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AN ACT relating to property taxation; concerning the valuation of certain
  commercial and industrial machinery and equipment; amending
  K.S.A. 1996 Supp. 79-1439 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 79-1439 is hereby amended to read as
follows: 79-1439. (a) All real and tangible personal property which is sub-
ject to general ad valorem taxation shall be appraised uniformly and
equally as to class and, unless otherwise specified herein, shall be ap-
praised at its fair market value, as defined in K.S.A. 79-503a, and amend-
ments thereto.
  (b)  Property shall be classified into the following classes and assessed
at the percentage of value prescribed therefor:
  (1)  Real property shall be assessed as to subclass at the following
percentages of value:
  (A)  Real property used for residential purposes including multi-fam-
ily residential real property, real property necessary to accommodate a
residential community of mobile or manufactured homes including the
real property upon which such homes are located and residential real
property used partially for day care home purposes if such home has been
registered or licensed pursuant to K.S.A. 65-501 et seq., and amendments
thereto at 12% 11.5%;
  (B)  land devoted to agricultural use valued pursuant to K.S.A. 79-
1476, and amendments thereto, at 30%;
  (C)  vacant lots at 12%; and
  (D)  real property which is owned and operated by a not-for-profit
organization not subject to federal income taxation pursuant to section
501 of the federal internal revenue code and included herein pursuant to
K.S.A. 79-1439a, and amendments thereto, at 12%;
  (E)  real property used for commercial and industrial purposes and
buildings and other improvements located upon land devoted to agricul-
tural use at 25%; and
  (D) (F)  all other urban and rural real property not otherwise specif-
ically subclassed at 30%.
  (2)  Personal property shall be classified into the following classes and
assessed at the percentage of value prescribed therefor:
  (A)  Mobile homes used for residential purposes at 12% 11.5%;
  (B)  mineral leasehold interests, except oil leasehold interests the av-
erage daily production from which is five barrels or less, and natural gas
leasehold interests, the average daily production from which is 100 mcf
or less, which shall be assessed at 25%, at 30%;
  (C)  public utility tangible personal property at 30%. As used in this
paragraph, ``public utility'' shall have the meaning ascribed thereto by
K.S.A. 79-5a01, and amendments thereto;
  (D) (C)  all categories of motor vehicles listed and taxed pursuant to
K.S.A. 79-306d, and amendments thereto, and over-the-road motor ve-
hicles defined pursuant to K.S.A. 79-6a01, and amendments thereto, at
30%;
  (E) (D)  commercial and industrial machinery and equipment, includ-
ing rolling equipment defined pursuant to K.S.A. 79-6a01, and amend-
ments thereto, which, if its economic life is seven years or more, shall be
valued at its retail cost when new less seven-year straight-line deprecia-
tion, or which, if its economic life is less than seven years, shall be valued
at its retail cost when new less straight-line depreciation over its economic
life, or which, if its retail cost when new is not determinable after the
taxpayer or county appraiser has exercised due diligence in attempting to
ascertain such cost, shall be valued at its acquisition cost less straight-line
depreciation over its economic life after the year of its acquisition which
shall not exceed seven years, except that, the value so obtained for such
property as long as it is being used shall not be less than 20% of the retail
cost when new or acquisition cost, as the case requires, of such property
at 20% 25%; and
  (F) (E)  all other tangible personal property not otherwise specifically
classified at 30%.
  (3)  Public utility property as defined in K.S.A. 79-5a01, and amend-
ments thereto, including inventories thereof, shall be appraised at fair
market value as defined in K.S.A. 79-5a04, and amendments thereto, and
shall be assessed at 33%, except railroad property including inventories
thereof, which shall be assessed at the average rate all other commercial
and industrial property is assessed.
  Sec. 2.  K.S.A. 1996 Supp. 79-1439 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.