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 9  AN ACT relating to property taxation; concerning the exemption there-
10    from for housing for the elderly; amending K.S.A. 1996 Supp. 79-201b
11    and repealing the existing section.
12
13  Be it enacted by the Legislature of the State of Kansas:
14    Section 1.  K.S.A. 1996 Supp. 79-201b is hereby amended to read as
15  follows: 79-201b. The following described property, to the extent herein
16  specified, shall be and is hereby exempt from all property or ad valorem
17  taxes levied under the laws of the state of Kansas:
18    First. All real property, and tangible personal property, actually and
19  regularly used exclusively for hospital purposes by a hospital as the same
20  is defined by K.S.A. 65-425, and amendments thereto, or a psychiatric
21  hospital as the same was defined by K.S.A. 59-2902, and amendments
22  thereto, as in effect on January 1, 1976, which hospital or psychiatric
23  hospital is operated by a corporation organized not for profit under the
24  laws of the state of Kansas or by a corporation organized not for profit
25  under the laws of another state and duly admitted to engage in business
26  in this state as a foreign, not-for-profit corporation; and all intangible
27  property including moneys, notes and other evidences of debt, and the
28  income therefrom, belonging exclusively to such a corporation and used
29  exclusively for hospital or psychiatric hospital purposes. This exemption
30  shall not be deemed inapplicable to property which would otherwise be
31  exempt pursuant to this paragraph because any such hospital or psychi-
32  atric hospital: (a) Uses such property for a nonexempt purpose which is
33  minimal in scope and insubstantial in nature if such use is incidental to
34  the exempt purpose enumerated in this paragraph; or (b) is reimbursed
35  for the actual expense of using such property for the exempt purposes
36  enumerated in this paragraph or paragraph second of K.S.A. 79-201, and
37  amendments thereto; or (c) permits the use of such property for the
38  exempt purposes enumerated in this paragraph or paragraph second of
39  K.S.A. 79-201, and amendments thereto, by more than one agency or
40  organization for one or more of such purposes.
41    Second. All real property, and tangible personal property, actually and
42  regularly used exclusively for adult care home purposes by an adult care
43  home as the same is defined by K.S.A. 39-923, and amendments thereto,
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 1  which is operated by a corporation organized not for profit under the laws
 2  of the state of Kansas or by a corporation organized not for profit under
 3  the laws of another state and duly admitted to engage in business in this
 4  state as a foreign, not-for-profit corporation, charges to residents for serv-
 5  ices of which produce an amount which in the aggregate is less than the
 6  actual cost of operation of the home or the services of which are provided
 7  to residents at the lowest feasible cost, taking into consideration such
 8  items as reasonable depreciation, interest on indebtedness, acquisition
 9  costs, interest and other expenses of financing acquisition costs, lease
10  expenses and costs of services provided by a parent corporation at its
11  costs, contributions to which are deductible under the Kansas income tax
12  act; and all intangible property including moneys, notes and other evi-
13  dences of debt, and the income therefrom, belonging exclusively to such
14  corporation and used exclusively for adult care home purposes.  The fact
15  that real property or real or tangible personal property may be leased
16  from a not-for-profit corporation, which is exempt from federal income
17  taxation pursuant to section 501(c)(3) of the internal revenue code of
18  1986, and amendments thereto, and which is the parent corporation to
19  the not-for-profit operator of an adult care home, shall not be grounds to
20  deny exemption or deny that such property is actually and regularly used
21  exclusively for adult care home purposes by an adult care home, nor shall
22  the terms of any such lease be grounds for any such denial.
23    Third. All real property, and tangible personal property, actually and
24  regularly used exclusively for private children's home purposes by a pri-
25  vate children's home as the same is defined by K.S.A. 75-3329, and
26  amendments thereto, which is operated by a corporation organized not
27  for profit under the laws of the state of Kansas or by a corporation or-
28  ganized not for profit under the laws of another state and duly admitted
29  to engage in business in this state as a foreign, not-for-profit corporation,
30  charges to residents for services of which produce an amount which in
31  the aggregate is less than the actual cost of operation of the home or the
32  services of which are provided to residents at the lowest feasible cost,
33  taking into consideration such items as reasonable depreciation and in-
34  terest on indebtedness, and contributions to which are deductible under
35  the Kansas income tax act; and all intangible property including moneys,
36  notes and other evidences of debt, and the income therefrom, belonging
37  exclusively to such a corporation and used exclusively for children's home
38  purposes.
39    Fourth. All real property and tangible personal property, actually and
40  regularly used exclusively for housing for elderly and handicapped per-
41  sons having a limited or lower income, or used exclusively for cooperative
42  housing for persons having a limited or low income, assistance for the
43  financing of which was received under 12 U.S.C.A. 1701 et seq., or under
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 1  42 U.S.C.A. 1437 et seq., which is operated by a corporation organized
 2  not for profit under the laws of the state of Kansas or by a corporation
 3  organized not for profit under the laws of another state and duly admitted
 4  to engage in business in this state as a foreign, not-for-profit corporation;
 5  and all intangible property including moneys, notes and other evidences
 6  of debt, and the income therefrom, belonging exclusively to such a cor-
 7  poration and used exclusively for the purposes of such housing. For the
 8  purposes of this subsection, cooperative housing shall mean those not-
 9  for-profit cooperative housing projects operating pursuant to sections 236
10  or 221(d)(3), or both, of the national housing act and which have been
11  approved as a cooperative housing project pursuant to applicable federal
12  housing administration and U.S. Department of Housing and Urban De-
13  velopment statutes, and rules and regulations, during such time as the
14  use of such properties are restricted pursuant to such act, statutes or rules
15  and regulations.
16    Fifth. All real property and tangible personal property, actually and
17  regularly used exclusively for housing for elderly persons, which is oper-
18  ated by a corporation organized not for profit under the laws of the state
19  of Kansas or by a corporation organized not for profit under the laws of
20  another state and duly admitted to engage in business in this state as a
21  foreign, not-for-profit corporation, in which charges to residents produce
22  an amount which in the aggregate is less than the actual cost of operation
23  of the housing facility or the services of which are provided to residents
24  at the lowest feasible cost, taking into consideration such items as rea-
25  sonable depreciation and interest on indebtedness and contributions to
26  which are deductible under the Kansas income tax act; and all intangible
27  property including moneys, notes and other evidences of debt, and the
28  income therefrom, belonging exclusively to such corporation and used
29  exclusively for the purpose of such housing. Except with regard to all such
30  property which is being operated for such purposes by any such corpo-
31  ration pursuant to an agreement entered into prior to the effective date
32  of this act, in which case the provisions of this paragraph shall be appli-
33  cable to all taxable years until the terms of such agreement expire, the
34  provisions of this paragraph shall not be applicable to any taxable year
35  commencing after December 31, 1997.
36    Sixth. All real property and tangible personal property actually and
37  regularly used exclusively for the purpose of group housing of mentally
38  ill or retarded and other handicapped persons which is operated by a
39  corporation organized not for profit under the laws of the state of Kansas
40  or by a corporation organized not for profit under the laws of another
41  state and duly admitted to engage in business in this state as a foreign,
42  not-for-profit corporation, in which charges to residents produce an
43  amount which in the aggregate is less than the actual cost of operation of
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 1  the housing facility or the services of which are provided to residents at
 2  the lowest feasible cost, taking into consideration such items as reasonable
 3  depreciation and interest on indebtedness and contributions to which are
 4  deductible under the Kansas income tax act, and which is licensed as a
 5  facility for the housing of mentally ill or retarded and other handicapped
 6  persons under the provisions of K.S.A. 75-3307b, and amendments
 7  thereto, or as a rooming or boarding house used as a facility for the
 8  housing of mentally retarded and other handicapped persons which is
 9  licensed as a lodging establishment under the provisions of K.S.A. 36-501
10  et seq., and amendments thereto.
11    The provisions of this section shall apply to all taxable years commenc-
12  ing after December 31, 1995.
13    Sec. 2.  K.S.A. 1996 Supp. 79-201b is hereby repealed.
14    Sec. 3.  This act shall take effect and be in force from and after its
15  publication in the statute book.