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AN ACT relating to property taxation; concerning the exemption there-
  from of certain business machinery and equipment; amending K.S.A.
  1996 Supp. 79-201w and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 79-201w is hereby amended to read as
follows: 79-201w. The following described property, to the extent speci-
fied by this section, shall be exempt from all property or ad valorem taxes
levied under the laws of the state of Kansas:
  (a)  Any item of machinery, equipment, materials and supplies which,
except for the operation of the provisions of this section, would be re-
quired to be listed for the purpose of taxation pursuant to K.S.A. 79-306,
and amendments thereto, and which is actually and regularly used exclu-
sively for business purposes, or in the conduct of activities by an entity
not subject to Kansas income taxation pursuant to K.S.A. 79-32,113, and
amendments thereto, whose original retail cost when new is $250 or less.
  As used in this subsection and for the purposes of class 2(E) of subsection
  (b) of section 1 of article 11 of the Kansas constitution, ``retail cost when
new'' means the total cost to the purchaser less the amount of any trans-
actional taxes, installation costs and freight or transportation charges in-
cluded in such cost.
  (b)  The provisions of this section shall apply to all taxable years com-
mencing after December 31, 1995.
  Sec. 2.  K.S.A. 1996 Supp. 79-201w is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.