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16  AN ACT relating to taxation; enacting the Kansas tax equity and fairness
17    act of 1997; amending K.S.A. 12-1678a, [19-430,] 75-5105a, 77-548,
18    79-6a02, 79-1701a, 79-1702, [79-2002,] 79-2969, 79-3230, 79-3268
19    and 79-3607 and[,] 79-32,111 [and 79-3635] and K.S.A. 1996 Supp.
20    45-221, 74-2438, 75-5133, 77-549, 77-550, [79-201a,] [79-213,] 79-
21    332a, [79-412,] 79-1422, 79-1427a, 79-503a, 79-1439, 79-1448, 79-
22    1460, 79-1476, [79-1485, 79-1486, 79-1488, 79-1489, 79-1490,
23    79-1492,] 79-1575, 79-2001, 79-2004, 79-2004a, 79-2005, 79-2968,
24    79-3226, 79-3234, 79-32,105, 79-32,107, 79-3420, [79-3606,] 79-
25    3609, 79-3610, 79-3614, 79-3615 and 79-4226[, 79-4226 and 79-
26    5109] and repealing the existing sections.
27
28  Be it enacted by the Legislature of the State of Kansas:
29    Section 1.  K.S.A. 1996 Supp. 79-2968 is hereby amended to read as
30  follows: 79-2968. Except as otherwise specifically provided by law, when-
31  ever interest is charged under any law of this state upon any delinquent
32  or unpaid taxes levied or imposed by the state of Kansas or any taxing
33  subdivision thereof, or whenever interest is allowed under any law of this
34  state upon any overpayment of taxes levied or imposed by the state of
35  Kansas or any taxing subdivision thereof, the rate thereof shall be: (a)
36  One and one-half percent per month for any period prior to January 1,
37  1995, 1% per month for the period commencing on January 1, 1995, and
38  ending on December 31, 1997, and 1/12 of the annual rate prescribed in
39  subsection (b) thereafter, if computed monthly; and (b) eighteen percent
40  per annum for any period prior to January 1, 1995, 12% per annum for
41  the period commencing on January 1, 1995, and ending on December
42  31, 1997, and for any period thereafter, the underpayment rate per an-
43  num prescribed and determined under paragraph (2) of subsection (a) of
HB 2105--Am. by SCW
                                     

 1  section 6621, without regard to subsection (c) thereof, of the federal in-
 2  ternal revenue code, as in effect on January 1, 1994 September 1, 1997
 3  1996, and which rate is in effect thereunder on July 1 of the year im-
 4  mediately preceding the calendar year for which the rate is being annually
 5  fixed hereunder, plus 1% [minus 3% plus one percentage point], if
 6  computed annually.
 7    In the event the interest rate prescribed under this section cannot be
 8  determined by reference to section 6621 of the federal internal revenue
 9  code, as in effect on January 1, 1994 September 1, 1996, the rate at which
10  interest shall be collected on underpayments shall be the rate prescribed
11  by K.S.A. 16-204, and amendments thereto, for interest on judgments for
12  the applicable period.
13    Sec. 2.  K.S.A. 1996 Supp. 79-3609 is hereby amended to read as
14  follows: 79-3609. (a) Every person engaged in the business of selling
15  tangible personal property at retail or furnishing services taxable in this
16  state, shall keep records and books of all such sales, together with invoices,
17  bills of lading, sales records, copies of bills of sale and other pertinent
18  papers and documents. Such books and records and other papers and
19  documents shall, at all times during business hours of the day, be available
20  for and subject to inspection by the director, or the director's duly au-
21  thorized agents and employees, for a period of three years from the last
22  day of the calendar year or of the fiscal year of the retailer, whichever
23  comes later, to which the records pertain. Such records shall be preserved
24  during the entire period during which they are subject to inspection by
25  the director, unless the director in writing previously authorizes their
26  disposal. Any person selling tangible personal property or furnishing tax-
27  able services shall be prohibited from asserting that any sales are exempt
28  from taxation unless the retailer has in the retailer's possession a properly
29  executed exemption certificate provided by the consumer claiming the
30  exemption. Any retailer asserting a claim that certain sales are exempt
31  who does not have the required exemption certificates in possession shall
32  acquire such certificates within 60 days after receiving notice from the
33  director that such certificates are required. If such certificates are not
34  obtained within the period set forth herein, the sales shall be deemed to
35  be taxable sales under this act.
36    (b)  The amount of tax imposed by this act is to be assessed within
37  three years after the return is filed, and no proceedings in court for the
38  collection of such taxes shall be begun after the expiration of such period.
39  In the case of a false or fraudulent return with intent to evade tax, the
40  tax may be assessed or a proceeding in court for collection of such tax
41  may be begun at any time, within two years from the discovery of such
42  fraud. No assessment shall be made for any period preceding the date of
43  registration of the retailer by more than three years except in cases of
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 1  fraud. No refund or credit shall be allowed by the director after three
 2  years from the date of payment of the tax as provided in this act unless
 3  before the expiration of such period a claim therefor is filed by the tax-
 4  payer, and no suit or action to recover on any claim for refund shall be
 5  commenced until after the expiration of six months from the date of filing
 6  a claim therefor with the director.
 7    (c)  Before the expiration of time prescribed in this section for the
 8  assessment of additional tax or the filing of a claim for refund, the director
 9  is hereby authorized to enter into an agreement in writing with the tax-
10  payer consenting to the extension of the periods of limitations for the
11  assessment of tax or for the filing of a claim for refund, at any time prior
12  to the expiration of the period of limitations. The period so agreed upon
13  may be extended by subsequent agreements in writing made before the
14  expiration of the period previously agreed upon. In consideration of such
15  agreement or agreements, interest due in excess of 48 months on any
16  additional tax shall be waived.
17    (d)  For all taxable periods subject to assessment on January 1, 1998,
18  including periods subject to an agreement to extend the statute of limi-
19  tations, and for all taxable periods commencing after December 31, 1997,
20  interest at the rate prescribed by K.S.A. 79-2968, and amendments
21  thereto, shall be allowed on any overpayment of tax computed to from
22  the due date of the return if it was timely filed and accompanied by the
23  tax due or, if the return was not timely filed, to from the date of payment,
24  except that no interest shall be allowed on any such refund if the
25  same is paid within 60 days after the date of the return or the date
26  of payment, as the case requires.
27    Sec. 3.  K.S.A. 1996 Supp. 79-32,105 is hereby amended to read as
28  follows: 79-32,105. (a) The director shall pay to the treasurer of the state
29  daily the entire amount collected during the preceding day, under the
30  provisions of this act and from the income tax imposed upon individuals,
31  corporations, estates or trusts pursuant to the ``Kansas income tax act''
32  less amounts withheld as provided in subsection (b) and any amounts
33  credited to the IMPACT program repayment fund or the IMPACT pro-
34  gram services fund under K.S.A. 74-50,107 and amendments thereto,
35  which amounts shall be credited to the state general fund.
36    (b)  A revolving fund, designated as ``income tax refund fund'' not to
37  exceed $4,000,000 shall be set apart and maintained by the director from
38  income tax collections, withholding tax collections, and estimated tax col-
39  lections and held by the state treasurer for prompt payment of all income
40  tax refunds and for the payment of interest as provided in subsection (e).
41  The fund shall be in such amount, within the limit set by this section, as
42  the director determines is necessary to meet current refunding require-
43  ments under this act.
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 1    (c)  If the director discovers from the examination of the return, or
 2  upon claim duly filed by the taxpayer or upon final judgment of the court
 3  that the income tax, withholding tax, declaration of estimated tax or any
 4  penalty or interest paid by or credited to any taxpayer is in excess of the
 5  amount legally due, the director shall certify to the director of accounts
 6  and reports the name of the taxpayer, the amount of refund and such
 7  other information as the director may require. Upon receipt of such cer-
 8  tification the director of accounts and reports shall issue a warrant on the
 9  state treasurer for the payment to the taxpayer out of the fund provided
10  in subsection (b), except that no refund shall be made for a sum less than
11  $5, but such amount may be claimed by the taxpayer as a credit against
12  the taxpayer's tax liability in the taxpayer's next succeeding taxable year.
13    (d)  When a resident taxpayer dies, and the director determines that
14  a refund is due the claimant not in excess of $100, the director shall certify
15  to the director of accounts and reports the name and address of the
16  claimant entitled to the refund and the amount of the refund. A refund
17  may be made upon a claim duly made on behalf of the estate of the
18  deceased or in the absence of any such claim upon a claim by a surviving
19  spouse and if none upon the claim by any heir at law. Upon receipt of
20  such certification the director of accounts and reports shall issue a warrant
21  on the state treasurer for the payment to the claimant out of the fund
22  provided in subsection (b).
23    (e)  Interest shall be allowed and paid at the rate of 12% per annum
24  upon any overpayment of the income tax imposed upon individuals, cor-
25  porations, estates or trusts pursuant to the Kansas income tax act for any
26  period prior to January 1, 1995, 6% per annum for the period commenc-
27  ing on January 1, 1995, and ending on December 31, 1997, and at the
28  overpayment rate prescribed and determined under section 6621 of the
29  federal internal revenue code, as in effect on January 1, 1994, and which
30  rate is in effect on July 1 of the year immediately preceding the calendar
31  year for which the rate is being annually fixed, pursuant to K.S.A. 79-
32  2968, and amendments thereto, for any period thereafter.
33    For the purposes of this subsection:
34    (1)  Any return filed before the last day prescribed for the filing
35  thereof shall be considered as filed on such last day, determined without
36  regard to any extension of time granted the taxpayer;
37    (2)  any tax paid by the taxpayer before the last day prescribed for its
38  payment, any income tax withheld from the taxpayer during any calendar
39  year and any amount paid by the taxpayer as estimated income tax for a
40  taxable year shall be deemed to have been paid on the last day prescribed
41  for filing the return for the taxable year to which such amount constitutes
42  a credit or payment, determined without regard to any extension of time
43  granted the taxpayer;
HB 2105--Am. by SCW
                                     

 1    (3)  if any overpayment of tax results from a carryback of a net oper-
 2  ating loss or net capital loss, such overpayment shall be deemed not to
 3  have been made prior to the close of the taxable year in which such net
 4  operating loss or net capital loss arises. For purposes of this paragraph,
 5  the return for the loss year shall not be deemed to be filed before claim
 6  for such overpayment is filed;
 7    (4)  in the case of a credit, interest shall be allowed and paid from the
 8  date of the overpayment to the due date of the amount against which the
 9  credit is taken, except that if any overpayment of income tax is claimed
10  as a credit against estimated tax for the succeeding taxable year, such
11  amount shall be considered as a payment of the income tax for the suc-
12  ceeding taxable year, whether or not claimed as a credit in the return of
13  estimated tax for such succeeding taxable year, and no interest shall be
14  allowed or paid in such overpayment for the taxable year in which the
15  overpayment arises;
16    (5)  in the case of a tax return which is filed after the last date pre-
17  scribed for filing such return, determined with regard to extensions, no
18  interest shall be allowed or paid for any period before the date on which
19  the return is filed;
20    (6)  in the case of a refund, interest shall be allowed and paid from
21  the date of the overpayment to a date preceding the date of the refund
22  check by not more than 30 days, as determined by the director, whether
23  or not such refund check is accepted by the taxpayer after tender of such
24  check to the taxpayer, but acceptance of such check shall be without
25  prejudice to any right of the taxpayer to claim any additional overpayment
26  and interest thereon; and
27    (7)  if any overpayment is refunded within two months after the last
28  date prescribed, or permitted by extension of time, for filing the return
29  of such tax, or within two months after the return was filed, whichever is
30  later, no interest shall be allowed or paid. For the purposes of this section,
31  an overpayment shall be deemed to have been refunded at the time the
32  refund check in the amount of the overpayment, plus any interest due
33  thereon, is deposited in the United States mail.
34    New Sec. 4.  On and after January 1, 1998, the secretary of revenue
35  shall make available in a medium readily accessible to taxpayers all ad-
36  ministrative rulings of the department of revenue which affect the duties
37  and responsibilities of taxpayers pursuant to any law administered by the
38  department of revenue. Private letter rulings shall be provided in such a
39  manner as to conceal the identity of the specific taxpayer for whom the
40  private letter ruling was issued. The secretary shall cause to be published
41  in the Kansas register a description of each such administrative ruling
42  within 30 days of such ruling together with specific instructions as to how
43  the complete text of the administrative ruling may be obtained. As used
HB 2105--Am. by SCW
                                     

 1  in this section, administrative rulings shall include revenue notices, rev-
 2  enue rulings, information guides, policy directives, private letter rulings
 3  and directives of the division of property valuation or its director.
 4    Sec. 5.  K.S.A. 1996 Supp. 74-2438 is hereby amended to read as
 5  follows: 74-2438. An appeal may be taken to the state board of tax appeals
 6  from any finding, ruling, order, decision, final determination or other final
 7  action, including action relating to abatement or reduction of penalty and
 8  interest, on any case of the director of taxation or director of property
 9  valuation secretary of revenue or the secretary's designee by any person
10  aggrieved thereby. Notice of such appeal shall be filed with the secretary
11  of the board within 30 days after such finding, ruling, order, decision,
12  final determination or other action on a case, and a copy served upon the
13  director concerned secretary of revenue or the secretary's designee. Upon
14  receipt of a timely appeal, the board shall conduct a hearing in accordance
15  with the provisions of the Kansas administrative procedure act. The hear-
16  ing before the board shall be a de novo hearing unless the parties agree
17  to submit the case on the record made before the director secretary of
18  revenue or the secretary's designee. With regard to any matter properly
19  submitted to the board relating to the determination of valuation of res-
20  idential property for taxation purposes, it shall be the duty of the county
21  or district appraiser to initiate the production of evidence to demonstrate,
22  by a preponderance of the evidence, the validity and correctness of such
23  determination. No presumption shall exist in favor of the county or district
24  appraiser with respect to the validity and correctness of such determi-
25  nation.  No interest shall accrue on the amount of the assessment of tax
26  subject to any such appeal beyond 120 days after the date the matter was
27  fully submitted, except that, if a final order is issued within such time
28  period, interest shall continue to accrue until such time as the tax liability
29  is fully satisfied, and if a final order is issued beyond such time period,
30  interest shall recommence to accrue from the date of such order until
31  such time as the tax liability is fully satisfied.
32    Sec. 6.  K.S.A. 77-548 is hereby amended to read as follows: 77-548.
33    (a) This section applies to adjudicative proceedings before the director of
34  taxation. Informal conferences held pursuant to K.S.A. 79-3226, and
35  amendments thereto, shall not be deemed to be adjudicative proceedings
36  for the purposes of this act.
37    (b) (1)  After the director has determined and announced that a hear-
38  ing should be held, and prior to the issuance of a final order, no parties
39  to the proceeding, or their counsel, shall discuss the merits of the matter
40  or proceeding with the presiding officer unless reasonable notice is given
41  to all parties who have appeared to enable the parties to be present at
42  the conference.
43    (2)  After the director has determined and announced that a hearing
HB 2105--Am. by SCW
                                     

 1  should be held, prior to the issuance of a final order, copies of any written
 2  communications from any party regarding the proceeding that are di-
 3  rected to the presiding officer shall be mailed to all parties of record and
 4  proof of service shall be furnished to the director. Communications re-
 5  quested by the director's staff from any party and any written commu-
 6  nication received by the director's staff from any party shall be made a
 7  part of the file and the docket and shall be made available to all persons
 8  who desire to use them, provided that the director's requests for infor-
 9  mation from a party shall be mailed to all parties of record.
10    (3)  The person or persons to whom any ex parte communication has
11  been made shall promptly and fully inform the director of the substance
12  of the communication, and the circumstances thereof, to enable the di-
13  rector of any division within the department to take appropriate action.
14    (c)  For purposes of this section, no member of the director's technical
15  staff shall be considered a party to any proceeding before the director,
16  regardless of participation in staff investigations with respect to the pro-
17  ceeding or of participation in the proceeding as a witness. Since the pur-
18  pose of the staff is to aid the director in the proper discharge of the
19  director's duties, the presiding officer shall be free at all times to confer
20  with any staff member with respect to any proceeding. However, no facts
21  that are outside the record, and that reasonably could be expected to
22  influence the decision in any matter pending before the director, shall be
23  furnished to any presiding officer unless all parties to the proceeding are
24  likewise informed and afforded a reasonable opportunity to respond. Sub-
25  section (b) shall apply to staff counsel who have participated in the pro-
26  ceeding in regard to any adjudicatory proceeding before the director.
27    (d)  All letters and written communications that are received by the
28  presiding officer from members of the general public, and that are in the
29  nature of ex parte communications, shall be made a part of the file in the
30  docket and shall be made available to all persons who desire to see them.
31  The deposit of such written communications and letters in the file shall
32  not make them a part of the official record of the case.
33    Sec. 7.  K.S.A. 1996 Supp. 77-549 is hereby amended to read as fol-
34  lows: 77-549. (a) The filing of a return with the director of taxation under
35  article 15, 32, 33, 34, 36, 37, 41 or 47 of chapter 79 of the Kansas Statutes
36  Annotated, and amendments thereto, shall not be deemed an application
37  for an order under the Kansas administrative procedure act.
38    (b)  A determination by the division of taxation or the audit services
39  bureau of the department of revenue concerning tax liability under article
40  15, 32, 33, 34, 36, 37, 41 or 47 of chapter 79 of the Kansas Statutes
41  Annotated, and amendments thereto, which is made prior to the oppor-
42  tunity for a hearing before the director of taxation or prior to the oppor-
43  tunity for information an informal conference before the secretary or the
HB 2105--Am. by SCW
                                     

 1  secretary's designee on such tax liability, shall not require an adjudicative
 2  proceeding under the Kansas administrative procedure act.
 3    (c)  For purposes of the Kansas administrative procedure act, the di-
 4  rector of taxation shall be deemed the agency head in regard to orders
 5  rendered by the director under chapter 79 of the Kansas Statutes An-
 6  notated, and amendments thereto secretary of revenue may designate the
 7  director of the division of taxation or other designee as agency head.
 8    (d)  Final orders of the director of taxation pursuant to K.S.A. 77-526,
 9  and amendments thereto, shall be rendered in writing and served within
10  120 days after conclusion of the hearing or after submission of proposed
11  findings in accordance with subsection (f) of K.S.A. 77-526, and amend-
12  ments thereto, unless this period is waived or extended with the written
13  consent of all parties or for good cause shown. If extended for good cause,
14  such good cause shall be set forth in writing on or before the expiration
15  of the 120 days.
16    Sec. 8.  K.S.A. 1996 Supp. 77-550 is hereby amended to read as fol-
17  lows: 77-550. For purposes of administrative proceedings of the division
18  of property valuation under the Kansas administrative procedure act,
19  ``agency head'' means the director of property valuation or the director's
20  designee the secretary of revenue may designate the director of the di-
21  vision of property valuation or other designee as agency head.
22    Sec. 9.  K.S.A. 1996 Supp. 79-1575 is hereby amended to read as
23  follows: 79-1575. As soon as practicable after the return or affidavit is
24  filed, the director shall make an examination thereof and determine the
25  correct amount of the tax liability shall issue final determinations of tax
26  liability hereunder in the manner prescribed by K.S.A. 79-3226, and
27  amendments thereto. If the tax found due is less than the amount paid,
28  the excess paid shall be refunded to the personal representative who paid
29  the tax. If the tax found due shall be greater than the amount theretofore
30  previously paid, or if a claim for a refund is denied, notice shall be mailed
31  to the person filing the return by registered or certified mail. Within 30
32  days after the mailing of the notice any personal representative aggrieved
33  by any such determination of the director may request a hearing of the
34  director relating to the tax liability by filing a written request with the
35  director. The hearing shall be conducted in accordance with the provi-
36  sions of the Kansas administrative procedure act. An order finding addi-
37  tional tax shall be accompanied by a notice and demand for payment. The
38  tax shall be paid within 30 days thereafter, together with interest on the
39  additional tax from the date the tax was due unless an appeal is taken in
40  the manner provided by K.S.A. 74-2438, and amendments thereto. No
41  additional tax shall be assessed for less than $25.
42    Sec. 10.  K.S.A. 1996 Supp. 79-3226 is hereby amended to read as
43  follows: 79-3226. (a) As soon as practicable after the return is filed, the
HB 2105--Am. by SCW
                                     

 1  director of taxation shall examine it and shall determine the correct
 2  amount of the tax. If the tax found due shall be greater than the amount
 3  theretofore paid, or if a claim for a refund is denied, notice shall be mailed
 4  to the taxpayer. Within 60 days after the mailing of such notice the tax-
 5  payer may request a hearing of the director relating to the tax liability by
 6  filing a written request with the director. The hearing shall be conducted
 7  in accordance with the provisions of the Kansas administrative procedure
 8  act. An order an informal conference with the secretary of revenue or the
 9  secretary's designee relating to the tax liability or denial of refund by filing
10  a written request with the secretary of revenue or the secretary's designee
11  which sets forth the objections to the proposed liability or proposed denial
12  of refund. The purpose of such conference shall be to review and recon-
13  sider all facts and issues that underlie the proposed liability and or pro-
14  posed denial of refund. The secretary of revenue or the secretary's des-
15  ignee shall hold an informal conference with the taxpayer and shall issue
16  a written final determination thereon. The informal conference shall not
17  constitute an adjudicative proceeding under the Kansas administrative
18  procedure act. Informal conferences held pursuant to this section may be
19  conducted by the secretary of revenue or the secretary's designee. The
20  rules of evidence shall not apply to an informal conference and no record
21  shall be made, except at the request and expense of the secretary of rev-
22  enue or the secretary's designee or taxpayer. The taxpayer may bring to
23  the reconsideration informal conference an attorney, certified public ac-
24  countant and any other person to represent the taxpayer or to provide
25  information. Because the purpose of the department staff is to aid the
26  secretary or secretary's designee in the proper discharge of the secretary's
27  or secretary's designee's duties, the secretary or secretary's designee may
28  confer at any time with any staff member with respect to the case under
29  reconsideration. The secretary of revenue or the secretary's designee shall
30  issue a written final determination within 270 days of the date of the
31  request for informal conference unless the parties agree in writing to ex-
32  tend the time for issuing such final determination. A final determination
33  constitutes final agency action subject to administrative review by the
34  state board of tax appeals. In the event that a written final determination
35  is not rendered within 270 days, the taxpayer may appeal to the state
36  board of tax appeals.
37    (b)  A final determination finding additional tax shall be accompanied
38  by a notice and demand for payment. Notice under this section shall be
39  sent by first-class mail in the case of individual taxpayers and by registered
40  or certified mail in the case of all other taxpayers. The tax shall be paid
41  within 20 days thereafter, together with interest at the rate per month
42  prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto,
43  on the additional tax from the date the tax was due unless an appeal is
HB 2105--Am. by SCW
                                     

 1  taken in the manner provided by K.S.A. 74-2438 and amendments
 2  thereto, but no additional tax shall be assessed for less than $5. Interest
 3  at such rate shall continue to accrue on any additional tax liability during
 4  the course of any appeal.
 5    Sec. 11.  K.S.A. 1996 Supp. 79-3420 is hereby amended to read as
 6  follows: 79-3420. The director, or any deputy or agent appointed in writ-
 7  ing by the director, is hereby authorized to examine the books, papers,
 8  records, storage tanks, tank wagons, trucks and any other equipment of
 9  any distributor, dealer, transporter, manufacturer, importer, exporter, re-
10  tailer, user or any other person, pertaining to the use, storage, transpor-
11  tation or sale and delivery of liquid fuels, motor-vehicle fuels or special
12  fuels, to verify the accuracy of any report, statement or payment made
13  under the provisions of this act, or to ascertain whether or not all reports
14  and tax payments required by this act have been made. Any information
15  gained by the director, the director's deputies or agents, as the result of
16  the reports, investigations and verifications herein required to be made,
17  shall be confidential, and shall not be divulged by any person except as
18  herein provided. Every distributor, dealer, transporter, manufacturer, im-
19  porter, exporter, retailer or user and every person handling or possessing
20  any liquid fuels, motor-vehicle fuels or special fuels shall give the director,
21  or the director's deputy or agent appointed in writing, full and free access
22  during reasonable business hours to all the papers, records and property
23  mentioned, with full opportunity to examine the same. The director, or
24  any deputy or agent appointed in writing by the director, shall examine
25  returns and shall determine the correct amount of the tax. If the tax found
26  due shall be greater than the amount paid, or if a claim for a refund is
27  denied, notice shall be mailed to the taxpayer. Within 60 days after the
28  mailing of such notice, the taxpayer may request a hearing of an informal
29  conference with the director secretary of revenue or the secretary's des-
30  ignee relating to the tax liability by filing a written request with the di-
31  rector secretary of revenue or the secretary's designee. Based on the ev-
32  idence presented at such hearing, the director informal conference, the
33  secretary of revenue or the secretary's designee shall make a final deter-
34  mination within a reasonable time the period prescribed by K.S.A. 79-
35  3226, and amendments thereto, and shall notify the taxpayer of such de-
36  cision and, if additional amounts are found to be due, such decision shall
37  be accompanied by a notice and demand for payment. Notice under this
38  section shall be sent by first-class mail. The tax shall be paid within 20
39  days thereafter, together with interest at the rate per month prescribed
40  by subsection (a) of K.S.A. 79-2968, and amendments thereto, on the
41  additional tax from the date the tax was due unless an appeal is taken in
42  the manner provided by law, but no additional tax shall be assessed for
43  less than $5. Interest at such rate shall continue to accrue on any addi-
HB 2105--Am. by SCW
                                     

 1  tional tax liability during the course of any appeal.
 2    Whenever the director of taxation has reason to believe that a person
 3  liable for tax under any provisions of the motor-fuel tax law is about to
 4  depart from the state or to remove such person's property therefrom, or
 5  to conceal oneself or such person's property therein, or to do any other
 6  act tending to prejudice, jeopardize or render wholly or partly ineffectual
 7  the collection of such motor-fuel tax unless proceedings be brought with-
 8  out delay, the director shall immediately make an assessment for all mo-
 9  tor-fuel tax due from such taxpayer, noting such finding on the assess-
10  ment. The assessment shall be made on the basis of emergency
11  proceedings in accordance with the provisions of K.S.A. 77-536, and
12  amendments thereto. Thereupon, a warrant shall be issued for the col-
13  lection of the tax as provided in K.S.A. 79-3412, and amendments thereto,
14  except that there shall be no 10-day waiting period before assessment is
15  issued. The taxpayer, within 15 days from the date of filing of such war-
16  rant, may request a hearing by an informal conference with the director
17  secretary of revenue or the secretary's designee on the correctness of the
18  assessment. Hearings under this section shall be conducted in accordance
19  with the provisions of the Kansas administrative procedure act. The di-
20  rector may publish the gallons received by each licensed motor-vehicle
21  fuel or special fuel distributor and the deductions claimed by such dis-
22  tributor and such publication shall be an exception to the confidentiality
23  provisions of K.S.A. 75-5133, and amendments thereto. The director may
24  also make available or furnish information to the taxing officials of any
25  other state or of the federal government, or the director of property val-
26  uation, in the manner as provided in K.S.A. 74-2424, and amendments
27  thereto.
28    Sec. 12.  K.S.A. 1996 Supp. 79-3610 is hereby amended to read as
29  follows: 79-3610. The director of taxation shall examine all returns filed
30  under the provisions of this act, and shall issue final determinations of tax
31  liability hereunder in the manner prescribed by K.S.A. 79-3226, and
32  amendments thereto, relating to income taxes. Any determination may
33  be made on the basis of a generally recognized valid and reliable sampling
34  technique, whether or not the person being audited has complete records
35  of transactions and whether or not such person consents. In any such
36  case, the director shall notify the taxpayer in writing of the sampling
37  technique to be utilized, including the design and population of such
38  sample. If the taxpayer demonstrates that any such technique used was
39  not in accordance with generally recognized sampling techniques, the
40  audit shall be dismissed with respect to that portion of the audit based
41  upon such technique, and a new audit shall be performed. Within 60 days
42  after the mailing of notice of the director's determination any taxpayer
43  may request a hearing of an informal conference with the director sec-
HB 2105--Am. by SCW
                                     

 1  retary of revenue or the secretary's designee relating to such taxpayer's
 2  tax liability, including the issue of whether the use of a generally recog-
 3  nized sampling technique achieved a result that was reflective of the tax-
 4  payer's actual tax liability, and a hearing an informal conference thereon
 5  shall be had conducted and the director secretary of revenue or the se-
 6  cretary's designee shall make a final determination and give the taxpayer
 7  notice thereof. In case any person required by the provisions of this act
 8  to make a return fails or refuses to do so, the director secretary of revenue
 9  or the secretary's designee, after notice to such person, and a hearing
10  thereon, shall make a final determination of the amount of such tax ac-
11  cording to the director's best judgment and information of the secretary
12  of revenue or the secretary's designee.
13    Whenever the director of taxation has reason to believe that a person
14  liable for tax under any provisions of the Kansas retailers' sales tax act is
15  about to depart from the state or to remove such person's property there-
16  from, or to conceal oneself or such person's property therein, or to do
17  any other act tending to prejudice, jeopardize or render wholly or partly
18  ineffectual the collection of such sales tax unless proceedings be brought
19  without delay, the director shall immediately make an assessment for all
20  sales taxes due from such taxpayer, noting such finding on the assessment.
21  The assessment shall be made on the basis of emergency proceedings in
22  accordance with the provisions of K.S.A. 77-536 and amendments
23  thereto. Thereupon a warrant shall forthwith be issued for the collection
24  of the tax as provided in K.S.A. 79-3235, and amendments thereto. The
25  taxpayer may within 15 days from the date of filing of such warrant re-
26  quest a hearing by an informal conference with the director secretary or
27  the secretary's designee on the correctness of the jeopardy assessment.
28  Hearings under this section shall be conducted in accordance with the
29  provisions of the Kansas administrative procedure act.
30    Sec. 13.  K.S.A. 1996 Supp. 79-4226 is hereby amended to read as
31  follows: 79-4226. Every operator shall make and keep a complete and
32  accurate record in the form required by the director showing the gross
33  quantity of coal, oil or gas severed and removed from each lease, pro-
34  duction unit or mine, the names of the purchasers of such products, the
35  price paid therefor and the date of purchase. Every purchaser of coal, oil
36  or gas severed in this state who is required to collect and remit the tax
37  on the same shall make and keep a complete and accurate record in the
38  form required by the director showing the gross quantity of coal, oil or
39  gas purchased from each lease, production unit or mine, the price paid
40  therefor, the name of the operator and the date of purchase. Such records
41  shall at all times during business hours of the day be available for and
42  subject to inspection by the director, or the director's duly authorized
43  agents and employees, for a period of three years from the last day of the
HB 2105--Am. by SCW
                                     

 1  calendar year to which the records pertain. Such records shall be pre-
 2  served during the entire period during which they are subject to inspec-
 3  tion by the director, unless the director in writing previously authorized
 4  their disposal.
 5    The amount of taxes imposed by this act is to be assessed within three
 6  years after the return is filed, and no proceedings in court for the collec-
 7  tion of such taxes shall be begun after the expiration of such period. In
 8  the case of a false or fraudulent return with intent to evade tax, the tax
 9  may be assessed or a proceeding in court for collection of such tax may
10  be begun at any time, within two years from the discovery of such fraud.
11  The provisions of K.S.A. 79-3226, and amendments thereto, relating to
12  procedures for contesting a proposed assessment of additional tax or the
13  denial of a refund shall apply as if set forth in this section. No refund
14  shall be allowed by the director after three years from the date the return
15  was filed, or one year after the assessment is made, whichever is the later
16  date unless before the expiration of such period a claim therefor is filed
17  by the taxpayer. No suit or action to recover on any claim for refund shall
18  be commenced until after the expiration of six months from the date of
19  filing a claim therefor with the director.
20    Before the expiration of time prescribed in this section for the assess-
21  ment of additional tax or the filing of a claim for refund, the director is
22  hereby authorized to enter into an agreement in writing with the taxpayer
23  consenting to the extension of the periods of limitations for the assess-
24  ment of tax or for the filing of a claim for refund, at any time prior to the
25  expiration of the periods of limitations. The periods so agreed upon may
26  be extended by subsequent agreements in writing made before the ex-
27  piration of the periods previously agreed upon. In consideration of such
28  agreement or agreements, interest due in excess of 48 months on any
29  additional tax shall be waived.
30    New Sec. 14.  The secretary of revenue or the secretary's designee
31  shall issue a written final determination for any appeal which is pending
32  before the director on the effective date of this act on or before October
33  1, 1998. In the event a taxpayer has timely requested a hearing be-
34  fore the director of taxation pursuant to K.S.A. 79-3226, as in effect
35  prior to the effective date of this act, and whether or not such hear-
36  ing was conducted, the taxpayer shall be deemed to have requested
37  an informal conference pursuant to K.S.A. 79-3226, and amend-
38  ments thereto.
39    Sec. 15.  K.S.A. 79-2969 is hereby amended to read as follows: 79-
40  2969. From and after July 1, 1984 1997, whenever any statute requiring
41  the remittance of an excise or income tax prescribes a due date therefor,
42  such due date shall be deemed to be complied with, and no penalties
43  shall be imposed for late payment, if such payment is mailed on the
HB 2105--Am. by SCW
                                     

 1  statutorily prescribed due date as reflected by the postmark on the en-
 2  velope containing the payment. The use of private delivery services shall
 3  be allowed by the secretary of revenue, and the determination of timely
 4  filing regarding such services shall be made, in the same manner and to
 5  the same extent as provided by section 7502 of the federal internal revenue
 6  code of 1986, as in effect on September 1, 1996.
 7    Sec. 16.  K.S.A. 79-3268 is hereby amended to read as follows: 79-
 8  3268. Any taxpayer subject to the provisions of Chapter 79 of the Kansas
 9  Statutes Annotated shall be afforded the rights and privileges set forth in
10  this section. Unless specifically provided otherwise, the provisions of this
11  section shall apply to all taxes administered by the director of taxation.
12    (a)  The director shall inform all taxpayers against whom an assess-
13  ment of additional tax has been issued of the taxpayer's right to appeal.
14  Such written notification shall accompany each notice of assessment and
15  shall set forth the time period within which the taxpayer must file an
16  appeal.
17    (b)  Any taxpayer who has received written advice from the depart-
18  ment of revenue concerning the taxability of transactions shall be allowed
19  to rely on such advice when filing tax returns. The department shall not
20  maintain a position against a taxpayer which is inconsistent with a prior
21  written opinion issued to the same taxpayer which has not been rescinded.
22    (c)  It shall be unlawful to base a performance evaluation for any em-
23  ployee of the director of taxation department of revenue on a production
24  quota system based on the total amount of assessments issued by such
25  employee or on the total amount or percentage of taxes collected from a
26  taxpayer through settlements or other means made by such employee
27  prior to final judgment.
28    (d)  The director shall waive any interest assessed against a taxpayer
29  when it is determined by the director that the negligence of an employee
30  of the department resulted in undue delay in either assessing tax or no-
31  tifying the taxpayer of the liability owed.
32    (e)  The department shall release any lien upon the property of a
33  taxpayer upon payment of all tax, penalty and interest within 30 days of
34  payment. Liens filed in error shall be so noted on the satisfaction of
35  judgment. The department shall be liable for any court costs associated
36  with the release of such erroneous liens.
37    (f)  Attorney fees and related expenses may be awarded to a taxpayer
38  if it can be proved that an assessment or claim asserted by the department
39  is without a reasonable basis in law or fact. A taxpayer must first exhaust
40  its administrative remedies before an award of attorney fees may be made
41  under this section.
42    Sec. 17.  K.S.A. 79-3230 is hereby amended to read as follows: 79-
43  3230. (a) The amount of income taxes imposed by this act shall be as-
HB 2105--Am. by SCW
                                     

 1  sessed within three years after the return was filed or the tax as shown to
 2  be due on the return was paid, whichever is the later date, and no pro-
 3  ceedings in court for the collection of such taxes shall be begun after the
 4  expiration of such period. For purposes of this act any return filed before
 5  the 15th day of the fourth month following the close of the taxable year
 6  shall be considered as being filed on the 15th day of the fourth month
 7  following the close of the taxable year, and any tax shown to be due on
 8  the return and paid before the 15th day of the fourth month following
 9  the close of the taxable year shall be deemed to have been paid on the
10  15th day of the fourth month following the close of the taxable year.
11    (b)  In the case of a false or fraudulent return with intent to evade
12  tax, the tax may be assessed, or a proceeding in court for collection of
13  such tax may be begun at any time.
14    (c)  No refund or credit shall be allowed by the director of taxation
15  after three years from the date prescribed by law for filing the return,
16  provided it was filed before the due date, unless before the expiration of
17  such period a claim therefor is filed by the taxpayer. If the return was
18  filed after the due date, a refund claim must be filed not later than three
19  years from the time the return was actually filed, or two years from the
20  date the tax was paid, whichever of such periods expires later. Where the
21  assessment of any income tax imposed by this act has been made within
22  the period of limitation properly applicable thereto, such tax may be col-
23  lected by distraint or by a proceeding in court, but only if begun within
24  one year after the period of limitation as defined in this act.
25    (d)  In case a taxpayer has made claim for a refund, the taxpayer shall
26  have the right to commence a suit for the recovery of the refund at the
27  expiration of six months after the filing of the claim for refund, if no action
28  has been taken by the director of taxation.
29    (e)  Before the expiration of time prescribed in this section for the
30  assessment of additional tax or the filing of a claim for a refund, the
31  director of taxation is authorized to enter into an agreement in writing
32  with the taxpayer consenting to the extension of the periods of limitations
33  as defined in this act for the assessment of tax or for the filing of a claim
34  for refund, at any time prior to the expiration of the period of limitations.
35  The period so agreed upon may be extended by subsequent agreements
36  in writing made before the expiration of the period previously agreed
37  upon. An agreement between the taxpayer and the internal revenue serv-
38  ice providing for the extension of the period for assessment of federal
39  income taxes shall constitute an agreement with the director of taxation
40  to extend the period for assessment of income taxes under the provisions
41  of the Kansas income tax act. A copy of all such agreements and extensions
42  thereof shall be filed with the director of taxation within 30 days after
43  their execution.
HB 2105--Am. by SCW
                                     

 1    (f)  Any taxpayer whose income has been adjusted by the federal in-
 2  ternal revenue service is required to report such adjustments to the Kan-
 3  sas department of revenue by mail within 180 days of the date the federal
 4  adjustments are paid, agreed to or become final, whichever is earlier.
 5  Such adjustments shall be reported by filing an amended return for the
 6  applicable taxable year and a copy of the revenue agent's report detailing
 7  such adjustments. In the event such taxpayer is a corporation, such report
 8  shall be by certified or registered mail.
 9    Notwithstanding the provisions of subsection (a) or (c) of this section,
10  additional income taxes may be assessed and proceedings in court for
11  collection of such taxes may be commenced and any refund or credit may
12  be allowed by the director of taxation within 180 days following receipt
13  of any such report of adjustments by the Kansas department of revenue.
14  No assessment shall be made nor any refund or credit shall be allowable
15  under the provisions of this paragraph except to the extent the same is
16  attributable to changes in the taxpayer's income due to adjustments in-
17  dicated by such report.
18    (g)  In the event of failure to comply with the provisions of this section,
19  the statute of limitations shall be tolled.
20    (h)  The provisions of this section as amended by this act shall be
21  applicable to any appeal from a notice of assessment issued by the director
22  which is pending on the effective date of this act.
23    New Sec. 18.  (a)  A refund request may be filed directly by a con-
24  sumer or purchaser if the consumer or purchaser: (1) paid the tax directly
25  to the department; (2) provides evidence that the retailer refused or was
26  unavailable to refund the tax; (3) provides evidence that the retailer did
27  not act upon its refund request in a timely manner as provided in sub-
28  section (b), or; (4) submits such a refund request pursuant to subsection
29    (c).
30    (b)  If the director of taxation finds upon proper showing that a con-
31  sumer or purchaser submitted a refund request to a retailer that was not
32  acted upon by the retailer in a timely manner, the director may shall
33  extend the time for filing the request with the department beyond the
34  three year limitation period that is otherwise provided by the time attrib-
35  uted to the delay caused by the retailer.
36    (c)  If, during the course of an audit examination of a business as a
37  purchaser or consumer, it is determined that a vendor has collected Kan-
38  sas tax from the purchaser on a transaction that is not subject to tax
39  imposed under this act, the purchaser may apply directly to the director
40  for an offset or refund of the tax, notwithstanding subsection (a), if: (1)
41  the purchaser is currently registered to collect and remit tax, and (2) the
42  purchaser provides the director with an affidavit or other acceptable doc-
43  umentation that assures the purchaser has not and will not request a
HB 2105--Am. by SCW
                                     

 1  duplicate refund through the vendor.
 2    New Sec. 19.  (a) For the purpose of the proper administration of the
 3  Kansas retailers' sales tax act and to prevent evasion of the tax imposed
 4  thereunder, it shall be presumed that all gross receipts from the sale of
 5  tangible personal property or enumerated services are subject to tax until
 6  the contrary is established. The burden of proving that a sale is not subject
 7  to tax is upon the vendor unless the vendor takes from the purchaser an
 8  exemption certificate to the effect that the property or service purchased
 9  is not subject to tax.
10    (b)  An exemption certificate shall relieve the vendor from collecting
11  and remitting the tax when taken in good faith. A vendor shall be deemed
12  to have taken an exemption certificate in good faith if the certificate is
13  properly completed, the vendor has ascertained the identity of the person
14  or entity who presented the exemption certificate and the vendor has no
15  knowledge that the presentation of the certificate by the purchaser is
16  otherwise improper.
17    (a)  A vendor shall be presumed to have accepted an exemption
18  certificate or affidavit in good faith. Such presumption shall not be
19  overcome if the vendor: (1) Maintains an exemption certificate or
20  affidavit, as the case requires; (2) has ascertained the identity of
21  the person or entity who presented the exemption certificate or af-
22  fidavit; and (3) has not been shown by a preponderance of the ev-
23  idence to have accepted the exemption certificate or affidavit with
24  the intent to allow an unlawful evasion of the payment of tax by
25  any person.
26    (a)  For the purpose of the proper administration of the Kansas
27  retailers' sales tax act and to prevent evasion of the tax imposed
28  thereunder, it shall be presumed that all gross receipts from the sale
29  of tangible personal property or enumerated services are subject to
30  tax until the contrary is established. The burden of proving that a
31  sale is not subject to tax is upon the vendor unless the vendor takes
32  from the purchaser an exemption certificate to the effect that the
33  property or service purchased is not subject to tax.
34    (b)  An exemption certificate shall relieve the vendor from col-
35  lecting and remitting the tax when taken in good faith. A vendor
36  shall be deemed to have taken an exemption certificate in good faith
37  if the certificate is properly completed, the vendor has ascertained
38  the identity of the person or entity who presented the exemption
39  certificate and the vendor has no knowledge that the presentation
40  of the certificate by the purchaser is otherwise improper.
41    (c) (b) (c)  The exemption certificate shall be substantially in such
42  form as the director may prescribe. A vender vendor may require a pur-
43  chaser to provide a copy of the purchaser's sales tax registration certificate
HB 2105--Am. by SCW
                                     

 1  with a resale certificate as a condition for honoring the purchaser's resale
 2  exemption claim.
 3    (d) (c) (d)  To lawfully present a resale exemption certificate the pur-
 4  chaser must be engaged in the business of selling property or services of
 5  the same kind that is purchased, hold a registration certificate, and at the
 6  time of purchase, either intend to resell the property in the regular course
 7  of business or be unable to ascertain whether the property will be resold
 8  or used for some other purpose.
 9    (e) (d) (e)  Any person who issues a resale certificate or other exemp-
10  tion certificate in order to unlawfully avoid payment of tax for business
11  or personal gain shall be guilty of a misdemeanor and upon conviction
12  shall be punished by a fine of not more than $1,000 or imprisonment for
13  not more than one year, or by both. In addition, if the director determines
14  that a person issued a resale certificate in order to unlawfully avoid pay-
15  ment of tax for business or personal gain, the director shall increase any
16  penalty that is due from the person under K.S.A. 79-3615, and amend-
17  ments thereto, by $250 or 10 times the tax due, whichever is greater, on
18  each transaction where the misuse of a resale certificate occurred.
19    (f) (e) (f)  Exemption certificates issued by a nonprofit entity claiming
20  a specific exemption under K.S.A. 79-3606, and amendments thereto,
21  shall bear the name and address of the entity and indicate the subsection
22  under which the exemption is being claimed. Such certificate shall be
23  signed by an officer, office manager or other administrator of the non-
24  profit entity and contain the driver's license number of the signer. The
25  certificate shall be substantially in such form as the director may pre-
26  scribe. Payments made on an exempt entity's check, warrant, voucher or
27  is charged to the entity's account shall relieve the vendor from collecting
28  and remitting the tax if it is taken in good faith.
29    (g)  The secretary shall adopt rules and regulations and issue infor-
30  mation guides that describe and list machinery and equipment that qual-
31  ifies as ``farm machinery and equipment'' for purposes of the exemption
32  set forth in subsection (t) of K.S.A. 79-3606, and amendments thereto. A
33  vendor shall be deemed to have taken an exemption certificate for farm
34  machinery and equipment in good faith if:
35    (1)  The certificate is presented by a farmer, rancher or other person
36  who qualifies for exemption pursuant to subsection (t) of K.S.A. 79-3606,
37  and amendments thereto; and
38    (2)  the machinery or equipment is of the type described or listed in
39  the rules and regulations or information guide.
40  A vendor may accept an exemption certificate in good faith for the sale
41  of farm machinery and equipment not described or listed in the rules and
42  regulations or information guides if presented with a specific statement
43  from the purchaser describing the qualifying exempt use.
HB 2105--Am. by SCW
                                     

 1    (h) (f) (g)  It shall be the duty of every person who purchases tangible
 2  personal property or services that are taxable under this act to pay the
 3  full amount of tax that is lawfully due to the retailer making the sale. Any
 4  person who willfully and intentionally refuses to pay such tax to the re-
 5  tailer shall be guilty of a misdemeanor and upon conviction shall be pun-
 6  ished and fined as provided by subsection (g) of K.S.A. 79-3615, and
 7  amendments thereto.
 8    Sec. 20.  K.S.A. 1996 Supp. 79-3615 is hereby amended to read as
 9  follows: 79-3615. (a) If any taxpayer shall fail to pay the tax required under
10  this act at the time required by or under the provisions of this act, there
11  shall be added to the unpaid balance of the tax, interest at the rate per
12  month prescribed by subsection (a) of K.S.A. 79-2968 and amendments
13  thereto from the date the tax was due until paid.
14    (b)  If any taxpayer due to negligence or intentional disregard fails to
15  file a return or pay the tax due at the time required by or under the
16  provisions of this act, there shall be added to the tax a penalty in an
17  amount equal to 10% of the unpaid balance of tax due.
18    (c)  If any person fails to make a return, or to pay any tax, within six
19  months from the date the return or tax was due, except in the case of an
20  extension of time granted by the secretary of revenue or the secretary's
21  designee, there shall be added to the tax due a penalty equal to 25% of
22  the unpaid balance of such tax due. Notwithstanding the foregoing, in the
23  event an assessment is issued following a field audit for any period for
24  which a return was filed by the taxpayer and all of the tax was paid pur-
25  suant to such return, a penalty shall be imposed for the period included
26  in the assessment in the amount of 10% of the unpaid balance of tax due
27  shown in the notice of assessment. If after review of a return for any
28  period included in the assessment, the secretary or secretary's designee
29  determines that the underpayment of tax was due to the failure of the
30  taxpayer to make a reasonable attempt to comply with the provisions of
31  this act, such penalty shall be imposed for the period included in the
32  assessment in the amount of 25% of the unpaid balance of tax due.
33    (d)  If any taxpayer, with fraudulent intent, fails to pay any tax or make,
34  render or sign any return, or to supply any information, within the time
35  required by or under the provisions of this act, there shall be added to
36  the tax a penalty in an amount equal to 50% of the unpaid balance of tax
37  due.
38    (e)  Penalty or interest applied under the provisions of subsections (a)
39  and (d) shall be in addition to the penalty added under any other provi-
40  sions of this section, but the provisions of subsections (b) and (c) shall be
41  mutually exclusive of each other.
42    (f)  Whenever the secretary or the secretary's designee determines
43  that the failure of the taxpayer to comply with the provisions of subsec-
HB 2105--Am. by SCW
                                     

 1  tions (b) and (c) of this section was due to reasonable causes, the secretary
 2  or the secretary's designee may waive or reduce any of the penalties and
 3  may reduce the interest rate to the underpayment rate prescribed and
 4  determined for the applicable period under section 6621 of the federal
 5  internal revenue code as in effect on January 1, 1994, upon making a
 6  record of the reasons therefor.
 7    (g)  In addition to all other penalties provided by this section, any
 8  person who willfully fails to make a return or to pay any tax imposed
 9  under the Kansas retailers' sales tax act, or who makes a false or fraudulent
10  return, or fails to keep any books or records prescribed by this act, or
11  who willfully violates any regulations of the secretary of revenue, for the
12  enforcement and administration of this act, or who aids and abets another
13  in attempting to evade the payment of any tax imposed by this act, or
14  who violates any other provision of this act, shall, upon conviction thereof,
15  be fined not less than $100 $500, nor more than $1,000 $10,000, or be
16  imprisoned in the county jail not less than one month, nor more than six
17  months, or be both so fined and imprisoned, in the discretion of the court.
18    Sec. 21.  K.S.A. 1996 Supp. 79-332a is hereby amended to read as
19  follows: 79-332a. (a) Any person, corporation or association owning oil
20  and gas leases or engaged in operating for oil or gas who fails to make
21  and file a statement of assessment on or before April 1 shall be subject
22  to a penalty as follows:  (1)  The appraiser shall, after having ascertained
23  the assessed value of the property of such taxpayer, add 5% 10% thereto
24  as a penalty for late filing if the failure is not for more than one month,
25  with an additional 5% for each additional month or fraction thereof during
26  which such failure continues, not exceeding 25% in the aggregate.
27    (2)  If the statement of assessment is filed more than one year from
28  April 1, the appraiser shall, after having ascertained the assessed value of
29  the property of such taxpayer, add 50% thereto as a penalty for late filing;
30  and
31    (2)  If any person, corporation or association with intentional disre-
32  gard or fraudulent intent, fails to make and file a statement of assessment
33  on or before April 1, the appraiser shall, after having ascertained the
34  assessed value of the property of such taxpayer, add 50% thereto as a
35  penalty for late filing.
36    (b)  For good cause shown the county appraiser may extend the time
37  in which to make and file such statement. Such request for extension of
38  time shall be in writing and shall be received by the county appraiser
39  prior to the due date of the statement of assessment.
40    (c)  Whenever any person, corporation or association owning oil and
41  gas leases or engaged in operating for oil or gas shall fail to make and
42  deliver to the county appraiser of every county wherein the property to
43  be assessed is located, a full and complete statement of assessment rel-
HB 2105--Am. by SCW
                                     

 1  ative to such property as required by blank forms prepared or approved
 2  for the purpose by the director of property valuation to elicit the infor-
 3  mation necessary to fix the valuation of the property, the appraiser shall
 4  ascertain the assessed value of the property of such taxpayer, and shall
 5  add 50% 10% thereto as a penalty for failing to file such statement. If
 6  such taxpayer, with intentional disregard or fraudulent intent, fails to
 7  make and deliver such statement, the appraiser shall ascertain the assessed
 8  value of the property, and shall add 50% thereto as a penalty for failing
 9  to file such statement.
10    (d)  The board of tax appeals shall have the authority to abate any
11  penalty imposed under the provisions of this section and order the refund
12  of the abated penalty, whenever excusable neglect on the part of the
13  person, corporation or association required to make and file the statement
14  of assessment is shown, or whenever the property for which a statement
15  of assessment was not filed as required by law is repossessed, judicially
16  or otherwise, by a secured creditor and such secured creditor pays the
17  taxes and interest due.
18    Sec. 22.  K.S.A. 79-6a02 is hereby amended to read as follows: 79-
19  6a02. (a) On or before the twentieth day of March 20 in each year every
20  person, firm or corporation which was a motor carrier on the first day of
21  January of said such year and who or which owned, used or operated any
22  over-the-road motor vehicles or rolling equipment in the state of Kansas
23  during the preceding year shall, (if a firm or corporation by its president,
24  secretary or principal acting officer or agent), return to the director of
25  property valuation, upon forms furnished by said the director, a sworn
26  statement or schedule as follows:
27    1. (1)  A list of all certificates, licenses and permits which have been
28  issued to the operator as a motor carrier by the Kansas state corporation
29  commission.;
30    2. (2)  the total number of miles for which all over-the-road motor
31  vehicles used in the state of Kansas were operated in Kansas and every-
32  where during the calendar year prior to making such report.;
33    3. (3)  the complete list of over-the-road vehicles and rolling equip-
34  ment owned, used or operated in the state of Kansas by said such motor
35  carrier during the preceding calendar year and giving the name and num-
36  ber, model and value of the same: Provided, That, except that interchange
37  equipment and trip-leased equipment shall be listed only by the owner.;
38  and
39    4. (4)  In case any motor carrier holding a certificate of convenience
40  and necessity, a contract carrier permit or an interstate license as a com-
41  mon, contract or exempt carrier from the state corporation commission
42  of the state of Kansas between January 1 and March 1 of any year did
43  not own, use or operate any over-the-road motor vehicle or rolling equip-
HB 2105--Am. by SCW
                                     

 1  ment in the state of Kansas during the preceding calendar year he or she
 2  such motor carrier shall on or before the twentieth day of March 20 of
 3  such year file with the director of property valuation a complete list and
 4  number of over-the-road motor vehicles and rolling equipment owned,
 5  used or operated by him or her such motor carrier in the state of Kansas
 6  between January 1 and March 1 of the year in which such list is filed
 7  together with a verified statement estimating the number of miles he or
 8  she such motor carrier expects such equipment to be operated in the
 9  state of Kansas and everywhere during such year.
10    5. (b)  In case any motor carrier required to file a statement under
11  the provisions of this act fails to make and file such statement on or before
12  the twentieth day of March 20, the director of property valuation shall,
13  after he or she has having ascertained the value of the property, of such
14  motor carrier from any other sources available to him or her, add fifty
15  percent (50%) 10% additional value as a penalty for failure to file a report,
16  but such assessment shall not relieve the motor carrier from the duty to
17  file such report or statement: Provided, That, except that for good cause
18  shown the director of property valuation may extend the time in which
19  to make and file such statement: Provided further, That, and whenever,
20  in the judgment of the director of property valuation the failure of any
21  motor carrier to comply with this provision is due to a good and reason-
22  able cause, the director of property valuation may at his or her discretion
23  waive or reduce any of the penalty herein provided upon making a record
24  of his or her any reason therefor. In the event a motor carrier shall file
25  a statement for any year within one year after such statement was due,
26  the director of property valuation shall recompute the assessment, tax and
27  penalty on the basis of said such statement. If a motor carrier, with in-
28  tentional disregard or fraudulent intent, fails to make and file such state-
29  ment by the due date, the director of property valuation shall, after having
30  ascertained the value of the property, add 50% additional value as a
31  penalty.
32    Sec. 23.  K.S.A. 1996 Supp. 79-1422 is hereby amended to read as
33  follows: 79-1422. (a) Any person required to file a statement listing prop-
34  erty for assessment and taxation purposes under the provisions of this act
35  who fails to make and file such statement on or before the date prescribed
36  by K.S.A. 79-306, and amendments thereto, shall be subject to a penalty
37  as follows:  The appraiser shall, after having ascertained the assessed value
38  of the property of such taxpayer, add 5% 10% thereto as a penalty for
39  late filing if the failure is not for more than one month, with an additional
40  5% for each additional month or fraction thereof during which such fail-
41  ure continues, not exceeding 25% in the aggregate. For good cause shown
42  the appraiser may extend the time in which to make and file such state-
43  ment. Such request for extension of time must be in writing and shall
HB 2105--Am. by SCW
                                     

 1  state just and adequate reasons on which the request may be granted.
 2  The request must be received by the appraiser prior to the due date of
 3  the statement.
 4    (b)  If, within one year following the date prescribed by K.S.A. 79-
 5  306, and amendments thereto, any person shall fail to make and file the
 6  statement listing property for assessment and taxation purposes or shall
 7  fail to make and file a full and complete statement listing property for
 8  such purposes, the appraiser shall proceed to ascertain the assessed value
 9  of the property of such taxpayer, and for this purpose the appraiser may
10  examine under oath any person or persons whom the appraiser deems to
11  have knowledge thereof. The appraiser shall, after having ascertained the
12  assessed value of such property, add 50% thereto as a penalty for failure
13  to file such statement or for failure to file a full and complete statement.
14  If any person, with intentional disregard or fraudulent intent, fails to
15  make and file the statement listing property for assessment and taxation
16  purposes on or before the due date, the appraiser shall, after having as-
17  certained the assessed value of such property, add 50% thereto as a pen-
18  alty.
19    (c)  The board of tax appeals shall have the authority to abate any
20  penalty imposed under the provisions of this section and order the refund
21  of the abated penalty, whenever excusable neglect on the part of the
22  person required to make and file the statement listing property for as-
23  sessment and taxation purposes is shown, or whenever the property for
24  which a statement of assessment was not filed as required by law is re-
25  possessed, judicially or otherwise, by a secured creditor and such secured
26  creditor pays the taxes and interest due.
27    Sec. 24.  K.S.A. 1996 Supp. 79-1427a is hereby amended to read as
28  follows: 79-1427a. (a) If, the county appraiser discovers, after the tax roll
29  has been certified to the county clerk, that any tangible personal property
30  subject to taxation has been omitted from the tax rolls, the county clerk
31  shall place such property on the tax roll as an added tax, or if, after one
32  year from the date prescribed by K.S.A. 79-306, and amendments thereto,
33  for the listing of tangible personal property, the county appraiser discov-
34  ers that any tangible personal property which was subject to taxation in
35  any year or years within two years next preceding January 1 of the cal-
36  endar year in which it was discovered has not been listed or has been
37  underreported for whatever reason, such property shall be deemed to
38  have escaped taxation. In the case of property which has not been listed,
39  it shall be the duty of the county appraiser to list and appraise such prop-
40  erty and, for an added tax, add penalties as prescribed in K.S.A. 79-1422,
41  and amendments thereto, and which shall be designated on the appraisal
42  roll as an added appraisal for that year. In the case of property which has
43  escaped taxation, it shall be the duty of the county appraiser to list and
HB 2105--Am. by SCW
                                     

 1  appraise such property and add 50% thereto as a penalty for escaping
 2  taxation for each such year during which such property was not listed,
 3  and it shall be designated on the appraisal roll as ``escaped appraisal'' for
 4  each such preceding year or years. In the case of property which has been
 5  listed but underreported, it shall be the duty of the county appraiser to
 6  list and appraise the underreported portion of such property and add 50%
 7  thereto as a penalty for escaping taxation for each such year during which
 8  such property was underreported, and it shall be designated on the ap-
 9  praisal roll as ``escaped appraisal'' for each such preceding year or years.
10  The county clerk, upon receipt of the valuation for such property in either
11  of the aforementioned cases, shall place such property on the tax rolls
12  and compute the amount of tax due based upon the mill levy for the year
13  or years in which such tax should have been levied, and shall certify such
14  amount to the county treasurer as an added or escaped appraisal. The
15  amount of such tax shall be due immediately and payable within 45 days
16  after the issuance of an additional or escaped property tax bill by the
17  county treasurer. No interest shall be imposed unless the tax remains
18  unpaid after such 45 day period. Taxes levied pursuant to this section
19  which remain unpaid after such 45 day period shall be deemed delinquent
20  and the county treasurer shall collect and distribute such tax in the same
21  manner as prescribed by law for the collection and distribution of other
22  taxes levied upon property which are delinquent. If the owner of such
23  property is deceased, taxes charged as herein provided shall be levied
24  against the estate of such deceased person for only two calendar years
25  preceding death and shall be paid by the legal representative or repre-
26  sentatives of such estate. In the event that such escaped appraisal is due
27  to any willful or clerical error of the county appraiser, such property shall
28  be appraised at its fair market value and no penalty shall be added.
29    (b)  A taxpayer with a grievance as to any penalty applied pursuant to
30  the provisions of this section, may appeal to the state board of tax appeals
31  on forms prepared by the state board of tax appeals and provided by the
32  county appraiser. The state board of tax appeals shall have the authority
33  to abate any penalty imposed under the provisions of this section and
34  order the refund of the abated penalty, whenever excusable neglect on
35  the part of the person required to make and file the statement listing
36  property for assessment and taxation purposes is shown, or whenever the
37  property which has been deemed to have escaped taxation is repossessed,
38  judicially or otherwise, by a secured creditor and such creditor pays the
39  taxes and interest due. No interest shall be assessed during the pendency
40  of this appeal.
41    (c)  Interest at the rate prescribed by K.S.A. 79-2968, and amendments
42  thereto, shall be imposed upon any tax imposed pursuant to this section
43  determined without regard to any penalty amounts imposed hereunder
HB 2105--Am. by SCW
                                     

 1  from the date such tax was due.
 2    (c) (d)  The provisions of this section shall apply to any tangible per-
 3  sonal property discovered during the calendar years 1982, 1983, 1984 and
 4  any year thereafter to have escaped appraisal and taxation during any such
 5  year or any year within two years next preceding any such year.
 6    Sec. 25. 21.  K.S.A. 79-1701a is hereby amended to read as follows:
 7  79-1701a. Any taxpayer, the county appraiser or the county clerk shall,
 8  on their own motion, request the board of county commissioners to order
 9  the correction of the clerical errors in the appraisal, assessment or tax
10  rolls as described in K.S.A. 79-1701, and amendments thereto. The board
11  of county commissioners of the several counties are hereby authorized to
12  order the correction of clerical errors, specified in K.S.A. 79-1701, and
13  amendments thereto, in the appraisal, assessment or tax rolls for the cur-
14  rent year and the immediately preceding two years during the period on
15  and after November 1 of each year. If a county treasurer has collected
16  and distributed the property taxes of a taxpayer and it shall thereafter be
17  determined that the tax computed and paid was based on an erroneous
18  assessment due to a clerical error which resulted in an overpayment of
19  taxes by the taxpayer, and such error is corrected under the provisions
20  hereof then the county commissioners may direct a refund in the amount
21  of the overpayment plus interest at the rate prescribed by K.S.A. 79-2968,
22  and amendments thereto, from the date of payment from tax moneys col-
23  lected during the current year and approve a claim therefor. If all or any
24  portion of the taxes on such property remain unpaid, the board of county
25  commissioners shall cancel that portion of such unpaid taxes which were
26  assessed on the basis of the error which is being corrected. In lieu of
27  taking such a refund the taxpayer may, at the taxpayer's option, be allowed
28  a credit on the current year's taxes in the amount of the overpayment
29  plus interest at the rate prescribed by K.S.A. 79-2968, and amendments
30  thereto, from the date of payment for the previous year. In the event the
31  error results in an understatement of value or taxes as a result of a mistake
32  on the part of the county, the board of county commissioners of the
33  several counties are hereby authorized to correct such error and order an
34  additional assessment or tax bill, or both, to be issued, except that, in no
35  such case shall the taxpayer be assessed interest or penalties on any tax
36  which may be assessed. If such error applies to property which has been
37  sold or otherwise transferred subsequent to the time the error was made,
38  no such additional assessment or tax bill shall be issued.
39    Sec. 26. 22.  K.S.A. 79-1702 is hereby amended to read as follows:
40  79-1702. If any taxpayer or any municipality or taxing district shall have
41  a grievance not remediable under the provisions of K.S.A. 79-1701 or 79-
42  1701a, and amendments thereto, or which was remediable thereunder
43  and reported to the proper official or officials within the time prescribed
HB 2105--Am. by SCW
                                     

 1  but which has not been remedied by such official or officials, such griev-
 2  ance may be presented to the state board of tax appeals and if it shall be
 3  satisfied from competent evidence produced that there is a real grievance,
 4  it may direct that the same be remedied either by canceling the tax, if
 5  uncollected, together with all penalties charged thereon, or if the tax has
 6  been paid, by ordering a refund of the amount found to have been un-
 7  lawfully charged and collected and interest at the rate prescribed by
 8  K.S.A. 79-2968, and amendments thereto, minus two percentage
 9  points.
10    In all cases where property has been acquired by the state, a political
11  subdivision or an institution exempt from general property taxation, the
12  general property tax for all the years prior to 1975 that are unpaid on the
13  taking effect of this act shall be canceled and abated upon proper appli-
14  cation hereunder.
15    In all cases where the identical property owned by any taxpayer has
16  been assessed for the current tax year in more than one county in the
17  state, the board is hereby given authority to determine which county is
18  entitled to the assessment of the property and to charge legal taxes
19  thereon, and if the taxes have been paid in a county not entitled thereto,
20  the board is hereby empowered to direct the authorities of the county
21  which has so unlawfully collected the taxes to refund the same to the
22  taxpayer with all penalties and interest charged thereon.
23    No tax grievance shall be considered by the board of tax appeals unless
24  the same is filed within three years from the date the tax would have
25  become a lien on real estate, except that the board shall have the au-
26  thority, upon a finding of excusable neglect or undue hardship, to waive
27  the limitations period, and that in no event shall the board order a refund
28  of taxes, pursuant to the authority granted herein, that extends back more
29  than three years from the date of the most recent tax year without the
30  aggrieved person showing proof of a unanimous vote by the board of
31  county commissioners recommending the same. Such vote shall be taken
32  at a regularly scheduled meeting of the board of county commissioners
33  and filed with the state board of tax appeals. In any county; such board,
34  upon the adoption of a resolution so providing, may elect to rec-
35  ommend any such tax refund upon a majority vote.
36    In all cases where an error results in an understatement of values or
37  taxes as a result of a mistake on the part of a county, the board of tax
38  appeals, if it shall be satisfied from competent evidence produced that
39  there is an understatement as a result of a clerical error, may order an
40  additional assessment or tax bill, or both, to be issued so that the proper
41  value of the property in question is reflected, except that, in no such case
42  shall the taxpayer be assessed interest or penalties on any tax which may
43  be assessed. No increase shall be ordered to correct such error that ex-
HB 2105--Am. by SCW
                                     

 1  tends back more than two years from the date of the most recent tax year.
 2  If such error applies to property which has been sold or otherwise trans-
 3  ferred subsequent to the time the error was made, no such additional
 4  assessment or tax bill shall be issued.
 5    Errors committed in the valuation and assessment process that are not
 6  specifically enumerated in K.S.A. 79-1701, and amendments thereto, shall
 7  be remediable only under the provisions of K.S.A. 79-2005, and amend-
 8  ments thereto.
 9    Sec. 27. 23.  K.S.A. 1996 Supp. 79-2004 is hereby amended to read
10  as follows: 79-2004. (a) Except as provided by K.S.A. 1996 Supp. 79-4521,
11  any person charged with real property taxes on the tax books in the hands
12  of the county treasurer may pay, at such person's option, the full amount
13  thereof on or before December 20 of each year, or 1/2 thereof on or before
14  December 20 and the remaining 1/2 on or before June 20 next ensuing.
15  If the full amount of the real property taxes listed upon any tax statement
16  is $10 or less the entire amount of such tax shall be due and payable on
17  or before December 20.
18    In case the first half of the real property taxes remains unpaid after
19  December 20, the first half of the tax shall draw interest at the rate of
20  12% prescribed by K.S.A. 79-2968, and amendments thereto, plus two
21  percentage points, per annum and may be paid at any time prior to June
22  20 following by paying 1/2 of the tax together with interest at such rate
23  from December 20 to date of payment. Subject to the provisions of sub-
24  section (d), all real property taxes of the preceding year and accrued
25  interest thereon which remain due and unpaid on June 21 shall accrue
26  interest at the rate of 12% prescribed by K.S.A. 79-2968, and amendments
27  thereto, plus two percentage points, per annum from June 20 until paid,
28  or until the real property is sold for taxes by foreclosure as provided by
29  law. Except as provided by subsection (c), all interest herein provided
30  shall be credited to the county general fund, and whenever any such
31  interest is paid the county treasurer shall enter the amount of interest so
32  paid on the tax rolls in the proper column and account for such sum.
33    (b)  Whenever any date prescribed in subsection (a) for the payment
34  of real property taxes occurs on a Saturday or Sunday, such date for
35  payment shall be extended until the next-following regular business day
36  of the office of the county treasurer.
37    (c)  The board of county commissioners may enter into an agreement
38  with the governing body of any city located in the county for the distri-
39  bution of part or all of the interest paid on special assessments levied by
40  the city which remain unpaid.
41    (d)  All real property taxes of any year past due and unpaid on the
42  effective date of this section and interest accrued thereon pursuant to
43  this section prior to its amendment by this act shall draw interest at the
HB 2105--Am. by SCW
                                     

 1  rate of 12% prescribed by K.S.A. 79-2968, and amendments thereto, plus
 2  two percentage points, per annum from the effective date of this section
 3  until paid or until the real property is sold for taxes by foreclosure as
 4  provided by law.
 5    Sec. 28. 24.  K.S.A. 1996 Supp. 79-2004a is hereby amended to read
 6  as follows: 79-2004a. (a) Any taxpayer charged with personal property
 7  taxes on the tax books in the hands of the county treasurer may at such
 8  taxpayer's option pay the full amount thereof on or before December 20
 9  of each year, or 1/2 thereof on or before December 20 and the remaining
10   1/2 thereof on or before June 20 next ensuing, except that: (1) All unpaid
11  personal property taxes of the preceding year must first be paid; and (2)
12  if the full amount of the personal property taxes listed upon any tax state-
13  ment shall be $10 or less the entire amount of such taxes shall be due
14  and payable on or before December 20.
15    In the event anyone charged with personal property taxes shall fail to
16  pay the first half thereof on or before December 20, the full amount
17  thereof shall become immediately due and payable.
18    In case the first half of the taxes remains unpaid after December 20,
19  the entire and full amount of personal property taxes charged shall draw
20  interest at the rate of 12% prescribed by K.S.A. 79-2968, and amendments
21  thereto, plus two percentage points, per annum from December 20 to
22  date of payment. Subject to the provisions of subsection (c) all personal
23  property taxes of the preceding year and interest thereon which shall
24  remain due and unpaid on June 21 shall draw interest at the rate of 12%
25  prescribed by K.S.A. 79-2968, and amendments thereto, plus two per-
26  centage points, per annum from June 20 until paid. All interest herein
27  provided for shall be credited to the county general fund and retained by
28  the county, and whenever any such interest is paid, the county treasurer
29  shall enter the amount of interest so paid on the tax rolls in the proper
30  column and account for such sum.
31    (b)  Whenever any date prescribed in subsection (a) for the payment
32  of personal property taxes occurs on a Saturday or Sunday, such date for
33  payment shall be extended until the next-following regular business day
34  of the office of the county treasurer.
35    (c)  All personal property taxes of any year past due and unpaid on
36  the effective date of this section and interest accrued thereon pursuant
37  to this section prior to its amendment by this act shall draw interest at
38  the rate of 12% prescribed by K.S.A. 79-2968, and amendments thereto,
39  plus two percentage points, per annum from the effective date of this
40  section until paid.
41    Sec. 29. 25.  K.S.A. 1996 Supp. 79-2005 is hereby amended to read
42  as follows: 79-2005. (a) Any taxpayer, before protesting the payment of
43  such taxpayer's taxes, shall be required, either at the time of paying such
HB 2105--Am. by SCW
                                     

 1  taxes, or, if the whole or part of the taxes are paid prior to December 20,
 2  no later than December 20, or, with respect to taxes paid in whole on or
 3  before December 20 by an escrow or tax service agent, no later than
 4  January 31 of the next year, to file a written statement with the county
 5  treasurer, on forms approved by the state board of tax appeals and pro-
 6  vided by the county treasurer, clearly stating the grounds on which the
 7  whole or any part of such taxes are protested and citing any law, statute
 8  or facts on which such taxpayer relies in protesting the whole or any part
 9  of such taxes. When the grounds of such protest is that the valuation or
10  assessment of the property upon which the taxes are levied is illegal or
11  void, the county treasurer shall forward a copy of the written statement
12  of protest to the county appraiser who shall within 15 days of the receipt
13  thereof, schedule an informal meeting with the taxpayer or such taxpay-
14  er's agent or attorney with reference to the property in question. The
15  county appraiser shall review the appraisal of the taxpayer's property with
16  the taxpayer or such taxpayer's agent or attorney and may change the
17  valuation of the taxpayer's property, if in the county appraiser's opinion
18  a change in the valuation of the taxpayer's property is required to assure
19  that the taxpayer's property is valued according to law, and shall, within
20  15 business days thereof, notify the taxpayer in the event the valuation of
21  the taxpayer's property is changed, in writing of the results of the meeting.
22  In the event the valuation of the taxpayer's property is changed and such
23  change requires a refund of taxes and interest thereon, the county treas-
24  urer shall process the refund in the manner provided by subsection (l).
25    (b)  No protest appealing the valuation or assessment of property shall
26  be filed pertaining to any year's valuation or assessment when an appeal
27  of such valuation or assessment was commenced pursuant to K.S.A. 79-
28  1448, and amendments thereto, nor shall the second half payment of taxes
29  be protested when the first half payment of taxes has been protested.
30  Notwithstanding the foregoing, this provision shall not prevent any sub-
31  sequent owner from protesting taxes levied for the year in which such
32  property was acquired, nor shall it prevent any taxpayer from protesting
33  taxes when the valuation or assessment of such taxpayer's property has
34  been changed pursuant to an order of the director of property valuation.
35    (c)  A protest shall not be necessary to protect the right to a refund
36  of taxes in the event a refund is required because the final resolution of
37  an appeal commenced pursuant to K.S.A. 79-1448, and amendments
38  thereto, occurs after the final date prescribed for the protest of taxes.
39    (d)  If the grounds of such protest shall be that the valuation or as-
40  sessment of the property upon which the taxes so protested are levied is
41  illegal or void, such statement shall further state the exact amount of
42  valuation or assessment which the taxpayer admits to be valid and the
43  exact portion of such taxes which is being protested.
HB 2105--Am. by SCW
                                     

 1    (e)  If the grounds of such protest shall be that any tax levy, or any
 2  part thereof, is illegal, such statement shall further state the exact portion
 3  of such tax which is being protested.
 4    (f)  Upon the filing of a written statement of protest, the grounds of
 5  which shall be that any tax levied, or any part thereof, is illegal, the county
 6  treasurer shall mail a copy of such written statement of protest to the
 7  state board of tax appeals and the governing body of the taxing district
 8  making the levy being protested.
 9    (g)  Within 30 days after notification of the results of the informal
10  meeting with the county appraiser pursuant to subsection (a), the pro-
11  testing taxpayer may, if aggrieved by the results of the informal meeting
12  with the county appraiser, appeal such results to the state board of tax
13  appeals.
14    (h)  After examination of the copy of the written statement of protest
15  and a copy of the written notification of the results of the informal meet-
16  ing with the county appraiser in cases where the grounds of such protest
17  is that the valuation or assessment of the property upon which the taxes
18  are levied is illegal or void, the board shall conduct a hearing in accor-
19  dance with the provisions of the Kansas administrative procedure act,
20  unless waived by the interested parties in writing. If the grounds of such
21  protest is that the valuation or assessment of the property is illegal or void
22  the board shall notify the county appraiser thereof.
23    (i)  In the event of a hearing, the same shall be originally set not later
24  than 90 days after the filing of the copy of the written statement of protest
25  and a copy, when applicable, of the written notification of the results of
26  the informal meeting with the county appraiser with the board. With
27  regard to any matter properly submitted to the board relating to the
28  determination of valuation of residential property for taxation purposes,
29  it shall be the duty of the county appraiser to initiate the production of
30  evidence to demonstrate, by a preponderance of the evidence, the validity
31  and correctness of such determination. No presumption shall exist in fa-
32  vor of the county appraiser with respect to the validity and correctness of
33  such determination.  In all instances where the board sets a request for
34  hearing and requires the representation of the county by its attorney or
35  counselor at such hearing, the county shall be represented by its county
36  attorney or counselor.
37    (j)  When a determination is made as to the merits of the tax protest,
38  the board shall render and serve its order thereon. The county treasurer
39  shall notify all affected taxing districts of the amount by which tax reve-
40  nues will be reduced as a result of a refund.
41    (k)  If a protesting taxpayer fails to file a copy of the written statement
42  of protest and a copy, when applicable, of the written notification of the
43  results of the informal meeting with the county appraiser with the board
HB 2105--Am. by SCW
                                     

 1  within the time limit prescribed, such protest shall become null and void
 2  and of no effect whatsoever.
 3    (l)  (1)  In the event the board orders that a refund be made [pur-
 4  suant to this section or the provisions of K.S.A. 79-1609, and
 5  amendments thereto,] and no appeal is taken from such order, the
 6  county treasurer shall, as soon thereafter as reasonably practicable, refund
 7  to the taxpayer such protested taxes and[, with respect to protests or
 8  appeals commenced after the effective date of this act,] interest
 9  computed at the rate prescribed by K.S.A. 79-2968, and amendments
10  thereto, minus two percentage points, per annum from the date of
11  payment of such taxes from tax moneys collected but not distributed.
12  Upon making such refund, the county treasurer shall charge the fund or
13  funds having received such protested taxes, except that, with respect to
14  that portion of any such refund attributable to interest the county
15  treasurer shall charge the county general fund. In the event that
16  the board or court finds that any time delay in making its decision
17  is unreasonable and is attributable to the taxpayer, it may order
18  that no interest or only a portion thereof be added to such refund
19  of taxes.
20    (2)  No interest shall be allowed pursuant to paragraph (1) in
21  any case where: (A) A taxpayer has failed to produce documentation
22  at or prior to the informal conference with the county or district
23  appraiser required by K.S.A. 79-1448, and amendments thereto, or
24  this section necessary, to determine the correctness of the valuation
25  established for the property subject to the appeal or protest; or (B)
26  the tax paid under protest was inclusive of delinquent taxes.
27    (m)  Whenever, by reason of the refund of taxes previously received
28  or the reduction of taxes levied but not received as a result of decreases
29  in assessed valuation, it will be impossible to pay for imperative functions
30  for the current budget year, the governing body of the taxing district
31  affected may issue no-fund warrants in the amount necessary. Such war-
32  rants shall conform to the requirements prescribed by K.S.A. 79-2940,
33  and amendments thereto, except they shall not bear the notation required
34  by such section and may be issued without the approval of the state board
35  of tax appeals. The governing body of such taxing district shall make a tax
36  levy at the time fixed for the certification of tax levies to the county clerk
37  next following the issuance of such warrants sufficient to pay such war-
38  rants and the interest thereon. All such tax levies shall be in addition to
39  all other levies authorized by law.
40    (n)  The county treasurer shall disburse to the proper funds all por-
41  tions of taxes paid under protest and shall maintain a record of all portions
42  of such taxes which are so protested and shall notify the governing body
43  of the taxing district levying such taxes thereof and the director of ac-
HB 2105--Am. by SCW
                                     

 1  counts and reports if any tax protested was levied by the state.
 2    (o)  This statute shall not apply to the valuation and assessment of
 3  property assessed by the director of property valuation and it shall not be
 4  necessary for any owner of state assessed property, who has an appeal
 5  pending before the board of tax appeals, to protest the payment of taxes
 6  under this statute solely for the purpose of protecting the right to a refund
 7  of taxes paid under protest should that owner be successful in that appeal.
 8    Sec. 30. 26.  K.S.A. 1996 Supp. 79-2001 is hereby amended to read
 9  as follows: 79-2001. (a) As soon as the county treasurer receives the tax
10  roll of the county, the treasurer shall enter in a column opposite the
11  description of each tract or parcel of land the amount of unpaid taxes and
12  the date of unredeemed sales, if any, for previous years on such land. The
13  treasurer shall cause a notice to be published in the official county paper
14  once each week for three consecutive weeks, stating in the notice the
15  amount of taxes charged for state, county, township, school, city or other
16  purposes for that year, on each $1,000 of valuation.
17    (b)  Each year after receipt of the tax roll from the county clerk and
18  before December 15, the treasurer shall mail to each taxpayer, as shown
19  by the rolls, a tax statement which indicates the taxing unit, assessed value
20  of real and personal property, the mill levy and tax due, except that for
21  tax year 1998, and all tax years thereafter, such statement shall indicate
22  the taxing unit, assessed value of real and personal property for the cur-
23  rent and next preceding taxable year, the mill levy for the current and
24  next preceding taxable year and, in the case of unified school districts, the
25  mill levy required by K.S.A. 72-6431, and amendments thereto, shall be
26  separately indicated, the tax due and an itemization of each taxing unit's
27  mill levy, whose specific mill levy exceeds 5% of the aggregate mill levy,
28  for the current and next preceding taxable year and the percentage change
29  in the amount of revenue produced therefrom, if any. In addition, with
30  respect to land devoted to agricultural use, such statement shall indicate
31  the acreage and description of each parcel of such land. The tax statement
32  shall also indicate separately each parcel of real property which is sepa-
33  rately classified for property tax purposes. The county appraiser shall pro-
34  vide the information necessary for the county treasurer to comply with
35  the provisions of this section. The tax statement also may include the
36  intangible tax due the county. All items may be on one statement or may
37  be shown on separate statements and may be on a form prescribed by
38  the county treasurer. The statement shall be mailed to the last known
39  address of the taxpayer or and or to a designee authorized by the taxpayer
40  to accept the tax statement, if the designee has an interest in receiving
41  the statement. When any statement is returned to the county treasurer
42  for failure to find the addressee, the treasurer shall make a diligent effort
43  to find a forwarding address of the taxpayer and mail the statement to
HB 2105--Am. by SCW
                                     

 1  the new address. All tax statements mailed pursuant to this section shall
 2  be mailed by first-class mail. The requirement for mailing a tax statement
 3  shall extend only to the initial statement required to be mailed in each
 4  year and to any follow-up required by this section.
 5    (c)  For tax year 1998, and all tax years thereafter, after receipt
 6  of the tax roll from the county clerk and before December 15, the
 7  treasurer shall mail to each taxpayer, as shown by the tax rolls, a
 8  tax information form which indicates the taxing unit, assessed
 9  value of real property for the current and next preceding taxable
10  year, the mill levy for the current and next preceding taxable year
11  and, in the case of unified school districts, the mill levy required
12  by K.S.A. 72-6431, and amendments thereto, shall be separately
13  indicated, the tax due and an itemization of each taxing unit's mill
14  levy for the current and next preceding taxable year and the per-
15  centage change in the amount of revenue produced therefrom, if
16  any. In addition, with respect to land devoted to agricultural use,
17  such form shall indicate the acreage and description of each parcel
18  of such land. The tax information form shall also indicate sepa-
19  rately each parcel of real property which is separately classified
20  for property tax purposes. The county appraiser shall provide the
21  information necessary for the county treasurer to comply with the
22  provisions of this section. The tax information form may be sepa-
23  rate from the tax statement or a part of the tax statement. The tax
24  information form shall be in a format prescribed by the director
25  of property valuation. The tax information form shall be mailed to
26  the last known address of the taxpayer. When a tax information
27  form is returned to the county treasurer for failure to find the
28  addressee, the treasurer shall make a diligent effort to find a for-
29  warding address of the taxpayer and mail the tax information form
30  to the new address. All tax information forms mailed pursuant to
31  this section shall be mailed by first class mail.
32    Sec. 31. 27.  K.S.A. 1996 Supp. 79-32,107 is hereby amended to read
33  as follows: 79-32,107. (a) All penalties and interest prescribed by K.S.A.
34  79-3228, and amendments thereto, for noncompliance with the income
35  tax laws of Kansas shall be applicable for noncompliance with the provi-
36  sions of the Kansas withholding and declaration of estimated tax act re-
37  lating to withholding tax which shall be enforced in the same manner as
38  the Kansas income tax act. A penalty at the same rate per annum pre-
39  scribed by subsection (b) of K.S.A. 79-2968, and amendments thereto,
40  for interest upon delinquent or unpaid taxes shall be applied and added
41  to a taxpayer's amount of underpayment of estimated tax due from the
42  date the estimated tax payment was due until the same is paid or until
43  the 15th day of the fourth month following the close of the taxable year
HB 2105--Am. by SCW
                                     

 1  for which such estimated tax is a credit, whichever date is earlier, but
 2  such penalty shall not be added if the total amount thereof does not
 3  exceed $1. For purposes of this subsection, the amount of underpayment
 4  of estimated tax shall be the excess of the amount of the installment which
 5  would be required to be paid if the estimated tax were equal to 90% of
 6  the tax shown on the return for the taxable year or, if no return was filed,
 7  90% of the tax for such year, over the amount, if any, of the installment
 8  paid on or before the last date prescribed for payment. Amounts due
 9  from any employer on account of withholding or from any taxpayer for
10  estimated tax may be collected by the director in the manner provided
11  for the collection of state income tax in K.S.A. 79-3235, and amendments
12  thereto. For purposes of this subsection, ``underpayment of tax'' means
13  the difference between the amount of tax actually paid and the amount of
14  tax which would have been required to be paid to avoid penalty pursuant
15  to subsection (b) or (c).
16    (b)  No penalty or interest shall be imposed upon any individual with
17  respect to any underpayment of any installment if the total amount of all
18  payments of estimated tax made on or before the last date prescribed for
19  the payment of such installment equals or exceeds the amount which
20  would have been required to be paid on or before such date if the esti-
21  mated tax were whichever of the following is the least:
22    (1)  The tax shown on the return of the individual for the preceding
23  taxable year, if a return showing a liability for tax was filed by the indi-
24  vidual for the preceding taxable year and such preceding year was a tax-
25  able year of 12 months;
26    (2)  zero if no return was required to be filed or if the tax liability on
27  the individual's return was less than $200 for the preceding taxable year;
28    (2) (3)  an amount equal to 66 2/3%, in the case of individuals referred
29  to in subsection (b) of K.S.A. 79-32,102, and amendments thereto, and
30  90%, in the case of all other individuals, of the tax for the taxable year
31  computed by placing on an annualized basis, pursuant to rules and reg-
32  ulations adopted by the secretary of revenue, the taxable income for the
33  months in the taxable year ending before the month in which the install-
34  ment is required to be made.
35    (c)  No penalty or interest shall be imposed upon any corporation with
36  respect to any underpayment of any installment of estimated tax if the
37  total amount of all payments of estimated tax made on or before the last
38  date prescribed for the payment of such installment equals or exceeds
39  the amount which would have been required to be paid on or before such
40  date if the estimated tax were whichever of the following is the least:
41    (1)  The tax shown on the return of the corporation for the preceding
42  taxable year, if a return showing a liability for tax was filed by the cor-
43  poration for the preceding taxable year and such preceding year was a
HB 2105--Am. by SCW
                                     

 1  taxable year of 12 months, or zero if no return was required to be filed,
 2  or if the tax liability on the corporation's return was less than $500 for
 3  the preceding taxable year; or
 4    (2) (A)  an amount equal to 90% of the tax for the taxable year com-
 5  puted by placing on an annualized basis the taxable income: (i) For the
 6  first three months of the taxable year, in the case of the installment re-
 7  quired to be paid in the fourth month; (ii) for the first three months or
 8  for the first five months of the taxable year, in the case of the installment
 9  required to be paid in the sixth month; (iii) for the first six months or for
10  the first eight months of the taxable year in the case of the installment
11  required to be paid in the ninth month; and (iv) for the first nine months
12  or for the first 11 months of the taxable year, in the case of the installment
13  required to be paid in the 12th month of the taxable year.
14    (B)  For purposes of this subsection (2), the taxable income shall be
15  placed on an annualized basis by (i) multiplying by 12 the taxable income
16  referred to in subsection (2)(A), and (ii) dividing the resulting amount by
17  the number of months in the taxable year (three, five, six, eight, nine, or
18  11, as the case may be) referred to in subsection (2)(A).
19    (d)  If the employer, in violation of the provisions of this act, fails to
20  deduct and withhold under this chapter, and thereafter the tax against
21  which such withholding may be credited is paid, the amount otherwise
22  required to be deducted and withheld shall not be collected from the
23  employer; but this subsection shall in no case relieve the employer from
24  liability for any penalties or additions to the tax otherwise applicable in
25  respect of such failure to deduct and withhold.
26    (e)  Any person required to collect, truthfully account for, and pay
27  over any tax imposed by this act, who willfully fails to collect such tax, or
28  truthfully account for and pay over such tax, or willfully attempts in any
29  manner to evade or defeat any such tax or the payment thereof, shall in
30  addition to the other penalties of this section be liable to a penalty equal
31  to the total amount of the tax evaded, or not collected, or not accounted
32  for and paid over.
33    (f)  In case of failure by any employer required by subsection (b) of
34  K.S.A. 79-3298, and amendments thereto, to remit any amount of with-
35  held taxes by the date prescribed therefor, unless it is shown that such
36  failure is due to reasonable cause and not due to willful neglect, there
37  shall be imposed upon such person a penalty of 15% of the amount of
38  the underpayment. For purposes of this subsection, the term ``underpay-
39  ment'' means the excess of the amount of the tax required to be withheld
40  and remitted over the amount, if any, remitted on or before the date
41  prescribed therefor. The failure to remit for any withholding period shall
42  be deemed not to continue beyond the last date prescribed for filing the
43  annual return as required by subsection (d) of K.S.A. 79-3298, and
HB 2105--Am. by SCW
                                     

 1  amendments thereto. Penalty and interest as prescribed by K.S.A. 79-
 2  3228, and amendments thereto, shall not begin to accrue under subsec-
 3  tion (a) of this section on the amount of any such underpayment until the
 4  due date of the annual return for the calendar year in which such failure
 5  to remit occurs.
 6    (g)  Whenever the secretary or the secretary's designee determines
 7  that the failure of the taxpayer to comply with the provisions of subsec-
 8  tions (a), (e), or (f) of this section was due to reasonable causes, the
 9  secretary or the secretary's designee may waive or reduce any of said
10  penalties and may reduce the interest rate to the underpayment rate
11  prescribed and determined for the applicable period under section 6621
12  of the federal internal revenue code as in effect on January 1, 1994, upon
13  making a record of the reasons therefor.
14    New Sec. 32.  In addition to any other rights and privileges
15  provided by law regarding investigations of compliance with the
16  provisions of the Kansas retailers' sales tax and Kansas compen-
17  sating tax acts by a taxpayer, an investigated taxpayer shall be af-
18  forded the following rights and privileges:
19    (a)  The opportunity to review documents and any other papers
20  of the director of taxation or the authorized agents and employees
21  of the director compiled as a result of any investigation into com-
22  pliance with such acts at any time after completion of such inves-
23  tigation;
24    (b)  the provision of a personal or telephonic conference con-
25  ducted by the director or agent of the director with the taxpayer
26  or a representative of the taxpayer after completion of an inves-
27  tigation of compliance with such acts, except that, if requested by
28  the taxpayer, such conference shall be personal; and
29    (c)  if the convenience of the taxpayer so dictates and upon re-
30  quest of the taxpayer, the investigation of compliance with such
31  acts shall be conducted outside normal business hours, and in no
32  event shall any such investigation conducted during normal busi-
33  ness hours require the utilization of more than 25% of the time of
34  the administrative personnel resources of such business corre-
35  sponding with the duration of such investigation unless agreed to
36  by the taxpayer. [The provisions of subsection (c) shall not be ap-
37  plicable to any such investigation conducted outside the state of
38  Kansas.]
39    Sec. 28.  K.S.A. 1996 Supp. 79-1460 is hereby amended to read
40  as follows: 79-1460. The county appraiser shall notify each tax-
41  payer in the county annually on or before March 1 for real property
42  and May 1 for personal property, by mail directed to the taxpayer's
43  last known address, of the classification and appraised valuation of
HB 2105--Am. by SCW
                                     

 1  the taxpayer's property, except that for tax year 1995, and each year
 2  thereafter, the valuation for all real property shall not be increased
 3  unless: (a) The record of the latest physical inspection was reviewed
 4  by the county or district appraiser, and documentation exists to
 5  support such increase in valuation in compliance with the directives
 6  and specifications of the director of property valuation, and such
 7  record and documentation is available to the affected taxpayer; and
 8    (b) for the taxable year next following the taxable year that the
 9  valuation for real property has been reduced due to a final deter-
10  mination made pursuant to the valuation appeals process, docu-
11  mented substantial and compelling reasons exist therefor and are
12  provided by the county appraiser. For the purposes of this section
13  and in the case of real property, the term ``taxpayer'' shall be
14  deemed to be the person in ownership of the property as indicated
15  on the records of the office of register of deeds or county clerk. Such
16  notice shall specify separately both the previous and current ap-
17  praised and assessed values for each property class identified on the
18  parcel. Such notice shall also contain the uniform parcel identifi-
19  cation number prescribed by the director of property valuation.
20  Such notice shall also contain a statement of the taxpayer's right to
21  appeal and the procedure to be followed in making such appeal. In
22  any year in which no change in appraised valuation of any real property
23  from its appraised valuation in the next preceding year is determined, an
24  alternative form of notification which has been approved by the director
25  of property valuation may be utilized by a county. Failure to timely
26  mail or receive such notice shall in no way invalidate the classifi-
27  cation or appraised valuation as changed. The secretary of revenue
28  shall adopt rules and regulations necessary to implement the pro-
29  visions of this section.
30    Sec. 33. 29.  K.S.A. 12-1678a is hereby amended to read as fol-
31  lows: 12-1678a. (a) For the purposes of this section, taxes shall
32  include ad valorem property taxes, local gross earnings taxes, spe-
33  cial assessments and all other taxes and fees collected with or at
34  the same time as ad valorem property taxes.
35    (b)  The board of county commissioners of any county may in-
36  vest the undistributed taxes of any taxing subdivision in the pos-
37  session of the county treasurer pursuant to the provisions of this
38  section. The moneys shall be invested pursuant to K.S.A. 12-1675
39  and 12-1676, and amendments thereto.
40    (c)  The county treasurer shall distribute the taxes collected for
41  each taxing subdivision within or partially within the county as
42  follows:
43    (1)  On or before January 20, July 20 and October 31, the esti-
HB 2105--Am. by SCW
                                     

 1  mated amount collected for and owed to the taxing subdivision,
 2  but not less than the amount actually collected as of not more than
 3  20 days prior to the distribution date, and on or before the last
 4  business day before March 5 20, May 20 and September 5 20, not
 5  less than 95% of the estimated amount collected for and owed to
 6  each taxing subdivision but not less than the amount actually col-
 7  lected as of not more than 20 days prior to the distribution date.
 8  Except as provided in subsection (d), no payments of any interest
 9  earned on the investment of the tax collections shall be paid to the
10  taxing subdivisions.
11    (2)  In addition to the distributions required by the foregoing
12  provisions of this section, the county treasurer shall make a distri-
13  bution on February 5, 1990, of the estimated amount collected for
14  and owed to each taxing subdivision, but not less than the amount
15  actually collected as of January 17, 1990.
16    (3)  To those taxing subdivisions which request special payment
17  in advance of the dates provided by subsection (c)(1), in order to
18  meet the expenditure needs of the taxing subdivisions as certified
19  by the chief financial officer or governing body thereof, as follows:
20    The amount requested, but not exceeding the amount actually col-
21  lected for and owed to the taxing subdivision. When requesting an
22  advance payment, the chief financial officer or the governing body
23  of the taxing subdivision shall certify that the taxing subdivision
24  has neither sufficient cash on hand nor any investment which can
25  be converted to cash to meet the expenditure needs of the taxing
26  subdivision. Except as provided by this subsection, the county
27  treasurer shall distribute the payment requested. No payment
28  shall be made under this subsection between December 1 of any
29  year and January 1 of the next succeeding year, or between June
30  1 and July 1 of any year.
31    (d)  The board of county commissioners and the governing
32  body of any taxing subdivision within or partially within the county
33  may enter into agreements providing for the distribution of taxes
34  and any interest earnings thereon in a manner alternative to the
35  methods provided by this section, and any such agreements now
36  in existence shall not be deemed to be invalidated by this enact-
37  ment.
38    (e)  All moneys received by the county as interest upon the in-
39  vestment of undistributed taxes, and not paid to taxing subdivisions
40  as provided or authorized shall be retained by the county treasurer
41  and shall be paid into the general fund of the county.
42    [Sec. 34. 30.  K.S.A. 1996 Supp. 79-5109 is hereby amended to
43  read as follows: 79-5109. (a) All moneys received from taxes levied
HB 2105--Am. by SCW
                                     

 1  upon motor vehicles under the provisions of K.S.A. 79-5101 to 79-
 2  5115, inclusive, and amendments thereto shall be allocated to the
 3  tax levy unit in which the tax situs of each motor vehicle is located.
 4  The term ``tax levy unit'' means an area within a county the tan-
 5  gible property of which is subject to the same total tax levies, levied
 6  by the same taxing subdivisions of the state. Moneys allocated to
 7  such tax levy units shall be distributed among the state and all
 8  taxing subdivisions levying taxes against tangible property within
 9  such unit in the proportion prescribed by K.S.A. 79-5111 and
10  amendments thereto for estimating the amounts thereof for budg-
11  eting.
12    [(b)  The county treasurer shall remit all moneys allocated and
13  credited to the state from the proceeds of taxes levied upon motor
14  vehicles to the state treasurer as provided in this subsection. The
15  county treasurer, on or before October 31, January 20, March 5
16  20, May 20, July 20 and September 5 20 of each year, shall distrib-
17  ute to the state treasurer all such taxes allocated and credited to
18  the state from the proceeds of taxes collected through the month
19  prior to the month of the distribution date. Upon receipt of such
20  moneys, the state treasurer shall deposit the same in the state
21  treasury and shall credit 2/3 of each such deposit to the Kansas
22  educational building fund and 1/3 of each such deposit to the state
23  institutions building fund except that for moneys received during
24  the period from July 1, 1990, to June 30, 1991, inclusive, 2/3 of each
25  such deposit shall be credited to the Kansas educational building
26  fund, 1/6 of each such deposit shall be credited to the state insti-
27  tutions building fund and 1/6 of each such deposit shall be credited
28  to the correctional institutions building fund.]
29    [Sec. 35. 31.  K.S.A. 1996 Supp. 79-412 is hereby amended to
30  read as follows: 79-412. It shall be the duty of the county or district
31  appraiser to value the land and improvements; but the value of the
32  land and improvements shall be entered on the assessment roll in
33  a single aggregate, except as hereinafter provided. Improvements
34  owned by entities other than a city and located on land owned by a city
35  may be assessed to the owners of such improvements, and the taxes im-
36  posed on such improvements may be collected by levy and sale of the
37  interests of such owners the same as in cases of the collection of taxes on
38  personal property.]
39    [Sec. 36. 32.  K.S.A. 1996 Supp. 79-3606 is hereby amended to
40  read as follows: 79-3606. The following shall be exempt from the
41  tax imposed by this act:
42    [(a)  All sales of motor-vehicle fuel or other articles upon which
43  a sales or excise tax has been paid, not subject to refund, under
HB 2105--Am. by SCW
                                     

 1  the laws of this state except cigarettes as defined by K.S.A. 79-3301
 2  and amendments thereto, cereal malt beverages and malt products
 3  as defined by K.S.A. 79-3817 and amendments thereto, including
 4  wort, liquid malt, malt syrup and malt extract, which is not subject
 5  to taxation under the provisions of K.S.A. 79-41a02 and amend-
 6  ments thereto, and motor vehicles as defined by K.S.A. 79-1017
 7  and amendments thereto;
 8    [(b)  all sales of tangible personal property or service, including
 9  the renting and leasing of tangible personal property, purchased
10  directly by the state of Kansas, a political subdivision thereof, other
11  than a school or educational institution, or purchased by a public
12  or private nonprofit hospital or nonprofit blood, tissue or organ
13  bank and used exclusively for state, political subdivision, hospital
14  or nonprofit blood, tissue or organ bank purposes, except when:
15    (1) Such state or hospital is engaged or proposes to engage in any
16  business specifically taxable under the provisions of this act and
17  such items of tangible personal property or service are used or
18  proposed to be used in such business, or (2) such political subdi-
19  vision is engaged or proposes to engage in the business of furnish-
20  ing gas, water, electricity or heat to others and such items of per-
21  sonal property or service are used or proposed to be used in such
22  business;
23    [(c)  all sales of tangible personal property or services, includ-
24  ing the renting and leasing of tangible personal property, pur-
25  chased directly by a public or private elementary or secondary
26  school or public or private nonprofit educational institution and
27  used primarily by such school or institution for nonsectarian pro-
28  grams and activities provided or sponsored by such school or in-
29  stitution or in the erection, repair or enlargement of buildings to
30  be used for such purposes. The exemption herein provided shall
31  not apply to erection, construction, repair, enlargement or equip-
32  ment of buildings used primarily for human habitation;
33    [(d)  all sales of tangible personal property or services pur-
34  chased by a contractor for the purpose of constructing, equipping,
35  reconstructing, maintaining, repairing, enlarging, furnishing or
36  remodeling facilities for any public or private nonprofit hospital,
37  public or private elementary or secondary school or a public or
38  private nonprofit educational institution, which would be exempt
39  from taxation under the provisions of this act if purchased directly
40  by such hospital, school or educational institution; and all sales of
41  tangible personal property or services purchased by a contractor
42  for the purpose of constructing, equipping, reconstructing, main-
43  taining, repairing, enlarging, furnishing or remodeling facilities
HB 2105--Am. by SCW
                                     

 1  for any political subdivision of the state, the total cost of which is
 2  paid from funds of such political subdivision and which would be
 3  exempt from taxation under the provisions of this act if purchased
 4  directly by such political subdivision. Nothing in this subsection or
 5  in the provisions of K.S.A. 12-3418 and amendments thereto, shall
 6  be deemed to exempt the purchase of any construction machinery,
 7  equipment or tools used in the constructing, equipping, recon-
 8  structing, maintaining, repairing, enlarging, furnishing or remod-
 9  eling facilities for any political subdivision of the state. As used in
10  this subsection, K.S.A. 12-3418 and 79-3640, and amendments
11  thereto, ``funds of a political subdivision'' shall mean general tax
12  revenues, the proceeds of any bonds and gifts or grants-in-aid.
13  Gifts shall not mean funds used for the purpose of constructing,
14  equipping, reconstructing, repairing, enlarging, furnishing or re-
15  modeling facilities which are to be leased to the donor. When any
16  political subdivision of the state, public or private nonprofit hos-
17  pital, public or private elementary or secondary school or public
18  or private nonprofit educational institution shall contract for the
19  purpose of constructing, equipping, reconstructing, maintaining,
20  repairing, enlarging, furnishing or remodeling facilities, and the
21  total cost of such services and materials for the project which is the subject
22  of a contract is in excess of $10,000, it shall obtain from the state and
23  furnish to the contractor an exemption certificate for the project
24  involved, and the contractor may purchase materials for incorpo-
25  ration in such project. The contractor shall furnish the number of
26  such certificate to all suppliers from whom such purchases are
27  made, and such suppliers shall execute invoices covering the same
28  bearing the number of such certificate. Upon completion of the
29  project the contractor shall furnish to the political subdivision, hos-
30  pital, school or educational institution concerned a sworn state-
31  ment, on a form to be provided by the director of taxation, that all
32  purchases so made were entitled to exemption under this subsec-
33  tion. For any such project having a total cost of $10,000 or less, the
34  contracting entity shall not be required to obtain a project exemption
35  certificate. For projects having a total cost of $10,000 or less, the con-
36  tracting entity shall instead be entitled to a sales tax exemption in accor-
37  dance with this subsection upon presenting the contractor with a blanket
38  exemption certificate. As an alternative to the foregoing procedure,
39  any such contracting entity may apply to the secretary of revenue
40  for agent status for the sole purpose of issuing and furnishing pro-
41  ject exemption certificates to contractors pursuant to rules and reg-
42  ulations adopted by the secretary establishing conditions and stan-
43  dards for the granting and maintaining of such status. All invoices
HB 2105--Am. by SCW
                                     

 1  shall be held by the contractor for a period of five years and shall
 2  be subject to audit by the director of taxation. If any materials
 3  purchased under such a certificate are found not to have been
 4  incorporated in the building or other project or not to have been
 5  returned for credit or the sales or compensating tax otherwise im-
 6  posed upon such materials which will not be so incorporated in
 7  the building or other project reported and paid by such contractor
 8  to the director of taxation not later than the 20th day of the month
 9  following the close of the month in which it shall be determined
10  that such materials will not be used for the purpose for which such
11  certificate was issued, the political subdivision, hospital, school or
12  educational institution concerned shall be liable for tax on all ma-
13  terials purchased for the project, and upon payment thereof it may
14  recover the same from the contractor together with reasonable
15  attorney fees. Any contractor or any agent, employee or subcon-
16  tractor thereof, who shall use or otherwise dispose of any materials
17  purchased under such a certificate for any purpose other than that
18  for which such a certificate is issued without the payment of the
19  sales or compensating tax otherwise imposed upon such materials,
20  shall be guilty of a misdemeanor and, upon conviction therefor,
21  shall be subject to the penalties provided for in subsection (g) of
22  K.S.A. 79-3615, and amendments thereto;
23    [(e)  all sales of tangible personal property or services pur-
24  chased by a contractor for the erection, repair or enlargement of
25  buildings or other projects for the government of the United
26  States, its agencies or instrumentalities, which would be exempt
27  from taxation if purchased directly by the government of the
28  United States, its agencies or instrumentalities. When the govern-
29  ment of the United States, its agencies or instrumentalities shall
30  contract for the erection, repair, or enlargement of any building
31  or other project, and the total cost of such services and materials for
32  the project which is the subject of a contract is in excess of $10,000, it
33  shall obtain from the state and furnish to the contractor an ex-
34  emption certificate for the project involved, and the contractor
35  may purchase materials for incorporation in such project. The con-
36  tractor shall furnish the number of such certificates to all suppliers
37  from whom such purchases are made, and such suppliers shall ex-
38  ecute invoices covering the same bearing the number of such cer-
39  tificate. Upon completion of the project the contractor shall fur-
40  nish to the government of the United States, its agencies or
41  instrumentalities concerned a sworn statement, on a form to be
42  provided by the director of taxation, that all purchases so made
43  were entitled to exemption under this subsection. For any such pro-
HB 2105--Am. by SCW
                                     

 1  ject having a total cost of $10,000 or less, the contracting entity shall not
 2  be required to obtain a project exemption certificate. For projects having
 3  a total cost of $10,000 or less, the contracting entity shall instead be en-
 4  titled to a sales tax exemption in accordance with this subsection upon
 5  presenting the contractor with a blanket exemption certificate. As an al-
 6  ternative to the foregoing procedure, any such contracting entity
 7  may apply to the secretary of revenue for agent status for the sole
 8  purpose of issuing and furnishing project exemption certificates to
 9  contractors pursuant to rules and regulations adopted by the sec-
10  retary establishing conditions and standards for the granting and
11  maintaining of such status. All invoices shall be held by the con-
12  tractor for a period of five years and shall be subject to audit by
13  the director of taxation. Any contractor or any agent, employee or
14  subcontractor thereof, who shall use or otherwise dispose of any
15  materials purchased under such a certificate for any purpose other
16  than that for which such a certificate is issued without the payment
17  of the sales or compensating tax otherwise imposed upon such ma-
18  terials, shall be guilty of a misdemeanor and, upon conviction
19  therefor, shall be subject to the penalties provided for in subsec-
20  tion (g) of K.S.A. 79-3615 and amendments thereto;
21    [(f)  tangible personal property purchased by a railroad or pub-
22  lic utility for consumption or movement directly and immediately
23  in interstate commerce;
24    [(g)  sales of aircraft including remanufactured and modified
25  aircraft, sales of aircraft repair, modification and replacement
26  parts and sales of services employed in the remanufacture, modi-
27  fication and repair of aircraft sold to persons using such aircraft
28  and aircraft repair, modification and replacement parts as certi-
29  fied or licensed carriers of persons or property in interstate or
30  foreign commerce under authority of the laws of the United States
31  or any foreign government or sold to any foreign government or
32  agency or instrumentality of such foreign government and all sales
33  of aircraft, aircraft parts, replacement parts and services employed
34  in the remanufacture, modification and repair of aircraft for use
35  outside of the United States;
36    [(h)  all rentals of nonsectarian textbooks by public or private
37  elementary or secondary schools;
38    [(i)  the lease or rental of all films, records, tapes, or any type
39  of sound or picture transcriptions used by motion picture exhibi-
40  tors;
41    [(j)  meals served without charge or food used in the prepara-
42  tion of such meals to employees of any restaurant, eating house,
43  dining car, hotel, drugstore or other place where meals or drinks
HB 2105--Am. by SCW
                                     

 1  are regularly sold to the public if such employees' duties are re-
 2  lated to the furnishing or sale of such meals or drinks;
 3    [(k)  any motor vehicle, semitrailer or pole trailer, as such terms
 4  are defined by K.S.A. 8-126 and amendments thereto, or aircraft
 5  sold and delivered in this state to a bona fide resident of another
 6  state, which motor vehicle, semitrailer, pole trailer or aircraft is
 7  not to be registered or based in this state and which vehicle, sem-
 8  itrailer, pole trailer or aircraft will not remain in this state more
 9  than 10 days;
10    [(l)  all isolated or occasional sales of tangible personal prop-
11  erty, services, substances or things, except isolated or occasional
12  sale of motor vehicles specifically taxed under the provisions of
13  subsection (o) of K.S.A. 79-3603 and amendments thereto;
14    [(m)  all sales of tangible personal property which become an
15  ingredient or component part of tangible personal property or
16  services produced, manufactured or compounded for ultimate sale
17  at retail within or without the state of Kansas; and any such pro-
18  ducer, manufacturer or compounder may obtain from the director
19  of taxation and furnish to the supplier an exemption certificate
20  number for tangible personal property for use as an ingredient or
21  component part of the property or services produced, manufac-
22  tured or compounded;
23    [(n)  all sales of tangible personal property which is consumed
24  in the production, manufacture, processing, mining, drilling, re-
25  fining or compounding of tangible personal property, the treating
26  of by-products or wastes derived from any such production proc-
27  ess, the providing of services or the irrigation of crops for ultimate
28  sale at retail within or without the state of Kansas; and any pur-
29  chaser of such property may obtain from the director of taxation
30  and furnish to the supplier an exemption certificate number for
31  tangible personal property for consumption in such production,
32  manufacture, processing, mining, drilling, refining, compounding,
33  treating, irrigation and in providing such services;
34    [(o)  all sales of animals, fowl and aquatic plants and animals,
35  the primary purpose of which is use in agriculture or aquaculture,
36  as defined in K.S.A. 47-1901, and amendments thereto, the pro-
37  duction of food for human consumption, the production of animal,
38  dairy, poultry or aquatic plant and animal products, fiber or fur,
39  or the production of offspring for use for any such purpose or
40  purposes;
41    [(p)  all sales of drugs, as defined by K.S.A. 65-1626 and amend-
42  ments thereto, dispensed pursuant to a prescription order, as de-
43  fined by K.S.A. 65-1626 and amendments thereto, by a licensed
HB 2105--Am. by SCW
                                     

 1  practitioner;
 2    [(q)  all sales of insulin dispensed by a person licensed by the
 3  state board of pharmacy to a person for treatment of diabetes at
 4  the direction of a person licensed to practice medicine by the
 5  board of healing arts;
 6    [(r)  all sales of prosthetic and orthopedic appliances prescribed
 7  in writing by a person licensed to practice the healing arts, den-
 8  tistry or optometry. For the purposes of this subsection, the term
 9  prosthetic and orthopedic appliances means any apparatus, instru-
10  ment, device, or equipment used to replace or substitute for any
11  missing part of the body; used to alleviate the malfunction of any
12  part of the body; or used to assist any disabled person in leading
13  a normal life by facilitating such person's mobility; such term shall
14  include accessories to be attached to motor vehicles, but such term
15  shall not include motor vehicles or personal property which when
16  installed becomes a fixture to real property;
17    [(s)  all sales of tangible personal property or services pur-
18  chased directly by a groundwater management district organized
19  or operating under the authority of K.S.A. 82a-1020 et seq. and
20  amendments thereto, which property or services are used in the
21  operation or maintenance of the district;
22    [(t)  all sales of farm machinery and equipment or aquaculture
23  machinery and equipment, repair and replacement parts therefor
24  and services performed in the repair and maintenance of such ma-
25  chinery and equipment. For the purposes of this subsection the
26  term ``farm machinery and equipment or aquaculture machinery
27  and equipment'' shall include machinery and equipment used in
28  the operation of Christmas tree farming but shall not include any
29  passenger vehicle, truck, truck tractor, trailer, semitrailer or pole
30  trailer, other than a farm trailer, as such terms are defined by
31  K.S.A. 8-126 and amendments thereto. Each purchaser of farm
32  machinery and equipment or aquaculture machinery and equip-
33  ment exempted herein must certify in writing on the copy of the
34  invoice or sales ticket to be retained by the seller that the farm
35  machinery and equipment or aquaculture machinery and equip-
36  ment purchased will be used only in farming, ranching or aqua-
37  culture production. Farming or ranching shall include the opera-
38  tion of a feedlot and farm and ranch work for hire and the
39  operation of a nursery;
40    [(u)  all leases or rentals of tangible personal property used as
41  a dwelling if such tangible personal property is leased or rented
42  for a period of more than 28 consecutive days;
43    [(v)  all sales of food products to any contractor for use in pre-
HB 2105--Am. by SCW
                                     

 1  paring meals for delivery to homebound elderly persons over 60
 2  years of age and to homebound disabled persons or to be served
 3  at a group-sitting at a location outside of the home to otherwise
 4  homebound elderly persons over 60 years of age and to otherwise
 5  homebound disabled persons, as all or part of any food service
 6  project funded in whole or in part by government or as part of a
 7  private nonprofit food service project available to all such elderly
 8  or disabled persons residing within an area of service designated
 9  by the private nonprofit organization, and all sales of food prod-
10  ucts for use in preparing meals for consumption by indigent or
11  homeless individuals whether or not such meals are consumed at
12  a place designated for such purpose;
13    [(w)  all sales of natural gas, electricity, heat and water deliv-
14  ered through mains, lines or pipes: (1) To residential premises for
15  noncommercial use by the occupant of such premises; (2) for ag-
16  ricultural use and also, for such use, all sales of propane gas; (3)
17  for use in the severing of oil; and (4) to any property which is
18  exempt from property taxation pursuant to K.S.A. 79-201b Second
19  through Sixth.  As used in this paragraph, ``severing'' shall have the
20  meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and
21  amendments thereto;
22    [(x)  all sales of propane gas, LP-gas, coal, wood and other fuel
23  sources for the production of heat or lighting for noncommercial
24  use of an occupant of residential premises;
25    [(y)  all sales of materials and services used in the repairing,
26  servicing, altering, maintaining, manufacturing, remanufacturing,
27  or modification of railroad rolling stock for use in interstate or
28  foreign commerce under authority of the laws of the United States;
29    [(z)  all sales of tangible personal property and services pur-
30  chased directly by a port authority or by a contractor therefor as
31  provided by the provisions of K.S.A. 12-3418 and amendments
32  thereto;
33    [(aa)  all sales of materials and services applied to equipment
34  which is transported into the state from without the state for re-
35  pair, service, alteration, maintenance, remanufacture or modifi-
36  cation and which is subsequently transported outside the state for
37  use in the transmission of liquids or natural gas by means of pipe-
38  line in interstate or foreign commerce under authority of the laws
39  of the United States;
40    [(bb)  all sales of used mobile homes or manufactured homes.
41  As used in this subsection: (1) ``Mobile homes'' and ``manufactured
42  homes'' shall have the meanings ascribed thereto by K.S.A. 58-
43  4202 and amendments thereto; and (2) ``sales of used mobile
HB 2105--Am. by SCW
                                     

 1  homes or manufactured homes'' means sales other than the orig-
 2  inal retail sale thereof;
 3    [(cc)  all sales of tangible personal property or services pur-
 4  chased for the purpose of and in conjunction with constructing,
 5  reconstructing, enlarging or remodeling a business or retail busi-
 6  ness which meets the requirements established in K.S.A. 74-50,115
 7  and amendments thereto, and the sale and installation of machin-
 8  ery and equipment purchased for installation at any such business
 9  or retail business. When a person shall contract for the construc-
10  tion, reconstruction, enlargement or remodeling of any such busi-
11  ness or retail business, such person shall obtain from the state and
12  furnish to the contractor an exemption certificate for the project
13  involved, and the contractor may purchase materials, machinery
14  and equipment for incorporation in such project. The contractor
15  shall furnish the number of such certificates to all suppliers from
16  whom such purchases are made, and such suppliers shall execute
17  invoices covering the same bearing the number of such certificate.
18  Upon completion of the project the contractor shall furnish to the
19  owner of the business or retail business a sworn statement, on a
20  form to be provided by the director of taxation, that all purchases
21  so made were entitled to exemption under this subsection. All in-
22  voices shall be held by the contractor for a period of five years and
23  shall be subject to audit by the director of taxation. Any contractor
24  or any agent, employee or subcontractor thereof, who shall use or
25  otherwise dispose of any materials, machinery or equipment pur-
26  chased under such a certificate for any purpose other than that for
27  which such a certificate is issued without the payment of the sales
28  or compensating tax otherwise imposed thereon, shall be guilty of
29  a misdemeanor and, upon conviction therefor, shall be subject to
30  the penalties provided for in subsection (g) of K.S.A. 79-3615 and
31  amendments thereto. As used in this subsection, ``business'' and
32  ``retail business'' have the meanings respectively ascribed thereto
33  by K.S.A. 74-50,114 and amendments thereto;
34    [(dd)  all sales of tangible personal property purchased with
35  food stamps issued by the United States department of agriculture;
36    [(ee)  all sales of lottery tickets and shares made as part of a
37  lottery operated by the state of Kansas;
38    [(ff)  on and after July 1, 1988, all sales of new mobile homes
39  or manufactured homes to the extent of 40% of the gross receipts,
40  determined without regard to any trade-in allowance, received
41  from such sale. As used in this subsection, ``mobile homes'' and
42  ``manufactured homes'' shall have the meanings ascribed thereto
43  by K.S.A. 58-4202 and amendments thereto;
HB 2105--Am. by SCW
                                     

 1    [(gg)  all sales of tangible personal property purchased in ac-
 2  cordance with vouchers issued pursuant to the federal special sup-
 3  plemental food program for women, infants and children;
 4    [(hh)  all sales of medical supplies and equipment purchased
 5  directly by a nonprofit skilled nursing home or nonprofit inter-
 6  mediate nursing care home, as defined by K.S.A. 39-923, and
 7  amendments thereto, for the purpose of providing medical serv-
 8  ices to residents thereof. This exemption shall not apply to tangible
 9  personal property customarily used for human habitation pur-
10  poses;
11    [(ii)  all sales of tangible personal property purchased directly
12  by a nonprofit organization for nonsectarian comprehensive mul-
13  tidiscipline youth development programs and activities provided
14  or sponsored by such organization. This exemption shall not apply
15  to tangible personal property customarily used for human habi-
16  tation purposes;
17    [(jj)  all sales of tangible personal property or services, includ-
18  ing the renting and leasing of tangible personal property, pur-
19  chased directly on behalf of a community-based mental retarda-
20  tion facility or mental health center organized pursuant to K.S.A.
21  19-4001 et seq., and amendments thereto, and licensed in accor-
22  dance with the provisions of K.S.A. 75-3307b and amendments
23  thereto. This exemption shall not apply to tangible personal prop-
24  erty customarily used for human habitation purposes;
25    [(kk)  on and after January 1, 1989, all sales of machinery and
26  equipment used directly and primarily for the purposes of manu-
27  facturing, assembling, processing, finishing, storing, warehousing
28  or distributing articles of tangible personal property in this state
29  intended for resale by a manufacturing or processing plant or fa-
30  cility or a storage, warehousing or distribution facility:
31    [(1)  For purposes of this subsection, machinery and equipment
32  shall be deemed to be used directly and primarily in the manufac-
33  ture, assemblage, processing, finishing, storing, warehousing or
34  distributing of tangible personal property where such machinery
35  and equipment is used during a manufacturing, assembling, proc-
36  essing or finishing, storing, warehousing or distributing operation:
37    [(A) To effect a direct and immediate physical change upon the
38  tangible personal property;
39    [(B)  to guide or measure a direct and immediate physical
40  change upon such property where such function is an integral and
41  essential part of tuning, verifying or aligning the component parts
42  of such property;
43    [(C)  to test or measure such property where such function is
HB 2105--Am. by SCW
                                     

 1  an integral part of the production flow or function;
 2    [(D)  to transport, convey or handle such property during the
 3  manufacturing, processing, storing, warehousing or distribution
 4  operation at the plant or facility; or
 5    [(E)  to place such property in the container, package or wrap-
 6  ping in which such property is normally sold or transported.
 7    [(2)  For purposes of this subsection ``machinery and equip-
 8  ment used directly and primarily'' shall include, but not be limited
 9  to:
10    [(A)  Mechanical machines or major components thereof con-
11  tributing to a manufacturing, assembling or finishing process;
12    [(B)  molds and dies that determine the physical characteristics
13  of the finished product or its packaging material;
14    [(C)  testing equipment to determine the quality of the finished
15  product;
16    [(D)  computers and related peripheral equipment that directly
17  control or measure the manufacturing process or which are util-
18  ized for engineering of the finished product; and
19    [(E)  computers and related peripheral equipment utilized for
20  research and development and product design.
21    [(3)  ``Machinery and equipment used directly and primarily''
22  shall not include:
23    [(A)  Hand tools;
24    [(B)  machinery, equipment and tools used in maintaining and
25  repairing any type of machinery and equipment;
26    [(C)  transportation equipment not used in the manufacturing,
27  assembling, processing, furnishing, storing, warehousing or dis-
28  tributing process at the plant or facility;
29    [(D)  office machines and equipment including computers and
30  related peripheral equipment not directly and primarily used in
31  controlling or measuring the manufacturing process;
32    [(E)  furniture and buildings; and
33    [(F)  machinery and equipment used in administrative, ac-
34  counting, sales or other such activities of the business;
35    [(ll)  all sales of educational materials purchased for distribu-
36  tion to the public at no charge by a nonprofit corporation organ-
37  ized for the purpose of encouraging, fostering and conducting pro-
38  grams for the improvement of public health;
39    [(mm)  all sales of seeds and tree seedlings; fertilizers, insecti-
40  cides, herbicides, germicides, pesticides and fungicides; and serv-
41  ices, purchased and used for the purpose of producing plants in
42  order to prevent soil erosion on land devoted to agricultural use;
43    [(nn)  except as otherwise provided in this act, all sales of serv-
HB 2105--Am. by SCW
                                     

 1  ices rendered by an advertising agency or licensed broadcast sta-
 2  tion or any member, agent or employee thereof;
 3    [(oo)  all sales of tangible personal property purchased by a
 4  community action group or agency for the exclusive purpose of
 5  repairing or weatherizing housing occupied by low income indi-
 6  viduals;
 7    [(pp)  all sales of drill bits and explosives actually utilized in the
 8  exploration and production of oil or gas;
 9    [(qq)  all sales of tangible personal property and services pur-
10  chased by a nonprofit museum or historical society or any combi-
11  nation thereof, including a nonprofit organization which is organ-
12  ized for the purpose of stimulating public interest in the
13  exploration of space by providing educational information, exhib-
14  its and experiences, which is exempt from federal income taxation
15  pursuant to section 501(c)(3) of the federal internal revenue code
16  of 1986;
17    [(rr)  all sales of tangible personal property which will admit the
18  purchaser thereof to any annual event sponsored by a nonprofit
19  organization which is exempt from federal income taxation pur-
20  suant to section 501(c)(3) of the federal internal revenue code of
21  1986;
22    [(ss)  all sales of tangible personal property and services pur-
23  chased by a public broadcasting station licensed by the federal
24  communications commission as a noncommercial educational tel-
25  evision or radio station; and
26    [(tt)  all sales of tangible personal property and services pur-
27  chased by or on behalf of a not-for-profit corporation which is ex-
28  empt from federal income taxation pursuant to section 501(c)(3)
29  of the federal internal revenue code of 1986, for the sole purpose
30  of constructing a Kansas Korean War memorial.
31    [New Sec. 37.  (a) Upon application therefor, the secretary of
32  revenue or the secretary's designee shall issue a blanket sales tax
33  exemption certificate to a political subdivision of the state. Any
34  contractor, subcontractor or repair person may purchase material
35  or service, or any combination thereof, for use in a qualifying con-
36  tract the total cost of which is $10,000 or less and may use such
37  blanket certificate number when making purchases from suppliers
38  under such contract.
39    [(b)  The political subdivision shall attach a suffix number to the
40  blanket certificate number for each project of $10,000 or less as
41  such projects are authorized. Such suffix number shall be reported
42  to the director of taxation by the political subdivision.]
43    [Sec. 38. 33.  K.S.A. 19-430 is hereby amended to read as fol-
HB 2105--Am. by SCW
                                     

 1  lows: 19-430. On July 1, 1993, and on July 1 of each fourth year
 2  thereafter, the board of county commissioners of each county shall
 3  by resolution appoint a county appraiser for such county who shall
 4  serve for a term of four years and until a successor is appointed.
 5  County appraisers appointed in counties having a population of
 6  more than 20,000 25,000 shall devote full time to the duties of such
 7  office but county appraisers appointed in counties having a pop-
 8  ulation of 20,000 25,000 or less may be appointed either as a full-
 9  time or a part-time county appraiser as prescribed in the resolu-
10  tion providing for such appointment. No person shall be appointed
11  or reappointed to or serve as county appraiser in any county under
12  the provisions of this act unless such person shall have at least one
13  year of appraisal experience and be qualified by the director of
14  property valuation as an eligible Kansas appraiser under the pro-
15  visions of this act. Whenever a vacancy shall occur in the office of
16  county appraiser the board of county commissioners shall appoint
17  an eligible Kansas appraiser to fill such vacancy for the unexpired
18  term and until a successor is appointed. The person holding the
19  office of county assessor or performing the duties thereof on the
20  effective date of this act shall continue to hold such office and
21  perform such duties until a county appraiser is appointed under
22  the provisions of this act. No person shall be appointed to the office
23  of county or district appraiser or to fill a vacancy therein unless
24  such person is currently a state licensed real property appraiser,
25  a certified general real property appraiser or certified residential
26  real property appraiser pursuant to article 41 of chapter 58 of the
27  Kansas Statutes Annotated, and amendments thereto, except that
28  from and after July 1, 1997, no person shall be appointed to the
29  office of county or district appraiser or to fill a vacancy therein, in
30  any county under the provisions of this act unless such person is
31  currently a certified general real property appraiser pursuant to
32  article 41 of chapter 58 of the Kansas Statutes Annotated and
33  amendments thereto.  Notwithstanding the foregoing provision,
34  any person who holds the office of county appraiser upon the ex-
35  piration of the term of such office shall be eligible for reappoint-
36  ment to such office regardless of whether such person is so certi-
37  fied or licensed.]
38    [Sec. 39. 34.  K.S.A. 79-2002 is hereby amended to read as fol-
39  lows: 79-2002. Receipts shall be given for all taxes received by the
40  county treasurer, except that with respect to payments received by
41  mail, receipts shall be given only upon request of the taxpayer. Pay-
42  ment of current ad valorem property taxes shall be validated by a
43  statement indicating the date received and the amount paid on all
HB 2105--Am. by SCW
                                     

 1  copies of such receipts.]
 2    [Sec. 40. 35.  K.S.A. 1996 Supp. 79-213 is hereby amended to
 3  read as follows: 79-213. (a) Any property owner requesting an ex-
 4  emption from the payment of ad valorem property taxes assessed,
 5  or to be assessed, against their property shall be required to file
 6  an initial request for exemption, on forms approved by the board
 7  of tax appeals and provided by the county appraiser.
 8    [(b)  The initial exemption request shall identify the property
 9  for which the exemption is requested and state, in detail, the legal
10  and factual basis for the exemption claimed.
11    [(c)  The request for exemption shall be filed with the county
12  appraiser of the county where such property is principally located.
13    [(d)  After a review of the exemption request, and after a pre-
14  liminary examination of the facts as alleged, the county appraiser
15  shall recommend that the exemption request either be granted or
16  denied, and, if necessary, that a hearing be held. If a denial is
17  recommended, a statement of the controlling facts and law relied
18  upon shall be included on the form.
19    [(e)  The county appraiser, after making such written recom-
20  mendation, shall file the request for exemption and the recom-
21  mendations of the county appraiser with the board of tax appeals.
22    [(f)  Upon receipt of the request for exemption, the board shall
23  docket the same and notify the applicant and the county appraiser
24  of such fact.
25    [(g)  After examination of the request for exemption, and the
26  county appraiser's recommendation related thereto, the board
27  may fix a time and place for hearing, and shall notify the applicant
28  and the county appraiser of the time and place so fixed. In any case
29  where a party to such request for exemption requests a hearing
30  thereon, the same shall be granted. Hearings shall be conducted
31  in accordance with the provisions of the Kansas administrative pro-
32  cedure act. In all instances where the board sets a request for
33  exemption for hearing, the county shall be represented by its
34  county attorney or county counselor.
35    [(h)  In the event of a hearing, the same shall be originally set
36  not later than 90 days after the filing of the request for exemption
37  with the board.
38    [(i)  During the pendency of a request for exemption, no per-
39  son, firm, unincorporated association, company or corporation
40  charged with real estate or personal property taxes pursuant to
41  K.S.A. 79-2004 and 79-2004a, and amendments thereto, on the tax
42  books in the hands of the county treasurer shall be required to pay
43  the tax from the date the request is filed with the county appraiser
HB 2105--Am. by SCW
                                     

 1  until the expiration of 30 days after the board issued its order
 2  thereon and the same becomes a final order. In the event that taxes
 3  have been assessed against the subject property, no interest shall
 4  accrue on any unpaid tax for the year or years in question nor shall
 5  the unpaid tax be considered delinquent from the date the request
 6  is filed with the county appraiser until the expiration of 30 days
 7  after the board issued its order thereon. In the event the board
 8  determines an application for exemption is without merit and filed
 9  in bad faith to delay the due date of the tax, the tax shall be con-
10  sidered delinquent as of the date the tax would have been due
11  pursuant to K.S.A. 79-2004 and 79-2004a, and amendments
12  thereto, and interest shall accrue as prescribed therein.
13    [(j)  In the event the board grants the initial request for exemp-
14  tion, the same shall be effective beginning with the date of first
15  exempt use except that, with respect to property the construction of
16  which commenced not to exceed 24 months prior to the date of first exempt
17  use, the same shall be effective beginning with the date of commencement
18  of construction.
19    [(k)  In conjunction with its authority to grant exemptions, the
20  board shall have the authority to abate all unpaid taxes that have
21  accrued from and since the date of first exempt use effective date of
22  the exemption. In the event that taxes have been paid during the
23  period where the subject property has been determined to be ex-
24  empt, the board shall have the authority to order a refund of taxes
25  for a period not to exceed three years.
26    [(l)  The provisions of this section shall not apply to: (1) Farm
27  machinery and equipment exempted from ad valorem taxation by
28  K.S.A. 79-201j, and amendments thereto; (2) personal property ex-
29  empted from ad valorem taxation by K.S.A. 79-215, and amend-
30  ments thereto; (3) wearing apparel, household goods and personal
31  effects exempted from ad valorem taxation by K.S.A. 79-201c, and
32  amendments thereto; (4) livestock; (5) hay and silage exempted
33  from ad valorem taxation by K.S.A. 79-201d, and amendments
34  thereto; (6) merchants' and manufacturers' inventories exempted
35  from ad valorem taxation by K.S.A. 79-201m and amendments
36  thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-
37  201n, and amendments thereto; (8) property exempted from ad
38  valorem taxation by K.S.A. 79-201a Seventeenth and amendments
39  thereto, including all property previously acquired by the secre-
40  tary of transportation or a predecessor in interest, which is used
41  in the administration, construction, maintenance or operation of
42  the state system of highways. The secretary of transportation shall
43  at the time of acquisition of property notify the county appraiser
HB 2105--Am. by SCW
                                     

 1  in the county in which the property is located that the acquisition
 2  occurred and provide a legal description of the property acquired;
 3    (9) property exempted from ad valorem taxation by K.S.A. 79-201a
 4  Ninth, and amendments thereto, including all property previously
 5  acquired by the Kansas turnpike authority which is used in the
 6  administration, construction, maintenance or operation of the
 7  Kansas turnpike. The Kansas turnpike authority shall at the time
 8  of acquisition of property notify the county appraiser in the county
 9  in which the property is located that the acquisition occurred and
10  provide a legal description of the property acquired; (10) aqua-
11  culture machinery and equipment exempted from ad valorem tax-
12  ation by K.S.A. 79-201j, and amendments thereto. As used in this
13  section, ``aquaculture'' has the same meaning ascribed thereto by
14  K.S.A. 47-1901, and amendments thereto; (11) Christmas tree ma-
15  chinery and equipment exempted from ad valorem taxation by
16  K.S.A. 79-201j, and amendments thereto; (12) property used ex-
17  clusively by the state or any municipality or political subdivision
18  of the state for right-of-way purposes. The state agency or the gov-
19  erning body of the municipality or political subdivision shall at the
20  time of acquisition of property for right-of-way purposes notify the
21  county appraiser in the county in which the property is located
22  that the acquisition occurred and provide a legal description of the
23  property acquired; (13) machinery, equipment, materials and sup-
24  plies exempted from ad valorem taxation by K.S.A. 1996 Supp. 79-
25  201w, and amendments thereto; and (14) vehicles owned by the
26  state or by any political or taxing subdivision thereof and used
27  exclusively for governmental purposes.
28    [(m)  The provisions of this section shall apply to property ex-
29  empt pursuant to the provisions of section 13 of article 11 of the
30  Kansas constitution.
31    [(n)  The provisions of subsection (j) and (k) as amended by this act
32  shall be applicable to all taxable years commencing after December 31,
33  1995.]
34    [Sec. 41. 36.  K.S.A. 1996 Supp. 79-201a is hereby amended to
35  read as follows: 79-201a. The following described property, to the
36  extent herein specified, shall be exempt from all property or ad
37  valorem taxes levied under the laws of the state of Kansas:
38    [First. All property belonging exclusively to the United States,
39  except property which congress has expressly declared to be sub-
40  ject to state and local taxation.
41    [Second. All property used exclusively by the state or any munic-
42  ipality or political subdivision of the state. All property owned,
43  being acquired pursuant to a lease-purchase agreement or oper-
HB 2105--Am. by SCW
                                     

 1  ated by the state or any municipality or political subdivision of the
 2  state, including property which is vacant or lying dormant, which
 3  is used or is to be used for any governmental or proprietary func-
 4  tion and for which bonds may be issued or taxes levied to finance
 5  the same, shall be considered to be ``used exclusively'' by the state,
 6  municipality or political subdivision for the purposes of this sec-
 7  tion. The lease by a municipality or political subdivision of the state
 8  of any real property owned or being acquired pursuant to a lease-
 9  purchase agreement for the purpose of providing office space nec-
10  essary for the performance of medical services by a person li-
11  censed to practice medicine and surgery or osteopathic medicine
12  by the board of healing arts pursuant to K.S.A. 65-2801 et seq.,
13  and amendments thereto, dentistry services by a person licensed
14  by the Kansas dental board pursuant to K.S.A. 65-1401 et seq., and
15  amendments thereto, optometry services by a person licensed by
16  the board of examiners in optometry pursuant to K.S.A. 65-1501 et
17  seq., and amendments thereto, or K.S.A. 74-1501 et seq., and amend-
18  ments thereto or podiatry services by a person licensed by the board
19  of healing arts pursuant to K.S.A. 65-2001 et seq., and amendments
20  thereto, shall be construed to be a governmental function, and such
21  property actually and regularly used for such purpose shall be
22  deemed to be used exclusively for the purposes of this paragraph.
23  The lease by a municipality or political subdivision of the state of
24  any real property, or portion thereof, owned or being acquired
25  pursuant to a lease-purchase agreement to any entity for the ex-
26  clusive use by it for an exempt purpose, including the purpose of
27  displaying or exhibiting personal property by a museum or histor-
28  ical society, if no portion of the lease payments include compen-
29  sation for return on the investment in such leased property shall
30  be deemed to be used exclusively for the purposes of this para-
31  graph.  All property leased, other than property being acquired
32  pursuant to a lease-purchase agreement, to the state or any mu-
33  nicipality or political subdivision of the state by any private entity
34  shall not be considered to be used exclusively by the state or any
35  municipality or political subdivision of the state for the purposes
36  of this section except that the provisions of this sentence shall not
37  apply to any such property subject to lease on the effective date
38  of this act until the term of such lease expires but property taxes
39  levied upon any such property prior to tax year 1989, shall not be
40  abated or refunded. Any property constructed or purchased with
41  the proceeds of industrial revenue bonds issued prior to July 1,
42  1963, as authorized by K.S.A. 12-1740 to 12-1749, or purchased
43  with proceeds of improvement district bonds issued prior to July
HB 2105--Am. by SCW
                                     

 1  1, 1963, as authorized by K.S.A. 19-2776, or with proceeds of bonds
 2  issued prior to July 1, 1963, as authorized by K.S.A. 19-3815a and
 3  19-3815b, or any property improved, purchased, constructed, re-
 4  constructed or repaired with the proceeds of revenue bonds issued
 5  prior to July 1, 1963, as authorized by K.S.A. 13-1238 to 13-1245,
 6  inclusive, or any property improved, reimproved, reconstructed or
 7  repaired with the proceeds of revenue bonds issued after July 1,
 8  1963, under the authority of K.S.A. 13-1238 to 13-1245, inclusive,
 9  which had previously been improved, reconstructed or repaired
10  with the proceeds of revenue bonds issued under such act on or
11  before July 1, 1963, shall be exempt from taxation for so long as
12  any of the revenue bonds issued to finance such construction, re-
13  construction, improvement, repair or purchase shall be outstand-
14  ing and unpaid. Any property constructed or purchased with the
15  proceeds of any revenue bonds authorized by K.S.A. 13-1238 to
16  13-1245, inclusive, 19-2776, 19-3815a and 19-3815b, and amend-
17  ments thereto, issued on or after July 1, 1963, shall be exempt from
18  taxation only for a period of 10 calendar years after the calendar
19  year in which the bonds were issued. Any property, all or any por-
20  tion of which is constructed or purchased with the proceeds of
21  revenue bonds authorized by K.S.A. 12-1740 to 12-1749, inclusive,
22  and amendments thereto, issued on or after July 1, 1963 and prior
23  to July 1, 1981, shall be exempt from taxation only for a period of
24  10 calendar years after the calendar year in which the bonds were
25  issued. Except as hereinafter provided, any property constructed
26  or purchased wholly with the proceeds of revenue bonds issued on
27  or after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-
28  1749, inclusive, and amendments thereto, shall be exempt from
29  taxation only for a period of 10 calendar years after the calendar
30  year in which the bonds were issued. Except as hereinafter pro-
31  vided, any property constructed or purchased in part with the pro-
32  ceeds of revenue bonds issued on or after July 1, 1981, under the
33  authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments
34  thereto, shall be exempt from taxation to the extent of the value
35  of that portion of the property financed by the revenue bonds and
36  only for a period of 10 calendar years after the calendar year in
37  which the bonds were issued. The exemption of that portion of the
38  property constructed or purchased with the proceeds of revenue
39  bonds shall terminate upon the failure to pay all taxes levied on
40  that portion of the property which is not exempt and the entire
41  property shall be subject to sale in the manner prescribed by K.S.A.
42  79-2301 et seq., and amendments thereto. Property constructed or
43  purchased in whole or in part with the proceeds of revenue bonds
HB 2105--Am. by SCW
                                     

 1  issued on or after January 1, 1995, under the authority of K.S.A.
 2  12-1740 to 12-1749, inclusive, and amendments thereto, and used
 3  in any retail enterprise identified under the standard industrial
 4  classification codes, major groups 52 through 59, inclusive, except
 5  facilities used exclusively to house the headquarters or back office
 6  operations of such retail enterprises identified thereunder, shall
 7  not be exempt from taxation. For the purposes of the preceding
 8  provision ``standard industrial classification code'' means a stan-
 9  dard industrial classification code published in the Standard In-
10  dustrial Classification manual, 1987, as prepared by the statistical
11  policy division of the office of management and budget of the of-
12  fice of the president of the United States. ``Headquarters or back
13  office operations'' means a facility from which the enterprise is
14  provided direction, management, administrative services, or dis-
15  tribution or warehousing functions in support of transactions made
16  by the enterprise. Property purchased, constructed, recon-
17  structed, equipped, maintained or repaired with the proceeds of
18  industrial revenue bonds issued under the authority of K.S.A. 12-
19  1740 et seq., and amendments thereto, which is located in a rede-
20  velopment project area established under the authority of K.S.A.
21  12-1770 et seq. shall not be exempt from taxation. Property
22  purchased, acquired, constructed, reconstructed, improved,
23  equipped, furnished, repaired, enlarged or remodeled with all or
24  any part of the proceeds of revenue bonds issued under authority
25  of K.S.A. 12-1740 to 12-1749a, inclusive, and amendments thereto
26  for any poultry confinement facility on agricultural land which is
27  owned, acquired, obtained or leased by a corporation, as such
28  terms are defined by K.S.A. 17-5903 and amendments thereto,
29  shall not be exempt from such taxation. Property purchased, ac-
30  quired, constructed, reconstructed, improved, equipped, fur-
31  nished, repaired, enlarged or remodeled with all or any part of the
32  proceeds of revenue bonds issued under the authority of K.S.A.
33  12-1740 to 12-1749a, inclusive, and amendments thereto, for a rab-
34  bit confinement facility on agricultural land which is owned, ac-
35  quired, obtained or leased by a corporation, as such terms are
36  defined by K.S.A. 17-5903 and amendments thereto, shall not be
37  exempt from such taxation.
38    [Third. All works, machinery and fixtures used exclusively by any
39  rural water district or township water district for conveying or pro-
40  duction of potable water in such rural water district or township
41  water district, and all works, machinery and fixtures used exclusively by
42  any entity which performed the functions of a rural water district on and
43  after January 1, 1990, and the works, machinery and equipment of which
HB 2105--Am. by SCW
                                     

 1  were exempted hereunder on March 13, 1995.
 2    [Fourth. All fire engines and other implements used for the ex-
 3  tinguishment of fires, with the buildings used exclusively for the
 4  safekeeping thereof, and for the meeting of fire companies,
 5  whether belonging to any rural fire district, township fire district,
 6  town, city or village, or to any fire company organized therein or
 7  therefor.
 8    [Fifth. All property, real and personal, owned by county fair as-
 9  sociations organized and operating under the provisions of K.S.A.
10  2-125 et seq. and amendments thereto.
11    [Sixth. Property acquired and held by any municipality under the
12  municipal housing law (K.S.A. 17-2337 et seq.) and amendments
13  thereto, except that such exemption shall not apply to any portion
14  of the project used by a nondwelling facility for profit making en-
15  terprise.
16    [Seventh. All property of a municipality, acquired or held under
17  and for the purposes of the urban renewal law (K.S.A. 17-4742 et
18  seq.) and amendments thereto except that such tax exemption shall
19  terminate when the municipality sells, leases or otherwise disposes
20  of such property in an urban renewal area to a purchaser or lessee
21  which is not a public body entitled to tax exemption with respect
22  to such property.
23    [Eighth. All property acquired and held by the Kansas armory
24  board for armory purposes under the provisions of K.S.A. 48-317,
25  and amendments thereto.
26    [Ninth. All property acquired and used by the Kansas turnpike
27  authority under the authority of K.S.A. 68-2001 et seq., and amend-
28  ments thereto, K.S.A. 68-2030 et seq., and amendments thereto,
29  K.S.A. 68-2051 et seq., and amendments thereto, and K.S.A. 68-
30  2070 et seq., and amendments thereto.
31    [Tenth. All property acquired and used for state park purposes
32  by the Kansas department of wildlife and parks.
33    [Eleventh. The state office building constructed under authority
34  of K.S.A. 75-3607 et seq., and amendments thereto, and the site
35  upon which such building is located.
36    [Twelfth. All buildings erected under the authority of K.S.A. 76-
37  6a01 et seq., and amendments thereto, and all other student union
38  buildings and student dormitories erected upon the campus of any
39  institution mentioned in K.S.A. 76-6a01, and amendments thereto,
40  by any other nonprofit corporation.
41    [Thirteenth. All buildings, as the same is defined in subsection (c)
42  of K.S.A. 76-6a13, and amendments thereto, which are erected,
43  constructed or acquired under the authority of K.S.A. 76-6a13 et
HB 2105--Am. by SCW
                                     

 1  seq., and amendments thereto, and building sites acquired there-
 2  for.
 3    [Fourteenth. All that portion of the waterworks plant and system
 4  of the city of Kansas City, Missouri, now or hereafter located within
 5  the territory of the state of Kansas pursuant to the compact and
 6  agreement adopted by chapter 304 of the 1921 Session Laws of
 7  the state of Kansas. See K.S.A. 79-205 .
 8    [Fifteenth. All property, real and personal, owned by a ground-
 9  water management district organized and operating pursuant to
10  K.S.A. 82a-1020, and amendments thereto.
11    [Sixteenth. All property, real and personal, owned by the joint
12  water district organized and operating pursuant to K.S.A. 80-1616
13  et seq., and amendments thereto.
14    [Seventeenth. All property, including interests less than fee own-
15  ership, acquired for the state of Kansas by the secretary of trans-
16  portation or a predecessor in interest which is used in the admin-
17  istration, construction, maintenance or operation of the state
18  system of highways, regardless of how or when acquired.
19    [Except as otherwise specifically provided, the provisions of this sec-
20  tion shall apply to all taxable years commencing after December
21  31, 1994 1996.]
22    New Sec. 37.  For all purposes associated with property taxa-
23  tion, the provisions of K.S.A. 79-412 notwithstanding, that portion
24  of the fair market value of real property attributable to the leasing
25  of real property, or the creation of any other interest of less than
26  fee simple in real property, for the purpose of the placement of a
27  wireless communication tower, antenna or relay site upon the real
28  property, shall be entered on the assessment roll separate from the
29  remaining fair market value. Such portion of the fair market value
30  shall be separately taxed to the owner of such wireless communi-
31  cation tower, antenna or relay site as real property at the same
32  classification and same tax rate as the real property upon which the
33  wireless communications tower, antenna or relay site is located ex-
34  cept that, in the event the real property upon which the wireless
35  communications tower, antenna or relay site is located is exempt
36  from property taxation, such real property shall continue to be ex-
37  empt from property taxation, except that portion of the fair market
38  value of such tax-exempt real property attributable to the leasing
39  of such tax-exempt real property, or the creation of any other in-
40  terest of less than fee simple in such tax-exempt real property, for
41  the purpose of the placement of a wireless communications tower,
42  antenna or relay site upon such tax-exempt real property, shall be
43  taxable and shall be assessed to the owner of such wireless com-
HB 2105--Am. by SCW
                                     

 1  munications tower, antenna or relay site as real property at 25% of
 2  value. Such tax shall be a lien on the interest in the real property
 3  of such owner of the wireless communications tower, antenna or
 4  relay site and shall be collected in the same manner as the collection
 5  of other taxes on real property.
 6    New Sec. 38.  (a) Any real property, or portion thereof, which
 7  is otherwise exempt from property taxation pursuant to the provi-
 8  sions of K.S.A. 79-201, 79-201a, 79-201b, 79-201g and amendments
 9  thereto, and which is leased or otherwise used for the location of a
10  wireless communications tower, antenna or relay site, shall be
11  deemed to be used exclusively for the purposes of such sections.
12    (b)  The provisions of this section shall be applicable to all tax-
13  able years commencing after December 31, 1995.
14    Sec. 39.  K.S.A. 75-5105a is hereby amended to read as follows:
15  75-5105a. The director of property valuation shall:
16    (a)  Devise and prescribe uniform assessment forms and records,
17  property-identification maps, land-classification maps, land-value
18  maps, permanent record cards, and other essential assessment tools,
19  and to assist each county with the installation and maintenance of
20  the same.
21    (b)  Devise or prescribe guides, or both, showing fair market value
22  in money for the valuation of personal property. The director of prop-
23  erty valuation may furnish to each county one copy of each guide
24  so prescribed and a copy or copies of each guide so devised. In the
25  preparation of such guides, the director of property valuation shall
26  confer with representatives of the county appraisers and district
27  appraisers, and shall seek counsel from official representatives of
28  organized groups interested in and familiar with the value of classes
29  of property with which they are concerned.
30    (c)  Render all assistance possible toward uniform assessments
31  within the counties and throughout the state.
32    (d)  Assist county appraisers and district appraisers to deter-
33  mine the fair market value in money of nonstate assessed properties,
34  the valuation of which requires specialized technical knowledge.
35    (e)  Compile assessment sales ratio data as provided by K.S.A. 79-
36  1435 to 79-1438, inclusive 1996 Supp. 79-1486 through 79-1493, and
37  amendments thereto, and to analyze such assessment data.
38    (f)  Perform such other duties as may be prescribed by law.
39    Sec. 40.  K.S.A. 1996 Supp. 79-1476 is hereby amended to read
40  as follows: 79-1476. The director of property valuation is hereby
41  directed and empowered to administer and supervise a statewide
42  program of reappraisal of all real property located within the state.
43  Except as otherwise authorized by K.S.A. 19-428, and amendments
HB 2105--Am. by SCW
                                     

 1  thereto, each county shall comprise a separate appraisal district
 2  under such program, and the county appraiser shall have the duty
 3  of reappraising all of the real property in the county pursuant to
 4  guidelines and timetables prescribed by the director of property
 5  valuation and of updating the same on an annual [biennial] basis.
 6  In the case of multi-county appraisal districts, the district appraiser
 7  shall have the duty of reappraising all of the real property in each
 8  of the counties comprising the district pursuant to such guidelines
 9  and timetables and of updating the same on an annual [biennial]
10  basis. Commencing in 1994, every parcel of real property shall be
11  actually viewed and inspected by the county or district appraiser
12  once every four years. Any county or district appraiser shall be
13  deemed to be in compliance with the foregoing requirement in any
14  year if 25% or more of the parcels in such county or district are
15  actually viewed and inspected.
16    Compilation of data for the initial preparation or updating of
17  inventories for each parcel of real property and entry thereof into
18  the state computer system as provided for in K.S.A. 79-1477, and
19  amendments thereto, shall be completed not later than January 1,
20  1989. Whenever the director determines that reappraisal of all real
21  property within a county is complete, notification thereof shall be
22  given to the governor and to the state board of tax appeals.
23    Valuations shall be established for each parcel of real property
24  at its fair market value in money in accordance with the provisions
25  of K.S.A. 79-503a, and amendments thereto.
26    In addition thereto valuations shall be established for each parcel
27  of land devoted to agricultural use upon the basis of the agricultural
28  income or productivity attributable to the inherent capabilities of
29  such land in its current usage under a degree of management re-
30  flecting median production levels in the manner hereinafter pro-
31  vided. A classification system for all land devoted to agricultural
32  use shall be adopted by the director of property valuation using
33  criteria established by the United States department of agriculture
34  soil conservation service. For all taxable years commencing after
35  December 31, 1989, all land devoted to agricultural use which is
36  subject to the federal conservation reserve program shall be clas-
37  sified as cultivated dry land for the purpose of valuation for prop-
38  erty tax purposes pursuant to this section. Productivity of land de-
39  voted to agricultural use shall be determined for all land classes
40  within each county or homogeneous region based on an average of
41  the eight calendar years immediately preceding the calendar year
42  which immediately precedes the year of valuation, at a degree of
43  management reflecting median production levels. The director of
HB 2105--Am. by SCW
                                     

 1  property valuation shall determine median production levels based
 2  on information available from state and federal crop and livestock
 3  reporting services, the soil conservation service, and any other
 4  sources of data that the director considers appropriate.
 5    The share of net income from land in the various land classes
 6  within each county or homogeneous region which is normally re-
 7  ceived by the landlord shall be used as the basis for determining
 8  agricultural income for all land devoted to agricultural use except
 9  pasture or rangeland. The net income normally received by the
10  landlord from such land shall be determined by deducting expenses
11  normally incurred by the landlord from the share of the gross in-
12  come normally received by the landlord. The net rental income nor-
13  mally received by the landlord from pasture or rangeland within
14  each county or homogeneous region shall be used as the basis for
15  determining agricultural income from such land. The net rental in-
16  come from pasture and rangeland which is normally received by
17  the landlord shall be determined by deducting expenses normally
18  incurred from the gross income normally received by the landlord.
19  Commodity prices, crop yields and pasture and rangeland rental
20  rates and expenses shall be based on an average of the eight cal-
21  endar years immediately preceding the calendar year which im-
22  mediately precedes the year of valuation. Net income for every land
23  class within each county or homogeneous region shall be capitalized
24  at a rate determined to be the sum of the contract rate of interest
25  on new federal land bank loans in Kansas on July 1 of each year
26  averaged over a five-year period which includes the five years im-
27  mediately preceding the calendar year which immediately precedes
28  the year of valuation, except that from and after December 31, 1997,
29  the director of property valuation shall phase in the second quarter federal
30  reserve farm loan interest rate with the rate determined above until such
31  time as the five-year average of the second quarter federal reserve farm
32  loan interest rate is used exclusively and without regard to the contract
33  rate of interest on new federal land bank loans in Kansas, plus a per-
34  centage not less than .75% nor more than 2.75%, as determined by
35  the director of property valuation.
36    Based on the foregoing procedures the director of property val-
37  uation shall make an annual determination of the value of land
38  within each of the various classes of land devoted to agricultural
39  use within each county or homogeneous region and furnish the same
40  to the several county appraisers who shall classify such land ac-
41  cording to its current usage and apply the value applicable to such
42  class of land according to the valuation schedules prepared and
43  adopted by the director of property valuation under the provisions
HB 2105--Am. by SCW
                                     

 1  of this section.
 2    It is the intent of the legislature that appraisal judgment and ap-
 3  praisal standards be followed and incorporated throughout the
 4  process of data collection and analysis and establishment of values
 5  pursuant to this section.
 6    For the purpose of the foregoing provisions of this section the
 7  phrase ``land devoted to agricultural use'' shall mean and include
 8  land, regardless of whether it is located in the unincorporated area
 9  of the county or within the corporate limits of a city, which is de-
10  voted to the production of plants, animals or horticultural products,
11  including but not limited to: Forages; grains and feed crops; dairy
12  animals and dairy products; poultry and poultry products; beef cat-
13  tle, sheep, swine and horses; bees and apiary products; trees and
14  forest products; fruits, nuts and berries; vegetables; nursery, floral,
15  ornamental and greenhouse products. Land devoted to agricultural
16  use shall not include those lands which are used for recreational
17  purposes, other than that land established as a controlled shooting
18  area pursuant to K.S.A. 32-943, and amendments thereto, which
19  shall be deemed to be land devoted to agricultural use, suburban
20  residential acreages, rural home sites or farm home sites and yard
21  plots whose primary function is for residential or recreational pur-
22  poses even though such properties may produce or maintain some
23  of those plants or animals listed in the foregoing definition.
24    The term ``expenses'' shall mean those expenses typically incurred
25  in producing the plants, animals and horticultural products de-
26  scribed above including management fees, production costs, main-
27  tenance and depreciation of fences, irrigation wells, irrigation lat-
28  erals and real estate taxes, but the term shall not include those
29  expenses incurred in providing temporary or permanent buildings
30  used in the production of such plants, animals and horticultural
31  products.
32    The provisions of this act shall not be construed to conflict with
33  any other provisions of law relating to the appraisal of tangible
34  property for taxation purposes including the equalization processes
35  of the county and state board of tax appeals.
36    Sec. 41.  K.S.A. 1996 Supp. 79-1439 is hereby amended to read
37  as follows: 79-1439. (a) All real and tangible personal property
38  which is subject to general ad valorem taxation shall be appraised
39  uniformly and equally as to class and, unless otherwise specified
40  herein, shall be appraised at its fair market value, as defined in
41  K.S.A. 79-503a, and amendments thereto.
42    (b)  Property shall be classified into the following classes and
43  assessed at the percentage of value prescribed therefor:
HB 2105--Am. by SCW
                                     

 1    (1)  Real property shall be assessed as to subclass at the follow-
 2  ing percentages of value:
 3    (A)  Real property used for residential purposes including multi-
 4  family residential real property, real property necessary to accom-
 5  modate a residential community of mobile or manufactured homes in-
 6  cluding the real property upon which such homes are located and
 7  residential real property used partially for day care home purposes
 8  if such home has been registered or licensed pursuant to K.S.A. 65-
 9  501 et seq., and amendments thereto at 12% 11.5%;
10    (B)  land devoted to agricultural use valued pursuant to K.S.A.
11  79-1476, and amendments thereto, at 30%;
12    (C)  vacant lots at 12%; and
13    (D)  real property which is owned and operated by a not-for-profit
14  organization not subject to federal income taxation pursuant to section
15  501 of the federal internal revenue code and included herein pursuant to
16  K.S.A. 79-1439a, and amendments thereto, at 12%;
17    (E)  public utility real property, except railroad property which shall
18  be assessed at the average rate all other commercial and industrial prop-
19  erty is assessed, at 33%. As used in this paragraph, ``public utility'' shall
20  have the meaning ascribed thereto by K.S.A. 79-5a01, and amendments
21  thereto;
22    (F)  real property used for commercial and industrial purposes and
23  buildings and other improvements located upon land devoted to agricul-
24  tural use at 25%; and
25    (D) (G)  all other urban and rural real property not otherwise
26  specifically subclassed at 30%.
27    (2)  Personal property shall be classified into the following clas-
28  ses and assessed at the percentage of value prescribed therefor:
29    (A)  Mobile homes used for residential purposes at 12% 11.5%;
30    (B)  mineral leasehold interests, except oil leasehold interests the
31  average daily production from which is five barrels or less, and natural
32  gas leasehold interests, the average daily production from which is 100
33  mcf or less, which shall be assessed at 25%, at 30%;
34    (C)  public utility tangible personal property at 30%. As used in this
35  paragraph, ``public utility'' shall have the meaning ascribed thereto by
36  K.S.A. 79-5a01, and amendments thereto; public utility tangible personal
37  property including inventories thereof, except railroad personal property
38  including inventories thereof, which shall be assessed at the average rate
39  all other commercial and industrial property is assessed, at 33%. As used
40  in this paragraph, ``public utility'' shall have the meaning ascribed thereto
41  by K.S.A. 79-5a01, and amendments thereto;
42    (D)  all categories of motor vehicles listed and taxed pursuant to
43  K.S.A. 79-306d, and amendments thereto, and over-the-road motor
HB 2105--Am. by SCW
                                     

 1  vehicles defined pursuant to K.S.A. 79-6a01, and amendments thereto, at
 2  30%;
 3    (E)  commercial and industrial machinery and equipment, in-
 4  cluding rolling equipment defined pursuant to K.S.A. 79-6a01, and
 5  amendments thereto, which, if its economic life is seven years or more,
 6  shall be valued at its retail cost when new less seven-year straight-
 7  line depreciation, or which, if its economic life is less than seven
 8  years, shall be valued at its retail cost when new less straight-line
 9  depreciation over its economic life, except that, the value so ob-
10  tained for such property as long as it is being used shall not be less
11  than 20% of the retail cost when new of such property at 20% 25%;
12  and
13    (F)  all other tangible personal property not otherwise specifi-
14  cally classified at 30%.
15    Sec. 42.  K.S.A. 1996 Supp. 79-503a is hereby amended to read
16  as follows: 79-503a. ``Fair market value'' means the amount in terms
17  of money that a well informed buyer is justified in paying and a
18  well informed seller is justified in accepting for property in an open
19  and competitive market, assuming that the parties are acting with-
20  out undue compulsion. For the purposes of this definition it will be
21  assumed that consummation of a sale occurs as of January 1.
22    A variance of 10% in any individual appraisal at fair market value shall
23  not be considered willful neglect of the county appraiser's duty to achieve
24  fair market value. The foregoing provision shall not be construed to mean
25  that a series of such variances does not constitute willful neglect.
26    Sales in and of themselves shall not be the sole criteria of fair
27  market value but shall be used in connection with cost, income and
28  other factors including but not by way of exclusion:
29    (a)  The proper classification of lands and improvements;
30    (b)  the size thereof;
31    (c)  the effect of location on value;
32    (d)  depreciation, including physical deterioration or functional,
33  economic or social obsolescence;
34    (e)  cost of reproduction of improvements;
35    (f)  productivity;
36    (g)  earning capacity as indicated by lease price, by capitaliza-
37  tion of net income or by absorption or sell-out period;
38    (h)  rental or reasonable rental values;
39    (i)  sale value on open market with due allowance to abnormal
40  inflationary factors influencing such values;
41    (j)  restrictions imposed upon the use of real estate by local gov-
42  erning bodies, including zoning and planning boards or commis-
43  sions; and
HB 2105--Am. by SCW
                                     

 1    (k)  comparison with values of other property of known or rec-
 2  ognized value. The assessment-sales ratio study shall not be used as
 3  an appraisal for appraisal purposes.
 4    The appraisal process utilized in the valuation of all real and
 5  tangible personal property for ad valorem tax purposes shall con-
 6  form to generally accepted appraisal procedures which are adapt-
 7  able to mass appraisal and consistent with the definition of fair
 8  market value unless otherwise specified by law.
 9    Sec. 43.  K.S.A. 1996 Supp. 79-1448 is hereby amended to read
10  as follows: 79-1448. Any taxpayer may complain or appeal to the
11  county appraiser from the classification or appraisal of the taxpay-
12  er's property by giving notice to the county appraiser on or before
13  April 15 within 30 days subsequent to the date of mailing of the valuation
14  notice required by K.S.A. 79-1460, and amendments thereto, for real
15  property, and on or before May 15 for personal property. The
16  county appraiser or the appraiser's designee shall arrange to hold
17  an informal meeting with the aggrieved taxpayer with reference to
18  the property in question. At such meeting it shall be the duty of the
19  county appraiser or the county appraiser's designee to initiate pro-
20  duction of evidence to substantiate the valuation of such property.
21  The county appraiser may extend the time in which the taxpayer
22  may informally appeal from the classification or appraisal of the
23  taxpayer's property for just and adequate reasons. Except as pro-
24  vided in K.S.A. 79-1404, and amendments thereto, no informal meet-
25  ing regarding real property shall be scheduled to take place after
26  May 15, nor shall a final determination be given by the appraiser
27  after May 20. Any taxpayer who is aggrieved by the final determi-
28  nation of the county appraiser may appeal to the hearing officer or
29  panel appointed pursuant to K.S.A. 1996 Supp. 79-1611, and
30  amendments thereto, and such hearing officer, or panel, for just
31  cause shown and recorded, is authorized to change the classification
32  or valuation of specific tracts or individual items of real or personal
33  property in the same manner provided for in K.S.A. 79-1606, and
34  amendments thereto. Any taxpayer who is aggrieved by the final
35  determination of a hearing officer or panel may appeal to the state
36  board of tax appeals as provided in K.S.A. 79-1609, and amend-
37  ments thereto. An informal meeting with the county appraiser or
38  the appraiser's designee shall be a condition precedent to an appeal
39  to the county or district hearing panel.
40    Sec. 44.  K.S.A. 1996 Supp. 45-221 is hereby amended to read
41  as follows: 45-221. (a) Except to the extent disclosure is otherwise
42  required by law, a public agency shall not be required to disclose:
43    (1)  Records the disclosure of which is specifically prohibited or
HB 2105--Am. by SCW
                                     

 1  restricted by federal law, state statute or rule of the Kansas supreme
 2  court or the disclosure of which is prohibited or restricted pursuant
 3  to specific authorization of federal law, state statute or rule of the
 4  Kansas supreme court to restrict or prohibit disclosure.
 5    (2)  Records which are privileged under the rules of evidence,
 6  unless the holder of the privilege consents to the disclosure.
 7    (3)  Medical, psychiatric, psychological or alcoholism or drug
 8  dependency treatment records which pertain to identifiable pa-
 9  tients.
10    (4)  Personnel records, performance ratings or individually
11  identifiable records pertaining to employees or applicants for em-
12  ployment, except that this exemption shall not apply to the names,
13  positions, salaries and lengths of service of officers and employees
14  of public agencies once they are employed as such.
15    (5)  Information which would reveal the identity of any under-
16  cover agent or any informant reporting a specific violation of law.
17    (6)  Letters of reference or recommendation pertaining to the
18  character or qualifications of an identifiable individual.
19    (7)  Library, archive and museum materials contributed by pri-
20  vate persons, to the extent of any limitations imposed as conditions
21  of the contribution.
22    (8)  Information which would reveal the identity of an individual
23  who lawfully makes a donation to a public agency, if anonymity of
24  the donor is a condition of the donation.
25    (9)  Testing and examination materials, before the test or ex-
26  amination is given or if it is to be given again, or records of indi-
27  vidual test or examination scores, other than records which show
28  only passage or failure and not specific scores.
29    (10)  Criminal investigation records, except that the district
30  court, in an action brought pursuant to K.S.A. 45-222, and amend-
31  ments thereto, may order disclosure of such records, subject to such
32  conditions as the court may impose, if the court finds that disclo-
33  sure:
34    (A)  Is in the public interest;
35    (B)  would not interfere with any prospective law enforcement
36  action;
37    (C)  would not reveal the identity of any confidential source or
38  undercover agent;
39    (D)  would not reveal confidential investigative techniques or
40  procedures not known to the general public;
41    (E)  would not endanger the life or physical safety of any person;
42  and
43    (F)  would not reveal the name, address, phone number or any
HB 2105--Am. by SCW
                                     

 1  other information which specifically and individually identifies the
 2  victim of any sexual offense in article 35 of chapter 21 of the Kansas
 3  Statutes Annotated, and amendments thereto.
 4    (11)  Records of agencies involved in administrative adjudica-
 5  tion or civil litigation, compiled in the process of detecting or in-
 6  vestigating violations of civil law or administrative rules and reg-
 7  ulations, if disclosure would interfere with a prospective
 8  administrative adjudication or civil litigation or reveal the identity
 9  of a confidential source or undercover agent.
10    (12)  Records of emergency or security information or proce-
11  dures of a public agency, or plans, drawings, specifications or re-
12  lated information for any building or facility which is used for pur-
13  poses requiring security measures in or around the building or
14  facility or which is used for the generation or transmission of power,
15  water, fuels or communications, if disclosure would jeopardize se-
16  curity of the public agency, building or facility.
17    (13)  The contents of appraisals or engineering or feasibility es-
18  timates or evaluations made by or for a public agency relative to
19  the acquisition of property, prior to the award of formal contracts
20  therefor.
21    (14)  Correspondence between a public agency and a private in-
22  dividual, other than correspondence which is intended to give notice
23  of an action, policy or determination relating to any regulatory,
24  supervisory or enforcement responsibility of the public agency or
25  which is widely distributed to the public by a public agency and is
26  not specifically in response to communications from such a private
27  individual.
28    (15)  Records pertaining to employer-employee negotiations, if
29  disclosure would reveal information discussed in a lawful executive
30  session under K.S.A. 75-4319, and amendments thereto.
31    (16)  Software programs for electronic data processing and doc-
32  umentation thereof, but each public agency shall maintain a reg-
33  ister, open to the public, that describes:
34    (A)  The information which the agency maintains on computer
35  facilities; and
36    (B)  the form in which the information can be made available
37  using existing computer programs.
38    (17)  Applications, financial statements and other information
39  submitted in connection with applications for student financial as-
40  sistance where financial need is a consideration for the award.
41    (18)  Plans, designs, drawings or specifications which are pre-
42  pared by a person other than an employee of a public agency or
43  records which are the property of a private person.
HB 2105--Am. by SCW
                                     

 1    (19)  Well samples, logs or surveys which the state corporation
 2  commission requires to be filed by persons who have drilled or
 3  caused to be drilled, or are drilling or causing to be drilled, holes
 4  for the purpose of discovery or production of oil or gas, to the extent
 5  that disclosure is limited by rules and regulations of the state cor-
 6  poration commission.
 7    (20)  Notes, preliminary drafts, research data in the process of
 8  analysis, unfunded grant proposals, memoranda, recommendations
 9  or other records in which opinions are expressed or policies or ac-
10  tions are proposed, except that this exemption shall not apply when
11  such records are publicly cited or identified in an open meeting or
12  in an agenda of an open meeting.
13    (21)  Records of a public agency having legislative powers,
14  which records pertain to proposed legislation or amendments to
15  proposed legislation, except that this exemption shall not apply
16  when such records are:
17    (A)  Publicly cited or identified in an open meeting or in an
18  agenda of an open meeting; or
19    (B)  distributed to a majority of a quorum of any body which
20  has authority to take action or make recommendations to the public
21  agency with regard to the matters to which such records pertain.
22    (22)  Records of a public agency having legislative powers,
23  which records pertain to research prepared for one or more mem-
24  bers of such agency, except that this exemption shall not apply when
25  such records are:
26    (A)  Publicly cited or identified in an open meeting or in an
27  agenda of an open meeting; or
28    (B)  distributed to a majority of a quorum of any body which
29  has authority to take action or make recommendations to the public
30  agency with regard to the matters to which such records pertain.
31    (23)  Library patron and circulation records which pertain to
32  identifiable individuals.
33    (24)  Records which are compiled for census or research pur-
34  poses and which pertain to identifiable individuals.
35    (25)  Records which represent and constitute the work product
36  of an attorney.
37    (26)  Records of a utility or other public service pertaining to
38  individually identifiable residential customers of the utility or serv-
39  ice, except that information concerning billings for specific individ-
40  ual customers named by the requester shall be subject to disclosure
41  as provided by this act.
42    (27)  Specifications for competitive bidding, until the specifica-
43  tions are officially approved by the public agency.
HB 2105--Am. by SCW
                                     

 1    (28)  Sealed bids and related documents, until a bid is accepted
 2  or all bids rejected.
 3    (29)  Correctional records pertaining to an identifiable inmate,
 4  except that:
 5    (A)  The name, sentence data, parole eligibility date, discipli-
 6  nary record, custody level and location of an inmate;
 7    (B)  the ombudsman of corrections, the attorney general, law en-
 8  forcement agencies, counsel for the inmate to whom the record per-
 9  tains and any county or district attorney shall have access to cor-
10  rectional records to the extent otherwise permitted by law;
11    (C)  the information provided to the law enforcement agency
12  pursuant to the sex offender registration act, K.S.A. 22-4901, et seq.,
13  and amendments thereto, shall be subject to disclosure to any per-
14  son; and
15    (D)  records of the department of corrections regarding the fi-
16  nancial assets of an offender in the custody of the secretary of cor-
17  rections shall be subject to disclosure to the victim, or such victim's
18  family, of the crime for which the inmate is in custody as set forth
19  in an order of restitution by the sentencing court.
20    (30)  Public records containing information of a personal nature
21  where the public disclosure thereof would constitute a clearly un-
22  warranted invasion of personal privacy.
23    (31)  Public records pertaining to prospective location of a busi-
24  ness or industry where no previous public disclosure has been made
25  of the business' or industry's interest in locating in, relocating
26  within or expanding within the state. This exception shall not in-
27  clude those records pertaining to application of agencies for permits
28  or licenses necessary to do business or to expand business opera-
29  tions within this state, except as otherwise provided by law.
30    (32)  The bidder's list of contractors who have requested bid
31  proposals for construction projects from any public agency, until a
32  bid is accepted or all bids rejected.
33    (33)  Engineering and architectural estimates made by or for
34  any public agency relative to public improvements.
35    (34)  Financial information submitted by contractors in quali-
36  fication statements to any public agency.
37    (35)  Records involved in the obtaining and processing of intel-
38  lectual property rights that are expected to be, wholly or partially
39  vested in or owned by a state educational institution, as defined in
40  K.S.A. 76-711, and amendments thereto, or an assignee of the insti-
41  tution organized and existing for the benefit of the institution.
42    (36)  Any report or record which is made pursuant to K.S.A. 65-
43  4922, 65-4923 or 65-4924, and amendments thereto, and which is
HB 2105--Am. by SCW
                                     

 1  privileged pursuant to K.S.A. 65-4915 or 65-4925, and amendments
 2  thereto.
 3    (37)  Information which would reveal the precise location of an
 4  archeological site.
 5    (38)  Any financial data or traffic information from a railroad
 6  company, to a public agency, concerning the sale, lease or rehabil-
 7  itation of the railroad's property in Kansas.
 8    (39)  Risk-based capital reports, risk-based capital plans and
 9  corrective orders including the working papers and the results of
10  any analysis filed with the commissioner of insurance in accordance
11  with K.S.A. 1996 Supp. 40-2c20, and amendments thereto.
12    (40)  Memoranda and related materials required to be used to
13  support the annual actuarial opinions submitted pursuant to sub-
14  section (b) of K.S.A. 40-409, and amendments thereto.
15    (41)  Disclosure reports filed with the commissioner of insurance
16  under subsection (a) of K.S.A. 1996 Supp. 40-2,156, and amend-
17  ments thereto.
18    (42)  All financial analysis ratios and examination synopses con-
19  cerning insurance companies that are submitted to the commis-
20  sioner by the national association of insurance commissioners' in-
21  surance regulatory information system.
22    (43)  Any records the disclosure of which is restricted or prohib-
23  ited by a tribal-state gaming compact.
24    (b)  Except to the extent disclosure is otherwise required by law
25  or as appropriate during the course of an administrative proceeding
26  or on appeal from agency action, a public agency or officer shall
27  not disclose financial information of a taxpayer which may be re-
28  quired or requested by a county appraiser or the director of property
29  valuation to assist in the determination of the value of the taxpayer's
30  property for ad valorem taxation purposes; or any financial infor-
31  mation of a personal nature required or requested by a public
32  agency or officer, including a name, job description or title reveal-
33  ing the salary or other compensation of officers, employees or ap-
34  plicants for employment with a firm, corporation or agency, except
35  a public agency. Nothing contained herein shall be construed to
36  prohibit the publication of statistics, so classified as to prevent iden-
37  tification of particular reports or returns and the items thereof.
38    (c)  As used in this section, the term ``cited or identified'' shall
39  not include a request to an employee of a public agency that a doc-
40  ument be prepared.
41    (d)  If a public record contains material which is not subject to
42  disclosure pursuant to this act, the public agency shall separate or
43  delete such material and make available to the requester that ma-
HB 2105--Am. by SCW
                                     

 1  terial in the public record which is subject to disclosure pursuant
 2  to this act. If a public record is not subject to disclosure because it
 3  pertains to an identifiable individual, the public agency shall delete
 4  the identifying portions of the record and make available to the
 5  requester any remaining portions which are subject to disclosure
 6  pursuant to this act, unless the request is for a record pertaining to
 7  a specific individual or to such a limited group of individuals that
 8  the individuals' identities are reasonably ascertainable, the public
 9  agency shall not be required to disclose those portions of the record
10  which pertain to such individual or individuals.
11    (e)  The provisions of this section shall not be construed to ex-
12  empt from public disclosure statistical information not descriptive
13  of any identifiable person.
14    (f)  Notwithstanding the provisions of subsection (a), any public
15  record which has been in existence more than 70 years shall be open
16  for inspection by any person unless disclosure of the record is spe-
17  cifically prohibited or restricted by federal law, state statute or rule
18  of the Kansas supreme court or by a policy adopted pursuant to
19  K.S.A. 72-6214, and amendments thereto.
20    Sec. 45.  K.S.A. 1996 Supp. 75-5133 is hereby amended to read
21  as follows: 75-5133. (a) Except as otherwise more specifically pro-
22  vided by law, all information received by the director of taxation
23  from applications for licensure or registration made or returns or
24  reports filed under the provisions of any law imposing any excise
25  tax administered by the director, or from any investigation con-
26  ducted under such provisions, shall be confidential, and it shall be
27  unlawful for any officer or employee of the department of revenue
28  to divulge any such information except in accordance with other
29  provisions of law respecting the enforcement and collection of such
30  tax, in accordance with proper judicial order and as provided in
31  K.S.A. 74-2424, and amendments thereto.
32    (b)  Nothing herein in this section shall be construed to prohibit
33  the publication of statistics, so classified as to prevent identification
34  of particular reports or returns and the items thereof, or the in-
35  spection of returns by the attorney general. Nothing in this section
36  shall prohibit the post auditor from access to all such excise tax
37  reports or returns in accordance with and subject to the provisions
38  of subsection (g) of K.S.A. 46-1106, and amendments thereto. Noth-
39  ing in this section shall be construed to prohibit the disclosure of
40  the taxpayer's name, social security number, last known address and total
41  tax liability, including penalty and interest, taxpayer information from
42  excise tax returns to a debt collection agency persons or entities con-
43  tracting with the secretary of revenue pursuant to K.S.A. 75-5140 to
HB 2105--Am. by SCW
                                     

 1  75-5143, inclusive, and amendments thereto where the secretary has de-
 2  termined disclosure of such information is essential for completion of the
 3  contract and has taken appropriate steps to preserve confidentiality.
 4    (c)  Notwithstanding the foregoing provisions of this section, the
 5  director of taxation may provide such information from returns and
 6  reports filed under article 42 of chapter 79 of the Kansas Statutes
 7  Annotated to county appraisers as is necessary to insure proper
 8  valuations of property. Information from such returns and reports
 9  may also be exchanged with any other state agency administering
10  and collecting conservation or other taxes and fees imposed on or
11  measured by mineral production. Nothing in this section shall pro-
12  hibit the disclosure of oil and gas production statistics.
13    (d)  Any person receiving any information under the provisions
14  of subsection (b) or (c) of this section shall be subject to the confi-
15  dentiality provisions of subsection (a) of this section and to the pen-
16  alty provisions of subsection (e) of this section.
17    (e)  Any violation of this section shall be a class B nonperson
18  misdemeanor, and if the offender is an officer or employee of this
19  state, such officer or employee shall be dismissed from office.
20    Sec. 46.  K.S.A. 1996 Supp. 79-3234 is hereby amended to read
21  as follows: 79-3234. (a) All reports and returns required by this act
22  shall be preserved for three years and thereafter until the director
23  orders them to be destroyed.
24    (b)  Except in accordance with proper judicial order, or as pro-
25  vided in subsection (c) or in K.S.A. 17-7511, subsection (g) of K.S.A.
26  46-1106, K.S.A. 46-1114, or K.S.A. 79-32,153a, and amendments
27  thereto, it shall be unlawful for the director, any deputy, agent,
28  clerk or other officer, employee or former employee of the depart-
29  ment of revenue or any other state officer or employee or former
30  state officer or employee to divulge, or to make known in any way,
31  the amount of income or any particulars set forth or disclosed in
32  any report, return, federal return or federal return information re-
33  quired under this act; and it shall be unlawful for the director, any
34  deputy, agent, clerk or other officer or employee engaged in the
35  administration of this act to engage in the business or profession of
36  tax accounting or to accept employment, with or without consid-
37  eration, from any person, firm or corporation for the purpose, di-
38  rectly or indirectly, of preparing tax returns or reports required by
39  the laws of the state of Kansas, by any other state or by the United
40  States government, or to accept any employment for the purpose of
41  advising, preparing material or data, or the auditing of books or
42  records to be used in an effort to defeat or cancel any tax or part
43  thereof that has been assessed by the state of Kansas, any other state
HB 2105--Am. by SCW
                                     

 1  or by the United States government.
 2    (c)  Nothing herein in this section shall be construed to prohibit
 3  the publication of statistics, so classified as to prevent the identifi-
 4  cation of particular reports or returns and the items thereof, or the
 5  inspection of returns by the attorney general or other legal repre-
 6  sentatives of the state. Nothing in this section shall prohibit the post
 7  auditor from access to all income tax reports or returns in accor-
 8  dance with and subject to the provisions of subsection (g) of K.S.A.
 9  46-1106 or K.S.A. 46-1114, and amendments thereto. Nothing in this
10  section shall be construed to prohibit the disclosure of the taxpayer's
11  name, social security number, last known address and total tax liability,
12  including penalty and interest, taxpayer information from income tax
13  returns to a debt collection agency persons or entities contracting with
14  the secretary of revenue pursuant to K.S.A. 75-5140 through 75-5143,
15  and amendments thereto where the secretary has determined disclosure
16  of such information is essential for completion of the contract and has
17  taken appropriate steps to preserve confidentiality. Nothing in this sec-
18  tion shall be construed to prohibit the disclosure of job creation
19  and investment information derived from tax schedules required to
20  be filed under the Kansas income tax act to the secretary of com-
21  merce.  Nothing in this section shall be construed to prohibit the
22  disclosure of the taxpayer's name, last known address and residency
23  status to the department of wildlife and parks to be used solely in
24  its license fraud investigations. Any person receiving any informa-
25  tion under the provisions of this subsection shall be subject to the
26  confidentiality provisions of subsection (b) and to the penalty pro-
27  visions of subsection (d).
28    (d)  Any violation of subsection (b) or (c) is a class B nonperson
29  misdemeanor and, if the offender is an officer or employee of the
30  state, such officer or employee shall be dismissed from office.
31    (e)  Notwithstanding the provisions of this section, the secretary
32  of revenue may permit the commissioner of internal revenue of the
33  United States, or the proper official of any state imposing an income
34  tax, or the authorized representative of either, to inspect the income
35  tax returns made under this act and the secretary of revenue may
36  make available or furnish to the taxing officials of any other state
37  or the commissioner of internal revenue of the United States or
38  other taxing officials of the federal government, or their authorized
39  representatives, information contained in income tax reports or re-
40  turns or any audit thereof or the report of any investigation made
41  with respect thereto, filed pursuant to the income tax laws, as the
42  secretary may consider proper, but such information shall not be
43  used for any other purpose than that of the administration of tax
HB 2105--Am. by SCW
                                     

 1  laws of such state, the state of Kansas or of the United States.
 2    (f)  Notwithstanding the provisions of this section, the secretary
 3  of revenue may:
 4    (1)  Communicate to the executive director of the Kansas lottery
 5  information as to whether a person, partnership or corporation is
 6  current in the filing of all applicable tax returns and in the payment
 7  of all taxes, interest and penalties to the state of Kansas, excluding
 8  items under formal appeal, for the purpose of determining whether
 9  such person, partnership or corporation is eligible to be selected as
10  a lottery retailer;
11    (2)  communicate to the executive director of the Kansas racing
12  commission as to whether a person, partnership or corporation has
13  failed to meet any tax obligation to the state of Kansas for the pur-
14  pose of determining whether such person, partnership or corpora-
15  tion is eligible for a facility owner license or facility manager license
16  pursuant to the Kansas parimutuel racing act; and
17    (3)  provide such information to the president of Kansas, Inc. as
18  required by K.S.A. 1996 Supp. 74-8017, and amendments thereto.
19  The president and any employees or former employees of Kansas,
20  Inc. receiving any such information shall be subject to the confi-
21  dentiality provisions of subsection (b) and to the penalty provisions
22  of subsection (d).
23    Sec. 47.  K.S.A. 1996 Supp. 79-3614 is hereby amended to read
24  as follows: 79-3614. All information received by the director from
25  returns filed under this act, or from any investigations conducted
26  under the provisions of this act, shall be confidential, except for
27  official purposes, and it shall be unlawful for any officer or em-
28  ployee of such director to divulge any such information in any man-
29  ner, except in accordance with a proper judicial order, or as pro-
30  vided in K.S.A. 74-2424, and amendments thereto. The post auditor
31  shall have access to all such information in accordance with and
32  subject to the provisions of subsection (g) of K.S.A. 46-1106, and
33  amendments thereto. Nothing in this section shall be construed to
34  prohibit the disclosure of the taxpayer's name, social security number,
35  last known address and total tax liability, including penalty and interest,
36  taxpayer information from sales tax returns to a debt collection agency
37  persons or entities contracting with the secretary of revenue pursuant
38  to K.S.A. 75-5140 to 75-5143, inclusive where the secretary has deter-
39  mined disclosure of such information is essential for completion of the
40  contract and has taken appropriate steps to preserve confidentiality. Not-
41  withstanding the provisions of this section, the secretary of revenue
42  may provide such information to the president of Kansas, Inc. as
43  required by K.S.A. 1996 Supp. 74-8017, and amendments thereto.
HB 2105--Am. by SCW
                                     

 1  The president and any employees or former employees Any person re-
 2  ceiving any such information pursuant to this section shall be subject
 3  to the same duty of confidentiality imposed on officers and employ-
 4  ees of the department of revenue by this section and shall be subject
 5  to any civil or criminal penalties imposed by law for violations of
 6  such duty of confidentiality.
 7    Sec. 48.  K.S.A. 79-32,111 is hereby amended to read as follows:
 8  79-32,111. (a) The amount of income tax paid to another state by a
 9  resident individual, resident estate or resident trust on income de-
10  rived from sources in another state shall be allowed as a credit
11  against the tax computed under the provisions of this act. Such
12  credit shall not be greater in proportion to the tax computed under
13  this act than the adjusted gross income for such year derived in
14  another state while such taxpayer is a resident of this state is to the
15  total Kansas adjusted gross income of the taxpayer. As used in this
16  subsection, state shall have the meaning ascribed thereto by subsection
17    (h) of K.S.A. 79-3271, and amendments thereto. The credit allowable here-
18  under for income tax paid to a foreign country or political subdivision
19  thereof shall not exceed the difference of such income tax paid less the
20  credit allowable for such income tax paid by the federal internal revenue
21  code.
22    (b)  There shall be allowed as a credit against the tax computed
23  under the provisions of the Kansas income tax act, and acts amen-
24  datory thereof and supplemental thereto, on the Kansas taxable in-
25  come of an individual, corporation or fiduciary the amount deter-
26  mined under the provisions of K.S.A. 79-32,153 to 79-32,158, and
27  amendments thereto.
28    [New Sec. 49.  (a) Notwithstanding any other provisions of law
29  to the contrary and except as otherwise provided by subsection (b),
30  the valuation established for property for utilization as the basis
31  for ad valorem taxation shall be established in the first year of a
32  biennium the first of which shall commence with 1997, and shall be
33  utilized for ad valorem taxation purposes for each year during the
34  applicable biennium.
35    [(b) (1)  For any improvement to existing property or any other
36  property for which a valuation has not been established for utili-
37  zation as the basis for ad valorem taxation as of the first year of a
38  biennium, there shall be established a valuation or increased val-
39  uation for such property, which shall be utilized for ad valorem
40  taxation purposes for the year of valuation and the remaining por-
41  tion of the applicable biennium.
42    [(2)  In the event a valuation of property is reduced pursuant to
43  law during a biennium, such reduced valuation shall be utilized for
HB 2105--Am. by SCW
                                     

 1  ad valorem taxation purposes for the year in which such valuation
 2  is reduced and the remaining portion of the applicable biennium.
 3    [(c)  The provisions of this section shall not be construed to con-
 4  flict with any other provision of law relating to the appraisal of
 5  property for taxation purposes or the appeals processes associated
 6  therewith.
 7    [(d)  The provisions of this section shall not apply to property
 8  classified and valued pursuant to subclass (5) of class 2 of section
 9  1 of article 11 of the Kansas constitution.
10    [(e)  The provisions of this section shall be applicable to all tax-
11  able years commencing after December 31, 1996.
12    [New Sec. 50.  (a)  Notwithstanding any other provision of law
13  to the contrary and except as otherwise provided by subsection (c),
14  the unit valuation, state allocation and assessment distribution fac-
15  tor establishing the basis for distributing the assessed valuation of
16  utility property in accordance with K.S.A. 79-5a25 and K.S.A. 79-
17  5a26 for ad valorem taxation in the first year of a biennium, shall
18  be utilized to calculate the distributed assessed value for each year
19  during the applicable biennium.
20    [(b)  In the year following the first year of a biennium for the
21  purposes of establishing valuation procedures: (1) A merger shall
22  mean the combining of two or more entities under a new name; (2)
23  acquisition of a company shall mean te substantial absorption of a
24  company by the acquiring company under the acquiring company's
25  name; (3) acquisition of assets shall mean the lease, purchase, re-
26  pair, modification or construction of new or existing assets.
27    [(c)  If a merger occurs within the first year of the biennium, a
28  new valuation, state allocation and assessment distribution factor
29  shall be established on January 1 of the year following the first year
30  of a biennium. Property acquired through acquisition shall be as-
31  sessed using the assessment distribution factor of the acquiring com-
32  pany. Property acquired through acquisition by lease, purchase,
33  construction, repair or modification of new or existing assets shall
34  be assessed using the assessment distribution factor of the acquiring
35  company.
36    [(d)  Property, as of January 1 of each year, which is not part of
37  the operating property of the utility shall not be assessed under
38  article 5a of chapter 79 of the Kansas Statutes Annotated.
39    [(e)  The provisions of this section shall be applicable to all tax-
40  able years commencing after December 31, 1996.
41    [Sec. 51.  K.S.A. 1996 Supp. 79-1486 is hereby amended to read
42  as follows: 79-1486. As used in this act:
43    [(a)  ``Sale'' or ``sales'' shall include all transfers of real estate
HB 2105--Am. by SCW
                                     

 1  for which a real estate sales validation questionnaire is required by
 2  K.S.A. 1996 Supp. 79-1437c, and amendments thereto; however, all
 3  sales for which a real estate sales validation questionnaire is re-
 4  quired by K.S.A. 1996 Supp. 79-1437c, and amendments thereto,
 5  need not be included in the final ratios determined;
 6    [(b)  ``valid sale'' is a sale that is an indicator of fair market value
 7  as defined in K.S.A. 79-503a, and amendments thereto;
 8    [(c)  ``invalid sale'' is a sale that is not an indicator of fair market
 9  value as defined in K.S.A. 79-503a, and amendments thereto;
10    [(d)  ``unvalidated sale'' is a residential subclass sale that was
11  not selected through a random sampling process and has not been
12  determined to be either a valid sale or an invalid sale;
13    [(e)  ``real estate'' shall include land, improvements and struc-
14  tures which are appraised as real property;
15    [(f)  ``director'' shall mean the director of property valuation;
16    [(g)  ``classification'' shall mean those classifications which ap-
17  ply to real property contained in K.S.A. 79-1439, and amendments
18  thereto, or any stratification which may be prescribed by the di-
19  rector;
20    [(h)  ``average'' shall mean that measure or measures of central
21  tendency which the director shall determine best describes a group
22  of individual ratios;
23    [(i)  ``ratio'' shall mean the numerical relationship between the
24  appraised or assessed value and the selling price; and
25    [(j)  ``study year'' shall mean that twelve-month period begin-
26  ning annually on January 1 of the second year of a biennium.
27    [Sec. 52.  K.S.A. 1996 Supp. 79-1489 is hereby amended to read
28  as follows: 79-1489. The director shall determine the mid-year mid-
29  biennium ratios for each county and notify the board of county com-
30  missioners thereof. When the final ratios are determined, the direc-
31  tor shall notify the board of county commissioners of each county
32  of the ratios determined for such county. If the board of county
33  commissioners disagrees with the ratios determined for the county,
34  such board, within 15 days after receipt of such notice, may appeal
35  such determination to the state board of tax appeals. Written notice
36  of appeal shall be served on the state board of tax appeals and the
37  director by certified mail. The notice of appeal shall clearly and
38  specifically state the facts upon which the appeal is based. The state
39  board of tax appeals shall conduct a summary proceeding in accor-
40  dance with the provisions of the Kansas administrative procedure
41  act within 30 days of receipt of the written notice of appeal and
42  shall issue findings and a final order within 30 days after the con-
43  clusion of such summary proceeding. If the state board of tax ap-
HB 2105--Am. by SCW
                                     

 1  peals finds that corrections in the ratios are necessary, it shall order
 2  the director to make necessary corrections consistent with such
 3  findings prior to the publication of the study.]
 4    [Sec. 51.  K.S.A. 1996 Supp. 79-1485 is hereby amended to read
 5  as follows: 79-1485. (a) This act shall be known and may be cited
 6  as the Kansas real estate ratio study act.
 7    [(b)  The purpose of this act is to provide statistical information
 8  regarding the relationship of the appraised value to the selling price
 9  of real estate which has sold during the study year period and the
10  relative level of uniformity of appraisal within and among counties
11  and to report such information in convenient form to the legislature
12  and other interested parties. The statistical information determined
13  pursuant to this act may be used by the director in carrying out
14  such director's duties, including, but not limited to, assisting such
15  director in the determination of substantial compliance under
16  K.S.A. 79-1445, and amendments thereto.
17    [Sec. 52.  K.S.A. 1996 Supp. 79-1486 is hereby amended to read
18  as follows: 79-1486. As used in this act:
19    [(a)  ``Sale'' or ``sales'' shall include all transfers of real estate
20  for which a real estate sales validation questionnaire is required by
21  K.S.A. 1996 Supp. 79-1437c, and amendments thereto; however, all
22  sales for which a real estate sales validation questionnaire is re-
23  quired by K.S.A. 1996 Supp. 79-1437c, and amendments thereto,
24  need not be included in the final ratios determined;
25    [(b)  ``valid sale'' is a sale that is an indicator of fair market value
26  as defined in K.S.A. 79-503a, and amendments thereto;
27    [(c)  ``invalid sale'' is a sale that is not an indicator of fair market
28  value as defined in K.S.A. 79-503a, and amendments thereto;
29    [(d)  ``unvalidated sale'' is a residential subclass sale that was
30  not selected through a random sampling process and has not been
31  determined to be either a valid sale or an invalid sale;
32    [(e)  ``real estate'' shall include land, improvements and struc-
33  tures which are appraised as real property;
34    [(f)  ``director'' shall mean the director of property valuation;
35    [(g)  ``classification'' shall mean those classifications which ap-
36  ply to real property contained in K.S.A. 79-1439, and amendments
37  thereto, or any stratification which may be prescribed by the di-
38  rector;
39    [(h)  ``average'' shall mean that measure or measures of central
40  tendency which the director shall determine best describes a group
41  of individual ratios;
42    [(i)  ``ratio'' shall mean the numerical relationship between the
43  appraised or assessed value and the selling price; and
HB 2105--Am. by SCW
                                     

 1    [(j)  ``study year period'' shall mean that twelve-month twenty-four
 2  month period beginning annually biennially on January 1. The first
 3  twenty-four month study period shall begin January 1, 1997, and end
 4  December 31, 1998;
 5    [(k)  ``appraisal date'' shall mean January 1 of the study period, be-
 6  ginning with January 1, 1997;
 7    [(l)  ``time trending'' shall mean the adjustment made to account for
 8  market level differences that occur between the date of sale and the ap-
 9  praisal date.
10    [Sec. 53.  K.S.A. 1996 Supp. 79-1488 is hereby amended to read
11  as follows: 79-1488. It shall be the duty of the director to obtain all
12  information relating to each sale of real estate as the director shall
13  deem necessary to carry out the intent and purposes of this act. The
14  director shall prescribe the form in which the data is obtained. The
15  director shall assign agents who shall verify and categorize each
16  sale as valid, invalid or unvalidated. The director shall determine
17  the median ratio in relation to the county's certified value, the price
18  related differential, and the coefficient of dispersion for each clas-
19  sification of property in each county. The director may use or require
20  the use of time trending to determine reliable ratios for any classification
21  of property in any county. If, in the director's opinion, sales from the
22  study year period are insufficient to determine reliable ratios for any
23  classification of property in any county, sales from the four-year
24  period preceding the study year period may be used to supplement
25  study year period sales or the director may obtain or conduct ap-
26  praisals for the purpose of supplementing, verifying or correcting
27  ratios for the study year period. The director may select random
28  samples of residential subclass sales from counties having a total
29  parcel count in excess of 15,000 10,000 to determine reliable resi-
30  dential subclass ratios for any such county. The random sample
31  shall be selected prior to any validation process. Data from deeds,
32  other instruments of conveyance and real estate sales validation
33  questionnaires recorded or filed with the register of deeds on or
34  after the first day of February following the study year period shall
35  not be used in determining the ratios for any county.
36    [Sec. 54.  K.S.A. 1996 Supp. 79-1489 is hereby amended to read
37  as follows: 79-1489. The director shall determine the mid-year ratios
38  at the end of each six-month period for each county and notify the
39  board of county commissioners thereof. When the final six-month pe-
40  riod ratios are determined, the director shall notify the board of
41  county commissioners of each county of the ratios determined for
42  such county. If the board of county commissioners disagrees with the
43  six-month period ratios determined for the county, such board, within 15
HB 2105--Am. by SCW
                                     

 1  days after receipt of such notice, may request in writing that the director
 2  reconsider the six-month period ratios determined for such county, which
 3  shall not require an adjudicative proceeding under the Kansas adminis-
 4  trative procedure act. If the board of county commissioners disagrees
 5  with the ratios determined for the county director's reconsideration de-
 6  cision, such board, within 15 days after receipt of such notice deci-
 7  sion, may appeal such determination decision to the state board of tax
 8  appeals. Written notice of appeal shall be served on the state board
 9  of tax appeals and the director by certified mail. The notice of ap-
10  peal shall clearly and specifically state the facts upon which the
11  appeal is based. The state board of tax appeals shall conduct a sum-
12  mary proceeding in accordance with the provisions of the Kansas
13  administrative procedure act within 30 days of receipt of the writ-
14  ten notice of appeal of the director's reconsideration decision regarding
15  the six-month ratios and shall issue findings and a final order within
16  30 days after the conclusion of such summary proceeding. If the
17  state board of tax appeals finds that corrections in the ratios are
18  necessary, it shall order the director to make necessary corrections
19  consistent with such findings prior to the publication of the study. If a
20  final decision has not been rendered prior to publication of the six-month
21  period ratios, the appeal status shall be noted with the county ratio sta-
22  tistics.
23    [Sec. 55.  K.S.A. 1996 Supp. 79-1490 is hereby amended to read
24  as follows: 79-1490. The director shall publish the final cumulative
25  ratio study for the study period after the procedures prescribed in
26  K.S.A. 1996 Supp. 79-1489, and amendments thereto, have been con-
27  cluded for the last six months of the study period. If it is determined
28  that the final cumulative ratio study cannot be published by April 1
29  of the year immediately following the last six months of the study period,
30  the director shall provide a preliminary ratio study to the governor,
31  the speaker of the house and the president of the senate and their
32  respective tax committees on or before March 15 of the year imme-
33  diately following the last six months of the study period.
34    [Sec. 56.  K.S.A. 1996 Supp. 79-1492 is hereby amended to read
35  as follows: 79-1492. The provisions of K.S.A. 1996 Supp. 79-1437e,
36  79-1485, 79-1486, 79-1488 and 79-1489, and amendments thereto,
37  shall apply to all taxable years commencing after December 31,
38  1993 1996.]
39    [Sec. 49 [57].  On and after October 16, 1997, K.S.A. 79-3635
40  is hereby amended to read as follows: 79-3635. (a) A claimant shall
41  be entitled to a refund of retailers' sales taxes paid upon food during
42  the calendar year 1986 1997 and each year thereafter in the amount
43  hereinafter provided. For households having a household income of
HB 2105--Am. by SCW
                                     

 1  less than $5,000, a refund in the amount of $40 shall be allowed for
 2  the head of household and a refund of $30 shall be allowed for each
 3  additional member of the household. For households having a
 4  household income of at least $5,000 but less than $10,000, a refund
 5  in the amount of $30 shall be allowed for the head of household and
 6  a refund of $25 shall be allowed for each additional member of the
 7  household. For households having a household income of at least
 8  $10,000 but not more than $13,000, a refund in the amount of $20
 9  shall be allowed for the head of household and a refund of $15 shall
10  be allowed for each additional member of the household. All such
11  claims shall be paid from the sales tax refund fund upon warrants
12  of the director of accounts and reports pursuant to vouchers ap-
13  proved by the director of taxation or by a person or persons des-
14  ignated by the director.
15    [(b)  A head of household shall make application for refunds for
16  all members of the same household upon a common form provided
17  for the making of joint claims. All claims paid to members of the
18  same household shall be paid as a joint claim by means of a single
19  warrant.
20    [(c)  No claim for a refund of taxes under the provisions of K.S.A.
21  79-3620 and 79-3632 to 79-3639 et seq. shall be paid or allowed unless
22  such claim is actually filed with and in the possession of the de-
23  partment of revenue on or before October April 15 of the year next
24  succeeding the year in which said such taxes were paid. The director
25  of taxation may: (1) Extend the time for filing any claim under the
26  provisions of this act when good cause exists therefor; or (2) accept
27  a claim filed after the deadline for filing in the case of sickness,
28  absence or disability of the claimant if said such claim has been filed
29  within four (4) years of said such deadline.
30    [Sec. 50 [58].  On and after October 16, 1997, K.S.A. 79-3635
31  is hereby repealed.]
32    Sec. 32. 34 [42]. 49 [59].  K.S.A. 12-1678a, [19-430,] 75-5105a,
33  77-548, 79-6a02, 79-1701a, 79-1702, [79-2002,] 79-2969, 79-3230, 79-
34  3268 and 79-3607 and 79-32,111 and K.S.A. 1996 Supp. 45-221, 74-
35  2438, 75-5133, 77-549, 77-550, [79-201a,] [79-213,] 79-332a, [79-412,]
36  79-1422, 79-1427a, 79-503a, 79-1439, 79-1448, 79-1460, 79-1476,
37  [79-1485, 79-1486, 79-1488, 79-1489, 79-1490, 79-1492,] 79-1575,
38  79-2001, 79-2004, 79-2004a, 79-2005, 79-2968, 79-3226, 79-3234, 79-
39  32,105, 79-32,107, 79-3420, [79-3606,] 79-3609, 79-3610, 79-3614, 79-
40  3615 and 79-4226[, 79-4226 and 79-5109] are hereby repealed.
41    Sec. 33. 35 [43]. 50 [60].  This act shall take effect and be in force
42  from and after its publication in the statute book.