieces.

"Other direct mail" does not include the development of billing information or the provision of any data processing service that is more than incidental.

(d) (1) (A) This section applies to a transaction characterized as the sale of services only if the service is an integral part of the production and distribution of printed material that meets the definition of "direct mail."

(B) This section does not apply to any transaction that includes the development of billing information or the provision of any data processing service that is more than incidental regardless of whether "advertising and promotional direct mail" is included in the same mailing.

(2) If a transaction is a "bundled transaction" that includes advertising and promotional direct mail, this section shall apply only if the primary purpose of the transaction is the sale of products or services that meet the definition of "advertising and promotional direct mail."

(3) Nothing in this section shall limit any purchaser's:

(A) Obligation for sales or use tax to any state to which the direct mail is delivered;

(B) right, if any, to a credit for sales or use taxes legally due and paid to other jurisdictions; or

(C) right, if any, to a refund of sales or use taxes overpaid to any jurisdiction.

(4) This section applies for purposes of uniformly sourcing direct mail transactions.

History: L. 2003, ch. 147, § 18; L. 2010, ch. 123, § 16; April 29.

§ 79-3673 Same; sourcing rules for sale of telecommunication services; definitions

(a) Except for the defined telecommunication services in subsection (c), the sale of telecommunication service sold on a call-by-call basis shall be sourced to each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.

(b) Except for the defined telecommunication services in subsection (c), a sale of telecommunications services sold on a basis other than a call-by-call basis, is sourced to the customer's place of primary use.

(c) The sale of the following telecommunication services shall be sourced to each level of taxing jurisdiction as follows: (1) A sale of mobile communications services other than air-to-ground radiotelephone service and prepaid calling service, is sourced to the customer's place of primary use as required by the mobile telecommunications sourcing act;

(2) a sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either the seller's telecommunications system, or information received by the seller from its service provider, where the system used to transport such signals is not that of the seller; and

(3) a sale of prepaid calling service or a sale of prepaid wireless calling service is sourced in accordance with K.S.A. 79-3670, and amendments thereto, except that in the case of a sale of prepaid wireless calling service, the rule provided in subsection (a)(5) of K.S.A. 79-3670, and amendments thereto, shall include as an option the location associated with the mobile telephone number.

(d) A sale of a private communication service is sourced as follows: (1) Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located;

(2) service where all customer termination points are located entirely within one jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located;

(3) service for segments of a channel between two customer channel termination points located in different jurisdictions and which segment of channel are separately charged is sourced 50% in each level of jurisdiction in which the customer channel termination points are located; and

(4) service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.

(e) The sale of an ancillary service, as defined in K.S.A. 79-3602, and amendments thereto, is sourced to the customer's place of primary use.

(f) As used in this section: (1) "Air-to-ground radiotelephone service" means a radio service, as that term is defined in 47 C.F.R. § 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft;

(2) "call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls;

(3) "communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points;

(4) "customer" means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunication service, but this sentence only applies for the purpose of sourcing sales of telecommunications services under this section. Customer does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area;

(5) "customer channel termination point" means the location where the customer either inputs or receives the communication;

(6) "end user" means the person who utilizes the telecommunication service. In the case of an entity, end user means the individual who utilizes the services on behalf of the entity;

(7) "home service provider" means the same as that term in [is] defined in section 124(5) of Public Law 106-252 (mobile telecommunications sourcing act);

(8) "mobile telecommunications service" means the same as that term is defined in section 124(5) of Public Law 106-252 (mobile telecommunications sourcing act);

(9) "place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, place of primary use must be within the licensed service area of the home service provider;

(10) "post-paid calling service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card or debit card, or by charge made to which a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a telecommunication service;

(11) "prepaid calling service" means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount;

(12) "prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other non-telecommunications services, including the download of digital products delivered electronically, content and ancillary services, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount;

(13) "private communication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations and any other associated services that are provided in connection with the use of such channel or channels; and

(14) "service address" means: (A) The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid;

(B) if the location in subsection (14)(A) is not known, service address means the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller; and

(C) if the location in subsections (14)(A) and (14)(B) are not known, the service address means the location of the customer's place of primary use.

History: L. 2003, ch. 147, § 19; L. 2007, ch. 155, § 13; July 1.

§ 79-3674 Same; bad debt deductions from uncollectable taxable sales; requirements and procedures

(a) A seller is allowed a deduction from taxable sales for bad debts attributable to taxable sales of such seller that have become uncollectable. Any deduction taken that is attributed to bad debts shall not include interest.

(b) The amount of the bad debt deduction shall be calculated pursuant to 26 U.S.C. § 166(b), except that such amount shall be adjusted to exclude financing charges or interest, sales or use taxes charged on the purchase price, uncollectable amounts on property that remain in the possession of the seller until the full purchase price is paid and expenses incurred in attempting to collect any debt and repossessed property.

(c) Bad debts may be deducted on the return for the period during which the bad debt is written off as uncollectable in the seller's books and records and is eligible to be deducted for federal income tax purposes. For purposes of this subsection, a seller who is not required to file federal income tax returns may deduct a bad debt on a return filed for the period in which the bad debt is written off as uncollectable in the seller's books and records and would be eligible for a bad debt deduction for federal income tax purposes if the seller was required to file a federal income tax return.

(d) If a deduction is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount so collected must be paid and reported on the return filed for the period in which the collection is made.

(e) When the amount of bad debt exceeds the amount of taxable sales for the period during which the bad debt is written off, a refund claim may be filed by the seller within the applicable statute of limitations for refund claim pursuant to subsection (b) of K.S.A. 79-3609, and amendments thereto; however, the statute of limitations shall be measured from the due date of the return on which the bad debt could first be claimed.

(f) Where filing responsibilities have been assumed by a certified service provider, the service provider may claim, on behalf of the seller, any bad debt allowance provided by this section. The certified service provider must credit or refund the full amount of any bad debt allowance or refund received to the seller.

(g) For the purposes of reporting a payment received on a previously claimed bad debt, any payments made on a debt or account must first be applied proportionally to the taxable price of the property or service and the sales tax thereon, and secondly to interest, service charges and any other charges.

(h) In situations where the books and records of the seller, or certified service provider on behalf of the seller, claiming the bad debt allowance support an allocation of the bad debts among the member states, such an allocation is permitted.

History: L. 2003, ch. 147, § 20; May 22.

§ 79-3675 Same; confidentiality and privacy rights; requirements and procedures

(a) The purpose of this section is to set forth this state's policy for the protection of the confidentiality rights of all participants in the system and of the privacy interests of consumers who deal with model 1 sellers.

(b) As used in this section: (1) "Confidential taxpayer information" means all information that is protected under this state's laws, rules and regulations and privileges;

(2) "personally identifiable information" means information that identifies a person; and

(3) "anonymous data" means information that does not identify a person.

(c) A fundamental precept in model 1 is to preserve the privacy of consumers by protecting their anonymity. With very limited exceptions, a certified service provider (CSP) shall perform its tax calculation, remittance and reporting functions without retaining the personally identifiable information of consumers.

(d) The secretary shall provide public notification to consumers, including their exempt purchasers, of the department's practices relating to the collection, use and retention of personally identifiable information.

(e) When any personally identifiable information that has been collected and retained is no longer required to ensure the validity of exemptions from taxation that are claimed by reason of a consumer's status or the intended use of the goods or services purchased, such information shall no longer be retained by the department.

(f) When personally identifiable information regarding an individual is retained by or on behalf of the department, the secretary shall provide reasonable access by such individual to such individual's own information in the department's possession and a right to correct any inaccurately recorded information.

(g) If anyone other than this state, or a person authorized by this state's law or the agreement, seeks to discover personally identifiable information, the secretary shall make a reasonable and timely effort to notify the individual of such request.

(h) This privacy policy is subject to enforcement by the attorney general.

History: L. 2003, ch. 147, § 21; May 22.

§ 79-3676 Same; computation of tax by sellers

(a) When the seller is computing the amount of tax owed by the purchaser and remitted to the state: (1) Tax computation must be carried to the third decimal place; and

(2) the tax must be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four.

(b) Sellers may elect to compute the tax due on a transaction on an item or an invoice basis. The rounding rule may be applied to the aggregated state and local taxes.

History: L. 2003, ch. 147, § 22; May 22.

§ 79-3677 Same; taxability matrix for products or services; relief from liability for sellers and certified service providers relying thereon

(a) The secretary shall complete a taxability matrix. This state's entries in the matrix shall be provided and maintained by the secretary in a database that is in a downloadable format.

(b) The secretary shall provide reasonable notice of changes in the taxability of the products or services listed in the taxability matrix.

(c) Sellers and certified service providers are relieved from liability to this state or any local taxing jurisdiction for having charged and collected the incorrect amount of state or local sales or use tax resulting from the seller or certified service providers relying on erroneous data provided by the secretary in the taxability matrix.

History: L. 2003, ch. 147, § 23; May 22.

§ 79-3678 Same; effective date of state or local sales or use tax rate changes for certain services

The effective date of state or local sales or use tax rate changes for services covering a period starting before and ending after the statutory effective date shall be as follows: (a) For a rate increase, the new rate shall apply to the first billing period starting on or after the effective date; and

(b) for a rate decrease, the new rate shall apply to bills rendered on or after the effective date.

History: L. 2003, ch. 147, § 24; May 22.

§ 79-3679 Same; online registration system for sellers; requirements

(a) The secretary shall participate in an online registration system that will allow sellers to register in this state and other member states.

(b) By registering, the seller agrees to collect and remit sales and use taxes for all taxable sales into this state as well as the other member states, including member states joining after the seller's registration. Withdrawal or revocation of this state from the agreement shall not relieve a seller of its responsibility to remit taxes previously or subsequently collected on behalf of this state.

(c) If the seller has a requirement to register prior to registering under the agreement, the seller must register pursuant to K.S.A. 79-3608, and amendments thereto.

(d) Registration with the central registration system and the collection of sales and use taxes in this state shall not be used as a factor in determining whether the seller has nexus with this state for any tax at any time.

History: L. 2003, ch. 147, § 25; May 22.

§ 79-3680 Same; amnesty for sellers who register; conditions; limitations

(a) Subject to the limitations in this section: (1) Amnesty is granted for uncollected or unpaid sales or use tax to a seller who registers to pay or to collect and remit applicable sales or use tax on sales made to purchasers in this state in accordance with the terms of the agreement, provided that the seller was not so registered in this state in the twelve-month period preceding the effective date of this state's participation in the agreement;

(2) the amnesty will preclude assessment for uncollected or unpaid sales or use tax together with penalty or interest for sales made during the period the seller was not registered in this state, provided registration occurs within 12 months of the effective date of this state's participation in the agreement; and

(3) amnesty similarly shall be provided if this state joins the agreement after the seller has registered.

(b) The amnesty is not available to a seller with respect to any matter or matters for which the seller received notice of the commencement of an audit and which audit is not yet finally resolved including any related administrative and judicial processes.

(c) The amnesty is not available for sales or use taxes already paid or remitted to this state or to taxes collected by the seller.

(d) The amnesty is fully effective, absent the seller's fraud or intentional misrepresentation of a material fact, as long as the seller continues registration and continues payment or collection and remittance of applicable sales or use taxes for a period of at least thirty-six months. The statute of limitations applicable to asserting a tax liability during this thirty-six month period is tolled.

(e) The amnesty is applicable only to sales or use taxes due from a seller in its capacity as a seller and not to sales or use taxes due from a seller in its capacity as a buyer.

(f) This provision shall become effective as of the date that this state joins and becomes a member state of the agreement.

History: L. 2003, ch. 147, § 26; May 22.

§ 79-3681 Same; methods of remittances

When registering under the agreement, the seller may select one of the following methods of remittances or other method allowed by K.S.A. 79-3607, and amendments thereto, to remit the taxes collected: (a) Model 1, wherein a seller selects a certified service provider as an agent to perform all the seller's sales or use tax functions, other than the seller's obligation to remit tax on its own purchases;

(b) model 2, wherein a seller selects a certified automated system to use which calculates the amount of tax due on a transaction; or

(c) model 3, wherein a seller utilizes its own proprietary automated sales tax system that has been certified as a certified automated system.

History: L. 2003, ch. 147, § 27; May 22.

§ 79-3682 Same; citation of act; effective date

(a) The provisions of K.S.A. 79-3666 through 79-3682, and amendments thereto, shall be known and may be cited as the streamlined sales and use tax agreement conformity act.

(b) The provisions of K.S.A. 79-3666 through 79-3682 shall be effective on and after July 1, 2003.

History: L. 2003, ch. 147, § 28; May 22.

§ 79-3683 Sourcing provisions; transition period; full compliance effective date; waiver of penalties and interest under certain circumstances

(a) Notwithstanding the provisions of any law to the contrary, commencing on the effective date of this act and ending December 31, 2004, for purposes of facilitating the transition by retailers to the destination-based sourcing provisions set forth in K.S.A. 79-3670 et seq., and amendments thereto, for taxable sales occurring during such time period, retailers may elect to apply the origin-based sourcing provisions in effect as of June 30, 2003. On and after January 1, 2005, all retailers must be in full compliance with the destination-based sourcing provisions set forth in K.S.A. 79-3670 et seq., and amendments thereto.

(b) Notwithstanding the provisions of any law to the contrary, the secretary or the secretary's designee, upon making a record of the reasons therefor, may waive penalties and interest that would otherwise be imposed on the unpaid balance of tax due pursuant to the provisions of K.S.A. 79-3615, and amendments thereto, and 79-3706, and amendments thereto, to the extent the unpaid balance of such tax, or any portion thereof, is attributable to reasonable causes in attempting to implement and apply the destination-based sourcing provisions set forth in K.S.A. 79-3670 et seq., and amendments thereto.

History: L. 2004, ch. 171, § 40; July 1.

§ 79-3684 Same; relief from liability of purchasers for not paying correct amount of sales or use tax in certain circumstances

(a) A purchaser is relieved from liability for penalties, other than penalties for fraudulent, willful or intentional conduct, for having failed to pay the correct amount of sales or use tax in the following circumstances:

(1) A purchaser's seller or CSP relied on erroneous data provided by the secretary on tax rates, boundaries, taxing jurisdiction assignments or in the taxability matrix completed pursuant to K.S.A. 79-3677, and amendments thereto;

(2) a purchaser holding a direct pay permit relied on erroneous data provided by the secretary on tax rates, boundaries, taxing jurisdiction assignments or in the taxability matrix completed pursuant to K.S.A. 79-3677, and amendments thereto;

(3) a purchaser relied on erroneous data provided in the taxability matrix completed pursuant to K.S.A. 79-3677, and amendments thereto; or

(4) a purchaser using databases pursuant to subsections (c) and (d) of K.S.A. 79-3668, and amendments thereto, relied on erroneous data provided by the secretary on tax rates, boundaries or taxing jurisdiction assignments, except that after the secretary has provided an address-based database for assigning taxing jurisdictions pursuant to subsection (d) of K.S.A. 79-3668, and amendments thereto, and adequate notice thereof as determined by the secretary, no liability relief is provided for errors resulting from reliance on the database provided pursuant to subsection (c) of K.S.A. 79-3668, and amendments thereto.

(b) A purchaser is relieved from liability for retailer's sales and compensating use tax and interest for having failed to pay the correct amount of sales or use tax in the circumstances described in this section, except that with respect to reliance on the taxability matrix completed pursuant to K.S.A. 79-3677, and amendments thereto, such relief is limited to an erroneous classification in such taxability matrix of terms included in a definition contained in the retailer's sales tax act as "taxable" or "exempt," "included in sales price" or "excluded from sales price," or "included in the definition" or "excluded from the definition."

History: L. 2007, ch. 155, § 15; July 1.

§ 79-3685 Same; relief from liability of CSP or certain sellers for not collecting correct amount of sales or use taxes in certain circumstances

(a) If the secretary has certified a CSP's software program as a CAS after determining that the CSP's software program adequately classifies product-based exemptions, which are exemptions based on the description of the product and not based on who purchases the product or how the purchaser intends to use the product, and has accepted the classifications made by such system, then the CSP or model 2 seller is relieved from liability for not collecting sales or use taxes resulting from the CSP or model 2 seller relying on the certification provided by the secretary that the software program submitted by the CSP for review adequately classifies product-based exemptions. A CSP is relieved from liability for not collecting sales and use taxes in the same manner as sellers are relieved from liability under the provisions of K.S.A. 79-3609 and 79-3651, and amendments thereto.

(b) The secretary shall not be responsible for classification of an item or transaction within the product-based exemptions certified. The relief from liability provided in this section shall not be available for a CSP or model 2 seller that has incorrectly classified an item or transaction into a product-based exemption certified by the secretary. This subsection shall not apply to the individual listing of items or transactions within a product definition approved by the secretary. If the secretary determines that an item or transaction is incorrectly classified as to its taxability, the secretary shall notify the CSP or model 2 seller of the incorrect classification. The CSP or model 2 seller shall have 10 days to revise the classification after receipt of notice from the secretary of the determination. Upon expiration of the 10 days, the CSP or model 2 seller shall be liable for the failure to collect the correct amount of sales or use taxes due and owing.

History: L. 2007, ch. 155, § 16; July 1.

§ 79-3686 Same; bundled transactions

(a) As used in this section: "Bundled transaction" means the retail sale of two or more products, except real property and services to real property, where: (1) The products are otherwise distinct and identifiable; and (2) the products are sold for one non-itemized price. "Bundled transaction" does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction. As used in this subsection, "distinct and identifiable products" does not include: (1) Packaging such as containers, boxes, sacks, bags and bottles, or other materials such as wrapping, labels, tags and instruction guides that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples of packaging that are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags and express delivery envelopes and boxes;

(2) a product provided free of charge with the required purchase of another product. A product is provided free of charge if the sales price of the product purchased does not vary depending on the inclusion of the product provided free of charge; and

(3) items included in the definition of sales price pursuant to K.S.A. 79-3602, and amendments thereto. The term "one non-itemized price" does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card or price list.

(b) A transaction that otherwise meets the definition of a bundled transaction as defined in subsection (a), is not a "bundled transaction" if it is:

(1) The retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service;

(2) the retail sale of services where one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service;

(3) a transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimis.

As used in this subsection, de minimis means the seller's purchase price or sales price of the taxable products is 10% or less of the total purchase price or sales price of the bundled products. Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimis. Sellers may not use a combination of the purchase price and sales price of the products to determine if the taxable products are de minimis. Sellers shall use the full term of a service contract to determine if the taxable products are de minimis; or

(4) the retail sale of exempt tangible personal property and taxable tangible personal property where:

(A) The transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices or medical supplies; and

(B) the seller's purchase price or sales price of the taxable tangible personal property is 50% or less of the total purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase price and sales price of the tangible personal property when making the 50% determination for a transaction.

(b) [(c)] When the provider of a non-taxable service delivers to a client or customer tangible personal property that is essential to the use of the service, is provided exclusively in connection with the service and the true object of the transaction is the service pursuant to subsection (b)(1), the service provider shall be considered the consumer of those items of tangible personal property and shall pay or accrue sales or use tax on them at the time of purchase.

(c) [(d)] The gross receipts received from a bundled transaction are taxable, when one or more of the products included in such transaction is taxable under K.S.A. 79-3603, and amendments thereto. For a bundled transaction that includes any telecommunication service, ancillary service, internet access or audio or video programming service, if the price is attributable to products that are taxable and products that are nontaxable, the portion of price attributable to the nontaxable products shall be subject to tax unless the provider can identify by reasonable and verifiable standards such portion from its books and records that are kept in the regular course of business for other purposes, including, but not limited to, non-tax purposes. The provisions of this subsection shall apply unless otherwise provided by federal law.

History: L. 2007, ch. 155, § 17; July 1.

§§ 79-3687 through 79-3690 Reserved

§ 79-3691 Repealed

History: L. 2003, ch. 159, § 3; Repealed, L. 2007, ch. 155, § 19; July 1.

§ 79-3692 Exempt organization identification numbers; requirements and procedures

On and after January 1, 2005, any entity or organization claiming an exemption from sales tax on its purchases of tangible personal property or services based on the status of the entity or organization, under a specific exemption provided by law, shall prior to claiming any such exemption, apply to and obtain from the secretary of revenue an exempt organization identification number. The secretary shall prescribe the application form for such number, and such entity or organization shall provide with the application information sufficient to establish that such entity or organization qualifies for the sales tax exemption. Such entity shall enter the issued identification number on any exemption certificate presented to any retailer when claiming the sales tax exemption on any purchases.

History: L. 2004, ch. 173, § 21; L. 2006, ch. 202, § 3; July 1.

§ 79-3693 Refund of sales tax; retailers; applications, requirements; refund claims; consumer applications and refund claims, requirements; sufficient proof requirement

(a) As used in K.S.A. 79-3601 et seq., and amendments thereto, "refund claim" means an application for the refund of sales tax, penalty or interest submitted in writing on a form prescribed by the department that has been completed and is accompanied by all information and documentation needed to verify and process the claim. A refund application that is incomplete or is not documented as required by this section shall not be considered to be a refund claim. The term "refund claim" may include a claim for payment, a credit or an entitlement to a deduction. The refund claim may be required by the department to be filed electronically. Each agent or representative filing a refund application on behalf of another shall submit a power of attorney that authorizes the agent or representative to act on behalf of the applicant.

(b) (1) Any person who is registered with the department as a retailer and who reported and remitted sales tax to the department that was not owed, was remitted in error or was an overpayment may apply for a refund of such taxes remitted by such retailer to the department.

(2) Each registered retailer shall have a continuing duty to correct any errors in sales tax returns filed with the department and to enable purchasers to obtain refunds of taxes that were overpaid or paid in error.

(3) Each refund application filed by an entity that files sales tax returns shall be treated as an application to adjust or amend the return. The amended tax return shall be subject to verification by examination of the taxpayer's records.

(4) Each application for a refund claim shall contain all the information required in this section and shall be accompanied by all additional documentation prescribed in this section that is needed to determine the validity of the application and to verify and process the application. Each such refund application that contains insufficient information or documentation to verify and process the application shall be returned to the applicant with directions to file a new and complete application. If an application for a refund claim has been returned by the department as incomplete, no application for refund claim shall be considered to have been filed until a new application is submitted that contains sufficient information and is supported by sufficient documentation to verify and process the application as a refund claim.

(5) The application for a refund claim shall include the following information:

(A) If applicable, an amended return for each period for which a refund is sought, which shall contain the retailer's current name, mailing address, employee identification number and Kansas sales tax registration number;

(B) the name and telephone number of the person whom the department should contact if additional information is needed;

(C) an explanation of the reason why a refund is due. If applicable, the explanation shall include a detailed and factual description of how the items sold were used by the consumer;

(D) if tax has been refunded to the consumer, the amount, the name of the refund recipient, and an explanation of how the refund was made, whether by cash, check, credit or other means;

(E) a schedule listing each invoice in chronological order that includes the name and address of the purchaser, a description of the items sold, the date of purchase, the invoice number, the amount subject to tax, the amount of tax collected, the reporting period for the tax, the location of the sale and a detailed statement of usage of the item purchased. If the applicant or such applicant's agent maintains records or prepares the schedule in an electronic, machine-sensible format, all schedules submitted to support the refund application shall be provided in an electronic, machine-sensible format in addition to the paper document;

(F) the signature of the payee and the signature of the retailer; and

(G) any additional information required by the application form that is needed to verify and process the refund application.

(6) The refund claim shall include the following documentation:

(A) If applicable, a properly completed exemption certificate from the consumer;

(B) if the retailer has refunded taxes to the consumer, a canceled check or irrevocable credit memo issued by the retailer showing that the retailer has credited or refunded the tax previously collected from the consumer, a written agreement that the refund shall be jointly issued to the retailer and the consumer or other proof of repayment; and

(C) all invoices pertaining to the schedule required to be submitted under subsection (b)(5)(E) and any other documentation needed to verify and process the refund application being made in the schedule, which may include credit memos, contracts, job cost records, tax accrual worksheets with refund items identified, charts of account and any other documentation, including employment data for claims related to the provisions of subsection (cc) of K.S.A. 79-3606, and amendments thereto.

(c) A consumer may apply directly to the department for a refund if the consumer meets the requirements of subsection (a) of K.S.A. 79-3650, and amendments thereto, and submits an application and supporting documentation as required in this section. In order to be considered complete for processing and verification purposes, each consumer-filed refund claim shall include the following information:

(1) The consumer's name, current mailing address and telephone number; the retailer's name, last known mailing address and telephone number;

(2) the information referenced in subsection (b)(5)(B), (C), (E) and (G);

(3) a description of the items purchased, the date of purchase, the location of the purchase, the invoice number, the amount subject to tax and the amount of tax paid; and

(4) the signature of the applicant.

(d) The documentation provided with each consumer-filed refund claim shall include a copy of each of the following:

(1) The information referenced in subsection (b)(6)(A) and (C); and

(2) a written statement signed by the consumer stating that the consumer has not and will not seek a duplicate refund from the retailer.

(e) No refund or credit shall be allowed by the director without sufficient proof submitted by the applicant for a refund claim that the tax sought to be refunded was paid to the department.

(f) The provisions of this section shall be part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2007, ch. 155, § 1; July 1.

§ 79-3694 Same; incomplete or insufficient applications, consequences; notification; time to cure; conference, review of application and determination of validity; review of decision

(a) (1) An application for a refund claim that is incomplete, not supported by the required documentation or otherwise fails to meet the requirements specified in K.S.A. 79-3693, and amendments thereto, whether submitted to the department or to a retailer, shall not be considered a valid refund claim for the purpose of any of the following:

(A) Tolling the statute of limitations provisions of K.S.A. 79-3609, and amendments thereto, except that for any refund application returned to the applicant for failing to meet the requirements of K.S.A. 79-3693, and amendments thereto, the applicant shall have 60 days from the date of the department's written notice to file with the department a complete refund application meeting the requirements of K.S.A. 79-3693, and amendments thereto; or

(B) commencing the running of the 120-day provision of subsection (d) of K.S.A. 79-3609, and amendments thereto, for payment of refunds without interest.

(2) If an application for a refund claim is incomplete, not supported by the required documentation or otherwise fails to meet the requirements specified in K.S.A. 79-3693, and amendments thereto, the substance or merits of the incomplete refund application shall not be reviewed by the department, and the incomplete application shall be returned to the applicant. At the time, the applicant shall be notified in writing of the actions, corrections, information or additional documentation that are needed to complete the application, and that the applicant shall have 60 days from the date of the department's written notice to file a complete refund application satisfying the requirements of K.S.A. 79-3693, and amendments thereto. The applicant also shall be provided with a written description of the method by which an informal conference may be requested pursuant to K.S.A. 79-3226, and amendments thereto, to request a review of the determination that the refund application is incomplete. Each review of the department's determination that the taxpayer submitted a refund application that was incomplete, not supported by the required documentation, or otherwise failed to meet the requirements specified in K.S.A. 79-3693, and amendments thereto, shall be limited to determining whether the refund application, as originally submitted, complied with the requirements of K.S.A. 79-3693, and amendments thereto, by providing sufficient information and documentation to allow the refund application to be verified and processed. If, upon review at the informal conference, it is determined that the refund application failed to meet the requirements specified in K.S.A. 79-3693, and amendments thereto, when submitted so that the refund application could not be verified and processed, the applicant shall be required to file a new refund application for the refund being sought.

(b) Each application for refund that meets the requirements specified in K.S.A. 79-3693, and amendments thereto, so that it can be verified and processed shall be reviewed by the department as a refund claim and its validity determined. Each applicant shall be notified in writing of the department's determination and, if the refund claim is denied in whole or in part, shall be provided with a written description of the method by which an informal conference pursuant to K.S.A. 79-3226, and amendments thereto, may be requested. Each denial of a refund claim by the department shall be final, unless the applicant timely requests an informal conference pursuant to K.S.A. 79-3226, and amendments thereto. Once an informal conference is requested, an informal conference shall be held by the secretary or designee, and a written final determination shall be issued by the secretary or designee, in accordance with K.S.A. 79-3226, and amendments thereto. The written final determination shall constitute a final agency action subject to administrative review by the state board of tax appeals, as provided in K.S.A. 74-2438, and amendments thereto.

(c) The provisions of this section shall be part of and supplemental to the Kansas retailers' sales tax act.

History: L. 2007, ch. 155, § 2; L. 2008, ch. 109, § 117; L. 2014, ch. 141, § 124; July 1.

§ 79-3695 Rate of tax involving contracts for certain construction projects, requirements

If any contractor has entered into a written binding contract prior to May 1, 2015, for the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a building, facility or residential structure, or for the construction, reconstruction, restoration, replacement or repair of a bridge or highway, the state sales tax applicable to such contracts shall be remitted at the rate in effect prior to the state sales tax increase scheduled to take effect on July 1, 2015, if the contractor gives notice and proof of such contract to the director of taxation on or before July 10, 2015, which notice and proof shall be in such form and of such sufficiency as the director shall prescribe.

History: L. 2010, ch. 160, § 8; L. 2015, ch. 99, § 34; July 1.

§ 79-3696 Sales by affiliated persons; certain agreements between retailer and executive branch void unless approved by legislature

(a) On and after July 1, 2013, if any person sells or leases tangible personal property to the state, a state department, a state agency or an agent thereof, that person and any affiliated person shall, as a prerequisite for any such sale or lease, register with the department of revenue as a retailer and comply with all legal requirements imposed on a retailer, including the requirement to collect and remit sales or use tax on all taxable sales of tangible personal property to customers in this state.

(b) Any ruling, agreement or contract, whether written or oral, express or implied, between a retailer and this state's executive branch, or any other state agency or department, stating, agreeing or ruling that the retailer is not required to collect sales and use tax in this state despite the presence of a warehouse, distribution center or fulfillment center in the state that is owned or operated by the retailer or an affiliated person of the retailer shall be null and void, unless it is specifically approved by a majority vote of each of the chambers of the Kansas legislature.

(c) As used in this section, "affiliated person" means any person that is a member of the same "controlled group of corporations" as defined in section 1563(a) of the federal internal revenue code as the retailer or any other entity that, notwithstanding its form of organization, bears the same ownership relationship to the retailer as a corporation that is a member of the same "controlled group of corporations" as defined in section 1563(a) of the federal internal revenue code.

History: L. 2013, ch. 87, § 9; April 25.

§ 79-3697 State and local sales tax liability on sales of certain used motor vehicles; requirements of taxpayer; refunds

(a) When a used motor vehicle is sold on or after January 1, 2025, by an individual instead of being traded in as partial payment on the sale of a new or used motor vehicle, and the individual purchases a new or used vehicle of greater value within 120 days before or after such sale, the tax imposed by the Kansas retailers' sales tax act pursuant to K.S.A. 79-3601 et seq., and amendments thereto, or the Kansas compensating tax pursuant to K.S.A. 79-3701 et seq., and amendments thereto, shall be paid on the amount of total consideration paid for the new or used vehicle purchased by such individual that exceeds the amount received by such individual from such sale of the used motor vehicle. In the event that the consideration paid for the purchased vehicle is equal to or less than the amount received from the sale of the used motor vehicle, then the individual shall not owe any sales or compensating use tax.

(b) For purposes of subsection (a), the individual may either:

(1) Provide to the county treasurer the completed bills of sale for the vehicle sold and the vehicle purchased at the time that the purchased vehicle is registered. The county treasurer shall collect the tax on the amount prescribed under subsection (a); or

(2) apply to the department of revenue if taxes have already been paid on the purchased vehicle for a refund of the amount of tax paid by the individual that exceeds the tax amount owed pursuant to subsection (a) by providing both the completed bills of sale for the vehicle sold and the vehicle purchased.

(c) (1) The deduction provided by this section shall not be allowed unless the taxpayer claiming the deduction provides a copy of the bills of sale required pursuant to subsection (b), and such bills of sale are on department of revenue form TR-312 or, at a minimum, include information necessary to tie the specific purchase transaction to the related sale transaction including, but not limited to, the:

(A) Seller's printed name and address;

(B) buyer's printed name and address;

(C) year, make and vehicle identification number of the vehicle;

(D) sale price and date of sale of the vehicle; and

(E) signatures of the seller and the buyer and the date signed.

(2) The sale price, date of sale and the name of at least one buyer and seller listed on the bill of sale must match the information entered in the assignment of title on the back of the certificate of title.

(3) If the taxpayer claiming such deduction fails to provide such signed bills of sale, the tax shall be due on the total consideration paid for the new or used vehicle.

(d) The department of revenue shall issue a refund pursuant to subsection (b)(2) from the sales tax refund fund for any valid claims filed within three years from the date of the purchase of the replacement vehicle.

(e) The director of vehicles shall prescribe forms for compliance with this section.

(f) As used in this section, "consideration paid" means the amount paid after any rebate or discount.

History: L. 2024, ch. 94, § 2; July 1.

Article 37 Kansas Compensating Tax

§ 79-3701 Title of act

This act shall be known as the "Kansas compensating tax."

History: L. 1937, ch. 375, § 1; May 30.

§ 79-3702 Definitions

For the purposes of this act: (a) "Purchase price" means the consideration paid or given or contracted to be paid or given by any person to the seller of an article of tangible personal property for the article purchased. "Purchase price" includes, in addition to the consideration paid or given or contracted to be paid or given, the actual cost of transportation from the place where the article was purchased to the person using the same in this state. If a cash discount is allowed and taken on the sale, such cash discount shall be deducted in arriving at the purchase price.

(b) The meaning ascribed to words and phrases in K.S.A. 79-3602, and amendments thereto, insofar as is practicable, shall be applicable herein unless otherwise provided. The provisions of K.S.A. 79-3601 through 79-3625, 79-3650, 79-3693 and 79-3694, and amendments thereto, relating to enforcement, collection and administration, insofar as practicable, shall have full force and effect with respect to taxes imposed under the provisions of this act.

(c) "Use" means the exercise within this state by any person of any right or power over tangible personal property incident to the ownership of that property, except that it shall not include processing, or the sale of the property in the regular course of business, and except storage as hereinafter defined.

(d) "Storage" means any keeping or retaining in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer.

(e) "Storage" and "use" do not include the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into this state for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached to or incorporated into, other tangible personal property to be transported outside the state and thereafter used solely outside the state.

(f) "Property used in processing" means: (1) Any tangible personal property that, when used in fabrication, compounding, manufacturing or germination, becomes an integral part of the new article resulting from such fabrication, compounding, manufacturing or germination, and intended to be sold ultimately at retail; and (2) fuel that is consumed in creating power, heat or steam for processing or for generating electric current.

(g) "Retailer" means every person engaged in the business of selling tangible personal property for use within the meaning of this act, except that, when in the opinion of the director it is necessary for the efficient administration of this act to regard any salesperson, representatives, truckers, peddlers or canvassers as the agents of the dealers, distributors, supervisors, employers or persons under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors, employers, or persons, the director may so regard them and may regard the dealers, distributors, supervisors, employers, or persons as retailers for the purposes of this act.

(h) (1) "Retailer doing business in this state" or any like term, means: (A) Any retailer maintaining in this state, permanently, temporarily, directly or indirectly through a subsidiary, agent or representative, an office, distribution house, sales house, warehouse or other place of business;

(B) any retailer utilizing an employee, independent contractor, agent, representative, salesperson, canvasser, solicitor or other person operating in this state either permanently or temporarily, for the purpose of selling, delivering, installing, assembling, servicing, repairing, soliciting sales or the taking of orders for tangible personal property;

(C) any retailer, including a contractor, repair person or other service provider, who enters this state to perform services that are enumerated in K.S.A. 79-3603, and amendments thereto, and who is required to secure a retailer's sales tax registration certificate before performing those services;

(D) any retailer deriving rental receipts from a lease of tangible personal property situated in this state;

(E) any person regularly maintaining a stock of tangible personal property in this state for sale in the normal course of business;

(F) any retailer who has any other contact with this state that would allow this state to require the retailer to collect and remit tax under the provisions of the constitution and laws of the United States; and

(G) (i) for any retailer that does not satisfy any of the requirements contained in subparagraphs (A) through (F), such retailer shall be a retailer doing business in this state, if:

(a) For the period beginning on January 1, 2021, through June 30, 2021, the retailer had in excess of $100,000 of cumulative gross receipts from sales by the retailer to customers in this state; or

(b) during the current or immediately preceding calendar year, the retailer had in excess of $100,000 of cumulative gross receipts from sales by the retailer to customers in this state.

(ii) (a) For any retailer who satisfies the provisions of subparagraph (G)(i), such retailer shall not be required to collect and remit any taxes from sales occurring prior to July 1, 2021.

(b) For any retailer who satisfies the provisions of subparagraph (G)(i)(b) for sales in the current calendar year for the first time, such retailer shall be required to collect and remit the tax on any sales in excess of $100,000 of cumulative gross receipts from sales in the current calendar year by the retailer to customers in this state.

(2) A retailer shall be presumed to be doing business in this state if any person, other than a common carrier acting in its capacity as such, that has nexus with the state sufficient to require such person to collect and remit taxes under the provisions of the constitution and laws of the United States if such person were making taxable retail sales of tangible personal property or services in this state and such person:

(A) Sells the same or a substantially similar line of products as the retailer and does so under the same or a substantially similar business name;

(B) maintains a distribution house, sales house, warehouse or similar place of business in Kansas that delivers or facilitates the sale or delivery of property sold by the retailer to consumers;

(C) uses trademarks, service marks or trade names in the state that are the same or substantially similar to those used by the retailer;

(D) delivers, installs, assembles or performs maintenance services for the retailer's customers within the state;

(E) facilitates the retailer's delivery of property to customers in the state by allowing the retailer's customers to pick up property sold by the retailer at an office, distribution facility, warehouse, storage place or similar place of business maintained by the person in the state;

(F) has a franchisee or licensee operating under its trade name if the franchisee or the licensee is required to collect the tax under the Kansas retailers' sales tax act; or

(G) conducts any other activities in the state that are significantly associated with the retailer's ability to establish and maintain a market in the state for the retailer's sales.

(3) The processing of orders electronically, by fax, telephone, the internet or other electronic ordering process does not relieve a retailer of responsibility for collection of the tax from the purchaser if the retailer is doing business in this state pursuant to this section.

(i) "Director" means the director of taxation.

History: L. 1937, ch. 375, § 2; L. 1945, ch. 370, § 1; L. 1957, ch. 511, § 1; L. 1965, ch. 535, § 1; L. 1990, ch. 357, § 1; L. 2003, ch. 159, § 2; L. 2007, ch. 155, § 14; L. 2013, ch. 87, § 18; L. 2021, ch. 93, § 14; July 1.

§ 79-3703 Compensating use tax imposed; rate

(a) There is hereby levied and there shall be collected from every person in this state a tax or excise for the privilege of using, storing, or consuming within this state any article of tangible personal property. Such tax shall be levied and collected in an amount equal to the consideration paid by the taxpayer multiplied by the rate of 6.5%.

(b) Commencing on January 1, 2023, and thereafter, the state rate on the amount equal to the consideration paid by the taxpayer from the sale of food and food ingredients as provided in K.S.A. 79-3603, and amendments thereto, shall be as set forth in K.S.A. 2025 Supp. 79-3603d, and amendments thereto.

(c) On and after January 1, 2023, 17% and on and after January 1, 2025, 18% of the tax rate imposed pursuant to this section and the rate provided in K.S.A. 2025 Supp. 79-3603d, and amendments thereto, shall be levied for the state highway fund, the state highway fund purposes and those purposes specified in K.S.A. 68-416, and amendments thereto, and all revenue collected and received from such tax levy shall be deposited in the state highway fund.

(d) Within a redevelopment district established pursuant to K.S.A. 74-8921, and amendments thereto, there is hereby levied and there shall be collected and paid an additional tax of 2% until the earlier of: (1) The date the bonds issued to finance or refinance the redevelopment project undertaken in the district have been paid in full; or (2) the final scheduled maturity of the first series of bonds issued to finance the redevelopment project.

(e) All property purchased or leased within or without this state and subsequently used, stored or consumed in this state shall be subject to the compensating tax if the same property or transaction would have been subject to the Kansas retailers' sales tax had the transaction been wholly within this state.

History: L. 1937, ch. 375, § 3; L. 1945, ch. 370, § 2; L. 1953, ch. 450, § 1; L. 1955, ch. 425, § 1; L. 1958, ch. 31, § 3 (Special Session); L. 1965, ch. 533, § 3; L. 1986, ch. 386, § 3; L. 1989, ch. 209, § 61; L. 1992, ch. 280, § 61; L. 1995, ch. 118, § 4; L. 1998, ch. 199, § 15; L. 1999, ch. 158, § 12; L. 2002, ch. 185, § 9; L. 2003, ch. 150, § 3; L. 2004, ch. 90, § 4; L. 2010, ch. 160, § 3; L. 2013, ch. 135, § 4; L. 2015, ch. 99, § 9; L. 2015, ch. 102, § 9; L. 2020, ch. 8, § 14; L. 2022, ch. 89, § 8; January 1, 2023.

§ 79-3703a Evidence that property was sold for use in state

For the purpose of the proper administration of this act and to prevent evasion of the tax, evidence that tangible personal property was sold by any person for delivery in this state shall be prima facie evidence that such tangible personal property was sold for use in this state.

History: L. 1945, ch. 370, § 3; June 30.

§ 79-3704 Exemptions

The provisions of this act shall not apply:

(a) In respect to the use, storage or consumption of any article of tangible personal property brought into the state of Kansas by a nonresident who is within the state for not to exceed sixty (60) days for his or her use or enjoyment while within the state; or by a railroad or public utility for consumption or movement in interstate commerce;

(b) In respect to the use, storage or consumption of tangible personal property purchased other than at retail; as defined in K.S.A. 79-3602;

(c) In respect to the use, storage or consumption of any article of tangible personal property the sale or use of which has already been subjected to a tax equal to or in excess of that imposed by this act whether under the laws of this state or of some other state of the United States;

(d) In respect to the use, storage or consumption of any article of tangible personal property brought into or used within the state of Kansas if such article of tangible personal property would not have been subject to tax under the provisions of the retailers' sales tax act of this state if purchased within this state.

History: L. 1937, ch. 375, § 4; L. 1945, ch. 370, § 4; L. 1967, ch. 503, § 1; April 29.

§ 79-3705 Rate where article already subjected to tax

If any article of tangible personal property has already been subjected to a tax by this or any other state in respect to its sale or use in an amount less than the tax imposed by this act, the provisions of this act shall apply, but at a rate measured by the difference only between the rate herein fixed and the rate by which the previous tax upon the sale or use was computed.

History: L. 1937, ch. 375, § 5; May 30.

§ 79-3705a Tax paid by consumer or user; duty of retailer; returns

The tax levied under K.S.A. 79-3703, and amendments thereto, shall be paid by the consumer or user to the retailer and it shall be the duty of each and every retailer to collect from the consumer or user the full amount of the tax imposed by this act. Such tax shall be a debt from the consumer or user to the retailer when added to the original purchase price, and shall be recoverable at law in the same manner as other debts. If the tax levied under K.S.A. 79-3703, and amendments thereto, is not collected by the retailer, then the person using, consuming or storing tangible personal property in this state shall file a return and pay the tax, as required by K.S.A. 79-3706, and amendments thereto, notwithstanding the foregoing provisions of this section or any other provision of the Kansas compensating tax act.

History: L. 1945, ch. 370, § 5; L. 1985, ch. 332, § 1; April 11.

§ 79-3705b Assumption of tax by retailer unlawful

It shall be unlawful for any retailer to advertise or hold out, or state to the public, or to any consumer, directly or indirectly, that the tax, or any part thereof, imposed by this act will be assumed or absorbed by the retailer, or that it will not be considered as an element in the price to the consumer, or if collected, that it, or any part thereof, will be refunded.

History: L. 1945, ch. 370, § 6; June 30.

§ 79-3705c Collection of tax and other duties of retailers

Every retailer doing business in this state and making sales of tangible personal property for use, storage or consumption in this state, not exempted under the provisions of this act, shall at the time of making such sales, whether within or without the state, collect the tax imposed by this act from the purchaser, and give the purchaser a receipt therefor. Each such retailer shall list with the director the name and address of all his or her agents operating in this state, and the location of any and all his or her distribution or sales houses or offices or other places of business in this state.

History: L. 1945, ch. 370, § 7; L. 1957, ch. 511, § 2; June 29.

§ 79-3705d Collection by retailer not doing business within state; permit; cancellation

The secretary of revenue or the secretary's designee may upon application, authorize the collection of the tax herein imposed by any retailer not doing business within this state. Such retailer shall be issued, without charge, a permit to collect such tax in such manner, and subject to such regulations and agreements as the secretary shall prescribe. When so authorized, it shall be the duty of such retailer to collect the tax upon all tangible personal property sold for use, storage or consumption within this state, in the same manner and subject to the same requirements as a retailer doing business within this state. Such authority and permit may be canceled when, at any time, the secretary or the secretary's designee considers such tax can more effectively be collected from the person using, storing or consuming such property in this state.

History: L. 1945, ch. 370, § 8; L. 1957, ch. 511, § 3; L. 1989, ch. 291, § 11; April 27.

§ 79-3705e Tax collected as debt owed by retailer

The tax herein required to be collected by any retailer pursuant to this act, and any tax collected by any retailer pursuant to this act, shall constitute a debt owed by the retailer to this state.

History: L. 1945, ch. 370, § 9; June 30.

§ 79-3706 Time for returns and payment of tax; interest and penalties; waiver or reduction; extension of time; signing and certification of returns

(a) Each retailer or person subject to the provisions of this act shall make remittances of the tax imposed by K.S.A. 79-3703, and amendments thereto, and file returns in accordance with the provisions of K.S.A. 79-3607, and amendments thereto, except that the time schedule for remitting tax and filing returns shall be determined on the basis of calendar year compensating tax liability in lieu of calendar year sales tax liability. Returns shall show in detail the total quantity of tangible personal property sold by any retailer or used, stored or consumed by any person within the state during the period for which the return is filed subject to the tax herein imposed, and such other information as the director may deem pertinent. The director may, upon request and a proper showing of the necessity therefor, grant an extension of time not to exceed 60 days for making any return and payment. Returns shall be signed by the retailer or such retailer's duly authorized agent, and must be certified by such retailer to be correct.

(b) If any taxpayer fails to pay the tax required under the act of which this section is amendatory at the time required by or under the provisions of the act of which this section is amendatory, there shall be added to the unpaid balance of the tax, interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(c) For all taxable years ending prior to January 1, 2002, if any taxpayer due to negligence or intentional disregard fails to file a return or pay the tax due at the time required by or under the provisions of this section, there shall be added to the tax a penalty in an amount equal to 10% of the unpaid balance of tax due.

(d) For all taxable years ending prior to January 1, 2002, if any person fails to make a return, or to pay any tax, within six months from the date the return or tax was due, except in the case of an extension of time granted by the secretary of revenue or the secretary's designee, there shall be added to the tax due a penalty equal to 25% of the unpaid balance of such tax due.

(e) For all taxable years ending after December 31, 2001, if any taxpayer fails to file a return or pay the tax if one is due, at the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to 1% of the unpaid balance of the tax due for each month or fraction thereof during which such failure continues, not exceeding 24% in the aggregate, plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in an amount of 1% per month not exceeding 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(f) If any taxpayer, with fraudulent intent, fails to pay any tax or make, render or sign any return, or to supply any information, within the time required by or under the provisions of this section, there shall be added to the tax a penalty in an amount equal to 50% of the unpaid balance of tax due.

(g) Penalty or interest applied under the provisions of subsections (b) and (e) shall be in addition to the penalty added under any other provisions of this section, but the provisions of subsections (c) and (d) shall be mutually exclusive of each other.

(h) Whenever the secretary of revenue or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsections (b), (c), (d) and (e) was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994 upon making a record of the reasons therefor.

(i) In addition to all other penalties provided by this section, any person who willfully fails to make a return or to pay any tax imposed under the Kansas compensating tax act, or who makes a false or fraudulent return, or fails to keep any books or records prescribed by the Kansas compensating tax act, or who willfully violates any regulations of the secretary of revenue, for the enforcement and administration of the Kansas compensating tax act, or who aids and abets another in attempting to evade the payment of any tax imposed by the Kansas compensating tax act, or who violates any other provision of the Kansas compensating tax act, shall, upon conviction thereof, be fined not less than $100 nor more than $1,000, or be imprisoned in the county jail not less than one month nor more than six months, or be both so fined and imprisoned, in the discretion of the court.

(j) No penalty assessed hereunder shall be collected if the taxpayer has had the tax abated on appeal, and any penalty collected upon such tax shall be refunded.

History: L. 1937, ch. 375, § 6; L. 1945, ch. 370, § 10; L. 1967, ch. 501, § 2; L. 1980, ch. 308, § 25; L. 1983, ch. 331, § 2; L. 1984, ch. 351, § 23; L. 1988, ch. 390, § 2; L. 1989, ch. 291, § 7; L. 1994, ch. 95, § 7; L. 2000, ch. 184, § 20; July 1.

§ 79-3707 Administration of act; rules and regulations; agents and employees; bond of person subject to tax; reciprocal agreements with other states for collection of tax; deductions and compromise arrangements

(a) The director of taxation shall administer and enforce this act. The secretary of revenue shall adopt rules and regulations for the administration of this act. The director shall appoint agents and employees for the enforcement and administration of this act. When in the judgment of the director it is necessary in order to secure the collection of any tax, penalties or interest due, or to become due under this act, he may require any person subject to such tax to file a bond with the director in such form and amount as he may prescribe.

(b) For the purpose of providing for the efficient administration of this act, the secretary of revenue when in his or her judgment it is necessary in order to secure the collection of any tax, penalties or interest due or to become due under this act is authorized to negotiate agreements with the tax departments of other states in respect to the collection, payment and enforcement of tax on sales of tangible personal property to residents of Kansas by a retailer maintaining a place of business in such state.

In consideration of such an agreement, the secretary of revenue is authorized to make similar agreements for the collection, payment and enforcement of tax as imposed by the other states on sales of tangible property to residents of the other states by retailers maintaining a place of business in Kansas.

(c) The secretary of revenue in negotiating an agreement with the tax department of another state may as part of such agreements provide for reciprocal arrangements whereby the parties collecting the tax in the other state may at the time of making returns to the director of taxation deduct such percentage of the amount due and accounted for, which may be retained by the parties reporting as an offset against costs of collecting and reporting as is allowed by such other states to parties in this state collecting the tax for the other state. No such deduction shall be allowed however, if the amount due is delinquent at the time of the tax payment.

(d) The secretary of revenue in negotiating agreements is authorized, by way of compromise, to waive the collection and enforcement of taxes on sales to residents of Kansas made in another state and delivered into Kansas when such sales were made prior to the effective date of any agreement negotiated: Provided, The director shall not, in any case, be authorized to waive payment and enforcement of the tax in another state unless the tax department of the other state waives collection, payment and enforcement of their tax in this state in the same manner as the tax payment is waived by this state.

History: L. 1937, ch. 375, § 7; L. 1945, ch. 370, § 11; L. 1967, ch. 504, § 1; L. 1972, ch. 342, § 114; July 1.

§ 79-3708 Penalties for violations

Any retailer or person who fails to make a return, or to pay any tax herein provided, or who makes a false or fraudulent return, or who willfully violates any regulation of the director for the enforcement and administration of this act, or aids and abets another in attempting to evade the payment of any tax imposed by this act, or who violates any other provision of this act, shall, upon conviction thereof, be fined not less than one hundred dollars nor more than one thousand dollars or be imprisoned in the county jail not less than one month, nor more than six months, or be both so fined and imprisoned, in the discretion of the court.

History: L. 1937, ch. 375, § 8; L. 1945, ch. 370, § 12; June 30.

§ 79-3708a Repealed

History: L. 1945, ch. 370, § 13; L. 1988, ch. 356, § 344; Repealed, L. 1992, ch. 198, § 8; July 1.

§ 79-3709 Collection procedure when tax not paid

Whenever any taxpayer or person liable to pay any tax provided by this act refuses or neglects to pay the same, the amount thereof, including any interest or penalty, shall be collected in the manner provided by K.S.A. 79-3617.

History: L. 1937, ch. 375, § 9; L. 1945, ch. 370, § 14; June 30.

§ 79-3710 Disposition of moneys; compensating tax refund fund; credit to state highway fund; credit to city bond finance fund; intermodal facility district, definition, disposition, requirements and procedures for certain compensating tax revenue on utility sales

(a) All revenue collected or received by the director under the provisions of this act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury, less amounts set apart as provided in subsection (b) and amounts credited as provided in subsection (c), (d) and (e), to the credit of the state general fund.

(b) A revolving fund, designated as "compensating tax refund fund" not to exceed $10,000 shall be set apart and maintained by the director from compensating tax collections and estimated tax collections and held by the state treasurer for prompt payment of all compensating tax refunds. Such fund shall be in such amount, within the limit set by this section, as the director shall determine is necessary to meet current refunding requirements under this act.

(c) (1) On January 1, 2023, the state treasurer shall credit 17% of the revenue collected and received from the tax imposed by K.S.A. 79-3703, and amendments thereto, at the rates provided in K.S.A. 79-3703, and amendments thereto, and K.S.A. 2025 Supp. 79-3603d, and amendments thereto, and deposited as provided by subsection (a), exclusive of amounts credited pursuant to subsection (d), in the state highway fund.

(2) On January 1, 2025, and thereafter, the state treasurer shall credit 18% of the revenue collected and received from the tax imposed by K.S.A. 79-3703, and amendments thereto, at the rates provided in K.S.A. 79-3703, and amendments thereto, and K.S.A. 2025 Supp. 79-3603d, and amendments thereto, and deposited as provided by subsection (a), exclusive of amounts credited pursuant to subsection (d), in the state highway fund.

(d) The state treasurer shall credit all revenue collected or received from the tax imposed by K.S.A. 79-3703, and amendments thereto, as certified by the director, from taxpayers doing business within that portion of a redevelopment district occupied by a redevelopment project that was determined by the secretary of commerce to be of statewide as well as local importance or will create a major tourism area for the state as defined in K.S.A. 12-1770a, and amendments thereto, to the city bond finance fund created by K.S.A. 79-3620(d), and amendments thereto. The provisions of this subsection shall expire when the total of all amounts credited hereunder and under K.S.A. 79-3620(d), and amendments thereto, is sufficient to retire the special obligation bonds issued for the purpose of financing all or a portion of the costs of such redevelopment project.

This subsection shall not apply to a project designated as a special bond project as defined in K.S.A. 12-1770a(z), and amendments thereto.

(e) All revenue certified by the director of taxation as having been collected or received from the tax imposed by K.S.A. 79-3603(c), and amendments thereto, on the sale or furnishing of gas, water, electricity and heat for use or consumption within the intermodal facility district described in this subsection, shall be credited by the state treasurer to the state highway fund. Such revenue may be transferred by the secretary of transportation to the rail service improvement fund pursuant to law. The provisions of this subsection shall take effect upon certification by the secretary of transportation that a notice to proceed has been received for the construction of the improvements within the intermodal facility district, but not later than December 31, 2010, and shall expire when the secretary of revenue determines that the total of all amounts credited hereunder and pursuant to K.S.A. 79-3620(e), and amendments thereto, is equal to $53,300,000, but not later than December 31, 2045. Thereafter, all revenues shall be collected and distributed in accordance with applicable law. For all tax reporting periods during which the provisions of this subsection are in effect, none of the exemptions contained in K.S.A. 79-3601 et seq., and amendments thereto, shall apply to the sale or furnishing of any gas, water, electricity and heat for use or consumption within the intermodal facility district. As used in this subsection, "intermodal facility district" shall consist of an intermodal transportation area as defined by K.S.A. 12-1770a(oo), and amendments thereto, located in Johnson county within the polygonal-shaped area having Waverly Road as the eastern boundary, 191st Street as the southern boundary, Four Corners Road as the western boundary, and Highway 56 as the northern boundary, and the polygonal-shaped area having Poplar Road as the eastern boundary, 183rd Street as the southern boundary, Waverly Road as the western boundary, and the BNSF mainline track as the northern boundary, that includes capital investment in an amount exceeding $150 million for the construction of an intermodal facility to handle the transfer, storage and distribution of freight through railway and trucking operations.

History: L. 1937, ch. 375, § 10; L. 1941, ch. 385, § 1; L. 1957, ch. 429, § 33; L. 1958, ch. 31, § 4 (Special Session); L. 1965, ch. 530, § 3; L. 1967, ch. 502, § 2; L. 1989, ch. 209, § 62; L. 1993, ch. 213, § 6; L. 1998, ch. 17, § 10; L. 2001, ch. 167, § 12; L. 2001, ch. 167, § 13; L. 2002, ch. 185, § 10; L. 2003, ch. 150, § 4; L. 2004, ch. 90, § 5; L. 2010, ch. 160, § 4; L. 2013, ch. 135, § 5; L. 2015, ch. 99, § 10; L. 2015, ch. 102, § 10; L. 2022, ch. 89, § 9; January 1, 2023.

§ 79-3710a Repealed

History: L. 1937, ch. 375, § 10; L. 1941, ch. 385, § 1; L. 1957, ch. 429, § 33; L. 1958, ch. 31, § 4 (Special Session); L. 1965, ch. 530, § 3; L. 1967, ch. 502, § 2; L. 1989, ch. 209, § 62; L. 1993, ch. 213, § 6; L. 1998, ch. 17, § 10; L. 2001, ch. 167, § 12; L. 2001, ch. 167, § 13; L. 2002, ch. 185, § 10; L. 2003, ch. 97, § 8; L. 2003, ch. 154, § 100; Repealed, L. 2004, ch. 90, § 6; July 1.

§ 79-3711 Invalidity of part

If any section, subsection, clause, sentence or phrase of this act is for any reason held to be unconstitutional and invalid, such decision shall not affect the validity of the remaining portion of this act.

History: L. 1937, ch. 375, § 11; May 30.

§ 79-3712 Registration and filing information, when

The director of taxation may require any retailer, vendor, user or consumer of tangible personal property, incurring compensating (use) tax liability under article 37, chapter 79, Kansas Statutes Annotated, prior to engaging in business within the state of Kansas, to register and file such information as the director deems pertinent.

History: L. 1951, ch. 499, § 1; June 30.

§ 79-3713 Bond may be required

When in the judgment of the director of taxation, it is necessary, in order to secure the collection of any tax, penalties or interest, due, or to become due, under article 37, chapter 79, Kansas Statutes Annotated, he or she may require any person subject to such tax to file a bond with the director of taxation in such form and amount as the director of taxation may prescribe.

History: L. 1951, ch. 499, § 2; June 30.

Article 38 Cereal Malt Beverages and Malt Products (Not in active use)

§§ 79-3801 through 79-3816 Repealed

History: L. 1937, ch. 215, §§ 1 to 16; Repealed, L. 1941, ch. 386, § 21; May 1.

§ 79-3817 Repealed

Revisor's Note: Later act, see 41-501 et seq.

History: L. 1941, ch. 386, § 1; L. 1947, ch. 465, § 1; L. 1949, ch. 243, § 2; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3818 Repealed

History: L. 1941, ch. 386, § 2; L. 1947, ch. 466, § 1; L. 1970, ch. 188, § 2; L. 1977, ch. 167, § 3; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3819 Repealed

History: L. 1941, ch. 386, § 3; L. 1987, ch. 182, § 142; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3820 Repealed

History: L. 1941, ch. 386, § 4; Repealed, L. 1968, ch. 381, § 2; July 1.

§§ 79-3821 through 79-3823 Repealed

History: L. 1941, ch. 386, §§ 5 to 7; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3824 Repealed

History: L. 1941, ch. 386, § 8; L. 1962, ch. 45, § 1; L. 1972, ch. 342, § 115; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3825 Repealed

History: L. 1941, ch. 386, § 9; L. 1972, ch. 342, § 116; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3826 Repealed

History: L. 1941, ch. 386, § 10; L. 1953, ch. 451, § 1; L. 1978, ch. 189, § 8; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3827 Repealed

History: L. 1941, ch. 386, § 11; L. 1968, ch. 381, § 1; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3828 Repealed

History: L. 1941, ch. 386, § 12; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3829 Repealed

History: L. 1941, ch. 386, § 13; L. 1957, ch. 429, § 34; L. 1965, ch. 530, § 4; Repealed, L. 1993, ch. 234, § 5; July 1.

§§ 79-3830, 79-3831 Repealed

History: L. 1941, ch. 386, §§ 14, 15; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3832 Repealed

History: L. 1941, ch. 386, § 16; L. 1973, ch. 106, § 29; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3833 Repealed

History: L. 1941, ch. 386, § 17; L. 1978, ch. 189, § 9; L. 1987, ch. 182, § 140; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3834 Repealed

History: L. 1941, ch. 386, § 18; L. 1978, ch. 189, § 10; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3835 Repealed

History: L. 1941, ch. 386, § 19; L. 1943, ch. 290, § 10; L. 1953, ch. 451, § 2; L. 1957, ch. 429, § 35; L. 1972, ch. 342, § 117; L. 1978, ch. 189, § 11; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3836 Repealed

History: L. 1941, ch. 386, § 20; Repealed, L. 1993, ch. 234, § 5; July 1.

§ 79-3837 Transferred

Revisor's Note: Section transferred to 41-2713.

§ 79-3838 Repealed

History: L. 1951, ch. 501, § 1; Repealed, L. 1953, ch. 451, § 4; April 8.

§ 79-3839 Transferred

Revisor's Note: Section transferred to 41-2714.

Article 39 Grain (Not in active use)

§ 79-3901 Repealed

History: L. 1941, ch. 387, § 1; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§ 79-3902 Repealed

History: L. 1941, ch. 387, § 2; L. 1945, ch. 371, § 1; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§§ 79-3903 through 79-3905 Repealed

History: L. 1941, ch. 387, §§ 3 to 5; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§ 79-3906 Repealed

History: L. 1941, ch. 387, § 6; L. 1943, ch. 311, § 1; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§ 79-3907 Repealed

History: L. 1941, ch. 387, § 7; L. 1980, ch. 308, § 32; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§§ 79-3908 through 79-3910 Repealed

History: L. 1941, ch. 387, §§ 8 to 10; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

§ 79-3911 Repealed

History: L. 1945, ch. 371, § 2; Repealed, L. 1988, ch. 391, § 2; January 1, 1989.

Article 40 Municipal Tax Levies

§ 79-4001 General improvements for library purposes; tax levy, use of proceeds; election required

Any municipality, as the same is defined in K.S.A. 10-1101, is hereby authorized to make an annual tax levy not to exceed two mills for the purpose of creating and providing a special fund to be used in making any general improvement which such municipality is authorized by law to make, or, to be used to remodel, construct, reconstruct, furnish and equip an addition or annex to any library being operated and maintained by such municipality, and in the case of cities, counties and school districts, to pay a portion of the principal and interest on bonds issued by cities under the authority of K.S.A. 12-1774, and amendments thereto, for the financing of redevelopment projects upon property located in such county or such school district. The governing body of such municipalities shall by resolution submit the question of making such levy to the qualified electors of the municipality at any general election or at a special election called for such purpose. The question as stated on the ballot shall show the nature of the improvement contemplated, the total amount to be raised by taxes, and the period over which such levy is to be made, which shall in no case exceed ten (10) years. If a majority of those voting on such proposition vote in favor thereof, the governing body shall make said levy and create such fund, the principal and interest thereof to be used for the purpose authorized. Such levy shall be in addition to all other levies authorized by law and none of the limitations of article 19 of chapter 79 of the Kansas Statutes Annotated, or acts amendatory thereof or supplemental thereto, shall apply to such levy. Whenever tax levies have been approved and the fund created as provided for in this section in any city, and thereafter, it becomes evident that the city will be unable to use the fund for the specific purposes herein provided for because of urban renewal plans approved by the federal government providing for the removal of the library building, the governing board of such city shall be and is hereby authorized to use such fund so accumulated for the purposes of purchasing and improving a library or sites, constructing, furnishing, equipping, remodeling or making additions to library buildings, and may continue to make the tax levy for the purposes hereinbefore specified for the period provided, but not to exceed a total of ten (10) years in any case; and said governing board is further authorized to use such funds derived from tax levies to prepay rent under leases with a public building commission as provided for under K.S.A. 12-1757 et seq., and acts amendatory thereof.

History: L. 1949, ch. 490, § 1; L. 1955, ch. 426, § 1; L. 1968, ch. 171, § 1; L. 1979, ch. 52, § 198; July 1.

§ 79-4002 Same; expenditures from fund; bonds

At any time after fifty percent of the amount proposed to be raised has been collected the governing body of the municipality may make expenditures from the fund for architectural or engineering services, for the purchase of ground, for the construction of a building and the equipping thereof as authorized at the time of creating such fund. Should there be insufficient moneys in such fund at the time the governing body desires to make such expenditures, said governing body may issue and sell bonds of the municipality in an amount not to exceed twenty-five percent of the total amount authorized for the special fund to supplement the funds on hand. Nothing in this act shall prevent the use by the governing body of any available federal or state aid in the making of the improvement.

History: L. 1949, ch. 490, § 2; June 30.

§ 79-4003 Same; bonds to supplement special fund; election; notice; use of moneys

Whenever a majority of the electors voting at a bond election in any municipality, as the same is defined in K.S.A. 10-1101, shall vote in favor of the issuance of bonds of such municipality for the purpose of providing funds for the purchase or acquisition of a site and the construction thereon of a new public library building, and prior thereto, under the authority of and in compliance with K.S.A. 79-4001, said municipality has levied taxes and created and provided a special fund to be used to remodel, construct, reconstruct, furnish and equip an addition or annex to the library then being operated and maintained by said municipality, and said moneys in such special fund have not been expended for the purpose for which originally levied or appropriated, then, all moneys theretofore or thereafter credited to such special fund shall be used to supplement the moneys derived from the issuance of the bonds for the purchase or acquisition of a site and the construction thereon of a new public library building or may be used to furnish and equip such new library: Provided, That the notice of the bond election for the issuance of bonds for such new public library building and the question on the ballot used at such bond election shall state that all moneys theretofore or thereafter credited to said special fund will be used to supplement the moneys derived from the issuance of the bonds or to furnish and equip the new library building.

History: L. 1961, ch. 80, § 1; March 6.

Article 41 Liquor Enforcement Tax

§ 79-4101 Imposition and rate of tax

(a) For the purpose of providing revenue which may be used by the state, counties and cities in the enforcement of the provisions of this act, from and after the effective date of this act, for the privilege of engaging in the business of selling alcoholic liquor by retailers, microbreweries, microdistilleries or farm wineries to consumers in this state or selling alcoholic liquor or cereal malt beverage by distributors to clubs, drinking establishments, public venues or caterers in this state, there is hereby levied and there shall be collected and paid a tax at the rate of 8% upon the gross receipts received from: (1) The sale of alcoholic liquor, cereal malt beverage and nonalcoholic malt beverage by retailers; (2) the sale of alcoholic liquor by microbreweries, microdistilleries or farm wineries to consumers within this state; and (3) the sale of alcoholic liquor or cereal malt beverage by distributors to clubs, drinking establishments, public venues or caterers in this state.

(b) The tax imposed by this section shall be in addition to the license fee imposed on distributors, retailers, microbreweries, microdistilleries and farm wineries by K.S.A. 41-310, and amendments thereto.

(c) As used in this section, the term "retailer" means the same as such term is defined in K.S.A. 41-102, and amendments thereto.

History: L. 1949, ch. 242, § 117; L. 1958, ch. 35, § 1 (Special Session); L. 1965, ch. 536, § 1; L. 1983, ch. 332, § 1; L. 1984, ch. 363, § 1; L. 1987, ch. 182, § 109; L. 1987, ch. 182, § 110; L. 2012, ch. 144, § 45; L. 2019, ch. 18, § 3; April 1.

§ 79-4101a Repealed

History: L. 1949, ch. 242, § 117; L. 1958, ch. 35, § 1 (Special Session); L. 1965, ch. 536, § 1; L. 1983, ch. 161, § 22; Repealed, L. 1984, ch. 363, § 2; July 1.

§ 79-4102 Tax paid by purchaser and collected by seller

The tax levied under K.S.A. 79-4101, and amendments thereto, shall be paid by the consumer or user to the retailer, microbrewery, microdistillery or farm winery or by the club, drinking establishment, public venue or caterer to the distributor. It shall be the duty of each retailer, microbrewery, microdistillery, farm winery or distributor in this state to collect from the purchaser the full amount of the tax imposed by this act, or an amount equal as nearly as possible or practicable, to the average equivalent thereof.

History: L. 1949, ch. 242, § 118; L. 1983, ch. 161, § 23; L. 1987, ch. 182, § 111; L. 1987, ch. 182, § 112; L. 2012, ch. 144, § 46; July 1.

§ 79-4103 Time for returns and payment of tax; forms; extension of time

On or before the 25th day of each calendar month, every person engaged in the business of selling alcoholic liquor at retail, every microbrewery selling beer to consumers, every microdistillery selling spirits to consumers, every farm winery selling wine to consumers in this state and every distributor selling alcoholic liquor or cereal malt beverage to clubs, drinking establishments, public venues or caterers in this state during the preceding calendar month shall make a return to the director of taxation upon forms prescribed and furnished by the director, stating: (a) The name and address of the seller; (b) the total amount of gross sales subject to the tax imposed by K.S.A. 79-4101, and amendments thereto, during the preceding calendar month; and (c) any other pertinent information the director requires. The person making the return shall, at the time of making the return, pay to the director of taxation the amount of tax imposed by K.S.A. 79-4101, and amendments thereto. The director of taxation may extend the time for making returns and paying the tax for any period not to exceed 60 days, under rules and regulations adopted by the secretary of revenue.

History: L. 1949, ch. 242, § 119; L. 1965, ch. 536, § 2; L. 1967, ch. 501, § 3; L. 1983, ch. 161, § 24; L. 1987, ch. 182, § 113; L. 1987, ch. 182, § 114; L. 1992, ch. 295, § 2; L. 2012, ch. 144, § 47; July 1.

§ 79-4104 Notice to director of taxation when seller's license issued, revoked, suspended or expired

Whenever the director of alcoholic beverage control issues a retailer's, distributor's, microbrewery, microdistillery or farm winery license, the director of alcoholic beverage control shall promptly notify the director of taxation of its issuance. The notice shall include the name of the licensee and, in the case of a retailer, microbrewery, microdistillery or farm winery, the address of the licensed premises. Whenever the director of alcoholic beverage control revokes or suspends any retailer's, distributor's, microbrewery, microdistillery or farm winery license or whenever any retailer's, distributor's, microbrewery, microdistillery or farm winery license expires, the director of alcoholic beverage control shall likewise notify the director of taxation.

History: L. 1949, ch. 242, § 120; L. 1983, ch. 161, § 25; L. 1987, ch. 182, § 115; L. 1987, ch. 182, § 116; L. 2012, ch. 144, § 48; July 1.

§ 79-4105 Enforcement, collection and administration; sections applicable; "director" defined

The provisions of K.S.A. 75-5133, 79-3605, 79-3609, 79-3610, 79-3611, 79-3612, 79-3613, 79-3615, 79-3617 and 79-3619, and amendments thereto, relating to enforcement, collection and administration, insofar as practicable, shall have full force and effect with respect to taxes imposed under the provisions of K.S.A. 79-4101 to 79-4104, inclusive, and amendments thereto. Wherever the word "director" is used in such statutes it shall be construed to mean, for the purposes of this act, the director of taxation. The provisions of K.S.A. 74-2422, 74-2425, 74-2426 and 74-2427, and amendments thereto, relating to the approval of rules and regulations, and the adoption of uniform rules and regulations for such hearings and for appeals from orders of the director of taxation and prescribing the duties of county attorneys with respect to such appeals, insofar as practicable, shall have full force and effect with respect to taxes imposed by, and proceedings under, the provisions of K.S.A. 79-4101 to 79-4108, inclusive, and amendments thereto.

History: L. 1949, ch. 242, § 121; L. 2005, ch. 110, § 8; July 1.

§ 79-4106 Administration of provisions of article; rules and regulations; agents and employees; bond required of taxpayer, when

The director of taxation shall administer the provisions of article 41 of chapter 79 of the Kansas Statutes Annotated. The secretary of revenue shall adopt rules and regulations necessary to carry out the provisions and intent of K.S.A. 79-4101 to 79-4105, inclusive. The director of taxation shall appoint such agents and employees as he or she may deem necessary for the proper enforcement and administration of said sections. When, in the judgment of said director of taxation, it is necessary in order to secure the collection of any such tax, penalties or interest due thereon, or to become due under said sections, he or she may require any person subject to such tax to file a bond with him or her in such form and amount as he or she may prescribe.

History: L. 1949, ch. 242, § 122; L. 1957, ch. 429, § 36; L. 1972, ch. 342, § 118; July 1.

§ 79-4107 Penalties for violations of act

(a) No person shall: (1) Fail to make a return or pay any tax provided in K.S.A. 79-4101 to 79-4105, and amendments thereto; (2) make a false or fraudulent return; (3) willfully violate any rules and regulations of the secretary of revenue for the enforcement and administration of those sections; (4) aid or abet another in attempting to evade the payment of any tax imposed by those sections; or (5) violate any other provision of those sections.

(b) Violation of subsection (a) is punishable by a fine of not less than $100 or more than $1,000 or by imprisonment for not less than one or more than six months, or by both.

History: L. 1949, ch. 242, § 123; L. 1983, ch. 161, § 26; July 1.

§ 79-4108 Disposition of revenue; transfer of moneys in county and city alcoholic liquor control enforcement fund to state general fund; remittance of revenues collected within major professional sports franchise STAR bond district; sale of alcoholic liquor on Kansas state fairgrounds

(a) Except as provided in subsection (c), all revenue collected or received by the director of taxation from taxes imposed by K.S.A. 79-4101 through 79-4105, and amendments thereto, shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, except as provided for in subsection (b), the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. The state treasurer shall transfer any moneys remaining in the county and city alcoholic liquor control enforcement fund on the effective date of this act to the state general fund.

(b) For each remittance of the taxes collected upon the gross receipts derived from the sale of alcoholic liquor to consumers while on the Kansas state fairgrounds, 30% shall be credited to the state general fund, and the remainder shall be credited to the state fair capital improvements fund established pursuant to K.S.A. 2-223, and amendments thereto. The provisions of this subsection shall expire and have no effect if the state fair is located outside the city limits of the city of Hutchinson, Kansas.

(c) The secretary of revenue shall remit up to 100% of the taxes collected upon the gross receipts derived from the sale of alcoholic liquor to consumers within a STAR bond project district as defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, that is included in the tax increment for such district, as defined in K.S.A. 12-17,162, and amendments thereto, as set in the discretion of the secretary of commerce, to the respective bond debt service fund of a city or county that has issued STAR bonds for the undertaking of a STAR bond project, as defined in K.S.A. 12-17,162(aa)(2), and amendments thereto, for the purpose of paying the principal and interest of such bonds, in the same manner as the secretary of revenue remits the state sales and use tax increment to the city or county for such project as provided by the STAR bonds financing act. If the Kansas development finance authority has issued STAR bonds for such a project as provided by the STAR bonds financing act, the secretary shall remit up to 100% of such taxes to the designated bond debt service fund of the Kansas development finance authority for the purpose of paying the principal and interest of such bonds.

History: L. 1949, ch. 242, § 124; L. 1957, ch. 429, § 37; L. 1958, ch. 35, § 2 (Special Session); L. 1965, ch. 536, § 3; L. 1972, ch. 93, § 27; L. 1976, ch. 428, § 1; L. 1978, ch. 401, § 7; L. 2001, ch. 5, § 462; L. 2022, ch. 71, § 10; L. 2024, ch. 2, § 8 (Special Session); July 1.

Article 41a Liquor Drink Tax

§ 79-41a01 Definitions

As used in K.S.A. 79-41a01 through 79-41a09, and amendments thereto:

(a) "Alcoholic liquor" means alcoholic liquor, as defined by K.S.A. 41-102, and amendments thereto, and cereal malt beverage, as defined by K.S.A. 41-2701, and amendments thereto.

(b) "Caterer," "club," "drinking establishment," "public venue," "railway car" and "temporary permit" have the meanings provided by K.S.A. 41-2601, and amendments thereto.

(c) "Gross receipts derived from the sale of alcoholic liquor" means the amount charged the consumer for a drink containing alcoholic liquor, including any portion of that amount attributable to the cost of any ingredient mixed with or added to the alcoholic liquor contained in such drink.

History: L. 1979, ch. 152, § 11; L. 1985, ch. 171, § 12; L. 1987, ch. 182, § 117; L. 1990, ch. 179, § 9; L. 2012, ch. 144, § 49; July 1.

§ 79-41a02 Imposition and rate of tax; paid by consumer and collected by seller

(a) There is hereby imposed, for the privilege of selling alcoholic liquor, a tax at the rate of 10% upon the gross receipts derived from the sale of alcoholic liquor by any club, caterer, drinking establishment, public venue or temporary permit holder, and upon the acquisition costs of any alcoholic liquor served as samples by clubs and drinking establishments.

(b) The tax imposed by this section shall be paid by the consumer to the club, caterer, drinking establishment, public venue or temporary permit holder and it shall be the duty of each and every club, caterer, drinking establishment, public venue or temporary permit holder subject to this section to collect from the consumer the full amount of such tax, or an amount equal as nearly as possible or practicable to the average equivalent thereto. Each club, caterer, drinking establishment, public venue or temporary permit holder collecting the tax imposed hereunder shall be responsible for paying over the same to the state department of revenue in the manner prescribed by K.S.A. 79-41a03, and amendments thereto, and the state department of revenue shall administer and enforce the collection of such tax.

(c) Any club or drinking establishment that serves free samples of alcoholic liquor shall remit the tax imposed by subsection (a) in the manner prescribed by K.S.A. 79-41a03, and amendments thereto, and the state department of revenue shall administer and enforce the payment of such tax.

History: L. 1979, ch. 152, § 12; L. 1987, ch. 182, § 118; L. 1990, ch. 179, § 10; L. 2012, ch. 144, § 50; L. 2013, ch. 130, § 14; July 1.

§ 79-41a03 Payment and collection of tax; bond; disposition of revenue; remittance of revenues collected with major professional sports franchise STAR bond district; sale of alcoholic liquor on Kansas state fairgrounds

(a) The tax levied and collected pursuant to K.S.A. 79-41a02, and amendments thereto, shall become due and payable by the club, caterer, drinking establishment, public venue or temporary permit holder monthly, or on or before the 25th day of the month immediately succeeding the month in which it is collected, but any club, caterer, drinking establishment, public venue or temporary permit holder filing an annual or quarterly return under the Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607, and amendments thereto, shall, upon such conditions as the secretary of revenue may prescribe, pay the tax required by this act on the same basis and at the same time the club, caterer, drinking establishment, public venue or temporary permit holder pays such retailers' sales tax. Each club, caterer, drinking establishment, public venue or temporary permit holder shall make a true report to the department of revenue, on a form prescribed by the secretary of revenue, providing such information as may be necessary to determine the amounts to which any such tax shall apply for all gross receipts derived from the sale of alcoholic liquor by the club, caterer, drinking establishment, public venue or temporary permit holder for the applicable month or months, which report shall be accompanied by the tax disclosed thereby. Records of gross receipts derived from the sale of alcoholic liquor shall be kept separate and apart from the records of other retail sales made by a club, caterer, drinking establishment, public venue or temporary permit holder in order to facilitate the examination of books and records as provided herein.

(b) The secretary of revenue or the secretary's authorized representative shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of a club, caterer, drinking establishment, public venue or temporary permit holder as may be necessary to determine the accuracy of such reports required hereunder.

(c) The secretary of revenue is hereby authorized to administer and collect the tax imposed hereunder and to adopt such rules and regulations as may be necessary for the efficient and effective administration and enforcement of the collection thereof. Whenever any club, caterer, drinking establishment, public venue or temporary permit holder liable to pay the tax imposed hereunder refuses or neglects to pay the same, the amount, including any penalty, shall be collected in the manner prescribed for the collection of the retailers' sales tax by K.S.A. 79-3617, and amendments thereto.

(d) (1) (A) Except as provided in paragraph (2), the secretary of revenue shall remit all revenue collected under the provisions of this act to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury.

(B) Except as provided in subparagraph (C) and subject to the maintenance requirements of the local alcoholic liquor refund fund created under K.S.A. 79-41a09, and amendments thereto, 25% of the remittance shall be credited to the state general fund, 5% shall be credited to the community alcoholism and intoxication programs fund created by K.S.A. 41-1126, and amendments thereto, and the balance shall be credited to the local alcoholic liquor fund created by K.S.A. 79-41a04, and amendments thereto.

(C) For each remittance of the taxes collected upon the gross receipts derived from the sale of alcoholic liquor by any temporary permit holder to consumers while on the Kansas state fairgrounds, 30% shall be credited to the state general fund, and the remainder shall be credited to the state fair capital improvements fund established pursuant to K.S.A. 2-223, and amendments thereto. The provisions of this subsection shall expire and have no effect if the state fair is located outside the city limits of the city of Hutchinson, Kansas.

(2) The secretary shall remit up to 100% of the taxes collected pursuant to K.S.A. 79-41a02, and amendments thereto, that are collected from the gross receipts derived from the sale of alcoholic liquor within a STAR bond project district as defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, that is included in the tax increment for such district, as defined in K.S.A. 12-17,162, and amendments thereto, as set in the discretion of the secretary of commerce by a club, caterer, drinking establishment, public venue or temporary permit holder to the respective bond debt service fund of a city or county that has issued STAR bonds for a STAR bond project, as defined in K.S.A. 12-17,162(aa)(2), and amendments thereto, in the same manner as the secretary of revenue remits the state sales and use tax increment to such city or county. If the Kansas development finance authority has issued STAR bonds for such a project as provided by the STAR bonds financing act, the secretary shall remit up to 100% of such taxes to the designated bond debt service fund of the Kansas development finance authority for the purpose of paying the principal and interest of such bonds.

(e) Whenever, in the judgment of the secretary of revenue, it is necessary, in order to secure the collection of any tax, penalties or interest due, or to become due, under the provisions of this act, the secretary may require any person subject to such tax to file a bond with the director of taxation under conditions established by and in such form and amount as prescribed by rules and regulations adopted by the secretary.

(f) The amount of tax imposed by this act shall be assessed within three years after the return is filed, and no proceedings in court for the collection of such taxes shall be begun after the expiration of such period except in the cases of fraud. In the case of a false or fraudulent return with intent to evade tax, the tax may be assessed or a proceeding in court for collection of such tax may be begun at any time, within two years from the discovery of such fraud. No refund or credit shall be allowed by the director after three years from the date of payment of the tax as provided in this act unless before the expiration of such period a claim therefor is filed by the taxpayer, and no suit or action to recover on any claim for refund shall be commenced until after the expiration of six months from the date of filing a claim therefor with the director. Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for refund, the director is hereby authorized to enter into an agreement in writing with the taxpayer consenting to the extension of the periods of limitations for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the periods of limitations. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

History: L. 1979, ch. 152, § 13; L. 1982, ch. 424, § 1; L. 1983, ch. 315, § 3; L. 1984, ch. 351, § 24; L. 1985, ch. 171, § 13; L. 1987, ch. 182, § 119; L. 1990, ch. 179, § 11; L. 1992, ch. 295, § 3; L. 2001, ch. 62, § 1; L. 2001, ch. 167, § 14; L. 2012, ch. 144, § 51; L. 2022, ch. 71, § 11; L. 2024, ch. 2, § 9 (Special Session); July 1.

§ 79-41a03a Interest and penalties for failure to pay or untimely payment of gross receipts tax on club liquor sales

(a) If any taxpayer fails to pay the tax levied pursuant to K.S.A. 79-41a02, and amendments thereto, at the time required by or under the provisions of K.S.A. 79-41a03, and amendments thereto, there shall be added to the unpaid balance of the tax, interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(b) For all taxable years ending prior to January 1, 2002, if any taxpayer due to negligence or intentional disregard fails to file a return or pay the tax due at the time required by or under the provisions of K.S.A. 79-41a03, and amendments thereto, there shall be added to the tax a penalty in an amount equal to 10% of the unpaid balance of tax due.

(c) For all taxable years ending prior to January 1, 2002, if any person fails to make a return, or to pay any tax, within six months from the date the return or tax was due, except in the case of an extension of time granted by the secretary of revenue or the secretary's designee, there shall be added to the tax due a penalty equal to 25% of the unpaid balance of such tax due.

(d) For all taxable years ending after December 31, 2001, if any taxpayer fails to file a return or pay the tax if one is due, at the time required by or under the provisions of this act, there shall be added to the tax an additional amount equal to 1% of the unpaid balance of the tax due for each month or fraction thereof during which such failure continues, not exceeding 24% in the aggregate, plus interest at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. Notwithstanding the foregoing, in the event an assessment is issued following a field audit for any period for which a return was filed by the taxpayer and all of the tax was paid pursuant to such return, a penalty shall be imposed for the period included in the assessment in an amount of 1% per month not exceeding 10% of the unpaid balance of tax due shown in the notice of assessment. If after review of a return for any period included in the assessment, the secretary or secretary's designee determines that the underpayment of tax was due to the failure of the taxpayer to make a reasonable attempt to comply with the provisions of this act, such penalty shall be imposed for the period included in the assessment in the amount of 25% of the unpaid balance of tax due.

(e) If any taxpayer, with fraudulent intent, fails to pay any tax or make, render or sign any return, or to supply any information, within the time required by or under the provisions of K.S.A. 79-41a03, and amendments thereto, there shall be added to the tax a penalty in an amount equal to 50% of the unpaid balance of tax due.

(f) Penalty or interest applied under the provisions of subsections (a) and (d) shall be in addition to the penalty added under any other provisions of this section, but the provisions of subsections (b) and (c) shall be mutually exclusive of each other.

(g) Whenever the secretary of revenue or the secretary's designee determines that the failure of the taxpayer to comply with the provisions of subsections (b) and (c) was due to reasonable causes, the secretary or the secretary's designee may waive or reduce any of the penalties and may reduce the interest rate to the underpayment rate prescribed and determined for the applicable period under section 6621 of the federal internal revenue code as in effect on January 1, 1994, upon making a record of the reasons therefor.

(h) In addition to all other penalties provided by this section, any person who willfully fails to make a return or to pay any tax imposed under K.S.A. 79-41a02, and amendments thereto, or who makes a false or fraudulent return, or fails to keep any books or records necessary to determine the accuracy of the person's reports, or who willfully violates any regulations of the secretary of revenue, for the enforcement and administration of the provisions of K.S.A. 79-41a01 to 79-41a09, inclusive, and amendments thereto, or who aids and abets another in attempting to evade the payment of any tax imposed by K.S.A. 79-41a02, and amendments thereto, or who violates any other provision of K.S.A. 79-41a01 to 79-41a09, inclusive, and amendments thereto, shall, upon conviction thereof, be fined not less than $100 nor more than $1,000, or be imprisoned in the county jail not less than one month nor more than six months, or be both so fined and imprisoned, in the discretion of the court.

History: L. 1984, ch. 351, § 25; L. 1988, ch. 390, § 3; L. 1989, ch. 291, § 8; L. 1994, ch. 95, § 8; L. 2000, ch. 184, § 21; July 1.

§ 79-41a04 Local alcoholic liquor fund; distribution of moneys

(a) There is hereby created, in the state treasury, the local alcoholic liquor fund. Moneys credited to such fund pursuant to this act or any other law shall be expended only for the purpose and in the manner provided by this act.

(b) Except as provided in subsection (b)(4), all moneys credited to the local alcoholic liquor fund shall be allocated to the several cities and counties of the state as follows:

(1) Each city that has a population of more than 6,000 shall receive 70% of the amount which is collected pursuant to this act from clubs, public venues or drinking establishments located in such city, from caterers whose principal places of business are so located or from temporary permit holders whose permitted events are so located and which is paid into the state treasury during the period for which the allocation is made.

(2) Each city that has a population of 6,000 or less shall receive 46⅔% of the amount which is collected pursuant to this act from clubs, public venues or drinking establishments located in such city, from caterers whose principal places of business are so located or from temporary permit holders whose permitted events are so located and which is paid into the state treasury during the period for which the allocation is made.

(3) Each county shall receive: (A) 70% of the amount which is collected pursuant to this act from clubs, public venues or drinking establishments located in such county and outside the corporate limits of any city, from caterers whose principal places of business are so located or from temporary permit holders whose permitted events are so located and which is paid into the state treasury during the period for which the allocation is made; and (B) 23⅓% of the amount which is collected pursuant to this act from clubs, public venues or drinking establishments located in the county and within a city that has a population of 6,000 or less, from caterers whose principal places of business are so located or from temporary permit holders whose permitted events are so located and which is paid into the state treasury during the period for which the allocation is made.

(4) From the amount collected from drinking establishments which are railway cars, counties shall receive 70% which shall be divided equally among the counties through which the railway car passes or in which the railway car operates, provided such county is a county where the qualified electors of the county:

(A) (i) Approved by a majority vote of those voting thereon, the proposition to amend section 10 of article 15 of the constitution of the state of Kansas at the general election in November 1986; or (ii) have approved a proposition to allow sales of alcoholic liquor by the individual drink in public places within the county at an election pursuant to K.S.A. 41-2646, and amendments thereto; and

(B) have not approved a proposition to prohibit such sales of alcoholic liquor in such places at a subsequent election pursuant to K.S.A. 41-2646, and amendments thereto.

(c) The state treasurer shall make distributions from the local alcoholic liquor fund in accordance with the allocation formula prescribed by subsection (b) on March 15, June 15, September 15 and December 15 of each year. The director of accounts and reports shall draw warrants on the state treasurer in favor of the several county treasurers and city treasurers on the dates and in the amounts determined under this section. Such distributions shall be paid directly to the several county treasurers and city treasurers.

(d) Except as otherwise provided by this subsection, each city treasurer of a city that has a population of more than 6,000, upon receipt of any moneys distributed under this section, shall deposit the full amount in the city treasury and shall credit ⅓ of the deposit to the general fund of the city, ⅓ to a special parks and recreation fund in the city treasury and ⅓ to a special alcohol and drug programs fund in the city treasury. Each city treasurer of a city that has a population of 6,000 or less, upon receipt of any moneys distributed under this section, shall deposit the full amount in the city treasury and shall credit ½ of the deposit to the general fund of the city and ½ to a special parks and recreation fund in the city treasury. Moneys in such special funds shall be under the direction and control of the governing body of the city. Moneys in the special parks and recreation fund may be expended only for the purchase, establishment, maintenance or expansion of park and recreational services, programs and facilities. One-half of the moneys distributed under this section to cities located in Butler county shall be deposited in a special community support program and parks and recreation fund in the city treasury. Moneys in the special community support program and parks and recreation fund may be expended only for (1) the establishment and operation of a domestic violence program operated by a not-for-profit organization or (2) the purchase, establishment, maintenance or expansion of park and recreational services, programs and facilities. Moneys in the special alcohol and drug programs fund shall be expended only for the purchase, establishment, maintenance or expansion of services or programs whose principal purpose is alcoholism and drug abuse prevention and education, alcohol and drug detoxification, intervention in alcohol and drug abuse or treatment of persons who are alcoholics or drug abusers or are in danger of becoming alcoholics or drug abusers.

(e) Except as otherwise provided by this subsection, each county treasurer, upon receipt of any moneys distributed under this section, shall deposit the full amount in the county treasury and shall credit to a special alcohol and drug programs fund in the county treasury 23⅓% of the amount which is collected pursuant to this act from clubs or drinking establishments located in the county and within a city that has a population of 6,000 or less, from caterers whose principal place of business is so located or from temporary permit holders whose permitted events are so located and which is paid into the state treasury during the period for which the allocation is made; of the remainder, the treasurer shall credit ⅓ to the general fund of the county, ⅓ to a special parks and recreation fund in the county treasury and ⅓ to the special alcohol and drug programs fund. Moneys in such special funds shall be under the direction and control of the board of county commissioners. Moneys in the special parks and recreation fund may be expended only for the purchase, establishment, maintenance or expansion of park and recreational services, programs and facilities. One-third of the moneys distributed under this section to Butler county shall be deposited in a special community support program and parks and recreation fund in the county treasury. Moneys in the special community support program and parks and recreation fund may be expended only for (1) the establishment and operation of a domestic violence program operated by a not-for-profit organization or (2) the purchase, establishment, maintenance or expansion of park and recreational services, programs and facilities. Moneys in the special alcohol and drug programs fund shall be expended only for the purchase, establishment, maintenance or expansion of services or programs whose principal purpose is alcoholism and drug abuse prevention and education, alcohol and drug detoxification, intervention in alcohol and drug abuse or treatment of persons who are alcoholics or drug abusers or are in danger of becoming alcoholics or drug abusers. In any county in which there has been organized an alcohol and drug advisory committee, the board of county commissioners shall request and obtain, prior to making any expenditures from the special alcohol and drug programs fund, the recommendations of the advisory committee concerning such expenditures. The board of county commissioners shall adopt the recommendations of the advisory committee concerning such expenditures unless the board, by unanimous vote of all commissioners, adopts a different plan for such expenditures.

(f) Each year, the county treasurer shall estimate the amount of money the county and each city in the county will receive from the local alcoholic liquor fund and from distributions pursuant to K.S.A. 79-41a05, and amendments thereto. The state treasurer shall advise each county treasurer, prior to June 1 of each year of the amount in the local alcoholic liquor fund that the state treasurer estimates, using the most recent available information, will be allocated to such county in the following year. The county treasurer shall, before June 15 of each year, notify the treasurer of each city of the estimated amount in dollars of the distribution to be made from the local alcoholic liquor fund and pursuant to K.S.A. 79-41a05, and amendments thereto.

History: L. 1979, ch. 152, § 14; L. 1982, ch. 424, § 5; L. 1985, ch. 171, § 14; L. 1986, ch. 185, § 3; L. 1987, ch. 182, § 120; L. 1990, ch. 179, § 12; L. 1991, ch. 281, § 3; L. 2012, ch. 144, § 52; July 1.

§ 79-41a04a Repealed

History: L. 1979, ch. 152, § 14; L. 1982, ch. 424, § 5; L. 1985, ch. 171, § 14; L. 1986, ch. 185, § 3; L. 1987, ch. 182, § 120; L. 1990, ch. 179, § 12; Repealed, L. 1991, ch. 281, § 4; May 16.

§ 79-41a05 Same; additional payments to local units, when

(a) After the end of each calendar year, the state treasurer shall determine whether the aggregate amount of moneys distributed during the preceding calendar year to cities and counties pursuant to K.S.A. 79-41a04 and amendments thereto is less than the aggregate amount of moneys distributed during calendar year 1981 to cities and counties pursuant to that statute. If the aggregate amount distributed during the preceding calendar year is less, a sum equal to the difference in the aggregate amounts distributed in calendar year 1981 and in the preceding calendar year shall be transferred by the state treasurer from the state general fund to the local alcoholic liquor equalization fund which is hereby created in the state treasury. All moneys credited to the fund under this section shall be allocated to the several cities and counties of the state. The allocation from the fund to each city or county shall be in an amount that bears the same ratio to the total sum distributed under this section as the ratio that the amount distributed during the preceding calendar year to the city or county pursuant to K.S.A. 79-41a04 and amendments thereto bears to the aggregate amount distributed during the preceding calendar year to cities and counties pursuant to that statute.

(b) The state treasurer shall make distributions pursuant to this section on March 15 of each year. The director of accounts and reports shall draw warrants on the state treasurer in favor of the several county treasurers and city treasurers on that date in the amounts determined under this section. The distributions shall be paid directly by mail to the several county treasurers and city treasurers.

(c) Each city and county treasurer, upon receipt of any moneys distributed pursuant to this section, shall deposit the full amount in the treasurer's respective city or county treasury and shall credit the deposit to the same funds and in the same proportions as deposits in the respective city or county treasury from distributions made on the same date pursuant to K.S.A. 79-41a04 and amendments thereto.

History: L. 1982, ch. 424, § 6; July 1.

§ 79-41a06 Registration certificate required for seller

No club, drinking establishment, caterer, public venue or temporary permit holder shall sell any alcoholic liquor without a registration certificate from the secretary of revenue. Application for such certificate shall be made to the secretary upon forms provided by the secretary and shall contain such information as the secretary deems necessary for the purposes of administering the provisions of this act. The registration certificate shall be conspicuously displayed in the licensed premises or permitted for which it is issued.

Upon violation of any of the provisions of K.S.A. 79-41a01 et seq., and amendments thereto, or any of the terms of this act, and upon due notice and opportunity for hearing in accordance with the provisions of the Kansas administrative procedure act, the secretary may revoke such registration certificate.

History: L. 1982, ch. 424, § 2; L. 1987, ch. 182, § 121; L. 1988, ch. 356, § 345; L. 1990, ch. 179, § 13; L. 2012, ch. 144, § 53; July 1.

§ 79-41a07 Violations by seller; remedies

(a) The director of taxation or the director of alcoholic beverage control may enjoin any person from engaging in business as a club, drinking establishment, caterer, public venue or temporary permit holder when the club, drinking establishment, caterer, public venue or temporary permit holder is in violation of any of the provisions of K.S.A. 79-41a01 et seq., and amendments thereto, or any of the terms of this act and shall be entitled in any proceeding brought for that purpose to have an order restraining the person from engaging in business as a club, drinking establishment, caterer, public venue or temporary permit holder. No bond shall be required for any such restraining order or for any temporary or permanent injunction issued in that proceeding.

(b) If a club, drinking establishment, public venue or caterer licensed by the director of alcoholic beverage control or a temporary permit holder violates any of the provisions of K.S.A. 79-41a01 et seq., and amendments thereto, or any of the terms of this act, the director of alcoholic beverage control may suspend or revoke the license of such club, drinking establishment, public venue or caterer in accordance with K.S.A. 41-2609, and amendments thereto, or may impose a civil fine on the licensee or permit holder in the manner provided by K.S.A. 41-2633a, and amendments thereto.

History: L. 1982, ch. 424, § 3; L. 1987, ch. 182, § 122; L. 1990, ch. 179, § 14; L. 2012, ch. 144, § 54; July 1.

§ 79-41a08 Tax constitutes lien on seller's property

The tax imposed by this act shall be a lien upon the business and any property of the club, drinking establishment, caterer, public venue or permit holder which may be sold. The person acquiring such business or property shall withhold a sufficient amount of the purchase price thereof to cover the amount of any taxes due and unpaid by the seller, until the seller shall furnish the purchaser with a receipt from the secretary of revenue, as herein provided, showing that such taxes have been paid. The purchaser shall be personally liable for the payment of any unpaid taxes of the seller, to the extent of the value of the business or property received by the purchaser, and if a receipt is not furnished by such seller within 20 days from the date of sale of such business or property, the purchaser shall remit the amount of such unpaid taxes to the secretary on or before the 20th day of the month succeeding that in which such purchaser acquired such business or property.

History: L. 1982, ch. 424, § 4; L. 1987, ch. 182, § 123; L. 1990, ch. 179, § 15; L. 2012, ch. 144, § 55; July 1.

§ 79-41a09 Same; refund fund established; amount maintained

There is hereby established in the state treasury the local alcoholic liquor refund fund. The local alcoholic liquor refund fund shall be held by the state treasurer for prompt refunding of all overpayments of the tax levied and collected pursuant to article 41a of chapter 79 of the Kansas Statutes Annotated. The local alcoholic liquor refund fund shall be maintained in an amount determined by the secretary of revenue as necessary to meet current refunding requirements, but such amount shall not exceed $10,000.

History: L. 1983, ch. 315, § 4; April 14.

Article 42 Mineral Severance Tax

§§ 79-4201 through 79-4215 Repealed

History: L. 1957, ch. 516, §§ 1 to 15; Repealed, L. 1959, ch. 401, § 1; June 30.

§ 79-4216 Mineral severance tax; definitions

As used in this act, unless the context clearly requires otherwise, the following words and phrases shall have the meanings ascribed to them herein:

(a) "Barrel" for oil measurement means a barrel of 42 U.S. gallons of 231 cubic inches per gallon, computed at a temperature of 60 degrees Fahrenheit.

(b) "Director" means the director of taxation.

(c) "Gas" means natural gas, and all other raw, unrefined gas or gases, all constituent parts of any such gas or gases and refined products derived from any such gas or gases, including, but not limited to, methane, ethane, propane, butane and helium, taken from below the surface of the earth or water in this state, regardless of whether from a gas well or from a well also productive of oil or any other product.

(d) "Gross value" means the sale price of oil or gas at the time of removal of the oil or gas from the lease or production unit and if oil or gas is exchanged for something other than cash, or if no sale occurs at the time of removal or if the director determines that the relationship between the buyer and the seller is such that the consideration paid, if any, is not indicative of the true value or market price, then the director shall determine the value of the oil or gas subject to tax based on the cash price paid to one or more producers for the oil or gas or based on the cash price paid to producers for like quality oil or gas in the vicinity of the lease or production unit at the time of the removal of the oil or gas from the lease or production unit.

(e) "Lease number" means the number assigned by the director of taxation to identify each well, lease or combination of wells within a lease.

(f) "Oil" means petroleum, or other crude oil, condensate, casinghead gasoline, or other mineral oil which is severed or withdrawn from below the surface of the soil or water in this state.

(g) "Operator" means the person primarily responsible for the management and operation of coal, oil or gas productions from a lease, production unit or mine.

(h) "Person" means any natural person, firm, copartnership, joint venture, association, corporation, estate, trust or any other group or combination acting as a unit, and the plural as well as the singular number.

(i) "Producer" means any person owning, controlling, managing or leasing any coal, oil or gas property or oil or gas well or coal or salt mine, and any person who serves in any manner any coal, oil or gas in this state, and shall include any person owning any direct and beneficial interest in any coal, oil or gas produced, whether severed by such person or some other person on their behalf, either by lease, contract or otherwise, including a royalty owner.

(j) "Remove" or "removal" means the physical transportation of coal, oil or gas off of the lease or production unit or from the mine where severed; and if the manufacture or conversion of crude oil or natural gas into refined products occurs on the premises where severed, oil or gas shall be deemed to have been removed on the date such manufacture or conversion begins.

(k) "Secretary" means the secretary of revenue.

(l) "Severed" or "severing" means: (1) The production of oil through extraction or withdrawal of the same from below the surface of the soil or water, whether such extraction or withdrawal shall be by natural flow, mechanical flow, forced flow, pumping or any other means employed to get the oil from below the surface of the soil or water and shall include the withdrawal by any means whatsoever of oil upon which the tax has not been paid, from any surface reservoir, natural or artificial, or from a water surface; (2) the production of gas through the extraction or withdrawal of the same by any means whatsoever, from below the surface of the earth or water; and (3) the physical removal of coal from the earth.

(m) "Taxpayer" means any person liable for the taxes imposed by this act.

(n) "Disruption of production" means, in the case of oil, a continuous 24-hour period during which a well is not producing. Circulating and missed production days shall be considered production days if the operator can demonstrate that any lost production is subsequently recovered during a later production day. In the case of gas, a continuous one-hour period during which a well is not open to the pipeline shall be deemed to be a disruption of production. Missed production hours shall be considered production hours if the operator can demonstrate that any lost production is subsequently recovered during later production hours.

History: L. 1983, ch. 313, § 1; L. 1987, ch. 393, § 2; L. 1992, ch. 10, § 1; L. 1997, ch. 126, § 50; L. 2004, ch. 173, § 17; L. 2013, ch. 135, § 13; June 20.

§ 79-4217 Mineral severance tax; imposition of tax; rate; measurement of production; exemptions

(a) There is hereby imposed an excise tax upon the severance and production of coal, oil or gas from the earth or water in this state for sale, transport, storage, profit or commercial use, subject to the following provisions of this section. Such tax shall be borne ratably by all persons within the term "producer" as such term is defined in K.S.A. 79-4216, and amendments thereto, in proportion to their respective beneficial interest in the coal, oil or gas severed. Such tax shall be applied equally to all portions of the gross value of each barrel of oil severed and subject to such tax and to the gross value of the gas severed and subject to such tax. The rate of such tax shall be 8% of the gross value of all oil or gas severed from the earth or water in this state and subject to the tax imposed under this act. The rate of such tax with respect to coal shall be $1 per ton. For the purposes of the tax imposed hereunder the amount of oil or gas produced shall be measured or determined: (1) In the case of oil, by tank tables compiled to show 100% of the full capacity of tanks without deduction for overage or losses in handling; allowance for any reasonable and bona fide deduction for basic sediment and water, and for correction of temperature to 60 degrees Fahrenheit will be allowed; and if the amount of oil severed has been measured or determined by tank tables compiled to show less than 100% of the full capacity of tanks, such amount shall be raised to a basis of 100% for the purpose of the tax imposed by this act; and (2) in the case of gas, by meter readings showing 100% of the full volume expressed in cubic feet at a standard base and flowing temperature of 60 degrees Fahrenheit, and at the absolute pressure at which the gas is sold and purchased; correction to be made for pressure according to Boyle's law, and used for specific gravity according to the gravity at which the gas is sold and purchased, or if not so specified, according to the test made by the balance method.

(b) The following shall be exempt from the tax imposed under this section:

(1) The severance and production of gas which is: (A) Injected into the earth for the purpose of lifting oil, recycling or repressuring; (B) used for fuel in connection with the operation and development for, or production of, oil or gas in the lease or production unit where severed; (C) lawfully vented or flared; (D) severed from a well having an average daily production during a calendar month having a gross value of not more than $87 per day, which well has not been significantly curtailed by reason of mechanical failure or other disruption of production; in the event that the production of gas from more than one well is gauged by a common meter, eligibility for exemption hereunder shall be determined by computing the gross value of the average daily combined production from all such wells and dividing the same by the number of wells gauged by such meter; (E) inadvertently lost on the lease or production unit by reason of leaks, blowouts or other accidental losses; (F) used or consumed for domestic or agricultural purposes on the lease or production unit from which it is severed; or (G) placed in underground storage for recovery at a later date and which was either originally severed outside of the state of Kansas, or as to which the tax levied pursuant to this act has been paid;

(2) the severance and production of oil which is: (A) From a lease or production unit whose average daily production is five barrels or less per producing well, which well or wells have not been significantly curtailed by reason of mechanical failure or other disruption of production; (B) from a lease or production unit, the producing well or wells upon which have a completion depth of 2,000 feet or more, and whose average daily production is six barrels or less per producing well or, if the price of oil as determined pursuant to subsection (d) is $16 or less, whose average daily production is seven barrels or less per producing well, or, if the price of oil as determined pursuant to subsection (d) is $15 or less, whose average daily production is eight barrels or less per producing well, or, if the price of oil as determined pursuant to subsection (d) is $14 or less, whose average daily production is nine barrels or less per producing well, or, if the price of oil as determined pursuant to subsection (d) is $13 or less, whose average daily production is 10 barrels or less per producing well, which well or wells have not been significantly curtailed by reason of mechanical failure or other disruption of production; (C) from a lease or production unit, whose production results from a tertiary recovery process. "Tertiary recovery process" means the process or processes described in subparagraphs (1) through (9) of 10 C.F.R. § 212.78(c) as in effect on June 1, 1979; (D) from a lease or production unit, the producing well or wells upon which have a completion depth of less than 2,000 feet and whose average daily production resulting from a water flood process, is six barrels or less per producing well, which well or wells have not been significantly curtailed by reason of mechanical failure or other disruption of production; (E) from a lease or production unit, the producing well or wells upon which have a completion depth of 2,000 feet or more, and whose average daily production resulting from a water flood process, is seven barrels or less per producing well or, if the price of oil as determined pursuant to subsection (d) is $16 or less, whose average daily production is eight barrels or less per producing well, or, if the price of oil as determined pursuant to subsection (d) is $15 or less, whose average daily production is nine barrels or less per producing well, or, if the price of oil as determined pursuant to subsection (d) is $14 or less, whose average daily production is 10 barrels or less per producing well, which well or wells have not been significantly curtailed by reason of mechanical failure or other disruption of production; (F) test, frac or swab oil which is sold or exchanged for value; or (G) inadvertently lost on the lease or production unit by reason of leaks or other accidental means;

(3) (A) any taxpayer applying for an exemption pursuant to subsections (b)(2)(A) and (B) shall make application biennially to the director of taxation therefor. Exemptions granted pursuant to subsections (b)(2)(A) and (B) shall be valid for a period of two years following the date of certification thereof by the director of taxation; (B) any taxpayer applying for an exemption pursuant to subsections (b)(2)(D) or (E) shall make application biennially to the director of taxation therefor. Such application shall be accompanied by proof of the approval of an application for the utilization of a water flood process therefor by the corporation commission pursuant to rules and regulations adopted under the authority of K.S.A. 55-152, and amendments thereto, and proof that the oil produced therefrom is kept in a separate tank battery and that separate books and records are maintained therefor. Such exemption shall be valid for a period of two years following the date of certification thereof by the director of taxation; (C) any exemption granted pursuant to subsections (b)(2)(A), (B), (D) or (E) with an odd lease number and an exemption termination date between June 1, 2004, and May 31, 2005, inclusive, shall be valid for a period of one year following the date of certification; and (D) notwithstanding the provisions of paragraph (A) or (B), any exemption in effect on the effective date of this act affected by the amendments to subsection (b)(2) by this act shall be redetermined in accordance with such amendments. Any such exemption, and any new exemption established by such amendments and applied for after the effective date of this act shall be valid for a period commencing with May 1, 1998, and ending on April 30, 1999;

(4) the severance and production of gas or oil from any pool from which oil or gas was first produced on or after April 1, 1983, and prior to July 1, 2012, as determined by the state corporation commission and certified to the director of taxation, and continuing for a period of 24 months from the month in which oil or gas was first produced from such pool as evidenced by an affidavit of completion of a well, filed with the state corporation commission and certified to the director of taxation. Exemptions granted for production from any well pursuant to this paragraph shall be valid for a period of 24 months following the month in which oil or gas was first produced from such pool. The term "pool" means an underground accumulation of oil or gas in a single and separate natural reservoir characterized by a single pressure system so that production from one part of the pool affects the reservoir pressure throughout its extent;

(5) the severance and production of oil from any well within a pool from which oil was first produced on or after July 1, 2012, as certified by the state corporation commission to the director of taxation, and from which the average daily severance and production of oil during the initial six months of production from the date of first production from such producing well, which well has not been significantly curtailed by reason of mechanical failure or other disruption of production, does not exceed 50 barrels per day, and continuing for a period of 24 months from the month in which oil was first produced from such pool as evidenced by an affidavit of completion of a well, filed with the state corporation commission and certified to the director of taxation. Exemptions granted for production from any well pursuant to this subsection shall be valid for a period of 24 months following the month in which oil was first produced from such pool. The term "pool" means an underground accumulation of oil in a single and separate natural reservoir characterized by a single pressure system so that production from one part of the pool affects the reservoir pressure throughout its extent. For any such well that has qualified for exemption, if the average daily severance and production of oil from such well exceeds 50 barrels per day within any qualifying one-month production period after the initial qualifying production period, the exemption for such well shall be terminated as of the commencement of such one-month production period;

(6) the severance and production of oil or gas from a three-year inactive well, as determined by the state corporation commission and certified to the director of taxation, for a period of 10 years after the date of receipt of such certification. As used in this paragraph, "three-year inactive well" means any well that has not produced oil or gas in more than one month in the three years prior to the date of application to the state corporation commission for certification as a three-year inactive well. An application for certification as a three-year inactive well shall be in such form and contain such information as required by the state corporation commission, and shall be made prior to July 1, 1996. The commission may revoke a certification if information indicates that a certified well was not a three-year inactive well or if other lease production is credited to the certified well. Upon notice to the operator that the certification for a well has been revoked, the exemption shall not be applied to the production from that well from the date of revocation;

(7) (A) The incremental severance and production of oil or gas which results from a production enhancement project begun on or after July 1, 1998, shall be exempt for a period of seven years from the start-up date of such project. As used in this paragraph:

(1) "Incremental severance and production" means the amount of oil or natural gas which is produced as the result of a production enhancement project which is in excess of the base production of oil or natural gas, and is determined by subtracting the base production from the total monthly production after the production enhancement project is completed.

(2) "Base production" means the average monthly amount of production for the twelve-month period immediately prior to the production enhancement project beginning date, minus the monthly rate of production decline for the well or project for each month beginning 180 days prior to the project beginning date. The monthly rate of production decline shall be equal to the average extrapolated monthly decline rate for the well or project for the twelve-month period immediately prior to the production enhancement project beginning date, except that the monthly rate of production decline shall be equal to zero in the case where the well or project has experienced no monthly decline during the twelve-month period immediately prior to the production enhancement project beginning date. Such monthly rate of production decline shall be continued as the decline that would have occurred except for the enhancement project. Any well or project which may have produced during the twelve-month period immediately prior to the production enhancement project beginning date but is not capable of production on the project beginning date shall have a base production equal to zero. The calculation of the base production amount shall be evidenced by an affidavit and supporting documentation filed by the applying taxpayer with the state corporation commission.

(3) "Workover" means any downhole operation in an existing oil or gas well that is designed to sustain, restore or increase the production rate or ultimate recovery of oil or gas, including, but not limited to, acidizing, reperforation, fracture treatment, sand/paraffin/scale removal or other wellbore cleanouts, casing repair, squeeze cementing, initial installation, or enhancement of artificial lifts including plunger lifts, rods, pumps, submersible pumps and coiled tubing velocity strings, downsizing existing tubing to reduce well loading, downhole commingling, bacteria treatments, polymer treatments, upgrading the size of pumping unit equipment, setting bridge plugs to isolate water production zones, or any combination of the aforementioned operations; "workover" shall not mean the routine maintenance, routine repair, or like for-like replacement of downhole equipment such as rods, pumps, tubing packers or other mechanical device.

(4) "Production enhancement project" means performing or causing to be performed the following:

(i) Workover;

(ii) recompletion to a different producing zone in the same well bore, except recompletions in formations and zones subject to a state corporation commission proration order;

(iii) secondary recovery projects;

(iv) addition of mechanical devices to dewater a gas or oil well;

(v) replacement or enhancement of surface equipment;

(vi) installation or enhancement of compression equipment, line looping or other techniques or equipment which increases production from a well or a group of wells in a project; or

(vii) new discoveries of oil or gas which are discovered as a result of the use of new technology, including, but not limited to, three dimensional seismic studies.

(B) The state corporation commission shall adopt rules and regulations necessary to efficiently and properly administer the provisions of this paragraph including rules and regulations for the qualification of production enhancement projects, the procedures for determining the monthly rate of production decline, criteria for determining the share of incremental production attributable to each well when a production enhancement project includes a group of wells, criteria for determining the start-up date for any project for which an exemption is claimed, and determining new qualifying technologies for the purposes of subsection (b)(7)(A)(4)(vii).

(C) Any taxpayer applying for an exemption pursuant to this paragraph shall make application to the director of taxation. Such application shall be accompanied by a state corporation commission certification that the production for which an exemption is sought results from a qualified production enhancement project and certification of the base production for the enhanced wells or group of wells, and the rate of decline to be applied to that base production. The secretary of revenue shall provide credit for any taxes paid between the project start-up date and the certification of qualifications by the commission.

(D) The exemptions provided for in this paragraph shall not apply for 12 months beginning July 1 of the year subsequent to any calendar year during which: (1) In the case of oil, the secretary of revenue determines that the weighted average price of Kansas oil at the wellhead has exceeded $20.00 per barrel; or (2) in the case of natural gas the secretary of revenue determines that the weighted average price of Kansas gas at the wellhead has exceeded $2.50 per Mcf.

(E) The provisions of this paragraph shall not affect any other exemption allowable pursuant to this section; and

(7) for the calendar year 1988, and any year thereafter, the severance or production of the first 350,000 tons of coal from any mine as certified by the state geological survey.

(c) No exemption shall be granted pursuant to subsection (b)(3) or (4) to any person who does not have a valid operator's license issued by the state corporation commission, and no refund of tax shall be made to any taxpayer attributable to any production in a period when such taxpayer did not hold a valid operator's license issued by the state corporation commission.

(d) On April 15, 1988, and on April 15 of each year thereafter, the secretary of revenue shall determine from statistics compiled and provided by the United States department of energy, the average price per barrel paid by the first purchaser of crude oil in this state for the six-month period ending on December 31 of the preceding year. Such price shall be used for the purpose of determining exemptions allowed by subsection (b)(2)(B) or (E) for the twelve-month period commencing on May 1 of such year and ending on April 30 of the next succeeding year.

History: L. 1983, ch. 313, § 2; L. 1984, ch. 364, § 1; L. 1986, ch. 204, § 1; L. 1987, ch. 393, § 1; L. 1992, ch. 10, § 2; L. 1994, ch. 210, § 1; L. 1998, ch. 130, § 28; L. 2000, ch. 184, § 31; L. 2004, ch. 173, § 18; L. 2012, ch. 135, § 29; L. 2013, ch. 87, § 7; April 25.

§ 79-4218 Mineral severance tax; tax in addition to property tax

Except as otherwise provided in this act, the tax imposed by K.S.A. 79-4217 shall be upon the severing and producing of coal, oil or gas in this state, regardless of the place of sale of such coal, oil or gas or to whom sold or by whom used, or the fact that the delivery thereof may be made to points outside the state. The taxes imposed by this act shall be in addition to all taxes imposed upon real or personal property by the state of Kansas or by any taxing subdivision thereof.

History: L. 1983, ch. 313, § 3; L. 1987, ch. 393, § 3; July 1.

§ 79-4219 Mineral severance tax; credit against tax

(a) There shall be allowed to each taxpayer who is liable for ad valorem property taxes upon oil property as defined by K.S.A. 79-329, and amendments thereto, a credit against the tax levied under K.S.A. 79-4217, and amendments thereto, upon the severance and production of oil, in an amount equal to 3.67% of the gross value of oil severed and taxable under this act, and in which the taxpayer has a beneficial interest.

(b) There shall be allowed to each taxpayer who is liable for ad valorem property taxes upon gas property as defined by K.S.A. 79-329, and amendments thereto, a credit against the tax levied under K.S.A. 79-4217, and amendments thereto, upon the severance and production of gas, in an amount equal to the following amounts: (1) 2% of the gross value of gas severed and taxable under this act, and in which the taxpayer has a beneficial interest for the fiscal year commencing on July 1, 1994, and ending on June 30, 1995; (2) 3% of the gross value of gas severed and taxable under this act, and in which the taxpayer has a beneficial interest for the fiscal year commencing on July 1, 1995, and ending on June 30, 1996; and (3) 3.67% of the gross value of gas severed and taxable under this act, and in which the taxpayer has a beneficial interest for the fiscal year commencing on July 1, 1996, and all fiscal years thereafter.

History: L. 1983, ch. 313, § 4; L. 1994, ch. 304, § 1; July 1.

§ 79-4220 Mineral severance tax; tax due and payable, when; persons liable for payment and collection; withholding by first purchaser; state lien on production, when

(a) The tax imposed under the provisions of K.S.A. 79-4217, and amendments thereto, shall be due and payable on or before the 20th day of the second month following the end of the month in which oil, gas or coal is removed from the lease or production unit or mine.

(1) The first purchaser of any oil or gas sold shall collect the amount of the tax due from the producers, as defined by K.S.A. 79-4216, and amendments thereto, by deducting and withholding such amount from any payments made by such purchaser to the operator, or such producers where payment is made to same directly, and shall remit the same as provided in this act, unless the operator of the lease or production unit, upon written notice to the first purchaser and the director, elects to remit the tax. In no event shall a producer be relieved of responsibility for the tax until the same has been paid.

In the event the tax shall be withheld by a purchaser from payments due an operator or producer and such purchaser fails to make payment of the tax to the director as required herein, the operator or producer shall be entitled to bring an action against such purchaser to recover the amount of tax so withheld together with penalties and interest which may have accrued by failure to make such payment. The operator or producer shall be entitled to reasonable attorney fees and court costs incurred in such action.

(2) An operator of an oil or gas lease or production unit, upon having given written notice to the first purchaser and the director, may elect to collect and remit the tax due under this act. If an operator of an oil or gas lease or production unit makes this election, such operator shall collect the total amount of tax due and shall remit the same to the director.

(3) The operator of a coal mine shall collect the total amount of tax due and shall remit the same to the director.

(4) If the oil, gas or coal has not been sold by the time the tax is due, the operator shall remit the full amount of the tax due upon certification of the amount thereof by the director. The amount of tax to be remitted shall be determined in the same manner prescribed for remittances by purchasers or operators.

(b) The state shall have a lien on all the oil, gas or coal severed in this state in the hands of the operator, any producer or the first or any subsequent purchaser thereof to secure the payment of the tax. In the event any person required herein to pay the tax fails to do so, the director shall proceed against such person to collect the tax in the manner provided by K.S.A. 79-3235, and amendments thereto.

(c) Penalty and interest for late payment of tax shall be imposed in accordance with K.S.A. 79-4225, and amendments thereto.

History: L. 1983, ch. 313, § 5; L. 1984, ch. 364, § 2; L. 1987, ch. 393, § 4; L. 2014, ch. 132, § 7; July 1.

§ 79-4221 Mineral severance tax; filing of returns and remittance of tax, when, by whom; extension of return filing time, when; interest

(a) A return shall be made to the director upon forms prescribed and furnished by the director, on or before the 20th day of the second month following the end of every calendar month in which oil, gas or coal is removed from a lease or production unit or mine.

(1) If the oil, gas or coal is sold to a purchaser, every purchaser or operator responsible for remitting the tax imposed under the provisions of K.S.A. 79-4217, and amendments thereto, shall make the return showing the gross quantity of oil, gas or coal purchased during the month for which the return is filed, the price paid therefor, the correct name and address of the operator or other person from whom the same was purchased, a full description of the property from which such oil, gas or coal was severed and the amount of tax due.

(2) If oil, gas or coal is not sold to a purchaser, or if the operator elects to remit the tax as authorized under K.S.A. 79-4220, and amendments thereto, or if the operator is required to remit the tax pursuant to K.S.A. 79-4220, and amendments thereto, the operator shall make the return showing the gross quantity of oil, gas or coal removed during such month for which the return is filed and a full description of the property from which the same was severed.

(b) Each monthly return shall be filed on separate forms as to product and county and lease, production unit or mine. All such monthly returns shall be signed by the purchaser or operator, as the case may be, or a duly authorized agent thereof.

(c) The reporting requirements of this section shall be applicable to the severance and production in this state of all gas which is metered and all coal and oil regardless of whether the severance and production thereof is subject to or exempt from the tax imposed by K.S.A. 79-4217, and amendments thereto.

(d) A penalty for late filing a return shall be imposed in accordance with K.S.A. 79-4225, and amendments thereto.

History: L. 1983, ch. 313, § 6; L. 1984, ch. 364, § 3; L. 1985, ch. 333, § 2; L. 1986, ch. 204, § 2; L. 1987, ch. 393, § 5; L. 2014, ch. 132, § 8; July 1.

§ 79-4222 Mineral severance tax; tax withholding and remittance when title to minerals disputed

When the title to any coal, oil or gas severed from the earth or water is in dispute and the purchaser of such coal, oil or gas is withholding payments on account of litigation, or for any other reason, such purchaser is hereby authorized, empowered and required to deduct from the gross amount thus held the amount of the tax imposed less the amount of any credit to which the taxpayer is entitled and to make remittance thereof to the director as provided in this act.

History: L. 1983, ch. 313, § 7; L. 1987, ch. 393, § 6; July 1.

§ 79-4223 Mineral severance tax; records required of mineral transporters

When requested by the director, all transporters of coal, oil or gas out of, within or across the state of Kansas shall be required to furnish the director such information relative to the transportation of such coal, oil or gas as the director may require. The director shall have authority to inspect bills of lading, waybills, meter or other charts, documents, books and records as may relate to the transportation of coal, oil or gas in the hands of each transporter herein referred to. The director shall further be empowered to demand the production of such bills of lading, waybills, charts, documents, books and records relating to the transportation of coal, oil or gas at any point in the state of Kansas which may be designated, except that in the case of common carriers using bills of lading or waybills prescribed or approved by the interstate commerce commission, such common carrier shall only be required to keep the usual records at offices in the state where such records are usually kept.

History: L. 1983, ch. 313, § 8; L. 1987, ch. 393, § 7; July 1.

§ 79-4224 Mineral severance tax; inspection of records by director, when; subpoena power, contempt

The director shall have the power to require any operator, producer or person purchasing any coal, oil or gas severed from the earth or water to furnish any additional information deemed to be necessary for the purpose of computing the amount of the tax, and for such purpose to examine the meter and other charts, books, records and all files of such person, and for such purpose the director shall have the power to issue subpoenas and examine witnesses under oath, and if any witness shall fail or refuse to appear at the request of the director, or refuses access to books, records and files, the district court of the proper county, or the judge thereof, on application of the director, shall compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

History: L. 1983, ch. 313, § 9; L. 1987, ch. 393, § 8; July 1.

§ 79-4225 Same; penalties and interest for nonpayment of tax, and failure or refusal to file returns

(a) If any taxes imposed under this act and determined and assessed by the director are unpaid: (1) Not due to negligence or to intentional disregard of this act or rules and regulations promulgated by the secretary, interest on such taxes shall be added at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid; (2) due to negligence or to intentional disregard of this act or rules and regulations promulgated by the secretary, but without intent to defraud, a penalty of 10% of the amount of such taxes shall be added, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid; (3) due to fraud with intent to evade the tax imposed by this act, there shall be added thereto a penalty of 50% of the amount of such tax, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(b) If any person fails or refuses to make any return, when required to do so under the provisions of this act, such person shall be subject to a penalty of $25 per day for each return which such person fails or refuses to file.

(c) Whenever, in the judgment of the director, the failure of any person to comply with the provisions of subsection (a)(1), (a)(2), and (b) of this section, was due to reasonable cause, the director may, in the exercise of discretion, waive or reduce any of the penalties upon making a record of the reason therefor.

(d) In addition to all other penalties herein provided, any person who fails to make a return, or to pay any tax herein provided, or who makes a false or fraudulent return, or fails to keep any books or records prescribed by this act, or who willfully violates any rules and regulations promulgated by the secretary for the enforcement and administration of this act, or who aids and abets another in attempting to evade the payment of any tax imposed by this act, or who violates any other provisions of this act, shall, upon conviction thereof, be guilty of a class C misdemeanor.

(e) The director of taxation shall examine all returns filed under the provision of this act, and shall issue notices and final determinations of tax liability hereunder in the manner prescribed by K.S.A. 79-3226, and amendments thereto, relating to income taxes.

History: L. 1983, ch. 313, § 10; L. 1997, ch. 126, § 51; July 1.

§ 79-4226 Mineral severance tax; recordkeeping requirements; time limitation for tax assessment, extensions; refund limitations

(a) Every operator shall make and keep a complete and accurate record in the form required by the director showing the gross quantity of coal, oil or gas severed and removed from each lease, production unit or mine, the names of the purchasers of such products, the price paid therefor and the date of purchase. Every purchaser of coal, oil or gas severed in this state who is required to collect and remit the tax on the same shall make and keep a complete and accurate record in the form required by the director showing the gross quantity of coal, oil or gas purchased from each lease, production unit or mine, the price paid therefor, the name of the operator and the date of purchase. Such records shall at all times during business hours of the day be available for and subject to inspection by the director, or the director's duly authorized agents and employees, for a period of three years from the last day of the calendar year to which the records pertain. Such records shall be preserved during the entire period during which they are subject to inspection by the director, unless the director in writing previously authorized their disposal.

(b) The amount of taxes imposed by this act is to be assessed within three years after the return is filed. In the case of a false or fraudulent return with intent to evade tax, the tax may be assessed or a proceeding in court for collection of such tax may be begun at any time, within two years from the discovery of such fraud. The provisions of K.S.A. 79-3226, and amendments thereto, relating to procedures for contesting a proposed assessment of additional tax or the denial of a refund shall apply as if set forth in this section. No refund shall be allowed by the director after three years from the date the return was filed, or one year after the assessment is made, whichever is the later date unless before the expiration of such period a claim therefor is filed by the taxpayer. No suit or action to recover on any claim for refund shall be commenced until after the expiration of six months from the date of filing a claim therefor with the director.

(c) Before the expiration of time prescribed in this section for the assessment of additional tax or the filing of a claim for refund, the director is hereby authorized to enter into an agreement in writing with the taxpayer consenting to the extension of the periods of limitations for the assessment of tax or for the filing of a claim for refund, at any time prior to the expiration of the periods of limitations. The periods so agreed upon may be extended by subsequent agreements in writing made before the expiration of the periods previously agreed upon. In consideration of such agreement or agreements, interest due in excess of 48 months on any additional tax shall be waived.

(d) No refund of mineral severance tax shall be allowed by the director or by any court of this state based on any administrative or judicial claim, petition, pleading, cause of action or request for relief that has been or may be filed on or after July 1, 1983, alleging that any constituent part of gas and any refined products derived from any such gas are not taxable pursuant to the provisions of K.S.A. 79-4216 et seq., and amendments thereto.

History: L. 1983, ch. 313, § 11; L. 1987, ch. 393, § 9; L. 1992, ch. 10, § 3; L. 1997, ch. 126, § 13; L. 2013, ch. 135, § 14; June 20.

§ 79-4227 Mineral severance tax; disposition of revenue; mineral production tax refund fund; special county mineral production tax fund; mineral production education fund; distribution of revenue to counties and school districts, procedure

(a) All revenue collected or received by the director from the tax imposed by this act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. The state treasurer shall first credit such amount as the director shall order to the mineral production tax refund fund created under subsection (b) of this section. Second, the state treasurer shall credit 7% of the remainder of such amounts to the special county mineral production tax fund created in subsection (c). Finally, the state treasurer shall credit the remainder of such amounts collected or received from the tax imposed by this act during fiscal years 2013, 2014 and 2015 for oil and gas for any county which had $100,000 or more in receipts of the excise tax upon the severance and production of oil and gas as follows: (1) 12.41% to the oil and gas valuation depletion trust fund; and (2) the remainder shall be credited to the state general fund. The state treasurer shall credit the remainder of such amounts collected or received from the tax imposed by this act during fiscal year 2016, and thereafter, and distributed during fiscal year 2017, and thereafter, for oil and gas for any county which had $100,000 or more in receipts of the excise tax upon the severance and production of oil and gas as follows: (1) 20% to the mineral production education fund created in K.S.A. 72-6462*, and amendments thereto; and (2) the remainder shall be credited to the state general fund.

(b) A refund fund designated as "mineral production tax refund fund" not to exceed $50,000 is hereby created for the prompt payment of all tax refunds. The mineral production tax refund fund shall be in such amount, within the limit set by this section, as the director shall determine is necessary to meet current refunding requirements under this act.

(c) There is hereby created a special county mineral production tax fund. On December 1, 1983, and quarterly thereafter, the director of taxation shall distribute all moneys credited to such fund to the county treasurers of all counties in which taxes were levied under K.S.A. 79-4217, and amendments thereto, for the severing and producing of coal, oil or gas from property within the county, in the proportion that the taxes levied upon production in each county bears to the total of all of such taxes levied in all of such counties. Such distribution shall be based on returns filed, with any adjustments or corrections thereto made by the director of taxation.

(d) The secretary of revenue shall make provision for the determination of the counties within which taxes are levied under K.S.A. 79-4217, and amendments thereto, for the severance of coal, oil or gas and shall certify the same to the director of accounts and reports.

(e) The director of accounts and reports shall draw warrants on the state treasurer payable to the county treasurer of each county entitled to payment from the special county mineral production tax fund upon vouchers approved by the director of taxation. Upon receipt of such warrant, each county treasurer shall credit 50% of the amount thereof to the county general fund and shall distribute the remaining 50% thereof to the treasurer of each school district all or any portion of which is located within the county in the proportion that the assessed value of coal, oil and gas properties within each district bears to the total of the assessed value of all coal, oil and gas properties within the county. Such assessed valuation shall be determined upon the basis of the most recent November 1 tax roll. The treasurer of each school district shall credit the entire amount of the moneys so received to the general fund of the school district.

History: L. 1983, ch. 313, § 12; L. 1987, ch. 393, § 10; L. 2001, ch. 5, § 464; L. 2005, ch. 173, § 2; L. 2012, ch. 175, § 167; L. 2013, ch. 136, § 279; L. 2014, ch. 127, § 8; May 22.

§ 79-4228 Same; rules and regulations

The secretary is hereby authorized to adopt such rules and regulations as may be necessary to administer and enforce the provisions of this act.

History: L. 1983, ch. 313, § 13; April 28.

§ 79-4229 Same; severability clause

If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

History: L. 1983, ch. 313, § 14; April 28.

§ 79-4230 Reporting and payment of fees assessed by corporation commission on oil or gas production; time of payment

An oil or gas mineral severance tax return required to be submitted pursuant to K.S.A. 79-4221 and amendments thereto, in addition to the provisions therein, shall be utilized to report those fees assessed by the state corporation commission pursuant to subsection (c) of K.S.A. 55-609 and amendments thereto or subsection (c) of K.S.A. 55-711 and amendments thereto and such other information pertaining to the production on which such fees are assessed as determined necessary pursuant to a memorandum of agreement executed on behalf of the state corporation commission and the departments of revenue and health and environment. Such fees shall be payable to the state at the same time the tax is payable under the provisions of K.S.A. 79-4220 and amendments thereto and they shall be remitted at the same time the tax is remitted by the purchaser or operator responsible for remitting the tax.

History: L. 1986, ch. 204, § 3; L. 1995, ch. 204, § 20; July 1.

§ 79-4231 Repealed

History: L. 2005, ch. 173, § 3; L. 2008, ch. 100, § 6; L. 2012, ch. 170, § 4; L. 2014, ch. 127, § 9; Repealed, L. 2014, ch. 127, § 12; July 1, 2016.

§ 79-4232 Same; abolish fund on July 1, 2016

On July 1, 2016, the director of accounts and reports shall transfer all moneys in the oil and gas valuation depletion trust fund to the state general fund. On July 1, 2016, all liabilities of the oil and gas valuation depletion trust fund are hereby transferred to and imposed on the state general fund, and the oil and gas valuation depletion trust fund is hereby abolished.

History: L. 2014, ch. 127, § 3; May 22.

Article 43 Interstate Tax Compacts

§ 79-4301 Multistate tax compact

"The multistate tax compact" is hereby enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

MULTISTATE TAX COMPACT

ARTICLE I.—Purposes

The purposes of this compact are to:

(1) Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes.

(2) Promote uniformity or compatibility in significant components of tax systems.

(3) Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration.

(4) Avoid duplicative taxation.

ARTICLE II.—Definitions

As used in this compact:

(1) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.

(2) "Subdivision" means any governmental unit or special district of a state.

(3) "Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency or person acting as a business entity in more than one state.

(4) "Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one or more forms of which expenses are not specifically and directly related to particular transactions.

(5) "Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety.

(6) "Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax an income tax.

(7) "Sales tax" means a tax imposed with respect to the transfer for a consideration of ownership, possession or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles.

(8) "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complimentary to a sales tax.

(9) "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of articles III, IV and V of this compact shall apply only to the taxes specifically designated therein and the provisions of article IX of this compact shall apply only in respect to determinations pursuant to article IV.

ARTICLE III.—Elements of Income Tax Laws

(1)

Taxpayer option, state and local taxes.

Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two or more party states may elect to apportion and allocate his income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with article IV, except that for tax years commencing on or after January 1, 2027, any taxpayer subject to the tax imposed by K.S.A. 79-32,110(c), and amendments thereto, shall apportion and allocate in accordance with article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, and shall not apportion or allocate in accordance with article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax.

(2)

Taxpayer option, short form.

Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of $100,000 may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The multistate tax commission, not more than once in five years, may adjust the $100,000 figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the $100,000 figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.

(3)

Coverage.

Nothing in this article relates to the reporting or payment of any tax other than in income tax.

ARTICLE IV.—Division of Income

(1) As used in this article, unless the context otherwise requires:

(a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.

(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

(c) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.

(d) "Financial organization" means any bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, small loan company, sales finance company, investment company, or any type of insurance company.

(e) "Nonbusiness income" means all income other than business income.

(f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state or local government or governmental agency.

(g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this article.

(h) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.

(i) "This state" means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.

(2) Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a financial organization or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this article, the taxpayer may elect to allocate and apportion his entire net income as provided in this article.

(3) For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if (1) in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

(4) Rents and royalties from real or tangible personal property, capital gains, interest, dividends or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.

(5) (a) Net rents and royalties from real property located in this state are allocable to this state.

(b) Net rents and royalties from tangible personal property are allocable to this state: (1) If and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

(6) (a) Capital gains and losses from sales of real property located in this state are allocable to this state.

(b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.

(7) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

(8) (a) Patent and copyright royalties are allocable to this state: (1) If and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.

(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.

(9) All business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.

(10) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.

(11) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.

(12) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the tax administrator may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.

(13) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.

(14) Compensation is paid in this state if:

(a) The individual's service is performed entirely within the state;

(b) The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or

(c) Some of the service is performed in the state and (1) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (2) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

(15) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.

(16) Sales of tangible personal property are in this state if:

(a) The property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the f.o.b. point or other conditions of the sale; or

(b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (1) the purchaser is the United States government or (2) the taxpayer is not taxable in the state of the purchaser.

(17) Sales, other than sales of tangible personal property, are in this state if:

(a) The income-producing activity is performed in this state; or

(b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

(18) If the allocation and apportionment provisions of this article do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable:

(a) Separate accounting;

(b) The exclusion of any one or more of the factors;

(c) The inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state; or

(d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V.—Elements of Sales and Use Tax Laws

(1)

Tax credit.

Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision.

(2)

Exemption certificates, vendors may rely.

Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

ARTICLE VI.—The Commission

(1)

Organization and management.

(a) The multistate tax commission is hereby established. It shall be composed of one "member" from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The attorney general of each party state or his designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such attorneys general, designees, or other counsel shall receive all notices of meetings required under paragraph (1) (e) of this article.

(b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.

(c) Each member shall be entitled to one vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.

(d) The commission shall adopt an official seal to be used as it may provide.

(e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.

(f) The commission shall elect annually, from among its members, a chairman, a vice-chairman and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.

(g) Irrespective of the civil service, personnel or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.

(h) The commission may borrow, accept or contract for the services of personnel from any state, the United States, or any other governmental entity.

(i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.

(j) The commission may establish one or more offices for the transacting of its business.

(k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.

(l) The commission annually shall make to the governor and legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.

(2)

Committees.

(a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven members, including the chairman, vice-chairman, treasurer and four other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the laws of the commission.

(b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.

(c) The commission may establish such additional committees as its bylaws may provide.

(3)

Powers.

In addition to powers conferred elsewhere in this compact, the commission shall have power to:

(a) Study state and local tax systems and particular types of state and local taxes.

(b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration.

(c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws.

(d) Do all things necessary and incidental to the administration of its functions pursuant to this compact.

(4)

Finance.

(a) The commission shall submit to the governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.

(b) Each of the commission's budget of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: One-tenth in equal shares; and the remainder in proportion of the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.

(c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph (1) (i) of this article:

Provided,

That the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph (1) (i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.

(d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.

(e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.

(f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

ARTICLE VII.—Uniform Regulations and Forms

(1) Whenever any two or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of article IV of this compact.

(2) Prior to the adoption of any regulation, the commission shall:

(a) As provided in its bylaws, hold at least one public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.

(b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.

(3) The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII.—Interstate Audits

(1) This article shall be in force only in those party states that specifically provide therefor by statute.

(2) Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.

(3) The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the commission within the state of which he is a resident:

Provided,

That such state has adopted this article.

(4) The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.

(5) The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.

(6) Information obtained by any audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions or the United States. Availability of information shall be in accordance with the laws of the states or subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.

(7) Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.

(8) In no event shall the commission make any charge against a taxpayer for an audit.

(9) As used in this article, "tax," in addition to the meaning ascribed to it in article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX.—Arbitration

(1) Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of article VII.

(2) The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.

(3) Whenever a taxpayer who has elected to employ article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.

(4) The arbitration board shall be composed of one person selected by the taxpayer, one by the agency or agencies involved, and one member of the commission's arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.

(5) The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer's incorporation, residence or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.

(6) The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.

(7) The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.

(8) Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such board member shall be entitled to expenses.

(9) The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.

(10) The board shall file with the commission and with each tax agency represented in the proceeding: The determination of the board; the board's written statement of its reasons therefor; the record of the board's proceedings; and any other documents required by the arbitration rules of the commission to be filed.

(11) The commission shall publish the determinations of boards together with the statements of the reasons therefor.

(12) The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.

(13) Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X.—Entry Into Force and Withdrawal

(1) This compact shall enter into force when enacted into law by any seven states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.

(2) Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

(3) No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.

ARTICLE XI.—Effect on Other Laws and Jurisdiction

Nothing in this compact shall be construed to:

(a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement article III (2) of this compact.

(b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax:

Provided,

That the definition of "tax" in article VIII (9) may apply for the purposes of that article and the commission's powers of study and recommendation pursuant to article VI (3) may apply.

(c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.

(d) Supersede or limit the jurisdiction of any court of the United States.

ARTICLE XII.—Construction and Severability

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

History: L. 1967, ch. 506, § 1; L. 2025, ch. 123, § 10; July 1.

§ 79-4302 Application of multistate tax compact

The provisions of article III (2) of the multistate tax compact [79-4301] shall apply to the Kansas income tax act and to every income tax hereafter adopted by any taxing subdivision of this state.

History: L. 1967, ch. 505, § 1; July 1.

§ 79-4303 Multistate tax commission; representative

The secretary of the department of revenue shall represent this state on the multistate tax commission.

History: L. 1967, ch. 505, § 2; July 1.

§ 79-4304 Same; alternate representation on commission

The member representing this state on the multistate tax commission may be represented thereon by an alternate designated by him or her. Any such alternate shall be a principal deputy or assistant of the member of the commission in the agency which the member heads.

History: L. 1967, ch. 505, § 3; July 1.

§ 79-4305 Same; attorney general or designate; function

The attorney general or an assistant attorney general designated by the attorney general may attend meetings and receive notices as provided in article VI (1) (a) of the multistate tax compact [79-4301].

History: L. 1967, ch. 505, § 4; July 1.

§ 79-4306 Repealed

History: L. 1967, ch. 505, § 5; Repealed, L. 1974, ch. 442, § 2; July 1.

§ 79-4306a Advisory committee abolished

The multistate tax compact advisory committee is hereby abolished.

History: L. 1974, ch. 442, § 1; July 1.

§ 79-4307 Interstate audits

Article VIII of the multistate tax compact relating to interstate audits shall be in force in and with respect to this state.

History: L. 1967, ch. 505, § 6; July 1.

Article 44 Financing Taxing Subdivisions (Not in active use)

§ 79-4401 Repealed

History: L. 1970, ch. 402, § 1; L. 1970, ch. 401, § 1; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4402 Repealed

History: L. 1970, ch. 402, § 2; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4403 Repealed

History: L. 1970, ch. 402, § 3; L. 1970, ch. 401, § 2; L. 1971, ch. 322, § 1; Repealed, L. 1973, ch. 393, § 39; April 30.

§§ 79-4404 through 79-4407 Repealed

History: L. 1970, ch. 402, §§ 4 to 7; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4408 Repealed

History: L. 1970, ch. 402, § 8; L. 1970, ch. 401, § 3; L. 1971, ch. 322, § 2; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4409 Repealed

History: L. 1970, ch. 402, § 9; L. 1971, ch. 322, § 3; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4410 Repealed

History: L. 1970, ch. 402, § 26; L. 1970, ch. 401, § 6; L. 1971, ch. 322, § 4; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4411 Repealed

History: L. 1970, ch. 402, § 22; L. 1971, ch. 322, § 5; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4412 Repealed

History: L. 1970, ch. 402, § 23; L. 1971, ch. 322, § 6; L. 1972, ch. 379, § 3; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4413 Repealed

History: L. 1970, ch. 402, § 25; L. 1971, ch. 322, § 7; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4414 Repealed

History: L. 1970, ch. 402, § 27; L. 1970, ch. 401, § 7; L. 1972, ch. 380, § 9; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4415 Repealed

History: L. 1970, ch. 402, § 10; L. 1971, ch. 322, § 8; L. 1972, ch. 381, § 1; Repealed, L. 1973, ch. 393, § 39; April 30.

§§ 79-4416, 79-4417 Repealed

History: L. 1970, ch. 401, §§ 9, 10; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4418 Repealed

History: L. 1970, ch. 401, § 11; L. 1971, ch. 322, § 9; L. 1972, ch. 380, § 1; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4419 Repealed

History: L. 1970, ch. 402, § 11; L. 1971, ch. 322, § 10; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4420 Repealed

History: L. 1970, ch. 402, § 12; L. 1972, ch. 379, § 1; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4421 Repealed

History: L. 1970, ch. 402, § 13; L. 1971, ch. 322, § 11; L. 1972, ch. 379, § 2; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4422 Repealed

History: L. 1970, ch. 402, § 14; L. 1971, ch. 322, § 12; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4423 Repealed

History: L. 1970, ch. 401, § 8; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4424 Repealed

History: L. 1970, ch. 402, § 15; L. 1970, ch. 401, § 4; L. 1971, ch. 322, § 13; Repealed, L. 1972, ch. 380, § 15; April 11.

§§ 79-4425, 79-4426 Repealed

History: L. 1970, ch. 402, §§ 16, 17; Repealed, L. 1972, ch. 380, § 15; April 11.

§ 79-4427 Repealed

History: L. 1970, ch. 402, § 18; L. 1970, ch. 401, § 5; L. 1971, ch. 322, § 14; Repealed, L. 1972, ch. 380, § 15; April 11.

§§ 79-4428 through 79-4430 Repealed

History: L. 1970, ch. 402, §§ 19 to 21; Repealed, L. 1972, ch. 380, § 15; April 11.

§ 79-4431 Repealed

History: L. 1970, ch. 402, § 24; Repealed, L. 1970, ch. 401, § 12; April 3.

§ 79-4432 Repealed

History: L. 1971, ch. 322, § 16; Repealed, L. 1973, ch. 393, § 39; April 30.

§ 79-4433 Repealed

History: L. 1972, ch. 356, § 2; Repealed, L. 1973, ch. 393, § 39; April 30.

Article 45 Homestead Property Tax Refunds

§ 79-4501 Homestead property tax refund act; title and purpose of act

The title of this act shall be the homestead property tax refund act. The purpose of this act shall be to provide ad valorem tax refunds to: (a) Certain persons who are of qualifying age who own their homestead; (b) certain persons who have a disability, who own their homestead; and (c) certain persons other than persons included under the provisions of (a) or (b) who have low incomes and dependent children and own their homestead.

History: L. 1970, ch. 403, § 1; L. 1972, ch. 383, § 1; L. 1973, ch. 404, § 1; L. 1975, ch. 506, § 1; L. 1978, ch. 418, § 1; L. 2001, ch. 57, § 1; L. 2012, ch. 135, § 30; January 1, 2013.

§ 79-4502 Homestead property tax refund act; definitions

As used in this act, unless the context clearly indicates otherwise:

(a) "Income" means the sum of adjusted gross income under the Kansas income tax act effective for tax year 2013 and thereafter without regard to any modifications pursuant to K.S.A. 79-32,117(b)(xx) through (xxiii) and (c)(xx), and amendments thereto, maintenance, support money, cash public assistance and relief, not including any refund granted under this act, the gross amount of any pension or annuity, including all monetary retirement benefits from whatever source derived, including but not limited to, all payments received under the railroad retirement act, except disability payments, payments received under the federal social security act, except that for determination of what constitutes income such amount shall not exceed 50% of any such social security payments and shall not include any social security payments to a claimant who prior to attaining full retirement age had been receiving disability payments under the federal social security act in an amount not to exceed the amount of such disability payments or 50% of any such social security payments, whichever is greater, all dividends and interest from whatever source derived not included in adjusted gross income, workers compensation and the gross amount of "loss of time" insurance. Income does not include gifts from nongovernmental sources or surplus food or other relief in kind supplied by a governmental agency, nor shall net operating losses and net capital losses be considered in the determination of income. Income does not include veterans disability compensation. Income does not include disability payments received under the federal social security act.

(b) "Household" means a claimant, a claimant and spouse who occupy the homestead or a claimant and one or more individuals not related as husband and wife who together occupy a homestead.

(c) "Household income" means all income received by all persons of a household in a calendar year while members of such household.

(d) "Homestead" means the dwelling, or any part thereof, owned and occupied as a residence by the household and so much of the land surrounding it, as defined as a home site for ad valorem tax purposes, and may consist of a part of a multi-dwelling or multi-purpose building and a part of the land upon which it is built or a manufactured home or mobile home and the land upon which it is situated. "Owned" includes a vendee in possession under a land contract, a life tenant, a beneficiary under a trust and one or more joint tenants or tenants in common.

(e) "Claimant" means a person who has filed a claim under the provisions of this act and was, during the entire calendar year preceding the year in which such claim was filed for refund under this act, except as provided in K.S.A. 79-4503, and amendments thereto, both domiciled in this state and was:

(1) For purposes of a claim under K.S.A. 79-4508, and amendments thereto:

(A) A person having a disability;

(B) a person who is 55 years of age or older;

(C) a disabled veteran;

(D) the surviving spouse of a deceased member of the armed forces who died in the line of duty during a period of active service; or

(E) a person other than a person included under subparagraph (A), (B), (C) or (D) having one or more dependent children under 18 years of age residing at the person's homestead during the calendar year immediately preceding the year in which a claim is filed under this act; or

(2) for purposes of a claim under K.S.A. 2025 Supp. 79-4508a, and amendments thereto:

(A) A person who is 65 years of age or older; or

(B) a disabled veteran.

The surviving spouse of a disabled veteran who was receiving benefits pursuant to subsection (e)(1)(C) at the time of the veterans' death, shall be eligible to continue to receive benefits until such time the surviving spouse remarries.

When a homestead is occupied by two or more individuals and more than one of the individuals is able to qualify as a claimant, the individuals may determine between them as to whom the claimant will be. If they are unable to agree, the matter shall be referred to the secretary of revenue whose decision shall be final.

(f) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on a claimant's homestead in 1979 or any calendar year thereafter by the state of Kansas and the political and taxing subdivisions of the state. When a homestead is owned by two or more persons or entities as joint tenants or tenants in common and one or more of the persons or entities is not a member of claimant's household, "property taxes accrued" is that part of property taxes levied on the homestead that reflects the ownership percentage of the claimant's household. For purposes of this act, property taxes are "levied" when the tax roll is delivered to the local treasurer with the treasurer's warrant for collection. When a claimant and household own their homestead part of a calendar year, "property taxes accrued" means only taxes levied on the homestead when both owned and occupied as a homestead by the claimant's household at the time of the levy, multiplied by the percentage of 12 months that the property was owned and occupied by the household as its homestead in the year. When a household owns and occupies two or more different homesteads in the same calendar year, property taxes accrued shall be the sum of the taxes allocable to those several properties while occupied by the household as its homestead during the year. Whenever a homestead is an integral part of a larger unit such as a multi-purpose or multi-dwelling building, property taxes accrued shall be that percentage of the total property taxes accrued as the value of the homestead is of the total value. For the purpose of this act, the word "unit" refers to that parcel of property covered by a single tax statement of which the homestead is a part.

(g) "Disability" means:

(1) Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months, and an individual shall be determined to be under a disability only if the physical or mental impairment or impairments are of such severity that the individual is not only unable to do the individual's previous work but cannot, considering age, education and work experience, engage in any other kind of substantial gainful work which exists in the national economy, regardless of whether such work exists in the immediate area in which the individual lives or whether a specific job vacancy exists for the individual, or whether the individual would be hired if application was made for work. For purposes of the preceding sentence (with respect to any individual), "work which exists in the national economy" means work which exists in significant numbers either in the region where the individual lives or in several regions of the country; for purposes of this subsection, a "physical or mental impairment" is an impairment that results from anatomical, physiological or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques; or

(2) blindness and inability by reason of blindness to engage in substantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which the individual has previously engaged with some regularity and over a substantial period of time.

(h) "Blindness" means central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees shall be considered for the purpose of this paragraph as having a central visual acuity of 20/200 or less.

(i) "Disabled veteran" means a person who is a resident of Kansas and who:

(1) Served in the active military, naval, air or space service, including those groups and individuals listed under 38 C.F.R. § 3.7, and who was discharged or released therefrom under an honorable discharge or a general discharge under honorable conditions;

(2) received a disability that was incurred or aggravated in the line of duty in the active military, naval, air or space service, including those groups and individuals listed under 38 C.F.R. § 3.7; and

(3) has a service-connected evaluation percentage equal to or greater than 50%, pursuant to 38 U.S.C. § 1101 et seq. or 10 U.S.C. § 1201 et seq.

History: L. 1970, ch. 403, § 2; L. 1972, ch. 383, § 2; L. 1973, ch. 404, § 2; L. 1973, ch. 405, § 1; L. 1974, ch. 443, § 1; L. 1975, ch. 506, § 2; L. 1978, ch. 418, § 2; L. 1979, ch. 328, § 1; L. 1980, ch. 310, § 9; L. 1982, ch. 152, § 29; L. 1988, ch. 375, § 8; L. 1991, ch. 33, § 43; L. 1997, ch. 41, § 15; L. 2000, ch. 184, § 24; L. 2005, ch. 199, § 1; L. 2007, ch. 157, § 3; L. 2008, ch. 182, § 26; L. 2009, ch. 142, § 10; L. 2012, ch. 135, § 31; L. 2014, ch. 86, § 2; L. 2022, ch. 63, § 46; L. 2024, ch. 84, § 74; L. 2025, ch. 97, § 14; July 1.

§ 79-4503 Same; death of claimant after claim filed, disbursement; death of person entitled to make claim prior to filing claim; right of representative to make claim

The right to file a claim under this act may be exercised on behalf of a claimant by his or her legal guardian, conservator or attorney-in-fact. When a claimant dies after having filed a timely claim the amount thereof shall be disbursed to another member of the household as determined by the director of taxation. If the claimant was the only member of his or her household, the claim may be paid to his or her executor or administrator, but if neither is appointed and qualified, the amount of the claim may be paid upon a claim duly made to any heir at law. In the absence of any such claim within two (2) years of the filing of the claim, the amount of the claim shall escheat to the state. When a person who would otherwise be entitled to file a claim under the provisions of this act dies prior to filing such claim, another member of such person's household may file such claim in the name of such decedent, subject to the deadline prescribed by K.S.A. 79-4505, and the director shall pay the amount to which the decedent would have been entitled to such person filing the claim. If the decedent was the only member of his or her household, the decedent's executor or administrator may file such claim in the name of the decedent, and the claim shall be paid to said executor or administrator. In the event that neither an executor or administrator is appointed and qualified, such claim may be made by any heir at law and the claim shall be payable to such heir at law. Any of the foregoing provisions shall be applicable in any case where the decedent dies in the calendar year preceding the year in which a claim may be made under the provisions of this act, if such decedent was a resident of or domiciled in this state during the entire part of such year that such decedent was living. Where decedent's death occurs during the calendar year preceding the year in which a claim may be made hereunder, the amount of the claim that would have been allowable if the decedent had been a resident of or domiciled in this state the entire calendar year of his or her death shall be reduced in a proportionate amount equal to a fraction of the claim otherwise allowable, the numerator of which fraction is the number of months in such calendar year following the month of decedent's death and the denominator of which is twelve (12).

History: L. 1970, ch. 403, § 3; L. 1973, ch. 406, § 1; L. 1978, ch. 418, § 3; January 1, 1979.

§ 79-4504 Same; claims payable from the income tax refund fund; no warrant issued for less than five dollars; no interest allowed on claim

Subject to the limitations provided in this act or the provisions of K.S.A. 79-4530, and amendments thereto, as the case requires, a claimant may claim property tax relief under the homestead property tax refund act or the provisions of K.S.A. 79-4530, and amendments thereto, with respect to property taxes accrued, and after audit by the division of taxation with respect to homestead property tax refund act, the allowable amount of such claim shall be paid, except as otherwise provided in K.S.A. 79-4506, 79-4521 and K.S.A. 79-4523, and amendments thereto, to the claimant from the income tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director of taxation or by any person designated by the claimant, but no warrant issued hereunder shall be drawn in an amount of less than $5. No interest shall be allowed on any payment made to a claimant pursuant to this act.

History: L. 1970, ch. 403, § 4; L. 1973, ch. 404, § 6; L. 1992, ch. 98, § 3; L. 1999, ch. 48, § 1; L. 2001, ch. 57, § 2; L. 2007, ch. 157, § 4; July 1.

§ 79-4505 Same; deadline for filing claim

Except as provided in K.S.A. 79-4517, and amendments thereto, no claim in respect of property taxes levied in any year shall be paid or allowed unless such claim is actually filed with and in the possession of the department of revenue on or before April 15 of the year next succeeding the year in which said taxes were levied.

History: L. 1970, ch. 403, § 5; L. 1971, ch. 323, § 1; L. 1972, ch. 383, § 6; L. 1977, ch. 340, § 1; L. 1997, ch. 41, § 16; October 16.

§ 79-4506 Same; amount of claim may be applied by department against any outstanding tax liability of claimant or member of household

The amount of any claim otherwise payable under this act may be applied by the division of taxation against any liability outstanding on the books of the department against claimant, or against any other individual who was a member of his or her household in the year to which the claim relates.

History: L. 1970, ch. 403, § 6; July 1.

§ 79-4507 Same; only one claimant per household permitted

Only one (1) claimant per household per year shall be entitled to relief under this act.

History: L. 1970, ch. 403, § 7; July 1.

§ 79-4508 Amount of claim, computation; determination of amount of claim by department

(a) Commencing in the tax year beginning after December 31, 2005, the amount of any claim pursuant to this act and under this section shall be computed by deducting the amount computed under column (2) from the amount of claimant's property tax accrued.

| (1) Claimant's household income | (2) Deduction from property tax accrued | | | --- | --- | --- | | At least | But not more than | | | $0 | $6,000 | $0 | | 6,001 | 7,000 | 4% | | 7,001 | 16,000 | 4% plus 4% of every $1,000, or fraction thereof, of income in excess of $7,001 | | 16,001 | 27,000 | 40% plus 5% of every $1,000, or fraction thereof, of income in excess of $16,001 | | 27,001 | 27,600 | 95% |

(b) The director of taxation shall prepare a table under which claims under this act and this section shall be determined. The amount of claim for each bracket shall be computed only to the nearest $1.

(c) The claimant may elect not to record the amount claimed on the claim. The claim allowable to persons making this election shall be computed by the department which shall notify the claimant by mail of the amount of the allowable claim.

(d) In the case of all tax years commencing after December 31, 2004, the upper limit threshold amount prescribed in this section, shall be increased by an amount equal to such threshold amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) of the federal internal revenue code for the calendar year in which the taxable year commences.

History: L. 1970, ch. 403, § 8; L. 1972, ch. 383, § 3; L. 1973, ch. 404, § 3; L. 1975, ch. 506, § 3; L. 1978, ch. 418, § 4; L. 1979, ch. 328, § 2; L. 1997, ch. 41, § 17; L. 2004, ch. 171, § 10; L. 2005, ch. 85, § 1; L. 2006, ch. 205, § 13; L. 2012, ch. 135, § 32; L. 2022, ch. 63, § 47; July 1.

§ 79-4508a Alternative amount of claim; determination; definition; ineligibility for refund in certain circumstances

(a) For tax year 2022 and all tax years thereafter, the amount of any claim pursuant to this section shall be computed by deducting the claimant's base year ad valorem tax amount for the homestead from the claimant's homestead ad valorem tax amount for the tax year for which the refund is sought.

(b) As used in this section:

(1) "Base year" means the year in which an individual becomes an eligible claimant and who is also eligible for a claim for refund pursuant to this section. For any individual who would otherwise be an eligible claimant prior to 2021, such base year shall be deemed to be 2021 for the purposes of this act.

(2) "Claimant" means a person who has filed a claim under the provisions of this act and was, during the entire calendar year preceding the year in which such claim was filed for refund under this act, except as provided in K.S.A. 79-4503, and amendments thereto, both domiciled in this state and was: (A) A person who is 65 years of age or older; or (B) a disabled veteran. The surviving spouse of a person 65 years of age or older or a disabled veteran who was receiving benefits pursuant to this section at the time of the claimant's death shall be eligible to continue to receive benefits until such time the surviving spouse remarries.

(3) For tax year 2025 and all tax years thereafter, "household income" means the total Kansas adjusted gross income of all persons of a household in a calendar year while members of such household.

(c) A claimant shall only be eligible for a claim for refund under this section if:

(1) The claimant's household income for the year in which the claim is filed is $50,000 or less; and

(2) the appraised value of the claimant's homestead for the base year is $350,000 or less.

The provisions of K.S.A. 79-4522, and amendments thereto, shall not apply to a claim pursuant to this section. In the case of all tax years commencing after December 31, 2022, the upper limit household income threshold amount prescribed in this subsection shall be increased by an amount equal to such threshold amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) of the federal internal revenue code for the calendar year in which the taxable year commences.

(d) A taxpayer shall not be eligible for a homestead property tax refund claim pursuant to this section if such taxpayer has received for such property for such tax year either: (1) A homestead property tax refund pursuant to K.S.A. 79-4508, and amendments thereto; or (2) the selective assistance for effective senior relief (SAFESR) credit pursuant to K.S.A. 79-32,263, and amendments thereto.

(e) The amount of any claim shall be computed to the nearest $1.

(f) The provisions of this section shall be a part of and supplemental to the homestead property tax refund act.

History: L. 2022, ch. 63, § 17; L. 2025, ch. 123, § 11; July 1.

§ 79-4509 Maximum property tax refund

(a) In the event property taxes accrued exceeds $700 for a household in any one year, the amount thereof shall, for purposes of this act, be deemed to have been $700.

(b) The provisions of subsection (a) shall not apply to a claim for refund pursuant to K.S.A. 2025 Supp. 79-4508a, and amendments thereto.

History: L. 1970, ch. 403, § 9; L. 1973, ch. 404, § 4; L. 1975, ch. 506, § 4; L. 1989, ch. 303, § 4; L. 1992, ch. 98, § 4; L. 2007, ch. 157, § 5; L. 2012, ch. 135, § 33; L. 2022, ch. 63, § 48; July 1.

§ 79-4510 Same; forms and instructions; county clerk to assist claimants; county treasurer to inclose information with tax statements; rules and regulations

In administering this act, the division of taxation shall make available suitable forms with instructions for claimants. Copies of such forms shall also be made available to all county clerks and county treasurers in sufficient numbers to supply claimants residing in their respective counties. It shall be the duty of the county clerk to assist any claimant seeking assistance in the filing of a claim under the provisions of this act. The county treasurer of each county shall mail to each taxpayer with the property tax statement of such taxpayer information on eligibility for homestead property tax relief to be provided by the secretary of revenue.

The secretary of revenue is hereby authorized to adopt such rules and regulations as may be necessary for the administration of the provisions of this act and the act of which this act is amendatory.

History: L. 1970, ch. 403, § 10; L. 1972, ch. 383, § 4; L. 1973, ch. 404, § 5; L. 1974, ch. 444, § 1; July 1.

§ 79-4511 Same; information required in support of claim

(a) Every claimant under this act shall supply to the division, in support of a claim, reasonable proof of age or disability, and changes of homestead, household membership, household income, and size and nature of property claimed as the homestead. A claim alleging disability shall be supported by a report of the examining physician of the claimant with a statement or certificate that the applicant has a disability within the meaning of subsection (g) of K.S.A. 79-4502, and amendments thereto.

(b) Every claimant who is a homestead owner, or whose claim is based wholly or partly upon homestead ownership at some time during the calendar year, shall supply to the division, in support of a claim, the amount of property taxes levied upon the property claimed as a homestead and a statement that the property taxes accrued used for purposes of this act have been or will be paid by the claimant. Upon request by the division, such claimant shall provide a copy of the statement of property taxes levied upon the property claimed as a homestead. The amount of personal property taxes levied on a manufactured home or mobile home shall be set out on the personal property tax statement showing the amount of such tax as a separate item.

(c) The information required to be furnished under subsection (b) shall be in addition to that required under subsection (a).

History: L. 1970, ch. 403, § 11; L. 1972, ch. 383, § 5; L. 1975, ch. 506, § 5; L. 1980, ch. 310, § 10; L. 1991, ch. 33, § 44; L. 2007, ch. 157, § 6; L. 2012, ch. 135, § 34; January 1, 2013.

§ 79-4512 Repealed

History: L. 1970, ch. 403, § 12; Repealed, L. 2000, ch. 184, § 34; July 1.

§ 79-4513 Same; excessive claims; disallowance or recovery; fraudulent intent, misdemeanor

In any case in which it is determined that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and, if the claim has been paid, the amount paid may be recovered by assessment as income taxes are assessed, and such assessment shall bear interest from the date of payment or credit of the claim, until recovered, at the rate of one percent (1%) per month. The claimant in such case, and any person who assisted in the preparation or filing of such excessive claim, or supplied information upon which such excessive claim was prepared, with fraudulent intent, shall be guilty of a class B misdemeanor. In any case in which it is determined that a claim is or was excessive and was negligently prepared, ten percent (10%) of the corrected claim shall be disallowed, and if the claim has been paid, the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed and such assessment shall bear interest at the rate of one percent (1%) per month from the date of payment until recovered. In any case in which it is determined that a claim is or was excessive due to the fact that the claimant neglected to include certain income received during the year, the claim shall be corrected and the excess disallowed, and if the claim has been paid the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed.

History: L. 1970, ch. 403, § 13; L. 1973, ch. 404, § 7; L. 1974, ch. 443, § 2; January 1, 1975.

§ 79-4514 Repealed

History: L. 1970, ch. 403, § 14; Repealed, L. 2000, ch. 184, § 34; July 1.

§ 79-4515 Same; recipient of public funds for payment of taxes not eligible claimant

No claim for relief under the provisions of this act shall be allowed to any claimant who is a recipient of public funds specifically designated for the payment of taxes during the period for which the claim is filed.

History: L. 1970, ch. 403, § 15; July 1.

§ 79-4516 Same; claim disallowed if title to homestead received for purpose of making claim

A claim shall be disallowed if the division finds that the claimant received title to his or her homestead primarily for the purpose of receiving benefits under this act.

History: L. 1970, ch. 403, § 16; July 1.

§ 79-4517 Same; extension of time for filing claim; acceptance of claim after filing deadline

For claims in respect of property taxes levied in any year, the director of taxation may extend the time for filing any claim or accept a claim filed after the filing deadline when good cause exists therefor if the claim has been filed within four years of the deadline.

History: L. 1970, ch. 403, § 17; L. 1977, ch. 340, § 2; L. 2000, ch. 184, § 26; July 1.

§ 79-4518 Repealed

History: L. 1970, ch. 403, § 18; Repealed, L. 1973, ch. 404, § 10; January 1, 1974.

§ 79-4519 Severability

If any sentence, clause, subsection, or section of this act is held unconstitutional or invalid by any court of competent jurisdiction it shall be conclusively presumed that the legislature would have enacted the remainder of the act not so held unconstitutional or invalid.

History: L. 1973, ch. 404, § 9; January 1, 1974.

§ 79-4520 Repealed

History: L. 1989, ch. 303, § 5; Repealed, L. 1997, ch. 41, § 18; October 16.

§ 79-4521 Claimant's election to receive direct refund or credit against tax; administration of payment methods by state and county officials; payment of taxes in excess of claim

(a) (1) Beginning in 2001, and in each succeeding year through 2005, the director of taxation shall issue a certificate of eligibility for refund to each claimant who received a refund of property taxes under the homestead property tax refund act for the prior year. After the certificate has been completed by the claimant and the county clerk of the county in which the property is located, the claimant may present such certificate to the county treasurer in lieu of paying that portion of the first half of taxes on the claimant's homestead in the current year which equals the amount of the homestead property tax refund received by the claimant for taxes levied in the preceding year up to the amount of the first half of the property taxes due.

(2) Prior to presenting the certificate of eligibility for refund issued under subsection (a)(1) to the county treasurer, the claimant shall sign the certificate, and shall also assign, in a space provided on the certificate, the refund to the county to pay the taxes on the claimant's homestead for the year in which such certificate is issued. The claimant shall then submit the certificate of eligibility to the county clerk for review. The county clerk shall review the claim, based on proof of eligibility as prescribed in rules and regulations adopted by the secretary of revenue, to determine whether the claimant will be eligible for the refund. If the county clerk is satisfied the claimant will be eligible, the county clerk shall sign the certificate and return it to the claimant.

(3) The county treasurer shall send a copy of each certificate of eligibility for refund under subsections (a)(1) and (a)(2) to the director of taxation by December 31 of each year prior to 2006. After receiving a claim of any claimant who has obtained a certificate of eligibility under this section, the director shall examine the same, and if the claim is valid, the director of accounts and reports shall draw a warrant in favor of the county in which claimant's homestead is located upon a voucher approved by the director of taxation in the amount of the allowable claim for refund. Sufficient information to identify the claimant shall be directed to the county treasurer with each warrant. Any taxes levied in any year on the homestead of any claimant who has obtained the certificate of eligibility under subsections (a)(1) and (a)(2) in excess of the amount paid to the county by the state and by the claimant on or before December 20 of such year shall be paid by the claimant on or before May 10 of the succeeding year.

(b) (1) Beginning in 2006, and in each succeeding year, the director of taxation shall issue to the county clerk by October 15 an electronic record containing the name of each eligible claimant who received a refund of property taxes under the homestead property tax refund act for the prior year.

(2) When initially filing a claim for a homestead property tax refund between January 1 and April 15, 2006, and between January 1 and April 15 of each year thereafter, the claimant shall be given an election to receive such refund directly from the director of taxation or have such refund applied on claimant's ad valorem taxes in the county. The claimant shall make the election on a form supplied by the director of taxation. Such refund shall not be applied to any special assessment.

(3) After the electronic record under subsection (b)(1) has been received from the director of taxation, the county clerk of the county in which the property is located shall make any corrections needed, if any, based upon information known by the county clerk concerning any change in eligibility of any claimant listed in such record. After any needed corrections have been made to the electronic record, the county clerk, on behalf of each claimant listed in such record, shall certify the information contained in such record to the county treasurer in lieu of paying that portion of the first half of taxes on the claimant's homestead in the current year which equals the amount of the homestead property tax refund received by the claimant for taxes levied in the preceding year up to the amount of the first half of the property taxes due.

(4) Beginning in 2006, and in each succeeding year, the county treasurer shall certify and return the electronic record referred to in subsection (b)(1), including any changes made by the county clerk pursuant to subsection (b)(3), to the director of taxation by December 31. After receiving a claim of any claimant who is listed in the electronic record submitted by the county treasurer, the director shall examine the same, and if the claim is valid, the director of accounts and reports shall draw a warrant in favor of the county in which claimant's homestead is located upon a voucher approved by the director of taxation in the amount of the allowable claim for refund. Sufficient information to identify the claimant shall be directed to the county treasurer with each warrant. Any taxes levied in any year on the homestead of any claimant who has obtained the eligibility herein provided for in excess of the amount paid to the county by the state and by the claimant on or before December 20 of such year shall be paid by the claimant on or before May 10 of the succeeding year.

(5) For the purposes of this subsection (b), the term "electronic record" shall have the meaning ascribed to it in K.S.A. 16-1602, and amendments thereto.

History: L. 1992, ch. 98, § 1; L. 1993, ch. 78, § 1; L. 2001, ch. 57, § 3; L. 2003, ch. 146, § 7; L. 2005, ch. 85, § 2; July 1.

§ 79-4522 Owner not entitled to homestead refund, when

A person owning or occupying a homestead for which the appraised valuation for property tax purposes exceeds $350,000 in any year shall not be entitled to claim a refund of property taxes under the homestead property tax refund act for any such year. The provisions of this section shall be part of and supplemental to the homestead property tax refund act.

History: L. 2007, ch. 157, § 1; L. 2012, ch. 135, § 35; January 1, 2013.

§ 79-4523 Payment of refund to county treasurer when property taxes on homestead delinquent

If there are delinquent property taxes on the claimant's homestead, the refund shall be paid to the county treasurer of the county in which such homestead is located and applied first to the oldest of such delinquent property taxes and applied forward to the most recent delinquent property taxes and then to any other property taxes due on the claimant's homestead. The provisions of this section shall be part of and supplemental to the homestead property tax refund act.

History: L. 2007, ch. 157, § 2; July 1.

§§ 79-4524 through 79-4529 Reserved

§ 79-4530 Refund of property tax imposed on certain residential property, when

(a) Whenever the appraised valuation of any single-family owner-occupied residential real property established for property taxation purposes exceeds by 75% or more the appraised valuation of such property for such purposes established for utilization for the next preceding taxable year, and if such increase is not due to such property being improved, a portion of the property tax attributable to such increase shall be refunded to the taxpayer as provided by this section.

(b) Any person who qualifies for a refund pursuant to the provisions of subsection (a) and has completed an appeal pursuant to K.S.A. 79-1448, and amendments thereto, from the appraised valuation established for such residential real property may apply for a refund of property tax to the division of taxation of the department of revenue. For the taxable year for which such increase is established, the amount of such refund shall be equal to 80% of the property tax attributable to such increase; for the taxable year next succeeding the taxable year for which such increase is established, the amount of such refund shall be equal to 50% of the property tax attributable to such increase; and for the second taxable year succeeding the taxable year for which such increase is established, the amount of such refund shall be equal to 25% of the property tax attributable to such increase.

(c) The secretary of revenue shall adopt rules and regulations necessary to effectively implement the provisions of this section, and shall devise forms necessary for the implementation of this section.

(d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1996.

History: L. 1997, ch. 126, § 49; July 1.

§ 79-4531 Same, appeals process

Insofar as the same may be made applicable, the provisions of K.S.A. 79-3226, and amendments thereto, shall apply to claims for refunds allowable pursuant to the homestead property tax refund act which may become in dispute.

History: L. 2000, ch. 184, § 25; July 1.

Article 45a Reimbursement of Taxes on Property Equipped with Solar Energy Systems (Not in active use)

§ 79-45a01 Repealed

History: L. 1977, ch. 345, § 1; L. 1978, ch. 419, § 1; L. 1980, ch. 310, § 5; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-45a02 Repealed

History: L. 1977, ch. 345, § 2; L. 1980, ch. 310, § 7; L. 1983, ch. 258, § 13; Repealed, L. 1988, ch. 382, § 1; July 1.

§ 79-45a03 Repealed

History: L. 1978, ch. 419, § 2; L. 1980, ch. 308, § 31; Repealed, L. 1988, ch. 382, § 1; July 1.

Article 46 Private Foundations

§ 79-4601 Private foundation; corporation as; acts prohibited

No corporation which is a "private foundation" as defined in § 509 (a) of the internal revenue code of 1954, shall

(a) engage in any act of "self-dealing" (as defined in § 4941 (d) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4941 (a) of the internal revenue code of 1954;

(b) retain any "excess business holdings" (as defined in § 4943 (c) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4943 (a) of the internal revenue code of 1954;

(c) make any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of § 4944 of the internal revenue code of 1954, so as to give rise to any liability for the tax imposed by § 4944 (a) of the internal revenue code of 1954; and

(d) make any "taxable expenditures" (as defined in § 4945 (d) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4945 (a) of the internal revenue code of 1954.

History: L. 1971, ch. 313, § 1; July 1.

§ 79-4602 Same; distribution required

Each corporation which is a "private foundation" as defined in § 509 of the internal revenue code of 1954 shall distribute, for the purposes specified in its articles of organization, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942 (a) of the internal revenue code of 1954.

History: L. 1971, ch. 313, § 2; July 1.

§ 79-4603 Application of act; exceptions

The provisions of K.S.A. 79-4601 and 79-4602 shall not apply to any corporation to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the articles of organization or other instrument governing such corporation or governing the administration of charitable funds held by it and that the same may not properly be changed to conform to such sections.

History: L. 1971, ch. 313, § 3; July 1.

§ 79-4604 Authority of courts and attorney general not impaired

Nothing in this act shall impair the rights and powers of the courts or the attorney general of this state with respect to any corporation.

History: L. 1971, ch. 313, § 4; July 1.

§ 79-4605 Trusts which are private foundations, charitable trusts or split-interest trusts; acts prohibited

(1) In the administration of any trust which is a "private foundation," as defined in § 509 of the internal revenue code of 1954, a "charitable trust," as defined in § 4947 (a) (1) of the internal revenue code of 1954, or a "split-interest trust" as defined in § 4947 (a) (2) of the internal revenue code of 1954, the following acts shall be prohibited:

(a) Engaging in any act of "self-dealing" (as defined in § 4941 (d) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4941 (a) of the internal revenue code of 1954;

(b) retaining any "excess business holdings" (as defined in § 4943 (c) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4943 (a) of the internal revenue code of 1954;

(c) making any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the internal revenue code of 1954, so as to give rise to any liability for the tax imposed by § 4944 (a) of the internal revenue code of 1954; and

(d) making any "taxable expenditures" (as defined in § 4945 (d) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4945 (a) of the internal revenue code of 1954.

This section shall not apply either to those split-interest trusts or to amounts thereof which are not subject to the prohibitions applicable to private foundations by reason of the provisions of § 4947 of the internal revenue code of 1954.

History: L. 1971, ch. 314, § 1; July 1.

§ 79-4606 Same; distribution required

In the administration of any trust which is a "private foundation" as defined in § 509 of the internal revenue code of 1954, or which is a "charitable trust" as defined in § 4947 (a) (1) of the internal revenue code of 1954, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942 (a) of the internal revenue code of 1954.

History: L. 1971, ch. 314, § 2; July 1.

§ 79-4607 Application of act; exceptions

The provisions of K.S.A. 79-4605 and 79-4606 shall not apply to any trust to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the instrument governing such trust and that the same may not properly be changed to conform to such sections.

History: L. 1971, ch. 314, § 3; July 1.

§ 79-4608 Authority of courts and attorney general not impaired

Nothing in this act shall impair the rights and powers of the courts or the attorney general of this state with respect to any trust.

History: L. 1971, ch. 314, § 4; July 1.

Article 47 Bingo

§ 79-4701 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1975, ch. 491, § 1; L. 1977, ch. 341, § 3; L. 1982, ch. 425, § 1; L. 1984, ch. 366, § 1; Revived and amended, L. 1995, ch. 261, § 3; L. 2000, ch. 173, § 2; L. 2011, ch. 117, § 1; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4701a Repealed

History: L. 2000, ch. 173, § 1; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4702 Repealed

History: L. 1975, ch. 491, § 2; L. 1977, ch. 341, § 4; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4703 Repealed

History: L. 1975, ch. 491, § 3; L. 1977, ch. 341, § 5; L. 1982, ch. 425, § 2; L. 1984, ch. 366, § 2; L. 2000, ch. 173, § 3; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4704 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1975, ch. 491, § 4; L. 1977, ch. 341, § 6; Revived and amended, L. 1995, ch. 261, § 4; L. 2000, ch. 173, § 4; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4705 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1975, ch. 491, § 5; L. 1977, ch. 341, § 7; L. 1980, ch. 308, § 26; Revived and amended, L. 1995, ch. 261, § 5; L. 2000, ch. 173, § 5; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4705a Repealed

History: L. 1984, ch. 366, § 4; L. 2000, ch. 173, § 6; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4706 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1975, ch. 491, § 6; L. 1977, ch. 341, § 8; L. 1980, ch. 324, § 1; L. 1982, ch. 425, § 3; L. 1984, ch. 366, § 3; L. 1984, ch. 365, § 1; L. 1989, ch. 304, § 1; Revived and amended, L. 1995, ch. 261, § 6; L. 2000, ch. 173, § 7; L. 2011, ch. 117, § 2; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4707 Repealed

History: L. 1975, ch. 491, § 7; L. 1977, ch. 341, § 9; L. 1982, ch. 425, § 4; L. 1986, ch. 318, § 142; L. 1988, ch. 356, § 346; L. 2000, ch. 173, § 9; L. 2010, ch. 17, § 210; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4708 Repealed

History: L. 1975, ch. 491, § 8; L. 1977, ch. 341, § 10; L. 1984, ch. 366, § 5; L. 2000, ch. 173, § 10; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4709 Repealed

History: L. 1975, ch. 491, § 9; Repealed, L. 1977, ch. 341, § 13; July 1.

§ 79-4710 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1975, ch. 491, § 10; L. 1977, ch. 341, § 11; L. 1984, ch. 366, § 6; Revived and amended, L. 1995, ch. 261, § 8; L. 2000, ch. 173, § 11; L. 2001, ch. 5, § 465; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4711 Repealed

Revisor's Note: 1993 amendments held unconstitutional; previous version revived and amended after adoption of constitutional amendment in 1995.

History: L. 1977, ch. 341, § 12; Revived and amended, L. 1995, ch. 261, § 9; L. 2000, ch. 173, § 12; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4712 Repealed

History: L. 1993, ch. 155, § 5; Repealed, L. 1995, ch. 261, § 10; May 25.

§ 79-4712a Repealed

History: L. 1995, ch. 261, § 7; L. 2000, ch. 173, § 13; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4713 Repealed

History: L. 1993, ch. 155, § 8; L. 2000, ch. 173, § 14; L. 2001, ch. 5, § 466; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4714 Repealed

History: L. 1993, ch. 155, § 9; Repealed, L. 2000, ch. 173, § 27; July 1.

§ 79-4715 Repealed

History: L. 1996, ch. 256, § 22; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4716 Repealed

History: L. 2000, ch. 173, § 8; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4717 Repealed

History: L. 2000, ch. 173, § 15; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4718 Repealed

History: L. 2000, ch. 173, § 16; Repealed, L. 2015, ch. 62, § 24; July 1.

§ 79-4719 Repealed

History: L. 2000, ch. 173, § 17; Repealed, L. 2015, ch. 62, § 24; July 1.

Article 48 State Gaming Revenues

§ 79-4801 State gaming revenues fund; authorized uses; limitation on amounts credited thereto; transfers to state general fund; transfers to attracting professional sports to Kansas fund

There is hereby created the state gaming revenues fund in the state treasury. All moneys credited to such fund shall be expended or transferred only for the purposes and in the manner provided by law and all expenditures from the state gaming revenues fund shall be made in accordance with appropriation acts. All moneys credited to such fund shall be allocated and credited monthly to the funds and in the amounts specified by law except that the total of the amounts credited to such funds in any one fiscal year pursuant to K.S.A. 79-4803 through 79-4806, and amendments thereto, shall not exceed $50,000,000. All amounts credited to such fund in any one fiscal year that are in excess of $50,000,000 shall be transferred and credited to the state general fund on June 25, except that:

(a) On June 25, 2025, and each June 25 thereafter, the director of the budget, in consultation with the director of legislative research, shall certify, for each such fiscal year, the aggregate of all amounts certified by the executive director of the Kansas lottery that have been transferred from the lottery operating fund to the state gaming revenues fund as provided by law, but not including sports wagering revenues deposited in the lottery operating fund, that is in excess of, or is less than, $71,490,000, and shall transmit such certification to the director of accounts and reports.

(b) Upon receipt of such certification for the fiscal year ending June 30, 2025, and each fiscal year thereafter, or as soon thereafter as moneys are available, the director of accounts and reports shall transfer the amount of revenues in excess of $71,490,000 as certified by the director of the budget for such fiscal year from the state gaming revenues fund to the attracting professional sports to Kansas fund established in K.S.A. 2025 Supp. 74-8793, and amendments thereto. If the amount certified by the director of the budget for such fiscal year is less than $71,490,000, then no transfer to the attracting professional sports to Kansas fund shall be made.

History: L. 1986, ch. 365, § 1; L. 1996, ch. 265, § 5; L. 2007, ch. 167, § 200; L. 2008, ch. 131, § 171; L. 2009, ch. 2, § 92; L. 2009, ch. 124, § 145; L. 2009, ch. 144, § 88; L. 2010, ch. 165, § 157; L. 2024, ch. 2, § 10 (Special Session); July 1.

§ 79-4802 Expired

History: L. 1986, ch. 365, § 2; L. 1988, ch. 392, § 2; July 1; Expired, July 1, 1990.

§ 79-4803 State gaming revenues fund; transfers to juvenile alternatives to detention fund, administration and authorized uses; transfers to correctional institutions building fund

(a) After the transfer of moneys pursuant to K.S.A. 79-4806, and amendments thereto:

(1) An amount equal to 10% of the balance of all moneys credited to the state gaming revenues fund shall be transferred and credited to the correctional institutions building fund created pursuant to K.S.A.

76-6b09, and amendments thereto, to be appropriated by the legislature for the use and benefit of state correctional institutions as provided in K.S.A.

76-6b09, and amendments thereto; and

(2) an amount equal to 5% of the balance of all moneys credited to the state gaming revenues fund shall be transferred and credited to the juvenile alternatives to detention fund.

(b) There is hereby created in the state treasury the juvenile alternatives to detention fund which shall be administered by the commissioner of juvenile justice. The Kansas advisory group on juvenile justice and delinquency prevention shall review and make recommendations concerning the administration of the fund. All expenditures from the juvenile alternatives to detention fund shall be for the development and operation of community-based alternatives to detention in accordance with a grant program which shall be established with grant criteria designed by the secretary of corrections to facilitate the expeditious award and payment of grants for the purposes for which the moneys are intended. The secretary shall make grants of the moneys credited to the juvenile alternatives to detention fund for such purposes to counties in accordance with such grant program. All expenditures from the juvenile alternatives to detention fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary or the secretary's designee.

(c) On or before the 10th day of each month, the director of accounts and reports shall transfer from the state general fund to the juvenile alternatives to detention fund interest earnings based on:

(1) The average daily balance of moneys in the juvenile alternatives to detention fund for the preceding month; and

(2) the net earnings rate of the pooled money investment portfolio for the preceding month.

History: L. 1986, ch. 365, § 3; L. 1990, ch. 150, § 11; L. 1994, ch. 351, § 3; L. 1997, ch. 156, § 113; L. 1999, ch. 156, § 28; L. 2000, ch. 173, § 23; L. 2014, ch. 1, § 6; L. 2016, ch. 46, § 67; July 1.

§ 79-4804 State gaming revenues fund; transfers to state economic development initiatives fund; authorized allocations and uses, accounts created; investment by director of investments, disposition of proceeds; transfers of moneys to state water plan fund

(a) After the transfer of moneys pursuant to K.S.A. 79-4806, and amendments thereto, an amount equal to 85% of the balance of all moneys credited to the state gaming revenues fund shall be transferred and credited to the state economic development initiatives fund. Expenditures from the state economic development initiatives fund shall be made in accordance with appropriations acts for the financing of such programs supporting and enhancing the existing economic foundation of the state and fostering growth through the expansion of current, and the establishment and attraction of new, commercial and industrial enterprises as provided by this section and as may be authorized by law and not less than 1/2 of such money shall be distributed equally among the congressional districts of the state. Except as provided by subsection (g), all moneys credited to the state economic development initiatives fund shall be credited within the fund, as provided by law, to an account or accounts of the fund, which are created by this section, or for state fiscal years 2025, 2026 and 2027 to an account or accounts of the fund created by appropriation acts.

(b) There is hereby created the Kansas capital formation account in the state economic development initiatives fund. All moneys credited to the Kansas capital formation account shall be used to provide, encourage and implement capital development and formation in Kansas.

(c) There is hereby created the Kansas economic development research and development account in the state economic development initiatives fund. All moneys credited to the Kansas economic development research and development account shall be used to promote, encourage and implement research and development programs and activities in Kansas and technical assistance funded through state educational institutions under the supervision and control of the state board of regents or other Kansas colleges and universities.

(d) There is hereby created the Kansas economic development endowment account in the state economic development initiatives fund. All moneys credited to the Kansas economic development endowment account shall be accumulated and invested as provided in this section to provide an ongoing source of funds, which shall be used for economic development activities in Kansas, including, but not limited to, continuing appropriations or demand transfers for programs and projects, which shall include, but are not limited to, specific community infrastructure projects in Kansas that stimulate economic growth.

(e) Except as provided in subsection (f), the director of investments may invest and reinvest moneys credited to the state economic development initiatives fund in accordance with investment policies established by the pooled money investment board under K.S.A. 75-4232, and amendments thereto, in the pooled money investment portfolio. All moneys received as interest earned by the investment of the moneys credited to the state economic development initiatives fund shall be deposited in the state treasury and credited to the Kansas economic development endowment account of such fund.

(f) Moneys credited to the Kansas economic development endowment account of the state economic development initiatives fund may be invested in government guaranteed loans and debentures as provided by law in addition to the investments authorized by subsection (e) or in lieu of such investments. All moneys received as interest earned by the investment under this subsection of the moneys credited to the Kansas economic development endowment account shall be deposited in the state treasury and credited to the Kansas economic development endowment account of the state economic development initiatives fund.

(g) Except as provided further, in each fiscal year, the director of accounts and reports shall make transfers in equal amounts on July 15 and January 15 that in the aggregate equal $2,000,000 from the state economic development initiatives fund to the state water plan fund created by K.S.A. 82a-951, and amendments thereto. During fiscal year 2026, the aggregate amount transferred from the state economic development initiatives fund to the state water plan fund shall equal $2,921,417. No other moneys credited to the state economic development initiatives fund shall be used for: (1) Water-related projects or programs, or related technical assistance; or (2) any other projects or programs, or related technical assistance that meet one or more of the long-range goals, objectives and considerations set forth in the state water resource planning act.

History: L. 1986, ch. 365, § 4; L. 1987, ch. 295, § 16; L. 1988, ch. 392, § 3; L. 1989, ch. 48, § 102; L. 1989, ch. 186, § 32; L. 1992, ch. 262, § 17; L. 1994, ch. 351, § 4; L. 1996, ch. 254, § 32; L. 2000, ch. 173, § 24; L. 2002, ch. 204, § 167; L. 2003, ch. 138, § 130; L. 2013, ch. 136, § 280; L. 2014, ch. 142, § 115; L. 2015, ch. 104, § 249; L. 2017, ch. 104, § 242; L. 2018, ch. 109, § 127; L. 2019, ch. 68, § 181; L. 2020, ch. 5, § 171; L. 2021, ch. 98, § 189; L. 2022, ch. 81, § 189; L. 2023, ch. 82, § 186; L. 2025, ch. 117, § 207; April 25.

§ 79-4805 Problem gambling and addictions grant fund; purpose; authorized expenditures; annual report

(a) There is hereby established in the state treasury the problem gambling and addictions grant fund. All moneys credited to such fund shall be used only for the awarding of grants under this section. Such fund shall be administered in accordance with this section and the provisions of appropriation acts.

(b) All expenditures from the problem gambling and addictions grant fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved in the manner prescribed by law.

(c) (1) There is hereby established a state grant program to provide assistance for the direct treatment of persons diagnosed as suffering from pathological gambling and to provide funding for research, prevention and recovery for the residents of Kansas. Research grants awarded under this section may include, but need not be limited to, grants for determining the effectiveness of education and prevention efforts on the prevalence of pathological gambling in Kansas. All grants shall be made after open solicitation of proposals and evaluation of proposals against criteria established in rules and regulations adopted by the secretary of the Kansas department for aging and disability services. Both public and private entities shall be eligible to apply for and receive grants under the provisions of this section. The secretary shall ensure that an adequate problem gambling treatment services network is available in Kansas to individuals seeking treatment for a pathological gambling disorder.

(2) Moneys in the problem gambling and addictions grant fund shall be used:

(A) To fund a helpline with text messaging and chat capabilities; and

(B) for the treatment, research, education or prevention of pathological gambling.

(3) Moneys in the problem gambling and addictions grant fund that are not used for the purposes described in paragraph (2) shall be used to treat alcoholism, drug abuse, other addictive behaviors and other co-occurring behavioral health disorders.

(d) The secretary for aging and disability services is hereby authorized to receive moneys from any grants, gifts, contributions or bequests made for the purpose of funding grants under this section and to expend such moneys for the purpose for which received.

(e) All grants made in accordance with this section shall be made from the problem gambling and addictions grant fund. The secretary shall administer the provisions of this section and shall adopt rules and regulations establishing criteria for qualification to receive grants and such other matters deemed necessary by the secretary for the administration of this section. Such rules and regulations shall include, but need not be limited to, a requirement that each recipient of a grant to provide treatment for pathological gamblers report at least annually to the secretary the grantee's measurable achievement of specific outcome goals.

(f) On or before January 15, 2023, and each January 15 thereafter, the secretary for aging and disability services shall prepare and submit a report on expenditures from the problem gambling and addictions grant fund to the standing committees on federal and state affairs of the senate and house of representatives.

(g) For the purpose of this section "pathological gambling" means the disorder by that name described in the most recent edition of the American psychiatric association's diagnostic and statistical manual.

(e)* The problem gambling and addictions grant fund and any other moneys transferred pursuant to this section shall be used for the purposes set forth in this section and for no other governmental purposes. It is the intent of the legislature that the funds and the moneys deposited in this fund shall remain intact and inviolate for the purposes set forth in this section.

History: L. 2000, ch. 173, § 20; L. 2007, ch. 110, § 55; L. 2014, ch. 115, § 435; L. 2022, ch. 91, § 42; July 1.

§ 79-4806 Transfers to problem gambling and addictions grant fund

On July 1 of each year or as soon thereafter as sufficient moneys are available, $100,000 credited to the state gaming revenues fund shall be transferred and credited to the problem gambling and addictions grant fund established by K.S.A. 79-4805, and amendments thereto.

History: L. 2000, ch. 173, § 22; L. 2022, ch. 91, § 43; July 1.

Article 50 Aggregate Tax Levy Limitations

§ 79-5001 Repealed

History: L. 1973, ch. 393, § 1; L. 1977, ch. 342, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5002 Repealed

History: L. 1973, ch. 393, § 2; L. 1983, ch. 333, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5003 Repealed

History: L. 1973, ch. 393, § 3; L. 1977, ch. 342, § 2; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§§ 79-5004, 79-5005 Repealed

History: L. 1973, ch. 393, §§ 4, 5; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5006 Repealed

History: L. 1973, ch. 393, § 6; L. 1983, ch. 333, § 2; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5007 Repealed

History: L. 1973, ch. 393, § 7; L. 1974, ch. 445, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§§ 79-5008, 79-5009 Repealed

History: L. 1973 ch. 393, §§ 8, 9; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5010 Repealed

History: L. 1973, ch. 393, § 10; L. 1976, ch. 429, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5011 Repealed

History: L. 1973, ch. 393, § 11; L. 1974, ch. 278, § 3; L. 1986, ch. 378, § 3; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5012 Repealed

History: L. 1973, ch. 393, § 12; L. 1976, ch. 430, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5013 Repealed

History: L. 1973, ch. 393, § 13; L. 1981, ch. 173, § 80; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§§ 79-5014, 79-5015 Repealed

History: L. 1973, ch. 393, §§ 14, 15; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5016 Repealed

History: L. 1973, ch. 393, § 16; L. 1988, ch. 356, § 347; Repealed L. 1988, ch. 393, § 8; Repealed, L. 1989, ch. 305, § 1; July 1.

§ 79-5017 Repealed

History: L. 1973, ch. 393, § 27; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5018 Repealed

History: L. 1977, ch. 67, § 1; Repealed, L. 1988, ch. 393, § 8; January 1, 1989.

§ 79-5019 Repealed

History: L. 1982, ch. 388, § 1; Repealed, L. 1983, ch. 334, § 2; July 1.

§ 79-5020 Authority to levy taxes in addition to aggregate levy limit, when

The governing body of any township, city or county which has eliminated the tax on intangible personal property pursuant to an election authorized by K.S.A. 79-3109, and amendments thereto, is authorized to offset the resulting loss in revenue by the imposition and levying of any other taxes as may be authorized by law or by increasing its ad valorem tax levy for the general fund or, in the case of townships, for the general fund or any other fund for any year in which revenue is not received from the tax on intangible personal property in an amount not to exceed the amount of proceeds received from such tax in the year prior to its elimination. With respect to townships, the increase in the ad valorem tax levy necessary to raise such additional moneys shall be in addition to any aggregate tax levy limitation on such township which may be fixed by existing law or any law hereafter enacted. With respect to cities and counties, any such levy shall be exempt from the limitation imposed under the provisions of K.S.A. 79-5001 to 79-5016, inclusive, and amendments thereto.

History: L. 1983, ch. 334, § 1; L. 1985, ch. 334, § 2; July 1.

§ 79-5021 Expired

History: L. 1985, ch. 314, § 11; L. 1988, ch. 393, § 1; L. 1990, ch. 66, § 1; Expired, July 1, 1999.

§ 79-5022 Expired

History: L. 1985, ch. 314, § 12; L. 1988, ch. 393, § 2; L. 1990, ch. 66, § 2; Expired, July 1, 1999.

§ 79-5023 Expired

History: L. 1985, ch. 314, § 13; L. 1988, ch. 393, § 3; Expired, July 1, 1999.

§ 79-5024 Expired

History: L. 1985, ch. 314, § 14; L. 1988, ch. 393, § 4; L. 1990, ch. 66, § 3; Expired, July 1, 1999.

§ 79-5025 Expired

History: L. 1985, ch. 314, § 15; L. 1988, ch. 393, § 5; L. 1990, ch. 66, § 4; Expired, July 1, 1999.

§ 79-5026 Expired

History: L. 1985, ch. 314, § 16; L. 1988, ch. 393, § 6; L. 1990, ch. 66, § 5; Expired, July 1, 1999.

§ 79-5027 Expired

History: L. 1985, ch. 314, § 17; Expired, July 1, 1999.

§ 79-5028 Expired

Revisor's Note: Section was amended twice in 1988 session, see also 79-5028a.

History: L. 1985, ch 314, § 18; L. 1988, ch. 393, § 7; L. 1990, ch. 66, § 6; L. 1991, ch. 279, § 6; L. 1995, ch. 269, § 2; L. 1997, ch. 135, § 1; Expired, July 1, 1999.

§ 79-5028a Repealed

History: L. 1985, ch. 314, § 18; L. 1988, ch. 394, § 4; Repealed, L. 1990, ch. 66, § 60; May 31.

§ 79-5029 Expired

History: L. 1985, ch. 314, § 19; Expired, July 1, 1999.

§ 79-5030 Expired

History: L. 1985, ch. 314, § 20; Expired, July 1, 1999.

§ 79-5031 Expired

History: L. 1985, ch. 314, § 21; Expired, July 1, 1999.

§ 79-5032 Expired

History: L. 1985, ch. 314, § 22; L. 1990, ch. 66, § 7; Expired, July 1, 1999.

§ 79-5033 Expired

History: L. 1985, ch. 314, § 23; L. 1988, ch. 356, § 348; Expired, July 1, 1999.

§ 79-5034 Expired

History: L. 1985, ch. 314, § 24; Expired, July 1, 1999.

§ 79-5035 Repealed

History: L. 1985, ch. 314, § 25; Repealed, L. 1990, ch. 66, § 60; May 31.

§ 79-5036 Expired

History: L. 1985, ch. 314, § 26; L. 1990, ch. 66, § 8; L. 1997, ch. 135, § 2; Expired, July 1, 1999.

§ 79-5037 Repealed

History: L. 1985, ch. 314, § 27; Repealed, L. 1997, ch. 187, § 7; July 1.

§ 79-5038 Same; expiration

The provisions of K.S.A. 79-5021 to 79-5036, inclusive, and amendments thereto, shall expire on July 1, 1999.

History: L. 1990, ch. 66, § 9; L. 1991, ch. 279, § 3; L. 1993, ch. 256, § 1; L. 1995, ch. 269, § 3; L. 1996, ch. 264, § 4; L. 1997, ch. 135, § 3; July 1.

§ 79-5039 Computation of taxing subdivision bonded indebtedness limitation, election

(a) The governing body of any taxing subdivision may elect to have the bonded indebtedness limitation of the taxing subdivision computed on the basis of a percentage of assessed valuation, which percentage is determined by dividing the amount of indebtedness authorized for such taxing district in 1988 by the assessed valuation of all tangible taxable property in the taxing subdivision in 1989.

(b) The board of trustees of any community college may elect to have the bonded indebtedness limit of the district exceeded by the amount of any general obligation bonded indebtedness approved by a majority of the voters of the district prior to the effective date of this act.

History: L. 1997, ch. 187, § 1; July 1.

§ 79-5040 Suspension of tax levy limitations

In 1999, and in each year thereafter, all existing statutory fund mill levy rate and aggregate levy rate limitations on taxing subdivisions are hereby suspended.

History: L. 1999, ch. 154, § 72; May 27.

Article 51 Motor Vehicles

§ 79-5101 Definitions

As used in this act the term "motor vehicle" means and includes all motor vehicles required to be registered under the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, except:

(a) Motor vehicles assessed and taxed by the director of property valuation under the provisions of chapter 79, article 6a, of the Kansas Statutes Annotated, and amendments thereto;

(b) motor vehicles of public service companies whose property is assessed by the director of property valuation under the provisions of article 5a of chapter 79 of the Kansas Statutes Annotated, and amendments thereto;

(c) motor vehicles registered for a gross weight of more than 12,000 pounds;

(d) motor vehicles owned by a car rental company upon which the tax imposed under K.S.A. 79-5117, and amendments thereto, has been paid;

(e) recreational vehicles, as defined by K.S.A. 79-5118, and amendments thereto;

(f) motor vehicles which are exempted from property taxation under the provisions of the Kansas Statutes Annotated or the Kansas constitution; and

(g) commercial motor vehicles as defined in K.S.A. 8-143m, and amendments thereto.

History: L. 1979, ch. 309, § 1; L. 1980, ch. 325, § 1; L. 1982, ch. 396, § 3; L. 1983, ch. 335, § 1; L. 1991, ch. 286, § 2; L. 1994, ch. 10, § 1; L. 1994, ch. 330, § 1; L. 1997, ch. 119, § 4; L. 1998, ch. 140, § 2; L. 2012, ch. 87, § 11; July 1.

§ 79-5101a Repealed

History: L. 1979, ch. 309, § 1; L. 1980, ch. 325, § 1; L. 1982, ch. 396, § 3; L. 1983, ch. 335, § 1; L. 1991, ch. 286, § 2; L. 1991, ch. 33, § 45; Repealed, L. 1994, ch. 237, § 11; Repealed, L. 1994, ch. 10, § 2; July 1.

§ 79-5102 Application of act; motor vehicles exempt from other property or ad valorem taxes; taxes due and payable, when; statutes not applicable to taxes hereunder; duties of county appraisers

(a) All motor vehicles, as defined by K.S.A. 79-5101, shall be valued and taxed under the provisions of this act and shall not be subject to property or ad valorem taxes levied under any other law of the state of Kansas or any resolution or ordinance of any taxing subdivision thereof. Taxes levied upon motor vehicles under the provisions of this act shall be due from the first day of the month immediately following the month in which the vehicle was purchased or acquired and shall be payable to the county treasurer at the time of making application for the registration of motor vehicles under the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, and shall not be subject to the provisions of K.S.A. 79-2004a, and amendments thereto. Motor vehicles subject to taxation under the provisions of this act shall not be subject to the provisions of article 3 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, relating to the listing of other personal property for taxation or be included in the abstract of the assessment rolls prepared under the provisions of K.S.A. 79-1604, and amendments thereto. Taxes levied under the provisions of this act shall not be subject to the provisions of K.S.A. 79-1801, and amendments thereto.

(b) It shall be the duty of the county appraiser to value each motor vehicle, as defined by K.S.A. 79-5101, in the year 1980 but no such motor vehicle shall be placed on the tax roll for taxation purposes. In making such valuation the county appraiser shall use the valuation schedules furnished by the director of property valuation.

(c) At the time of determining the valuation of each motor vehicle in the year 1980, the county appraiser also shall classify the motor vehicle according to the schedule provided by the secretary of revenue for such purpose. Such classification shall be within the classes prescribed by K.S.A. 79-5104 and based upon the trade-in value of the motor vehicle in the year 1980, as determined from manuals furnished by the director of property valuation. Such classification shall be reported to the secretary of revenue.

History: L. 1979, ch. 309, § 2; L. 1980, ch. 325, § 2; L. 1982, ch. 426, § 1; April 15.

§ 79-5103 Valuation schedule, adoption by secretary of revenue; classification of motor vehicles by county appraiser; specially constructed motor vehicles

(a) For the year 1981 and thereafter, the department of revenue shall annually adopt a schedule for determining the value of all motor vehicles, the model year of which is 1981 or thereafter, as of the time they are first offered for sale as new motor vehicles. Such schedule shall be adopted as a part of the rules and regulations adopted by the secretary of revenue for such purpose. Such schedule shall show the classification of all such motor vehicles in accordance with K.S.A. 79-5104 based upon the value so determined. In formulating such schedule, the secretary may use the trade-in value for each particular make and model as developed from national market reports or other similar, nationally recognized publications.

In the event the secretary of revenue is unable to ascertain a value by this method in respect to any motor vehicle by reason of the same being a specifically constructed motor vehicle, or for any other reason, the county appraiser shall determine, from any information available, a comparable value of such vehicle pursuant to rules and regulations adopted by the secretary of revenue for such purpose.

(b) The classification determined by the county appraiser under the provisions of subsection (c) of K.S.A. 79-5102 shall be used in computing the tax imposed upon such motor vehicles in the year 1981 and each year thereafter.

(c) The county appraiser shall classify all motor vehicles, the model year of which is 1980 or prior thereto, which are registered for the first time in the state or the registration of which is transferred in the year 1981 or thereafter, in accordance with the schedule provided by the secretary of revenue for the classification of motor vehicles by such appraiser in the year 1980 as provided in subsection (c) of K.S.A. 79-5102. Such classification shall be used in computing the tax imposed upon such motor vehicles in the year of their first registration or transfer and each year thereafter.

(d) The county appraiser shall classify all motor vehicles, the model year of which is 1981 or thereafter, in accordance with the schedules provided by the secretary of revenue for such purpose under the provisions of subsection (a) of this section. Such classification shall be used in computing the tax imposed upon such motor vehicles in the year of registration or transfer and each year thereafter.

(e) The county appraiser shall classify all specially constructed motor vehicles, the model year of which is 1981 or thereafter, upon the basis of the comparable value determined by such appraiser under the provisions of subsection (a) of this section. Such classification shall be within the classes prescribed by K.S.A. 79-5104 and shall be used in computing the tax imposed upon the specially constructed motor vehicle in the year of its registration or transfer and each year thereafter.

History: L. 1979, ch. 309, § 3; January 1, 1980.

§ 79-5104 Classification schedule; rebuilt salvage vehicles

(a) All motor vehicles subject to taxation under the provisions of this act shall be classified according to the following schedule:

• Class 1$0- $ 749
• Class 2750- 1,499
• Class 31,500- 2,249
• Class 42,250- 2,999
• Class 53,000- 3,749
• Class 63,750- 4,499
• Class 74,500- 5,249
• Class 85,250- 5,999
• Class 96,000- 6,999
• Class 107,000- 7,999
• Class 118,000- 8,999
• Class 129,000- 9,999
• Class 1310,000-10,999
• Class 1411,000-11,999
• Class 1512,000-12,999
• Class 1613,000-13,999
• Class 1714,000-15,999
• Class 1816,000-17,999
• Class 1918,000-19,999
• Class 2020,000 and over

(b) For tax year 2010 and thereafter, the classification for a rebuilt salvage vehicle, as defined in K.S.A. 8-197, and amendments thereto, which is being registered for the first time as a rebuilt salvage vehicle under K.S.A. 8-135, and amendments thereto, shall be reduced by two classes. The initial classification reduction shall be indicated on the certificate of title issued under K.S.A. 8-135, and amendments thereto. The classification reduction shall only be valid for the initial registration of such vehicle.

History: L. 1979, ch. 309, § 4; L. 2009, ch. 26, § 2; July 1.

§ 79-5105 Imposition of tax; amount; computation; minimum tax

(a) A tax is hereby levied upon every motor vehicle, as the same is defined by K.S.A. 79-5101, and amendments thereto, in an amount which shall be determined in the manner hereinafter prescribed, except that: (1) (A) For 1995, the tax on any motorcycle shall not be less than $6 and the tax on any other motor vehicle shall not be less than $12; and (B) the tax on each motor vehicle the age of which is 15 years or older shall not be more than $12; and (2) for 1996, and each year thereafter: (A) The tax on any motorcycle shall not be less than $12 and the tax on any other motor vehicle shall not be less than $24, except as otherwise provided by clause (B) and (C); (B) the tax on any motorcycle the model year of which is 1980 or earlier shall be $6 and the tax on any other motor vehicle the model year of which is 1980 or earlier shall be $12; and (C) if the tax on any motorcycle in 1995 was more than $6 but less than $12, the tax shall be determined for 1996 and each year thereafter in the manner hereinafter prescribed but shall not be less than $6, and if the tax on any other motor vehicle in 1995 was more than $12 but less than $24, the tax shall be determined for 1996 and each year thereafter in the manner hereinafter prescribed but shall not be less than $12.

(b) The amount of such tax on a motor vehicle shall be computed by: (1) Determining the amount representing the midpoint of the values included within the class in which such motor vehicle is classified under K.S.A. 79-5102 or 79-5103, and amendments thereto, except that the midpoint of class 20 shall be $21,000 plus $2,000 for each $2,000 or portion thereof by which the trade-in value of the vehicle exceeds $22,000; (2) if the model year of the motor vehicle is a year other than the year for which the tax is levied, by reducing such midpoint amount by an amount equal to 16% in 1995, and all years prior thereto, and 15% in 1996, and all years thereafter, of the remaining balance for each year of difference between the model year of the motor vehicle and the year for which the tax is levied if the model year of the motor vehicle is 1981 or a later year or (B) the remaining balance for each year of difference between the year 1980 and the year for which the tax is levied if the model year of the motor vehicle is 1980 or any year prior thereto; (3) by multiplying the amount determined after application of clause (2) above by 30% during calendar year 1995, 28.5% during the calendar year 1996, 26.5% during the calendar year 1997, 24.5% during the calendar year 1998, 22.5% during the calendar year 1999, and 20% during all calendar years thereafter, which shall constitute the taxable value of the motor vehicle; and (4) by multiplying the taxable value of the motor vehicle produced under clause (3) above by the county average tax rate.

(c) The "county average tax rate" means the total amount of general property taxes levied within the county by the state, county and all other taxing subdivisions levying such taxes within such county in the second calendar year before the calendar year in which the owner's full registration year begins divided by the total assessed tangible valuation of property within such county as of November 1 of such second calendar year before the calendar year in which the owner's full registration year begins as certified by the secretary of revenue, except that such rate shall be computed without regard to the general property taxes levied by school districts pursuant to law.

History: L. 1979, ch. 309, § 5; L. 1980, ch. 325, § 3; L. 1984, ch. 367, § 1; L. 1992, ch. 308, § 1; L. 1995, ch. 253, § 1; L. 1996, ch. 265, § 6; L. 1997, ch. 41, § 12; L. 2015, ch. 4, § 77; July 1.

§ 79-5105a Computation of tax imposed upon certain vehicles; payment date

Notwithstanding any other provision of law to the contrary, for tax year 1998, and for each tax year thereafter, the amount of personal property tax imposed upon motor vehicles having a gross vehicle weight of more than 12,000 pounds but less than 20,001 pounds, shall be computed in accordance with the provisions of K.S.A. 79-5101 et seq., and amendments thereto, but shall be required to be paid at the time required by K.S.A. 79-2004a, and amendments thereto, and the provisions of such section shall be applicable to the collection thereof.

History: L. 1997, ch. 187, § 5; L. 1998, ch. 140, § 3; January 1, 1999.

§ 79-5106 Taxes levied annually for registration period; due date; payment condition precedent to registration; change in tax situs

(a) Taxes imposed upon motor vehicles under the provisions of this act shall be levied annually for the period prescribed by article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, as the registration year for the motor vehicle taxed. Except as provided in K.S.A. 79-5107, and amendments thereto, the tax upon each motor vehicle shall be due on or before the date in each year prescribed by law for the regular annual registration of such motor vehicle. Except as provided in subsection (d) of K.S.A. 79-5107, and amendments thereto, the payment of the tax imposed by this act shall be a condition precedent to the right to register or reregister the motor vehicle and shall be in addition to all other conditions prescribed by law.

(b) If the tax situs of any motor vehicle at the time of registration is in a different county from that indicated upon the application form, the amount of tax due upon such motor vehicle under the provisions of this act as indicated by such form shall be recomputed and shall be the amount determined for such vehicle in such county pursuant to K.S.A. 79-5105, and amendments thereto, and shall be paid to the county in which the motor vehicle is to be registered.

History: L. 1979, ch. 309, § 6; L. 1981, ch. 392, § 1; L. 1983, ch. 336, § 1; July 1.

§ 79-5107 Taxation of motor vehicles; computation of tax; due date; refunds; exemption of military personnel vehicles

(a) Except as provided in subsection (e), the tax imposed by this act upon any motor vehicle, other than a motor vehicle that replaces a motor vehicle previously registered and taxed in this state and to which registration plates are transferred, that has been acquired, or brought into the state, or for any other reason becomes subject to registration after the owner's regular annual motor vehicle registration date, shall become due and payable at the time such motor vehicle becomes subject to registration under the laws of this state and the amount of tax to be paid by the owner for the remainder of the tax year shall be an amount that is equal to 1/12 of the tax that would have been due upon such motor vehicle for the full registration year, multiplied by the number of full calendar months remaining in the registration year of the owner of such vehicle. Such tax shall be paid at the time of the registration of such motor vehicle.

(b) Except as provided in subsection (e), the tax upon a motor vehicle that replaces a motor vehicle previously registered and taxed in this state and to which registration plates are transferred, that is registered at any time other than the annual registration date prescribed by law for the registration of such motor vehicle, shall be in an amount equal to the amount by which: (1) One-twelfth of the tax that would have been due upon such replacement motor vehicle for the full registration year multiplied by the number of full calendar months remaining in the registration year for such motor vehicle, exceeds (2) one-twelfth of the tax that would have been due for the full registration year upon the motor vehicle replaced multiplied by the number of full calendar months remaining in such registration year. Such tax shall be paid at the time of registration of such replacement vehicle.

(c) Whenever the tax imposed under this act has been paid upon any motor vehicle and title to such vehicle is transferred and no replacement vehicle is substituted therefor such taxpayer shall be entitled to a refund in an amount equal to 1/12 of the tax due upon such motor vehicle for the full registration year, multiplied by the number of full calendar months remaining in such registration year. Whenever the tax imposed under this act upon any replacement motor vehicle for the remainder of the registration year is less than the tax paid on the motor vehicle replaced for the remainder of such registration year, the taxpayer shall be entitled to a refund in the amount that the tax paid upon the vehicle replaced exceeds the tax due upon the replacement vehicle. All refunds shall be paid by the county treasurer from the moneys received from taxes upon motor vehicles imposed by this act that have not been distributed. No refund shall be made under the authority of this subsection for a sum less than $5.

(d) Whenever the tax imposed under this act has been paid upon any motor vehicle and the owner thereof has established residence in another state during such vehicle's registration year, such owner shall be entitled to a refund of such taxes in an amount equal to 1/12 of the tax paid upon such motor vehicle for the full registration year, multiplied by the number of full calendar months remaining in such registration year after the month of establishing residence in another state. No such refund shall be allowed unless the owner submits evidence of a valid driver's license and motor vehicle registration in another state to the county treasurer and surrenders the Kansas license plate. All refunds shall be paid by the county treasurer from the moneys received from taxes upon motor vehicles that have not been distributed. No refund shall be made for a sum less than $5.

(e) (1) No tax shall be levied under the provisions of this act upon not more than two motor vehicles that are owned by a resident individual who is:

(A) In the full-time military service of the United States, is absent from this state solely by reason of military orders on the date of such individual's application for registration and such motor vehicles are maintained by such individual outside of this state;

(B) a member of the military service of the United States and is mobilized or deployed on the date of such individual's application for registration;

(C) a full-time member of the military service of the United States, and is stationed in Kansas; or

(D) a current member in good standing of the Kansas army or air national guard or a unit of the reserve forces of the United States military.

(2) The owner of a motor vehicle not subject to tax pursuant to the provisions of paragraph (1) who has paid the tax levied under the provisions of K.S.A. 79-5101, and amendments thereto, may apply for a refund with the county treasurer not later than one year from the effective date of this act. The county treasurer shall refund any such taxes previously paid by such owner of a motor vehicle.

(3) The provisions of this subsection shall be applicable after December 31, 2021.

History: L. 1979, ch. 309, § 7; L. 1980, ch. 325, § 4; L. 1980, ch. 326, § 1; L. 1981, ch. 392, § 2; L. 1982, ch. 426, § 2; L. 1982, ch. 428, § 1; L. 1982, ch. 427, § 4; L. 1990, ch. 34, § 5; L. 2004, ch. 133, § 3; L. 2005, ch. 14, § 1; L. 2005, ch. 1, § 5 (Special Session); L. 2014, ch. 140, § 12; L. 2021, ch. 115, § 6; January 1, 2022.

§ 79-5108 Secretary to provide manuals and forms to county officials; information to secretary; registration application, contents; duties of county officials

(a) The secretary of revenue shall provide county officials of the several counties with copies of manuals for the taxation of motor vehicles together with such other information and forms as may be necessary for the administration of the provisions of this act. The county officials of the several counties shall provide the secretary of revenue with such information as may be deemed necessary by the secretary for the proper administration of the provisions of this act.

(b) The amount of the tax levied upon each motor vehicle under the provisions of this act together with the taxable value computed under the provisions of K.S.A. 79-5105, and amendments thereto, for the purpose of computing such tax and such other information as the secretary of revenue shall determine to be necessary for the administration of this act shall be included upon the owner's motor vehicle registration application for such motor vehicle. If the taxable value of such vehicle is computed by the department of revenue, such department shall compute the tax and list the same upon such registration application. If the motor vehicle is classified by the county appraiser under the provisions of K.S.A. 79-5102 or 79-5103, and amendments thereto, the county appraiser shall determine the taxable value of such motor vehicle and compute the tax and list the same upon such registration application in the space provided for such purpose. The application shall also provide for the addition or inclusion of information by the taxpayer which is necessary for the determination of the tax situs of the motor vehicle.

(c) A copy of the motor vehicle registration application for an owner of a vehicle subject to registration under the provisions of K.S.A. 8-126 et seq., and amendments thereto, and subject to the tax imposed upon a motor vehicle pursuant to K.S.A. 79-5101 et seq., and amendments thereto, including all information required by such provisions to enable the owner to register the vehicle by completing the registration application and to pay the tax by return mail, shall be mailed by the department of revenue or, at the election of a county, by the county to the address of the owner as shown by the records of the department or the county no later than 45 days before the owner's registration and motor vehicle tax is due.

(d) The county treasurer shall at least once each week file with the county clerk that portion of all motor vehicle registration applications received in the treasurer's office showing the tax situs and other information relating to the taxation thereof under the provisions of this act. The county clerk shall at least 30 working days prior to the date upon which the county treasurer makes the current tax distribution and by December 15 for any tax distribution to be made in the month of December submit to the county treasurer a motor vehicle tax distribution abstract showing the total taxes collected under the provisions of this act to be distributed to the state and each taxing subdivision in the county, including the county as a taxing subdivision.

History: L. 1979, ch. 309, § 8; L. 1985, ch. 43, § 16; L. 2015, ch. 99, § 4; July 1.

§ 79-5109 Allocation and distribution of tax receipts; payment of tax receipts to the state

(a) All moneys received from taxes levied upon motor vehicles under the provisions of K.S.A. 79-5101 to 79-5115, inclusive, and amendments thereto, shall be allocated to the tax levy unit in which the tax situs of each motor vehicle is located. The term "tax levy unit" means an area within a county the tangible property of which is subject to the same total tax levies, levied by the same taxing subdivisions of the state. Moneys allocated to such tax levy units shall be distributed among the state and all taxing subdivisions levying taxes against tangible property within such unit in the proportion prescribed by K.S.A. 79-5111, and amendments thereto, for estimating the amounts thereof for budgeting.

(b) The county treasurer shall remit all moneys allocated and credited to the state from the proceeds of taxes levied upon motor vehicles to the state treasurer as provided in this subsection. The county treasurer, on or before October 31, January 20, March 20, June 5 and September 20 of each year, shall distribute to the state treasurer all such taxes allocated and credited to the state from the proceeds of taxes collected through the month prior to the month of the distribution date. Upon receipt of such moneys, the state treasurer shall deposit the same in the state treasury and shall credit 2/3 of each such deposit to the Kansas educational building fund and 1/3 of each such deposit to the state institutions building fund except that for moneys received during the period from January 1, 2004, through December 31, 2004, inclusive, 40% of each such deposit shall be credited to the Kansas educational building fund, 20% of each such deposit shall be credited to the state institutions building fund and 40% of each such deposit shall be credited to the state general fund.

History: L. 1979, ch. 309, § 9; L. 1981, ch. 381, § 3; L. 1982, ch. 427, § 1; L. 1984, ch. 368, § 1; L. 1986, ch. 360, § 4; L. 1987, ch. 357, § 3; L. 1990, ch. 337, § 3; L. 1997, ch. 126, § 30; L. 2003, ch. 146, § 10.; January 1, 2004.

§ 79-5110 Apportionment of moneys among tax levy funds; time for crediting

Moneys received by taxing subdivisions from taxes levied under the provisions of K.S.A. 79-5101 et seq. shall be apportioned to each tangible property tax levy fund of each taxing subdivision in the proportion that the same was budgeted. In crediting funds which have been distributed pursuant to this section, the county treasurer shall credit each tangible property tax levy fund of each taxing subdivision at such times as the treasurer makes current tax distributions, and in addition each county treasurer shall make a distribution in the month of December of any moneys collected from taxes levied under the provisions of this act which have been collected subsequent to the last regular current tax distribution.

History: L. 1979, ch. 309, § 10; L. 1982, ch. 427, § 2; January 1, 1983.

§ 79-5111 County treasurer to estimate and notify state and taxing subdivisions of distributions; budgeting and forms

For the purpose of preparing budgets, the county treasurer of each county shall estimate the amount of money the state, county and each taxing subdivision in the county will receive during the ensuing budget year from taxes levied under the provisions of K.S.A. 79-5101 et seq. The amount estimated to be received by the state, county and each taxing subdivision shall be that portion of the total amount estimated to be received by the state, county and all taxing subdivisions which is equal to the proportion which the general ad valorem property tax levies of the state, county and each taxing subdivision in the county utilized in computing the county average tax rate for the purposes of K.S.A. 79-5105, and amendments thereto, bear to the sum of all such tax levies of the state, county and all taxing subdivisions in the county made in the preceding year for expenditure in the current year. On or before May 10 of each year the county treasurer of each county shall notify the clerk and the treasurer of each taxing subdivision of the total amount in dollars which it is estimated such subdivision will receive during the ensuing budget year from the receipts from such tax. In the case of the state, such notice shall be given to the director of accounts and reports. The amount estimated to be received by taxing subdivisions from receipts from such tax shall be apportioned among the general ad valorem property tax funds of such subdivisions in the proportion that the amount levied for each such fund in the preceding year for expenditure in the current year bears to the total amount levied for all of such funds in such year and shall be set out separately as an item of income for each such fund. The director of accounts and reports shall make suitable provision in the budget forms to be used by such subdivisions for calculating this apportionment and listing income received from taxes levied under the provisions of this act.

History: L. 1979, ch. 309, § 11; L. 1981, ch. 381, § 4; L. 1982, ch. 427, § 3; L. 1995, ch. 253, § 2; July 1.

§ 79-5112 Repealed

History: L. 1979, ch. 309, § 12; L. 1983, ch. 337, § 1; Repealed, L. 1983, ch. 333, § 4; July 1.

§ 79-5113 Repealed

History: L. 1979, ch. 309, § 13; L. 1982, ch. 298, § 23; Repealed, L. 1983, ch. 338, § 2; April 7.

§ 79-5114 Delinquent tax; interest

All taxes levied upon motor vehicles under the provisions of this act which remain due and unpaid after the date prescribed for the payment thereof shall be subject to interest at the rate prescribed by K.S.A. 79-2004a, and amendments thereto, of the tax remaining due and unpaid from the date the same became due to the date of payment and such interest shall be credited to the county general fund and retained by the county.

History: L. 1979, ch. 309, § 14; L. 1980, ch. 325, § 5; L. 1980, ch. 308, § 27; L. 1981, ch. 382, § 2; L. 1992, ch. 319, § 9; January 1, 1993.

§ 79-5114a Unlawful acts; penalties

It shall be unlawful and constitute a misdemeanor, punishable by a fine not exceeding an amount equal to the amount of the tax due, for any person with fraudulent intent to fail to pay the tax imposed pursuant to the provisions of K.S.A. 79-5101 et seq., and amendments thereto, at the time and where required pursuant to such provisions. All moneys collected from any fine levied shall be remitted to the county treasurer and shall be credited to the county general fund.

History: L. 1995, ch. 253, § 3; July 1.

§ 79-5115 Rules and regulations

The secretary of revenue is hereby directed to adopt such rules and regulations as are necessary to administer and carry out the provisions of this act.

History: L. 1979, ch. 309, § 17; January 1, 1980.

§ 79-5116 Collection of past due or underpaid motor vehicle taxes; duties of county treasurer and sheriff; judgment liens

Whenever the owner of a motor vehicle subject to taxation under the provisions of article 51 of chapter 79 of the Kansas Statutes Annotated has failed to pay such tax on the applicable due date or has paid less than the full amount of tax due, the county treasurer shall send a notice by mail to such owner at such owner's post office address as shown by the records in the office of the county clerk stating the amount of motor vehicle tax charged against the owner and that the same may be paid by paying the amount of tax indicated on the notice and interest the amount of which shall be computed in accordance with the provisions of K.S.A. 79-5114, and amendments thereto. Failure to receive any such notice shall not relieve such owner defaulting in payment of motor vehicle taxes from any interest and costs attached thereto. No interest shall be charged the owner of a motor vehicle when the owner has paid the amount of tax that is indicated on the application for reregistration but which amount is less than the full amount of tax due.

If such taxes remain unpaid for a period of 30 days after mailing such notice, the county treasurer shall forthwith issue a warrant under the treasurer's hand directed to the sheriff of the county, commanding the sheriff to levy the amount of such unpaid taxes and the amount of the interest thereon, together with the sheriff's fees for collecting the same, upon any personal property, tangible or intangible, of the owner of such motor vehicle.

The sheriff, as soon as collecting the tax warrant, or within 90 days of receiving the warrant if the same is uncollected, shall make a return thereof. If the warrant so returned shows that the tax has been collected, the sheriff shall pay it to the county treasurer. If such return shows that such tax has not been collected, then the county treasurer shall file with the clerk of the district court of the treasurer's county an abstract of the total amount of unpaid taxes and interest due plus penalties and costs, accompanied by the last tax warrant. The clerk shall enter the total amount of the unpaid taxes in the appearance docket and note the entry in the general index. No fee shall be charged for either such entry. The total amount shall become a judgment in the same manner and to the same extent as any other judgment under the code of civil procedure and shall become a lien on real estate from and after the time of the filing thereof. A transcript of the judgment may be filed with the clerk of the district court in any other county and when it is entered in the manner provided above it shall become a lien upon real estate located in such county in the same manner as is provided in case of other judgments. No fee shall be made for making the entry. Execution, garnishment or other proceedings in aid of execution may issue within the county or to any other county on the judgment in the same manner as on judgments under the code of civil procedure except that any real estate taken upon execution for the collection of such taxes shall be sold without appraisement. None of the exemptions provided for in the code of civil procedure shall apply to any such judgment but no such judgment secured for taxes on personal property shall be levied against a homestead.

At the time of filing the abstract of the taxes, interest and costs and the tax warrant with the clerk of the district court, the county treasurer shall serve notice, in writing, on the county counselor or county attorney of such filing. It shall be the duty of the county counselor or county attorney to commence such proceedings as are necessary for the collection of such judgment. If execution is not issued within five years from the date of the entry of any such judgment, or if five years shall have intervened between the date of the last execution issued on such judgment and the time of issuing another writ of execution thereon, such judgment shall become dormant, and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such dormant judgment may be revived in like manner as dormant judgments under the code of civil procedure.

History: L. 1985, ch. 310, § 1; July 1.

§ 79-5116a Cancellation of motor vehicle tax when donated to charitable organization

Notwithstanding the provisions of any law to the contrary, 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 delinquency, shall be canceled and forgiven if such vehicle is donated to a nonprofit charitable organization which is exempt from payment of federal 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.

History: L. 2001, ch. 214, § 3; July 1.

§ 79-5117 Excise tax upon rental or lease of certain motor vehicles; administration, enforcement and collection; apportionment and distribution of revenues

(a) In addition to the tax imposed pursuant to the Kansas retailers' sales tax act, there is hereby imposed an excise tax at the rate of 3½% upon the gross receipts received from the rental or lease for a period of time not exceeding 28 days of motor vehicles which except for the operation of K.S.A. 79-5101, and amendments thereto, would be subject to taxation pursuant to K.S.A. 79-5101 et seq., and amendments thereto.

(b) The director of taxation shall administer, enforce and collect the tax imposed by this section. All laws and rules and regulations of the secretary of revenue relating to the administration, enforcement and collection of the retailers' sales tax shall apply to such tax insofar as they can be made applicable, and the secretary shall adopt such additional rules and regulations as necessary for the efficient and effective administration, enforcement and collection thereof.

(c) The director of taxation shall remit all moneys collected from the tax imposed by this section to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. On June 30 and November 30 of each year, the state treasurer shall remit to the county treasurer of each county wherein a transaction taxable pursuant to this section took place all moneys attributable to such transaction. Upon receipt thereof, each county treasurer shall apportion and distribute all moneys received to all tax levy units of the county in the same manner as provided by K.S.A. 79-5110 and 79-5111, and amendments thereto.

History: L. 1991, ch. 286, § 1; L. 2001, ch. 5, § 467; July 1.

§ 79-5118 Taxation of recreational vehicles; definitions

As used in K.S.A. 79-5119 to 79-5125, inclusive, and amendments thereto, "recreational vehicle" means a vehicular-type unit built on or for use on a chassis and designed primarily as living quarters for recreational, camping, vacation or travel use and which has its own motive power or is mounted on or drawn by another vehicle, and which has a body width not exceeding 102 inches and a body length not exceeding 45 feet; but such term shall not include a unit which has no electrical system which operates above 12 volts and has no provisions for plumbing, heating and any other component or feature for which a standard is adopted by the uniform standards code for mobile homes and recreational vehicles, K.S.A. 75-1211 through 75-1225, and amendments thereto.

History: L. 1994, ch. 237, § 1; January 1, 1995.

§ 79-5119 Same; due date; exemption from property tax

All recreational vehicles, as defined in K.S.A. 79-5118, and amendments thereto, shall be taxed under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, and shall not be subject to property or ad valorem taxes levied under any other law of the state of Kansas or any resolution or ordinance of any taxing subdivision thereof. Taxes levied upon recreational vehicles under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall be due from the first day of the month immediately following the month in which the recreational vehicle was purchased or acquired and shall be payable to the county treasurer at the time of making application for the registration of the recreational vehicle under the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, and shall not be subject to the provisions of K.S.A. 79-2004a, and amendments thereto. Recreational vehicles subject to taxation under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall not be subject to the provisions of article 3 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, relating to the listing of other personal property for taxation or be included in the abstract of the assessment rolls prepared under the provisions of K.S.A. 79-1604, and amendments thereto. Taxes levied under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall not be subject to the provisions of K.S.A. 79-1801, and amendments thereto.

History: L. 1994, ch. 237, § 2; January 1, 1995.

§ 79-5120 Same; imposition of tax; computation of amount; due date; tax situs

(a) A tax is hereby levied upon every recreational vehicle, as the same is defined by K.S.A. 79-5118, and amendments thereto, in the amount of: (1) $70 plus $.90 cwt for a model year five years or less prior to the calendar year of registration; (2) $50 plus $.70 cwt for a model year six to 10 years prior to the calendar year of registration; or (3) $30 plus $.50 cwt for a model year 11 years or more prior to the calendar year of registration. Notwithstanding the foregoing, the tax on any recreational vehicle the model year of which is 1981 or earlier shall be $30. For purposes of this section, the weight of any recreational vehicle shall be the weight generally accepted as its correct shipping weight as reflected on the certificate of title or, if the shipping weight is not reflected on the certificate of title, it shall be the weight determined by a scale which is tested and inspected annually by a scale testing and service company licensed pursuant to K.S.A. 83-301 et seq., and amendments thereto, by a city or county having an established department of public inspection of weights and measures or by the state sealer or the state sealer's authorized representative. The manner and form for submitting to the county treasurer the weight of a recreational vehicle determined by a scale so tested and inspected shall be as prescribed by rules and regulations of the secretary of revenue.

(b) Taxes imposed upon recreational vehicles under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall be levied annually for the period prescribed by article 1 of chapter 8 of the Kansas Statutes Annotated, and amendments thereto, as the registration year for the recreational vehicle taxed. Except as provided in K.S.A. 79-5121, and amendments thereto, the tax upon each recreational vehicle shall be due on or before the date in each year prescribed by law for the regular annual registration of such recreational vehicle. Except as provided in subsection (e) of K.S.A. 79-5121, and amendments thereto, the payment of the tax imposed by this act shall be a condition precedent to the right to register or reregister the recreational vehicle and shall be in addition to all other conditions prescribed by law.

(c) If the tax situs of any recreational vehicle at the time of registration is in a different county from that indicated upon the application form, the amount of tax due upon such recreational vehicle under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, as indicated by such form shall be paid to the county in which the recreational vehicle is to be registered.

History: L. 1994, ch. 237, § 3; L. 1995, ch. 253, § 4; July 1.

§ 79-5121 Same; computation of tax upon replacement vehicles; refunds, amount; exemption of vehicles owned by military personnel

(a) Except as provided in subsection (e), the tax imposed by K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, upon any recreational vehicle, other than a recreational vehicle which replaces a recreational vehicle previously registered and taxed in this state and to which registration plates are transferred, which has been acquired, or brought into the state, or for any other reason becomes subject to registration after the owner's regular annual registration date, shall become due and payable at the time such recreational vehicle becomes subject to registration under the laws of this state and the amount of tax to be paid by the owner for the remainder of the tax year shall be an amount which is equal to 1/12 of the tax which would have been due upon such recreational vehicle for the full registration year, multiplied by the number of full calendar months remaining in the registration year of the owner of such vehicle. Such tax shall be paid at the time of the registration of such recreational vehicle.

(b) Except as provided in subsection (e), the tax upon a recreational vehicle, which replaces a recreational vehicle previously registered and taxed in this state and to which registration plates are transferred, which is registered at any time other than the annual registration date prescribed by law for the registration of such recreational vehicle, shall be in an amount equal to the amount by which: (1) One-twelfth of the tax which would have been due upon such replacement recreational vehicle for the full registration year multiplied by the number of full calendar months remaining in the registration year for such recreational vehicle, exceeds (2) one-twelfth of the tax which would have been due for the full registration year upon the recreational vehicle replaced multiplied by the number of full calendar months remaining in such registration year. Such tax shall be paid at the time of registration of such replacement vehicle.

(c) Whenever the tax imposed under K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, has been paid upon any recreational vehicle and title to such vehicle is transferred and no replacement vehicle is substituted therefor such taxpayer shall be entitled to a refund in an amount equal to 1/12 of the tax due upon such recreational vehicle for the full registration year, multiplied by the number of full calendar months remaining in such registration year. Whenever the tax imposed under K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, upon any replacement recreational vehicle for the remainder of the registration year is less than the tax paid on the recreational vehicle replaced for the remainder of such registration year, the taxpayer shall be entitled to a refund in the amount by which the tax paid upon the vehicle replaced exceeds the tax due upon the replacement vehicle. All refunds shall be paid by the county treasurer from the moneys received from taxes upon recreational vehicles imposed by K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, which have not been distributed. No refund shall be made under the authority of this subsection for a sum less than $5.

(d) Whenever the tax imposed under K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, has been paid upon any recreational vehicle and the owner thereof has established residence in another state during such vehicle's registration year, such owner shall be entitled to a refund of such taxes in an amount equal to 1/12

of the tax paid upon such recreational vehicle for the full registration year, multiplied by the number of full calendar months remaining in such registration year after the month of establishing residence in another state. No such refund shall be allowed unless and until the owner submits to the county treasurer evidence of a valid driver's license and recreational vehicle registration in another state, and surrenders the Kansas license plate. All refunds shall be paid by the county treasurer from the moneys received from taxes upon recreational vehicles which have not been distributed. No refund shall be made for a sum less than $5.

(e) No tax shall be levied under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, upon any recreational vehicle which is owned by a resident individual who is in the full-time regular military service of the United States and absent from this state solely by reason of military orders and which is maintained by such individual outside of this state on the date of such individual's application for registration.

History: L. 1994, ch. 237, § 4; January 1, 1995.

§ 79-5122 Same; forms and information to be provided by secretary of revenue and county officials

(a) The secretary of revenue shall provide county officials of the several counties with such information and forms as may be necessary for the administration of the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto. The county officials of the several counties shall provide the secretary of revenue with such information as may be deemed necessary by the secretary for the proper administration of the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto.

(b) The amount of the tax levied upon each recreational vehicle under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, and such other information as the secretary of revenue shall determine to be necessary for the administration of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall be included upon the owner's recreational vehicle registration application for such recreational vehicle. Where feasible, the department shall compute the tax and list the same upon such registration application. Otherwise, the county appraiser shall compute the tax and list the same upon such registration application in the space provided for such purpose. The application shall also provide for the addition or inclusion of information by the taxpayer which is necessary for the determination of the tax situs of the recreational vehicle.

(c) The county treasurer shall at least once each week file with the county clerk that portion of all recreational vehicle registration applications received in the treasurer's office showing the tax situs and other information relating to the taxation thereof under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto. The county clerk shall at least 30 working days prior to the date upon which the county treasurer makes the current tax distribution and by December 15 for any tax distribution to be made in the month of December submit to the county treasurer a recreational vehicle tax distribution abstract showing the total taxes collected under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, to be distributed to the state and each taxing subdivision in the county (including the county as a taxing subdivision).

History: L. 1994, ch. 237, § 5; January 1, 1995.

§ 79-5123 Same; allocation and distribution of tax receipts; apportionment to tax levy funds

All moneys received from taxes levied upon recreational vehicles under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, shall be allocated and distributed to the appropriate taxing subdivision in the same manner as provided in K.S.A. 79-5109, and amendments thereto. Moneys received by taxing subdivisions from such taxes shall be apportioned among and credited to tax levy funds in the same manner as provided in K.S.A. 79-5110, and amendments thereto. The county treasurer shall prepare estimates and notify taxing subdivisions of distribution for the purpose of budget preparation in the same manner as provided in K.S.A. 79-5111, and amendments thereto.

History: L. 1994, ch. 237, § 6; January 1, 1995.

§ 79-5124 Same; delinquent tax; interest; amnesty

(a) All taxes levied upon recreational vehicles under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, which remain due and unpaid after the date prescribed for the payment thereof shall be subject to interest at the rate prescribed by K.S.A. 79-2004a, and amendments thereto, from the date the same became due to the date of payment and such interest shall be credited to the county general fund and retained by the county. Collection and enforcement provisions provided by K.S.A. 79-5116, and amendments thereto, shall be applicable to the collection and enforcement of taxes levied under the provisions of K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto.

(b) Any person who has not paid tax on a recreational vehicle for any tax year or registration period commencing prior to January 1, 1995, shall not be liable for payment of tax, penalty or interest due on such recreational vehicle for any such prior tax year or registration period, if such person pays when due for the registration period commencing in 1995 the taxes levied on such recreational vehicle under K.S.A. 79-5118 to 79-5125, inclusive, and amendments thereto, and thereafter registers such recreational vehicle pursuant to the provisions of article 1 of chapter 8 of the Kansas Statutes Annotated.

History: L. 1994, ch. 237, § 7; January 1, 1995.

§ 79-5125 Same; rules and regulations

The secretary of revenue is hereby authorized to adopt such rules and regulations as are necessary to administer the provisions of K.S.A. 79-5118 to 79-5124, inclusive, and amendments thereto.

History: L. 1994, ch. 237, § 8; January 1, 1995.

Article 52 Marijuana and Controlled Substances

§ 79-5201 Taxation of marijuana and controlled substances; definitions

As used in this act:

(a) "Marijuana" means any marijuana, whether real or counterfeit, as defined by K.S.A. 21-5701, and amendments thereto, which is held, possessed, transported, transferred, sold or offered to be sold in violation of the laws of Kansas;

(b) "controlled substance" means any drug or substance, whether real or counterfeit, as defined by K.S.A. 21-5701, and amendments thereto, which is held, possessed, transported, transferred, sold or offered to be sold in violation of the laws of Kansas. Such term shall not include marijuana;

(c) "dealer" means any person who, in violation of Kansas law, manufactures, produces, ships, transports or imports into Kansas or in any manner acquires or possesses more than 28 grams of marijuana, or more than one gram of any controlled substance, or 10 or more dosage units of any controlled substance which is not sold by weight;

(d) "domestic marijuana plant" means any cannabis plant at any level of growth which is harvested or tended, manicured, irrigated, fertilized or where there is other evidence that it has been treated in any other way in an effort to enhance growth.

History: L. 1987, ch. 366, § 1; L. 1990, ch. 359, § 1; L. 2009, ch. 32, § 63; July 1.

§ 79-5202 Same; imposition of tax; rates; measurement

(a) There is hereby imposed a tax upon marijuana, domestic marijuana plants and controlled substances, as defined by K.S.A. 79-5201, and amendments thereto, at the following rates:

(1) On each gram of marijuana, or each portion of a gram, $3.50;

(2) on each gram of a wet domestic marijuana plant, $.40;

(3) on each gram of a dry domestic marijuana plant, $.90;

(4) on each gram of controlled substance, or portion of a gram, $200; and

(5) on each 50 dosage units of a controlled substance that is not sold by weight, or portion thereof, $2,000.

(b) For the purpose of calculating the tax hereunder, an ounce of marijuana or other controlled substance is measured by the weight of the substance in the dealer's possession. The weight of the marijuana or controlled substance includes all material, mixture or preparation that is added to the marijuana or controlled substance.

History: L. 1987, ch. 366, § 2; L. 1990, ch. 359, § 2; July 1.

§ 79-5203 Same; administration by director of taxation; tax payments; stamps and labels; rules and regulations

(a) The director of taxation shall administer this act. All tax payments required pursuant to this act shall be made to the director, and shall be accompanied by a return upon forms devised and furnished by the director.

(b) The director of taxation shall adopt a uniform system of providing, affixing and displaying official stamps, labels or other indicia for marijuana and controlled substances upon which a tax is imposed.

(c) The secretary of revenue shall adopt rules and regulations necessary to administer and enforce the provisions of this act.

History: L. 1987, ch. 366, § 3; July 1.

§ 79-5204 Same; evidence of payment required; purchase of stamps; validity; tax payable, when

(a) No dealer may possess any marijuana, domestic marijuana plant or controlled substance upon which a tax is imposed pursuant to K.S.A. 79-5202, and amendments thereto, unless the tax has been paid as evidenced by an official stamp or other indicia.

(b) Official stamps, labels or other indicia to be affixed to all marijuana, domestic marijuana plants or controlled substances shall be purchased from the director of taxation. The purchaser shall pay 100% of face value for each stamp, label or other indicia at the time of purchase. Each such stamp, label or other indicia shall only be valid for three months after its date of issuance. The director shall issue the stamps, labels or other indicia in denominations in multiples of $10. Any person may purchase any such stamp, label or other indicia without disclosing such person's identity.

(c) When a dealer purchases, acquires, transports, or imports into this state marijuana, domestic marijuana plants or controlled substances on which a tax is imposed by K.S.A. 79-5202, and amendments thereto, and if the indicia evidencing the payment of the tax have not already been affixed, the dealer shall have them permanently affixed on the marijuana, domestic marijuana plant or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.

(d) Taxes imposed upon marijuana, domestic marijuana plants or controlled substances by this act are due and payable immediately upon acquisition or possession in this state by a dealer. Interest on tax liabilities shall accrue at the rate prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

History: L. 1987, ch. 366, § 4; L. 1990, ch. 359, § 3; July 1.

§ 79-5205 Marijuana and controlled substances; tax assessments; notice to taxpayer; presumption that assessment valid; informal review conference, procedure

(a) At such time as the director of taxation shall determine that a dealer has not paid the tax as provided by K.S.A. 79-5204, and amendments thereto, the director may immediately assess a tax based on personal knowledge or information available to the director of taxation; mail to the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax, penalties and interest; and demand its immediate payment. If payment is not immediately made, because collection of every assessment made hereunder is presumed to be in jeopardy due to the nature of the commodity being taxed, the director may immediately collect the tax, penalties and interest in any manner provided by K.S.A. 79-5212, and amendments thereto.

(b) The tax, penalties and interest assessed by the director of taxation are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the director of taxation with the court or any other certificate by the director of taxation of the amount of tax, penalties and interest determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains.

(c) In making an assessment pursuant to subsection (a), the director of taxation may consider but shall not be bound by a plea agreement or judicial determination made in any criminal case.

(d) Within 15 days after the mailing or personal service of such notice of assessment pursuant to subsection (a), the taxpayer may request an informal conference with the secretary of revenue or the secretary's designee relating to the tax, penalties and interest assessed by filing a written request with the secretary or the secretary's designee. Such written request shall set forth the taxpayer's objections to the assessment. The purpose of such conference shall be to review and reconsider all facts and issues that underlie the assessment. The informal conference shall not constitute an adjudicative proceeding under the Kansas administrative procedure act and the rules of evidence shall not apply. No record of the informal conference shall be made except at the request and expense of the taxpayer. The taxpayer may be represented at the informal conference by an attorney licensed in the state of Kansas. The taxpayer may also present written or verbal information from other persons. The secretary or the secretary's designee may confer at any time with any employee of the department of revenue who has factual information relating to the assessment under reconsideration. The secretary or the secretary's designee shall issue a written final determination within 270 days of the date of the request for informal conference unless the parties agree in writing to extend the time for issuing such final determination. A final determination issued within or after 270 days, with or without extension, constitutes final agency action subject to administrative review by the state board of tax appeals pursuant to K.S.A. 74-2438, and amendments thereto. In the event that a written final determination is not rendered within 270 days or within an agreed extension, the taxpayer may appeal the assessment to the state board of tax appeals within 30 days after the expiration date of the 270 days or agreed extension. A taxpayer's request for an informal conference shall not stay the collection of the assessment but shall stay the sale of real or personal property, or the disposal of firearms, seized pursuant to K.S.A. 79-5212, and amendments thereto, until the final determination is made by the secretary or the secretary's designee. A taxpayer's appeal to the state board of tax appeals shall not stay the collection of the assessment but shall stay the sale of real or personal property seized pursuant to K.S.A. 79-5212, and amendments thereto, until a decision is rendered by the state board of tax appeals.

History: L. 1987, ch. 366, § 5; L. 1990, ch. 359, § 4; L. 1991, ch. 287, § 1; L. 1994, ch. 259, § 1; L. 2004, ch. 173, § 19; L. 2005, ch. 141, § 7; L. 2008, ch. 109, § 118; L. 2014, ch. 141, § 125; July 1.

§ 79-5206 Same; report and return confidential

Neither the director of taxation nor a public employee may reveal facts contained in a report or return required by this act, nor can any information contained in such a report or return be used against the dealer in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this act from the taxpayer making the return.

History: L. 1987, ch. 366, § 6; July 1.

§ 79-5207 Same; examination of records by director; subpoenas

For the purpose of determining the correctness of any return, determining the amount of tax that should have been paid, determining whether or not the dealer should have made a return or paid taxes, or collecting any taxes under this act, the director of taxation may examine, or cause to be examined, any books, papers, records or memoranda, that may be relevant to making such determinations, whether the books, papers, records or memoranda, are the property of or in the possession of the dealer or another person. The director of taxation may require the attendance of any person having knowledge or information that may be relevant, compel the production of books, papers, records or memoranda by persons required to attend, take testimony on matters material to the determination, and administer oaths or affirmations. Upon demand of the director of taxation or any examiner or investigator, the court shall issue a subpoena for the attendance of a witness or the production of books, papers, records or memoranda. The director of taxation may also issue subpoenas. Disobedience of subpoenas issued under this act is punishable by the district court of the district in which the subpoena is issued, or, if the subpoena is issued by the director of taxation, by the district court of the district in which the party served with the subpoena is located, in the same manner as contempt of district court.

History: L. 1987, ch. 366, § 7; July 1.

§ 79-5208 Same; tax and criminal penalties for violation of act

Any dealer violating this act is subject to a penalty of 100% of the tax in addition to the tax imposed by K.S.A. 79-5202 and amendments thereto. In addition to the tax penalty imposed, a dealer distributing or possessing marijuana or controlled substances without affixing the appropriate stamps, labels or other indicia is guilty of a severity level 10 felony.

History: L. 1987, ch. 366, § 8; L. 1994, ch. 291, § 83; July 1.

§ 79-5209 Same; no immunity from criminal prosecution

Nothing in this act shall in any manner provide immunity for a dealer from criminal prosecution pursuant to Kansas law.

History: L. 1987, ch. 366, § 9; July 1.

§ 79-5210 Same; certain persons not required to pay tax

Nothing in this act requires persons registered under article 16 of chapter 65 of the Kansas Statutes Annotated or otherwise lawfully in possession of marijuana or a controlled substance to pay the tax required under this act.

History: L. 1987, ch. 366, § 10; July 1.

§ 79-5211 Same; disposition of revenue

All moneys received from the collection of taxes imposed under the provisions of K.S.A. 79-5201 et seq., and amendments thereto, and 25% of all moneys collected from assessments of delinquent taxes and penalties imposed thereunder, shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. The appraised value of a firearm seized and disposed of pursuant to K.S.A. 79-5212, and amendments thereto, which is applied to a taxpayer's liability shall not be considered as a collection of moneys under this section. The director of taxation shall remit 75% of all moneys received from the collection of assessments of delinquent taxes and penalties imposed pursuant to the provisions of K.S.A. 79-5201 et seq., and amendments thereto, as follows: (a) If the law enforcement agency which conducted the investigation is a county agency, the entire amount shall be deposited in the county treasury and credited to a special law enforcement trust fund for use solely for law enforcement and criminal prosecution purposes; (b) if the law enforcement agency which conducted the investigation is a city agency, the entire amount shall be deposited in the city treasury and credited to a special law enforcement trust fund for use solely for law enforcement and criminal prosecution purposes; and (c) if more than one law enforcement agency is substantially involved in the investigative process, the amount shall be distributed equally among the city, county and state law enforcement agencies involved and credited to the appropriate county and city special law enforcement trust funds and state law enforcement agency funds unless an alternate distribution is mutually agreed upon by the law enforcement agencies involved and submitted in writing to the director of taxation. Funds received by city and county treasurers shall not be considered to be a source of revenue to meet normal operating expenses of law enforcement agencies.

History: L. 1989, ch. 287, § 1; L. 1991, ch. 287, § 2; L. 1994, ch. 259, § 2; L. 2001, ch. 5, § 468; L. 2005, ch. 141, § 8; July 1.

§ 79-5212 Taxation of marijuana and controlled substances; warrants for collection of tax, issuance, execution and returns; seizure and sale of property; tax liens; disposition of firearms

(a) Whenever a taxpayer liable to pay any tax, penalty or interest assessed pursuant to K.S.A. 79-5205, and amendments thereto, refuses or neglects to immediately pay the amount due, the director of taxation may issue one or more warrants for the immediate collection of the amount due, directed to the sheriff of any county of the state commanding the sheriff to seize and sell the real and personal property of the taxpayer, or to seize, appraise and dispose of the firearms of the taxpayer, found within the sheriff's county to satisfy the amount specified on the warrant and the cost of executing the warrant. The director of taxation may also issue one or more warrants directed to any employee of the department of revenue commanding the employee to seize and sell the real and personal property of the taxpayer, or to seize, appraise and dispose of the firearms of the taxpayer, found anywhere within the state of Kansas to satisfy the amount specified on the warrant and the cost of executing the warrant. A copy of the warrant shall also be mailed to the taxpayer at the taxpayer's last known address or served upon the taxpayer in person.

(b) The sheriff or department of revenue employee shall proceed to execute upon the warrant in the same manner as provided for attachment orders by K.S.A. 60-706, 60-707 and 60-710, and amendments thereto, except as otherwise provided herein. In the execution of a warrant issued to a department of revenue employee, the employee shall have all of the powers conferred by law upon sheriffs. Any law enforcement officer may assist in the execution of a warrant if requested to do so by a department of revenue employee.

(c) No law exempting any goods and chattels, land and tenements from forced sale under execution shall apply to a seizure and sale, or in the case of firearms, sale or disposal, under any warrant.

(d) A third party holding funds or other personal property of the taxpayer shall immediately, or as soon thereafter as possible, after service of the warrant on such third party, deliver such funds or other personal property to the sheriff or department of revenue employee, who shall then deliver such to the director of taxation or the director's designee for deposit toward the balance due on the taxpayer's assessment.

(e) The sheriff or department of revenue employee shall make return of such warrant to the director of taxation within 60 days from the date of the warrant. If property is seized, then the sheriff or department of revenue employee shall also make return of such warrant to the clerk of the district court in the county where the property was seized.

(f) (1) If the taxpayer fails to appeal the assessment as provided by K.S.A. 79-5205(b), and amendments thereto, or if the taxpayer requests a hearing and a final order has been entered by the director of taxation as to the correctness of the assessment, then the sheriff or department of revenue employee shall sell the seized property at public auction, except that firearms may be sold at public auction or disposed of as provided in paragraph (2). The provisions of K.S.A. 60-2406, and amendments thereto, shall apply to liens against the property being sold. Notice of the sale of personal property shall be given in accordance with K.S.A. 60-2409, and amendments thereto. Notice of the sale of real property shall be given in accordance with K.S.A. 60-2410, and amendments thereto. The taxpayer shall have the right to redeem real property within a period of six months from the date of the sale.

(2) In the case of seized firearms not sold, the director of taxation shall obtain an appraisal value performed by a federally licensed firearms dealer or an employee thereof. Such value shall be credited against the taxpayer's outstanding liability. Subsequent to such appraisal and credit against the taxpayer's outstanding liability, the director shall transfer such firearm or firearms as follows:

(A) If the firearm or firearms have historical significance, the director may transfer the firearm or firearms to the Kansas state historical society;

(B) the director may transfer the firearm or firearms to the secretary of wildlife and parks;

(C) the director may transfer the firearm or firearms to the director of the Kansas bureau of investigation; or

(D) the director may transfer the firearm or firearms to such city or county law enforcement agency where the firearm was seized.

(3) At least 30 days prior to the transfer of such firearm or firearms, pursuant to this subsection, the director shall give written notice by mail to the taxpayer at the taxpayer's last known address of the appraised value of such firearm or firearms and the date that the director intends to transfer such firearm or firearms. The taxpayer may appeal the appraised value of any such firearm or firearms by filing a written request for a hearing before the district court in which the tax warrant used to seize such firearm or firearms was filed. Such request must be filed with the district court within 15 days after such notice to the taxpayer was mailed by the director. If no appeal is filed with the district court within 15 days, or if upon appeal the district court rules against the taxpayer, the director shall transfer such firearm or firearms.

(g) The director of taxation may also direct the sheriff or department of revenue employee to file any warrant issued pursuant to subsection (a) with the clerk of the district court of any county in Kansas, and thereupon the clerk shall enter in the appearance docket the name of the taxpayer mentioned in the warrant, the amount of the tax or portion of it, interest and penalties for which the warrant is issued and the date such copy is filed and note the taxpayer's name in the general index. No fee shall be charged for such entry. The amount of such warrant shall thereupon become a lien upon the title to, and interest in, the real property of the taxpayer located within such county. Thereupon, the director of taxation shall have the same remedies to collect the amount of the tax, penalty and interest, as if the state of Kansas had recovered judgment against the taxpayer, including immediately garnishing the wages or other property of the taxpayer pursuant to K.S.A. 60-716 et seq., and amendments thereto. Such remedies shall be in addition to the other collection remedies provided herein.

(h) The director of taxation shall have the right at any time to issue alias warrants until the full amount of the tax, penalty and interest is collected.

History: L. 1994, ch. 259, § 3; L. 2005, ch. 141, § 9; L. 2012, ch. 47, § 130; L. 2023, ch. 7, § 143; July 1.

Article 53 Transient Guest Tax

§ 79-5301 Definitions

As used in K.S.A. 79-5301 through 79-5304, and amendments thereto, the following words and phrases shall have the meanings respectively ascribed to them herein:

(a) "Person" means an individual, firm, partnership, corporation, joint venture or other association of persons;

(b) "Hotel, motel or tourist court" means any structure or building which contains rooms furnished for the purposes of providing lodging, which may or may not also provide meals, entertainment or various other personal services to transient guests, and which is kept, used, maintained, advertised or held out to the public as a place where sleeping accommodations are sought for pay or compensation by transient or permanent guests and having more than eight bedrooms furnished for the accommodation of such guests;

(c) "Transient guest" means a person who occupies a room in a hotel, motel or tourist court for not more than 28 consecutive days;

(d) "Business" means any person engaged in the business of renting, leasing or letting living quarters, sleeping accommodations, rooms or a part thereof in connection with any motel, hotel or tourist court.

History: L. 1998, ch. 199, § 10; May 28.

§ 79-5302 Imposition of tax; collection

(a) Upon notification to the director of taxation that the Kansas development finance authority has established a redevelopment district pursuant to K.S.A. 74-8921, and amendments thereto, there is hereby imposed a tax at the rate of 5% upon the gross receipts derived from or paid by transient guests for sleeping accommodations, exclusive of charges for incidental services or facilities, in any hotel, motel or tourist court located in a redevelopment district established pursuant to K.S.A. 74-8921, and amendments thereto, until the earlier of the date the bonds issued to finance or refinance the redevelopment project have been paid in full or the final scheduled maturity of the first series of bonds issued to finance any part of the redevelopment project.

(b) Any transient guest tax levied pursuant to this section shall be based on the gross rental receipts collected by any business.

(c) The taxes levied pursuant to this section shall be paid by the consumer or user to the business and it shall be the duty of each and every business to collect from the consumer or user the full amount of any such tax, or an amount equal as nearly as possible or practicable to the average equivalent thereto. Each business collecting any of the taxes levied hereunder shall be responsible for paying over the same to the state department of revenue in the manner prescribed by K.S.A. 79-5303, and amendments thereto, and the state department of revenue shall administer and enforce the collection of such taxes.

History: L. 1998, ch. 199, § 11; L. 1999, ch. 158, § 13; July 1.

§ 79-5303 Reports; examinations; administration

(a) The tax levied and collected pursuant to K.S.A. 79-5302, and amendments thereto, shall become due and payable by the business monthly, on or before the last day of the month immediately succeeding the month in which it is collected, but any person filing an annual or quarterly return under the Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607, and amendments thereto, shall, upon such conditions as the secretary of revenue may prescribe, pay the tax required by this act on the same basis and at the same time such person pays the retailers' sales tax. Each business shall make a true report to the department of revenue, on a form prescribed by the director of taxation, providing such information as may be necessary to determine the amounts to which any such tax shall apply for all gross rental receipts for the applicable month or months, which report shall be accompanied by the tax disclosed thereby. Records of gross rental receipts shall be kept separate and apart from the records of other retail sales made by a business in order to facilitate the examination of books and records as provided herein.

(b) The secretary of revenue or the secretary's authorized representative shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of a business as may be necessary to determine the accuracy of such reports.

(c) The director of taxation is hereby authorized to administer and collect the transient guest tax levied pursuant to this act and to adopt such rules and regulations as may be necessary for the efficient and effective administration and enforcement of the collection thereof. Whenever any business liable to pay any transient guest tax refuses or neglects to pay the same, the amount, including any penalty, shall be collected in the manner prescribed for the collection of the retailers' sales tax by K.S.A. 79-3617, and amendments thereto. All of the taxes collected under the provisions of this act shall be remitted by the director of taxation to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury, and all such moneys shall be credited at least quarterly by the state treasurer as directed in K.S.A. 74-8927, and amendments thereto.

History: L. 1998, ch. 199, § 12; L. 2001, ch. 5, § 469; July 1.

§ 79-5304 Interest and penalties

(a) If any taxpayer shall fail to pay the tax levied pursuant to K.S.A. 79-5302, and amendments thereto, at the time required by or under the provisions of K.S.A. 79-5303, and amendments thereto, there shall be added to the unpaid balance of the tax, interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid.

(b) If any taxpayer due to negligence or intentional disregard fails to file a return or pay the tax due at the time required by or under the provisions of K.S.A. 79-5303, and amendments thereto, there shall be added to the tax a penalty in an amount equal to 10% of the unpaid balance of tax due.

(c) If any person fails to make a return, or to pay any tax, within 30 days after notice from the director, except in the case of an extension of time granted by the director, there shall be added to the tax due a penalty equal to 25% of the amount of such tax.

(d) If any taxpayer, with fraudulent intent, fails to pay any tax or make, render or sign any return, or to supply any information, within the time required by or under the provisions of K.S.A. 79-5303, and amendments thereto, there shall be added to the tax a penalty in an amount equal to 50% of the unpaid balance of tax due.

(e) Penalty or interest applied under the provisions of subsections (a) and (d) shall be in addition to the penalty added under any other provisions of this section, but the provisions of subsections (b) and (c) shall be mutually exclusive of each other.

(f) Whenever, in the judgment of the director of taxation, the failure of the taxpayer to comply with the provisions of subsections (b) and (c) was due to reasonable causes and not willful neglect, the director of taxation may waive or reduce any of the penalties upon making a record of the reasons therefor.

(g) In addition to all other penalties provided by this section, any person who willfully fails to make a return or to pay any tax imposed under K.S.A. 79-5302, and amendments thereto, or who makes a false or fraudulent return, or fails to keep any books or records necessary to determine the accuracy of the person's reports, or who willfully violates any regulations of the secretary of revenue, for the enforcement and administration of the provisions of K.S.A. 79-5301 through 79-5304, and amendments thereto, or who aids and abets another in attempting to evade the payment of any tax imposed by K.S.A. 79-5302, and amendments thereto, or who violates any other provision of K.S.A. 79-5301 through 79-5304, and amendments thereto, upon conviction thereof, shall be fined not less than $100 nor more than $1,000, or be imprisoned in the county jail not less than one month nor more than six months, or be both so fined and imprisoned, in the discretion of the court.

History: L. 1998, ch. 199, § 13; May 28.

Article 54 Kansas Franchise Tax

§ 79-5401 Franchise tax; applicable entities; liability thresholds; rate, basis and maximum; returns, requirements, contents and filing; time for payment; secretary of revenue, requirements; definitions; phase out of tax

(a) (1) Subject to the limitations provided in subsection (g), for any foreign or domestic for profit corporation, or professional corporation or association, duly registered and authorized to do business in Kansas by the secretary of state and which has taxable equity attributable to Kansas for the tax year commencing after December 31, 2005, of $100,000 or more, and for tax years commencing after December 31, 2006, through December 31, 2009, of $1,000,000 or more, such entity shall pay an annual franchise tax to the secretary of revenue for tax years commencing after December 31, 2005, and December 31, 2006, at the rate of .125%, for the tax year commencing after December 31, 2007, at the rate of .09375%, for the tax year commencing after December 31, 2008, at the rate of .0625%, and for the tax year commencing after December 31, 2009, at the rate of .03125%, of such entity's taxable equity attributable to Kansas, except that such annual franchise tax for any such entity shall not exceed $20,000.

(2) Subject to the limitations provided in subsection (g), for any foreign or domestic limited liability company, foreign or domestic limited partnership or foreign or domestic limited liability partnership duly registered and authorized to do business in Kansas by the secretary of state and which has net capital accounts located in or used in this state at the end of the taxable year as required to be reported on the federal partnership return of income for the tax year commencing after December 31, 2005, of $100,000 or more, and for tax years commencing after December 31, 2006, through December 31, 2009, of $1,000,000 or more, such entity shall pay an annual franchise tax to the secretary of revenue for tax years commencing after December 31, 2005, and December 31, 2006, at the rate of .125%, for the tax year commencing after December 31, 2007, at the rate of .09375%, for the tax year commencing after December 31, 2008, at the rate of .0625%, and for the tax year commencing after December 31, 2009, at the rate of .03125%, of the net capital accounts located in or used in this state at the end of the taxable year as required to be reported on the federal partnership return of income, or for a one-member LLC taxed as a sole proprietorship which has net book value of the LLC as calculated on an income tax basis located in or used in this state at the end of the taxable year for the tax year commencing after December 31, 2005, of $100,000 or more, and for tax years commencing after December 31, 2006, through December 31, 2009, of $1,000,000 or more, for tax years commencing after December 31, 2005, and December 31, 2006, at the rate of .125%, for the tax year commencing after December 31, 2007, at the rate of .09375%, for the tax year commencing after December 31, 2008, at the rate of .0625%, and for the tax year commencing after December 31, 2009, at the rate of .03125%, of net book value of the LLC as calculated on an income tax basis located in or used in this state at the end of the taxable year, except that such annual franchise tax for any such entity shall not exceed $20,000.

(3) Subject to the limitations provided in subsection (g), for any business trust duly registered and authorized to do business in Kansas by the secretary of state and which has corpus as shown on its balance sheet at the end of the taxable year as required to be reported to the secretary of revenue for the tax year commencing after December 31, 2005, of $100,000 or more, and for tax years commencing after December 31, 2006, through December 31, 2009, of $1,000,000 or more, such entity shall pay an annual franchise tax to the secretary of revenue for tax years commencing after December 31, 2005, and December 31, 2006, at the rate of .125%, for the tax year commencing after December 31, 2007, at the rate of .09375%, for the tax year commencing after December 31, 2008, at the rate of .0625%, and for the tax year commencing after December 31, 2009, at the rate of .03125%, of the corpus as shown on its balance sheet at the end of the taxable year as required to be reported to the secretary of revenue or in the case of a foreign business trust which has a corpus which is located in or which it uses or intends to use in this state as shown on its balance sheet at the end of the taxable year as required to be reported to the secretary of revenue for the tax year commencing after December 31, 2005, of $100,000 or more, and for tax years commencing after December 31, 2006, through December 31, 2009, of $1,000,000 or more, for tax years commencing after December 31, 2005, and December 31, 2006, at the rate of .125%, for the tax year commencing after December 31, 2007, at the rate of .09375%, for the tax year commencing after December 31, 2008, at the rate of .0625%, and for the tax year commencing after December 31, 2009, at the rate of .03125%, of that portion of the corpus which is located in or which it uses or intends to use in this state as shown on its balance sheet at the end of the taxable year as required to be reported to the secretary of revenue, except that the annual franchise tax for any such entity shall not exceed $20,000. Such balance sheet shall be as of the end of the tax period, certified by the trustee, fairly and truly reflecting the trust assets and liabilities and specifically setting out its corpus, and, in the case of a foreign business trust, fairly and truly reflecting an allocation of its moneys and other assets as between those located, used or to be used, in this state and those located, used or to be used elsewhere.

(b) (1) Every corporation or association, business trust, limited liability company, limited partnership or limited liability partnership subject to taxation under this act, regardless of whether such entity has a franchise tax liability, shall make a return, stating specifically such information as may be required by the forms, rules and regulations of the secretary of revenue, which return shall include a balance sheet listing all assets and liabilities as of the end of the tax year, as reported in the federal income tax return on form 1120 or, if no such federal return is required to be filed, such balance sheet information as otherwise required by the secretary, and such further information showing the allocation or apportionment calculations in computing the amount of the franchise tax. The return of a corporation or association shall be signed by the president, vice-president, treasurer, assistant treasurer, chief accounting officer or any other officer so authorized to act. The fact that an individual's name is signed on a return shall be prima facie evidence that such individual is authorized to sign such return on behalf of such corporation. In cases where receivers, trustees in bankruptcy or assignees are operating the property or business of corporations, such receivers, trustees, or assignees shall make returns for such corporations in the same manner and form as corporations are required to make returns. Any tax due on the basis of such returns shall be collected in the same manner as if collected from the corporation for which the return is made. The returns of a limited liability partnership shall be signed by a partner of the limited liability partnership. The returns of a limited liability company shall be signed by a member of the limited liability company.

(2) All returns shall be filed in the office of the director of taxation on or before the 15th

day of the fourth month following the close of the taxable year, except as provided in subsection (b)(3).

(3) The director of taxation may grant a reasonable extension of time for filing returns in accordance with rules and regulations of the secretary of revenue. Whenever any such extension of time to file is requested by a taxpayer and granted by the director, no penalty authorized by K.S.A. 79-3228, and amendments thereto, shall be imposed if 90% of the liability is paid on or before the original due date.

(c) (1) All taxes imposed under the provisions of the Kansas franchise tax act shall be paid on the 15th

day of the fourth month following the close of the taxable year. When the tax as shown to be due on a return is less than $5, such tax shall be canceled and no payment need be remitted by the taxpayer.

(2) The director of taxation may extend the time for payment of the tax, or any installment thereof, for a reasonable period of time not to exceed six months from the date fixed for payment thereof. Such extension may exceed six months in the case of a taxpayer who is abroad. Interest shall be charged at the rate prescribed by K.S.A. 79-2968, and amendments thereto, for the period of such extension.

(d) The provisions of K.S.A. 79-3226, 79-3228, 79-3228a, 79-3229, 79-3230, 79-3233, 79-3233a, 79-3233b, 79-3233g, 79-3233h, 79-3233i, 79-3234, 79-3235 and 79-3236, and amendments thereto, shall apply to the administration and enforcement of this section.

(e) All taxes paid pursuant to the provisions of this act shall be rounded off to the nearest $1, and unless other disposition is specifically provided by law, the taxes collected under the provisions of this act and all overpayments which may not be refunded under this section shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund. The secretary of revenue shall not refund any overpayment of franchise taxes which is equal to $5 or less, shall not credit any domestic corporation or foreign corporation, association, business trust, limited liability company, limited partnership or limited liability partnership with any amount which may not be refunded under this section, and shall not require reimbursement for any underpayment of franchise taxes which is less than $5. Franchise tax refunds shall be paid to the claimant from the income tax refund fund upon warrants of the director of accounts and reports pursuant to vouchers approved by the director of taxation, but no warrant issued hereunder shall be drawn in an amount less than $5. No interest shall be allowed on any payment made to a claimant pursuant to this act.

(f) As used in this section: (1) "Act" means the Kansas franchise tax act;

(2) "net book value as calculated on an income tax basis located in or used in this state" means the net book value of a limited liability company multiplied by a percentage which is the average of the following three percentages: (A) The average value of the limited liability company's real and tangible personal property owned or rented and used in this state during the tax period divided by the average total value of the limited liability company's real and tangible personal property owned or rented and used during the tax period; (B) the total amount of compensation paid by the limited liability company in this state during the tax period divided by the total amount of compensation paid everywhere by the limited liability company during the tax period; and (C) the total sales of the limited liability company in this state during the tax period divided by the total sales of the limited liability company everywhere during the tax period. If a limited liability company has no real and tangible property owned or rented and used, compensation paid or sales made for the tax period, then the average percentage shall be determined by using only those percentages for property, compensation and sales which reflect property or activity;

(3) "net capital accounts located in or used in this state" means the net capital accounts of a limited partnership or limited liability partnership as stated on the federal income tax return multiplied by a percentage which is the average of the following three percentages: (A) The average value of such entity's real and tangible personal property owned or rented and used in this state during the tax period divided by the average total value of such entity's real and tangible personal property owned or rented and used during the tax period; (B) the total amount of compensation paid by such entity in this state during the tax period divided by the total amount of compensation paid everywhere by such entity during the tax period; and (C) the total sales of such entity in this state during the tax period divided by the total sales of such entity everywhere during the tax period. If such entity has no real and tangible personal property owned or rented and used, compensation paid or sales made for the tax period, then the average percentage shall be determined by using only those percentages for property, compensation and sales which reflect property or activity;

(4) "shareholder's equity" means the sum of: (1) Paid-in capital stock, except that paid-in capital stock shall not include any capital stock issued by a corporation and reacquired by such corporation through gift, purchase or otherwise and available for resale or retirement; (2) capital paid in, in excess of par; and (3) retained earnings, all as stated on such corporation's federal income tax return;

(5) "shareholder's equity attributable to Kansas" means the shareholder's equity of a corporation multiplied by a percentage which is the average of the following three percentages: (A) The average value of the corporation's real and tangible personal property owned or rented and used in this state during the tax period divided by the average total value of the corporation's real and tangible personal property owned or rented and used during the tax period; (B) the total amount of compensation paid by the corporation in this state during the tax period divided by the total amount of compensation paid everywhere by the corporation during the tax period; and (C) the total sales of the corporation in this state during the tax period divided by the total sales of the corporation everywhere during the tax period. If a corporation has no real and tangible personal property owned or rented and used, compensation paid or sales made for the tax period, then the average percentage shall be determined by using only those percentages for property, compensation and sales which reflect property or activity; and

(6) "taxable equity attributable to Kansas" means shareholder's equity attributable to Kansas.

(g) The provisions of this section shall apply to all tax years commencing after December 31, 2003, but shall not apply to any tax year commencing after December 31, 2010.

(h) The provisions of this section shall be known and may be cited as the Kansas franchise tax act.

History: L. 2004, ch. 171, § 13; L. 2005, ch. 157, § 30; L. 2007, ch. 159, § 1; L. 2007, ch. 193, § 1; July 1.

Article 55 Taxation of Watercraft

§ 79-5501 Taxation of watercraft

(a) Commencing on July 1, 2013, and through December 31, 2025, watercraft shall be appraised at fair market value determined therefor pursuant to K.S.A. 79-503a, and amendments thereto, and assessed at the percentage of value as follows: (1) 11.5% in tax year 2014; and (2) 5% in tax years 2015 through 2025. On and after January 1, 2014, the levy used to calculate the tax on watercraft shall be the county average tax rate. In no case shall the assessed value of any watercraft, as determined under the provisions of this section, cause the tax upon such watercraft to be less than $12.

(b) As used in this section, the term "watercraft" means any watercraft designed to be propelled by machinery, oars, paddles or wind action upon a sail for navigation on the water which, if not for the provisions of this section, would be properly classified under subclass 5 or 6 of class 2 of section 1 of article 11 of the Kansas constitution. This section shall not be construed as taxing any watercraft which otherwise would be exempt from property taxation under the laws of the state of Kansas. Each watercraft may include one trailer which is designed to launch, retrieve, transport and store such watercraft and any nonelectric motor or motors which are necessary to operate such watercraft on the water.

(c) Any watercraft which is designed to be propelled through the water through human power alone shall be exempt from all property or ad valorem taxes levied under the laws of the state of Kansas.

(d) The "county average tax rate" means the total amount of general property taxes levied within the county by the state, county and all other taxing subdivisions divided by the total assessed valuation of all taxable property within the county as of November 1 of the year prior to the year of valuation as certified by the secretary of revenue.

(e) On and after January 1, 2026, all watercraft shall be exempt from all property or ad valorem taxes levied under the laws of the state of Kansas.

History: L. 2013, ch. 87, § 10; L. 2014, ch. 23, § 1; L. 2025, ch. 123, § 12; July 1.

Article 56 Marketplace Facilitators

§ 79-5601 Definitions

As used in K.S.A. 2025 Supp. 79-5601 through 79-5604, and amendments thereto:

(a) "Department" means the department of revenue.

(b) (1) "Marketplace facilitator" means a person, including any affiliate of the person, that:

(A) Contracts or otherwise agrees with marketplace sellers to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller's products or rooms, lodgings or accommodations through a physical or electronic marketplace operated, owned or otherwise controlled by the person; and

(B) either directly or indirectly through contracts, agreements or other arrangements with third parties, collects the payment from the purchaser and transmits all or part of the payment to the marketplace seller.

(2) A "marketplace facilitator" includes a person that provides a platform through which unaffiliated third parties offer to rent to and collect consideration from occupants for rental, for a period of less than 29 consecutive days, of rooms, lodgings, accommodations, homes, apartments, cabins or residential dwelling units that are intended to be used as a room, lodging or sleeping accommodation by one person or by two or more persons maintaining a common household, to the exclusion of all others. A person is not a marketplace facilitator with respect to the sale or charges for rooms, lodgings or sleeping accommodations, if such rooms, lodgings or sleeping accommodations are provided by a hotel as described in K.S.A. 36-501, and amendments thereto, and the hotel provides the rooms, lodgings or sleeping accommodations for occupancy under a brand belonging to such person or the person facilitates sales or charges on behalf of the hotel.

(3) A "marketplace facilitator" does not include:

(A) A platform or forum that exclusively provides advertising services, including listing products for sale, so long as the advertising service platform or forum does not also engage directly or indirectly through one or more affiliated persons in the activities described in K.S.A. 2025 Supp. 79-5601(b)(1)(A) or (b)(1)(B), and amendments thereto;

(B) a person whose principal activity with respect to marketplace sales is to provide payment processing services between two parties; or

(C) a derivatives clearing organization, designated contract market, foreign board of trade or swap execution facility, registered with the commodity futures trading commission, and any clearing members, futures commission merchants or brokers when using the services of the commodity futures trading commission.

(c) "Marketplace seller" means a seller that makes sales through any physical or electronic marketplace operated, owned or controlled by a marketplace facilitator.

(d) "Tax" means:

(1) The retailers' sales tax imposed under K.S.A. 79-3603, and amendments thereto;

(2) the compensating use tax imposed under K.S.A. 79-3703, and amendments thereto; or

(3) the transient guest tax imposed under K.S.A. 12-1693 or 12-1697, and amendments thereto, or any applicable city or county resolution or ordinance.

History: L. 2021, ch. 93, § 1; July 1.

§ 79-5602 Collection of taxes and fees; duties of marketplace facilitators

(a) (1) Any marketplace facilitator selling or facilitating the sale of property or services subject to tax in this state shall be required to collect and remit such taxes and follow all applicable procedures and requirements provided by law for the collection and remittance of such taxes. A marketplace facilitator shall only be required to collect and remit such taxes if the following criteria are satisfied during the current or immediately preceding calendar year:

(A) The marketplace facilitator makes sales of property or services otherwise subject to tax in the state in an amount exceeding $100,000; or

(B) if a marketplace facilitator makes or facilitates the sale of property or services subject to tax in the state, on its own behalf or on behalf of one or more marketplace sellers, for delivery into this state in an amount exceeding $100,000.

(2) For any marketplace facilitator who satisfies the provisions of this subsection for sales in the current calendar year for the first time, such marketplace facilitator shall be required to collect and remit the tax on any sales in excess of $100,000 of cumulative gross receipts from sales in the current calendar year for delivery into this state.

(b) The department may grant a waiver from the requirements of this section if a marketplace facilitator demonstrates, to the satisfaction of the department, that substantially all of its marketplace sellers already are collecting and remitting taxes to the department. If such waiver is granted, the taxes levied shall be collectible from the marketplace seller. The department shall promulgate rules and regulations that establish:

(1) The criteria for obtaining a waiver pursuant to this section;

(2) the process and procedure for a marketplace facilitator to apply for a waiver; and

(3) the process for providing notice to an affected marketplace facilitator and marketplace seller of a waiver obtained pursuant to this subsection.

(c) Nothing in this section shall prohibit the marketplace facilitator and the marketplace seller from contractually agreeing to have the marketplace seller collect and remit all applicable taxes and fees if the marketplace seller:

(1) Has annual gross sales in the United States over $1,000,000,000, including the gross sales of any related entities, and, in the case of franchised entities, including the combined sales of all franchisees of a single franchisor;

(2) provides evidence to the marketplace facilitator that the marketplace seller is registered pursuant to K.S.A. 79-3608, and amendments thereto; and

(3) notifies the department in the manner prescribed by the department that the marketplace seller will collect and remit all applicable taxes and fees on sales through the marketplace and is liable for failure to collect or remit applicable taxes and fees on such sales.

(d) Prior to April 1, 2022, if a marketplace facilitator sells or facilitates the sale of prepaid wireless service, the provider of such prepaid wireless service is not liable for collection or payment of the prepaid wireless 911 fees imposed under K.S.A. 12-5371, and amendments thereto, unless such prepaid wireless provider is a marketplace seller collecting taxes under the provisions of a waiver granted in subsection (b).

(e) On and after April 1, 2022, any marketplace facilitator that is obligated to collect the taxes imposed under this act, shall also collect and remit to the department applicable prepaid wireless 911 fees imposed under K.S.A. 12-5371, and amendments thereto.

History: L. 2021, ch. 93, § 2; July 1.

§ 79-5603 Agreements with sellers; collection and administration requirements; liability

(a) Except as provided in K.S.A. 2025 Supp. 79-5602(b) or (c), and amendments thereto, a marketplace facilitator doing business in this state under K.S.A. 2025 Supp. 79-5602, and amendments thereto, shall collect and remit the taxes on all taxable sales made by the marketplace facilitator or facilitated for marketplace sellers to customers in this state, regardless of whether the marketplace seller for whom sales are facilitated has registered to collect taxes or would have been required to collect taxes if the sale had not been facilitated by the marketplace facilitator. A marketplace facilitator has the same rights and duties as a seller to collect and remit all such taxes. Marketplace facilitators and marketplace sellers may enter into agreements with each other regarding fulfillment of the requirements of this section, but the marketplace facilitator remains the party that is liable to the state for fulfilling such requirements.

(b) A marketplace facilitator shall either:

(1) Report the tax imposed pursuant to subsection (a) separately from any taxes collected on taxable sales made directly by the marketplace facilitator, or affiliates of the marketplace facilitator, to customers in this state using a separate form to be published by the department; or

(2) report the tax imposed pursuant to subsection (a) combined with any taxes collected on taxable sales made directly by the marketplace facilitator, or affiliates of the marketplace facilitator.

(c) No class action may be brought against a marketplace facilitator in any court of this state on behalf of customers arising from or in any way related to an overpayment of tax collected on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a customer's right to seek a refund as provided under K.S.A. 79-3650, and amendments thereto.

(d) Nothing in this section affects the obligation of any consumer to remit the tax for any taxable transaction for which a marketplace facilitator or seller does not collect and remit the tax.

(e) The department shall solely audit the marketplace facilitator for sales made by marketplace sellers but facilitated by the marketplace facilitator, except with respect to transactions that are subject to K.S.A. 2025 Supp. 79-5602(b) or (c), and amendments thereto. The department shall not audit or otherwise assess tax against marketplace sellers for sales facilitated by a marketplace facilitator except to the extent that the marketplace facilitator seeks relief under subsection (f) or with respect to transactions that are subject to K.S.A. 2025 Supp. 79-5602(b) or (c), and amendments thereto.

(f) A marketplace facilitator shall be relieved of liability under this section for failure to collect and remit the correct amount of tax to the extent that the error was due to incorrect or insufficient information on the nature of the product or service given to the marketplace facilitator by the marketplace seller, if the marketplace facilitator can demonstrate a reasonable effort to obtain correct and sufficient information from the marketplace seller. This subsection shall not apply if the marketplace facilitator and the marketplace seller are under common ownership and control.

(g) The department may waive penalties and interest if a marketplace facilitator seeks liability relief and the department determines that reasonable cause exists.

(h) A marketplace facilitator shall be relieved of liability under this section if it can prove, to the satisfaction of the department, that the tax levied on a sale facilitated by the marketplace facilitator was paid to the department by the marketplace seller.

History: L. 2021, ch. 93, § 3; July 1.

§ 79-5604 Applicability of collection and remittance requirements; effective date

A marketplace facilitator shall not be required to collect and remit any taxes from sales occurring prior to July 1, 2021.

History: L. 2021, ch. 93, § 4; July 1.