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10  AN ACT relating to property taxation; concerning appeals from appraised
11    valuation determinations; amending K.S.A. 74-2426, 74-2437, 74-
12    2439, 79-331, 79-1409, 79-1412a, 79-1426, 79-1458 and 79-1472 and
13    K.S.A. 1996 Supp. 79-1404, 79-1404a, 79-1413a, 79-1437f, 79-1448,
14    79-1604, 79-1606 and 79-1608 and repealing the existing sections; also
15    repealing K.S.A. 79-1470 and K.S.A. 1996 Supp. 79-1481, 79-1494, 79-
16    1609, 79-1610 and 79-1611.
17
18  Be it enacted by the Legislature of the State of Kansas:
19    New Section 1.  (a) The state board of tax appeals shall appoint a
20  sufficient number of hearing officers to hear and determine appeals from
21  the final determination of classification and appraised valuation of real or
22  personal property by the county or district appraiser pursuant to K.S.A.
23  79-1448, and amendments thereto. The board of tax appeals shall fix the
24  fee to be paid to hearing officers, which may vary depending upon ex-
25  perience and qualifications. Contracts for services of hearing officers shall
26  not be subject to the competitive bidding requirements of K.S.A. 75-3739,
27  and amendments thereto.
28    (b)  No person may serve as a hearing officer who is not qualified by
29  virtue of experience and training in the field of property appraisal, such
30  qualifications to be determined by rules and regulations of the state board
31  of tax appeals. To the extent practicable, hearing officers appointed by
32  the state board of tax appeals shall be familiar with the geographic area
33  of the state in which they are designated to conduct hearings.
34    (c)  Any hearing officer appointed pursuant to K.S.A. 74-2439, and
35  amendments thereto, shall be deemed a state officer for purposes of
36  K.S.A. 46-215 et seq., and amendments thereto, and shall be subject to
37  state governmental ethics laws. Any person who has performed an ap-
38  praisal of any property the appraised valuation of which is appealed to a
39  hearing officer shall not hear such appeal and may not participate in any
40  deliberations on such appeal.
41    New Sec. 2.  (a) Any appeal from a final determination of the county
42  or district appraiser pursuant to K.S.A. 79-1448, and amendments
43  thereto, shall be in writing on forms prescribed by the board of tax appeals
SB 161--Am.
                                     

 1  and which shall be made available by the county clerk pursuant to K.S.A.
 2  79-1606, and amendments thereto. The appeal shall be filed with the
 3  secretary of the state board of tax appeals within 18 days of the date that
 4  the final determination of the county appraiser was mailed to the taxpayer,
 5  following the informal meeting required by K.S.A. 79-1448, and amend-
 6  ments thereto.
 7    (b)  If the aggrieved taxpayer is an owner of a single-family residence
 8  or has received a final determination of value for property other than land
 9  devoted to agricultural use from the county or district appraiser of less
10  than $500,000, a hearing officer appointed pursuant to K.S.A. 74-2439,
11  and amendments thereto, shall hear and determine the appeal. All such
12  hearings shall be held in a suitable place, and the county shall cooperate
13  by making space available for such hearings at no cost to the state or any
14  party. Sufficient evening and Saturday hearings shall be provided as nec-
15  essary to hear all parties making requests for hearings at such times. The
16  hearing shall be conducted informally to facilitate the exchange of all
17  relevant information concerning the valuation and classification of the
18  property at issue. Hearing procedures shall be in accordance with rules
19  and regulations of the board of tax appeals adopted pursuant to K.S.A.
20  74-2437, and amendments thereto, and shall not be subject to the Kansas
21  administrative procedure act.
22    (c)  Every appeal so filed shall be set for hearing by the board before
23  the hearing officer as soon as practicable prior to August 1 at a location
24  reasonably convenient to the parties. The secretary of the state board of
25  tax appeals shall notify each appellant and the county or district appraiser
26  of the date for hearing of the taxpayer's appeal at least 10 days in advance
27  of such hearing. It shall be the duty of the county or district appraiser to
28  initiate the production of evidence to demonstrate, by a preponderance
29  of the evidence, the validity and correctness of the classification or ap-
30  praisal of residential property. No presumption shall exist in favor of the
31  county or district appraiser with respect to the validity or correctness of
32  any such classification or valuation of residential property. Every appeal
33  so filed shall be determined by order of the hearing officer, and such
34  order shall be recorded in the minutes of such hearing officer. Such re-
35  corded orders, minutes and other documents submitted as evidence at
36  such hearing shall be retained by the state board of tax appeals, and shall
37  be open to public inspection. Notice as to disposition of the appeal shall
38  be mailed by the secretary of the state board of tax appeals to the taxpayer
39  and to the county or district appraiser within 10 days after the date of the
40  hearing.
41    (d)  If the aggrieved taxpayer, other than the owner of a single-family
42  residence, has received a final determination of value from the county or
43  district appraiser of $500,000 or more or of value of land devoted to
SB 161--Am.
                                     

 1  agricultural use, the appeal shall be heard and determined by the state
 2  board of tax appeals. The taxpayer shall initiate the appeal by filing a
 3  notice of appeal with the secretary of the state board of tax appeals on
 4  forms approved by the board of tax appeals and provided by the county
 5  clerk for such purpose. Hearing procedures shall be in accordance with
 6  rules and regulations of the board of tax appeals pursuant to subsection
 7    (c) of K.S.A. 74-2437, and amendments thereto, and orders shall be ren-
 8  dered and served in accordance with the Kansas administrative procedure
 9  act as provided in K.S.A. 74-2426, and amendments thereto.
10    New Sec. 3.  (a) Any party aggrieved by any order of the hearing
11  officer may appeal to the state board of tax appeals by filing a written
12  notice of appeal, on forms approved by the state board of tax appeals and
13  provided by the county clerk for such purpose, stating the grounds for
14  the appeal and a description of any comparable property or properties
15  and the appraisal thereof and any other documentation upon which the
16  appellant relies as evidence of inequality of the appraisal of the property
17  at issue, if that is a ground for the appeal. The appeal form shall be filed
18  with the secretary of the state board of tax appeals, and a copy shall be
19  filed simultaneously with the county clerk and all other interested parties,
20  within 30 days of the date of the order of the hearing officer from which
21  the appeal is taken. A county or district appraiser may appeal to the state
22  board of tax appeals from any order of the hearing officer. At such time
23  as the county or district appraiser files the notice of appeal, a copy shall
24  be mailed to the taxpayer.
25    (b)  With regard to any matter properly submitted to the board relat-
26  ing to the determination of valuation of residential property for taxation
27  purposes, it shall be the duty of the county or district appraiser to initiate
28  the production of evidence to demonstrate, by a preponderance of the
29  evidence, the validity and correctness of such determination. No pre-
30  sumption shall exist in favor of the county or district appraiser with re-
31  spect to the validity and correctness of such determination.
32    Sec. 4.  K.S.A. 74-2426 is hereby amended to read as follows: 74-
33  2426. (a) Orders of the board of tax appeals on any appeal, in any pro-
34  ceeding under the tax protest, tax grievance or tax exemption statutes or
35  in any other original proceeding before the board shall be rendered and
36  served in accordance with the provisions of the Kansas administrative
37  procedure act. For purposes of this section, an order issued by a hearing
38  officer appointed pursuant to K.S.A. 74-2439, and amendments thereto,
39  shall not be considered an order or action of the board of tax appeals.
40  Notwithstanding the provisions of subsection (g) of K.S.A. 77-526, and
41  amendments thereto, a final order of the board shall be rendered in writ-
42  ing and served within 120 days after the matter was fully submitted to
43  the board unless this period is waived or extended with the written con-
SB 161--Am.
                                     

 1  sent of all parties or for good cause shown.
 2    (b)  No final order of the board shall be subject to review pursuant to
 3  subsection (c) unless the aggrieved party first files a petition for recon-
 4  sideration of that order with the board in accordance with the provisions
 5  of K.S.A. 77-529 and amendments thereto.
 6    (c)  Any action of the board pursuant to this section is subject to re-
 7  view in accordance with the act for judicial review and civil enforcement
 8  of agency actions, except that:
 9    (1)  The parties to the action for judicial review shall be the same
10  parties as appeared before the board in the administrative proceedings
11  before the board. The board shall not be a party to any action for judicial
12  review of an action of the board.
13    (2)  There is no right to review of any order issued by the board in a
14  no-fund warrant proceeding pursuant to K.S.A. 12-110a, 12-1662 et seq.,
15  19-2752a, 79-2938, 79-2939 and 79-2951, and amendments thereto, and
16  statutes of a similar character.
17    (3)  The court of appeals has jurisdiction of any action for review per-
18  taining to property appraised and assessed by the director of property
19  valuation or excise, income or inheritance taxes assessed by the director
20  of taxation. The district court of the proper county has jurisdiction in all
21  other cases.
22    (4)  Review of orders issued by the board of tax appeals relating to
23  the valuation or assessment of property for ad valorem tax purposes or
24  relating to the tax protest shall be conducted by the district court of the
25  county in which the property is located or, if located in more than one
26  county, the district court of any county in which any portion of the prop-
27  erty is located. Review of orders relating to tax exemption under the
28  Kansas constitution and K.S.A. 79-201 et seq., and amendments thereto,
29  shall be conducted by the district court of Shawnee county.
30    (5)  In addition to the cost of the preparation of the transcript, the
31  appellant shall pay to the board the other costs of certifying the record
32  to the reviewing court. Such payment shall be made prior to the trans-
33  mission of the agency record to the reviewing court.
34    (d)  If review of an order of the board relating to excise, income or
35  inheritance taxes, is sought by a person other than the director of taxation,
36  such person shall give bond for costs at the time the petition is filed. The
37  bond shall be in the amount of 125% of the amount of taxes assessed or
38  a lesser amount approved by the court of appeals and shall be conditioned
39  on the petitioner's prosecution of the review without delay and payment
40  of all costs assessed against the petitioner.
41    (e)  If review of an order is sought by a party other than the director
42  of property valuation or a taxing subdivision and the order determines,
43  approves, modifies or equalizes the amount of valuation which is assess-
SB 161--Am.
                                     

 1  able and for which the tax has not been paid, a bond shall be given in the
 2  amount of 125% of the amount of the taxes assessed or a lesser amount
 3  approved by the reviewing court. The bond shall be conditioned on the
 4  petitioner's prosecution of the review without delay and payment of all
 5  costs assessed against the petitioner.
 6    Sec. 5.  K.S.A. 74-2437 is hereby amended to read as follows: 74-
 7  2437. The state board of tax appeals shall have the following powers and
 8  duties:
 9    (a)  To hear appeals from the director of taxation and the director of
10  property valuation on rulings and interpretations by said directors, except
11  where different provision is made by law;
12    (b)  to hear appeals from the director of property valuation on the
13  assessment of state assessed property;
14    (c)  to adopt rules and regulations relating to the performance of its
15  duties and particularly with reference to procedure before it on hearings
16  and appeals; and
17    (d)  to adopt rules and regulations relating to the duties of hearing
18  officers appointed pursuant to K.S.A. 74-2439, and amendments thereto,
19  including but not limited to procedures for hearings before such hearing
20  officers; and
21    (d)(e)  such other powers as may be prescribed by law.
22    Sec. 6.  K.S.A. 74-2439 is hereby amended to read as follows: 74-
23  2439. Except as otherwise provided by law, the state board of tax appeals
24  shall have the following powers and duties:
25    (a)  Constituting, sitting and acting as the state board of equalization
26  as provided in K.S.A. 79-1409, and amendments thereto;
27    (b)  authorizing the issuance of emergency warrants by taxing districts,
28  as provided in article 29 of chapter 79 of Kansas Statutes Annotated, and
29  acts amendatory thereof or supplemental thereto, and authorizing the
30  issuance of warrants by cities or counties under statutes of this state;
31    (c)  authorizing increases in tax levies by taxing districts, as provided
32  in article 19 of chapter 79 of Kansas Statutes Annotated, and acts amen-
33  datory thereof or supplemental thereto;
34    (d)  correcting errors and irregularities under the provisions of article
35  17 of chapter 79 of Kansas Statutes Annotated; and
36    (e)  hearing and deciding applications for the refund of protested taxes
37  under the provisions of K.S.A. 79-2005, and amendments thereto; and
38    (f)  appointing hearing officers to hear and determine appeals from
39  the final determination by the county or district appraiser of the classi-
40  fication and appraised valuation of real and personal property pursuant
41  to K.S.A. 79-1448, and amendments thereto.
42    Sec. 7.  K.S.A. 79-331 is hereby amended to read as follows: 79-331.
43    (a) Except as otherwise provided in subsection (b) of this section, in de-
SB 161--Am.
                                     

 1  termining the value of oil and gas leases or properties the appraiser shall
 2  take into consideration the age of the wells, the quality of oil or gas being
 3  produced therefrom, the nearness of the wells to market, the cost of
 4  operation, the character, extent and permanency of the market, the prob-
 5  able life of the wells, the quantity of oil or gas produced from the lease
 6  or property, the number of wells being operated, and such other facts as
 7  may be known by the appraiser to affect the value of the lease or property.
 8    Whenever a county board of equalization or the state board of equal-
 9  ization shall make a change in any of the factors or figures used in deter-
10  mining the eight-eighths (8/8ths)  8/8ths valuation of the production for any
11  oil or gas lease or property, such change shall apply to the working inter-
12  est, royalty interest, overriding royalty interest and production payments.
13    (b)  The valuation of the working interest and royalty interest, except
14  valuation of equipment, of any original base lease or property producing
15  oil or gas for the first time in economic quantities on and after July 1 of
16  the calendar year preceding the year in which such property is first as-
17  sessed shall be determined for the year in which such property is first
18  assessed by determining the quantity of oil or gas such property would
19  have produced during the entire year preceding the year in which such
20  property is first assessed upon the basis of the actual production in such
21  year and by multiplying the income and expenses that would have been
22  attributable to such property at such production level, excluding equip-
23  ment valuation thereof, if it had actually produced said entire year pre-
24  ceding the year in which such property is first assessed by sixty percent
25  (60%) 60%.
26    (c)  The provisions of subsection (b) of this section shall not apply in
27  the case of any production from any direct offset well or any subsequent
28  well on the same lease.
29    Sec. 8.  K.S.A. 1996 Supp. 79-1404 is hereby amended to read as
30  follows: 79-1404. It shall be the duty of the director of property valuation,
31  and the director shall have the power and authority:
32    First. To have and exercise general supervision over the administration
33  of the assessment and tax laws of the state, over the county and district
34  appraisers, boards of county commissioners, county boards of equaliza-
35  tion, and all other boards of levy and assessment, to the end that all
36  assessments of property, real, personal, and mixed, be made relatively just
37  and uniform and at its true and full cash market value; to require all
38  county and district appraisers, county commissioners and county boards
39  of equalization, under penalty of forfeiture and removal from office as
40  such appraisers or boards, to assess all property of every kind and char-
41  acter at its actual and full cash market value.
42    Second. To confer with, advise and direct county and district appraisers,
43  boards of commissioners, boards of equalization and others obligated un-
SB 161--Am.
                                     

 1  der the law to make levies and assessments, as to their duties under the
 2  statutes of the state.
 3    Third. To direct proceedings, actions and prosecutions to be instituted
 4  to enforce the laws relating to the penalties, liabilities and punishment of
 5  public officers, persons and officers or agents of corporations for failure
 6  or neglect to comply with orders of the director of property valuation, or
 7  with the provisions of the statutes governing the return, assessment and
 8  taxation of property; and to cause complaints to be made against county
 9  and district appraisers, county commissioners, county boards of equali-
10  zation, or other assessing or taxing officers, in the courts of proper juris-
11  diction, for their removal from office for official misconduct or neglect
12  of duty.
13    Fourth. To require the attorney general, or county attorneys in their
14  respective counties, to assist in the commencement and prosecution of
15  actions and proceedings for penalties, forfeitures, removals and punish-
16  ments for violations of the laws of the state in respect to the assessment
17  and taxation of property, or to represent the director of property valuation
18  in any litigation in which the director may become involved in the dis-
19  charge of the director's duties.
20    Fifth. To require township, city, county, state or other public officers
21  to report information as to the assessment of property, collection of taxes,
22  receipts from licenses and other sources, the expenditure of public funds
23  for all purposes, and such other information as may be needful or desir-
24  able in the work of the director of property valuation, in such form and
25  upon such blanks as the director of property valuation may prescribe.
26  Also, to make and prosecute such research and investigation as to the
27  detailed properties of corporations, the business, income, reasonable ex-
28  penditures and true values of the franchise and properties of all public
29  service corporations doing business in this state, as will enable the director
30  of property valuation to ascertain a fair and equitable basis of assessing
31  the same and of making and recommending proper legislation to the
32  legislature, from time to time, and to direct the local assessing and taxing
33  officers in making such assessments.
34    Sixth. To require individuals, partnerships, companies, associations,
35  joint-stock companies and corporations to furnish information concerning
36  their capital, funded or other debts, current assets and liabilities, value of
37  property, earnings, operating and other expenses, taxes and other charges,
38  and all other facts which may be needful or desirable to enable the di-
39  rector of property valuation to ascertain the value and relative burdens
40  borne by all kinds of property in the state.
41    Seventh. To summon witnesses from any part of the state to appear
42  and give testimony, and to compel said witnesses to produce records,
43  books, papers and documents relating to any subject or matter which the
SB 161--Am.
                                     

 1  director of property valuation shall have authority to investigate or deter-
 2  mine, subject to the restrictions of K.S.A. 79-1424 and amendments
 3  thereto.
 4    Eighth. To cause the deposition of witnesses residing within or without
 5  the state, or absent therefrom, to be taken, upon notice to the interested
 6  parties, if any, in like manner that depositions of witnesses are taken in
 7  civil actions pending in the district court, in any matter which the director
 8  of property valuation shall have authority to investigate and determine.
 9    Ninth. To investigate the work and methods of county and district ap-
10  praisers, boards of county commissions and county boards of equalization
11  in the assessment, equalization and taxation of all kinds of property, by
12  visiting the counties of the state.
13    Tenth. To carefully examine into all cases where evasion or violation of
14  the laws for assessment and taxation of property is alleged, complained
15  of, or discovered, and to ascertain wherein existing laws are defective, or
16  are improperly or negligently administered, and to prepare and recom-
17  mend measures best calculated to remedy the defects discovered.
18    Eleventh. To investigate the tax systems of other states and countries,
19  and to formulate and recommend such legislation as may be deemed
20  expedient to prevent evasion of assessment and tax laws, and to secure
21  just and equal taxation and improvement in the system of taxation in the
22  state.
23    Twelfth. To inquire into the system of accounting and auditing public
24  funds in use in townships, cities, counties and state, and to devise and
25  prescribe a uniform system of auditing and accounting of the receipts and
26  disbursements of public funds in the municipalities of the state.
27    Thirteenth. To consult and confer with the governor and attorney gen-
28  eral of the state upon the subject of taxation, the administration of the
29  laws in relation thereto, and the progress of the work of the director of
30  property valuation, and to furnish the governor, from time to time, such
31  assistance and information as the director governor may require.
32    Fourteenth. To transmit to the governor and to each member of the
33  legislature, 30 days before the meeting of the legislature, the report of
34  the director of property valuation, covering the subject of assessment and
35  taxation, the results of the investigations of the director of property val-
36  uation, the director's recommendations for improvement in the system
37  of taxation in the state, together with such measures as may be formulated
38  for the consideration of the legislature.
39    Fifteenth. To make appraisement and assessment of all railroads and
40  the property of railroad corporations, excepting such real estate as is not
41  used in the daily operation of its railroad, of all telegraph lines and prop-
42  erty, of all telephone lines and property, the property of all express com-
43  panies, sleeping car companies, and private car lines, doing business
SB 161--Am.
                                     

 1  within the state of Kansas, of gas pipe lines and property, of all oil pipe
 2  lines and property, of all street railroads, electric lines and property, and
 3  all express company property, within and without corporate limits of cit-
 4  ies, doing business in the state.
 5    Sixteenth. To require any county board of equalization, at any time
 6  after its adjournment, to reconvene and to make such orders as the di-
 7  rector of property valuation shall determine are just and necessary, and
 8  to direct and order such county boards of equalization to raise or lower
 9  the valuation of the property, real or personal, in any township or city,
10  and to raise or lower the valuation of the property of any person, company,
11  or corporation; and to order and direct any county board of equalization
12  to raise or lower the valuation of any class or classes of property; and
13  generally to do and perform any act or to make any order or direction to
14  any county board of equalization or any county or district appraiser as to
15  the valuation of any property or any class of property in any township,
16  city or county which, in the judgment of said director of property valua-
17  tion, may seem just and necessary, to the end that all property shall be
18  valued and assessed in the same manner and to the same extent as any
19  and all other property, real or personal, required to be listed for taxation.
20    Seventeenth. To extend all statutory deadlines prescribed for the mail-
21  ing of valuation notices, certification of appraisal rolls and the completion
22  of valuation and classification hearings which, in the judgment of the
23  director of property valuation, may seem just and necessary to secure the
24  orderly operation of the system of property taxation within the state, ex-
25  cept that the director shall not have the authority to extend the deadlines
26  prescribed by K.S.A. 79-2005, and amendments thereto, or deadlines pre-
27  scribed for hearing officers appointed pursuant to K.S.A. 74-2439, and
28  amendments thereto.
29    Sec. 9.  K.S.A. 1996 Supp. 79-1404a is hereby amended to read as
30  follows: 79-1404a. The director of property valuation shall have authority
31  to review any valuation change made by a county or district appraiser
32  pursuant to K.S.A. 79-1448 and 79-2005, and amendments thereto, or a
33  hearing officer or panel pursuant to K.S.A. 79-1606, and amendments
34  thereto, and may rescind such change upon written findings that such
35  change has caused property not to be valued according to law, provided
36  however, no valuation change shall be rescinded more than 60 days after
37  the date of such change. Any party aggrieved by an order of the director
38  of property valuation rescinding a valuation change may appeal such order
39  to the state board of tax appeals as provided in K.S.A. 74-2438, and
40  amendments thereto.
41    Sec. 10.  K.S.A. 79-1409 is hereby amended to read as follows: 79-
42  1409. The state board of tax appeals shall constitute a state board of
43  equalization, and shall equalize the valuation and assessment of property
SB 161--Am.
                                     

 1  throughout the state; and shall have power to equalize the assessment of
 2  all property in this state between persons, firms or corporations of the
 3  same assessment district, between cities and townships of the same
 4  county, and between the different counties of the state, and the property
 5  assessed by the director of property valuation in the first instance.  And
 6  any person feeling aggrieved by the action of the county board of equal-
 7  ization may, within forty-five (45) days after the decision of said board,
 8  appeal to the state board of equalization for a determination of such
 9  grievance.
10    It shall be the duty of the state board of equalization to meet in its
11  office, or such other place within any county of the state as the board
12  shall deem advisable, to perform the work of equalization as hereinbefore
13  provided. Such board may meet at any time on and after January 15 of
14  each year as it may deem necessary and shall meet from the 11th day of
15  July, or the next following business day if such date shall fall on a day
16  other than a regular business day, until the 25th day of August as the
17  business of the board shall require. Whenever the valuation of any taxing
18  district, whether it be a county, township, city, school district, or other-
19  wise, is changed by the state board of equalization, the officers of such
20  taxing district who have authority to levy taxes are required to use the
21  valuation so fixed by the state board as a basis for making their levies for
22  all purposes. In case a change is made in such valuation, said board of tax
23  appeals shall certify the equalized values to the director of property val-
24  uation who shall forthwith certify the same to the county clerks of the
25  several counties of the state or to the counties affected by such equali-
26  zation; and the said county clerks shall carry the real estate and tangible
27  personal property on the tax rolls of their respective counties at the val-
28  uations so certified, and shall use such valuations as the basis of all tax
29  levies: Provided, however, That, except that any certification received by
30  a county clerk after August 25 may be handled as an abatement, refund,
31  or added tax as the certification warrants.
32    The director of property valuation shall apportion the amount of tax
33  for state purposes as required by law to be raised in the state among the
34  several counties therein, in proportion to the valuation of the taxable
35  property therein for the year as equalized by the state board of equali-
36  zation.
37    Sec. 11.  K.S.A. 79-1412a is hereby amended to read as follows: 79-
38  1412a. (a) County appraisers and district appraisers shall perform the
39  following duties:
40    First. Install and maintain such records and data relating to all property
41  in the county, taxable and exempt, as may be required by the director of
42  property valuation.
43    Second. Annually, as of January 1, supervise the listing and appraisal of
SB 161--Am.
                                     

 1  all real estate and personal property in the county subject to taxation
 2  except state-appraised property.
 3    Third. Attend meetings of the county board of equalization for the
 4  purpose of aiding such board in the proper discharge of its duties hearing
 5  officer appointed by the board of tax appeals pursuant to K.S.A. 74-2439,
 6  and amendments thereto, and cooperate with the hearing officer and tax-
 7  payer in facilitating the exchange of all relevant information concerning
 8  the valuation and classification of the property in question, making all
 9  records available to the county board of equalization hearing officer.
10    Fourth. Prepare the appraisal roll and certify such rolls to the county
11  clerk.
12    Fifth. Supervise the township trustees, assistants, appraisers and other
13  employees appointed by the appraiser in the performance of their duties.
14    Sixth. The county appraiser or district appraiser in setting values for
15  various types of personal property, shall conform to the values for such
16  property as shown in the personal property appraisal guides devised or
17  prescribed by the director of property valuation.
18    Seventh. Carry on continuously throughout the year the process of
19  appraising real property.
20    Eighth. If the county appraiser or district appraiser deems it advisable,
21  such appraiser may appoint one or more advisory committees of not less
22  than five persons representative of the various economic interests and
23  geographic areas of the county to assist the appraiser in establishing unit
24  land values, unit values for structures, productivity, classifications for ag-
25  ricultural lands, adjustments for location factors, and generally to advise
26  on assessment procedures and methods.
27    Ninth. Perform such other duties as may be required by law.
28    (b)  The director of property valuation shall give notice to county and
29  district appraisers and county boards of equalization of any proposed
30  changes in the guides, schedules or methodology for use in valuing prop-
31  erty prescribed to the county and district appraisers for use in setting
32  values for property within the county or district. Such notice shall also be
33  published in the Kansas register and shall provide that such changes are
34  available for public inspection. Changes and modifications in guides,
35  schedules or methodology for use in valuing property which are pre-
36  scribed by the director of property valuation for use by county and district
37  appraisers on or after July 1 in any year shall not be utilized in establishing
38  the value, for the current tax year, of any property, the value of which
39  has previously been established for such year.
40    Sec. 12.  K.S.A. 1996 Supp. 79-1413a is hereby amended to read as
41  follows: 79-1413a. Whenever upon complaint made to the state board of
42  tax appeals by the county or district appraiser, the director of property
43  valuation, the board of county commissioners, any property taxpayer or
SB 161--Am.
                                     

 1  any aggrieved party, and a summary proceeding in that behalf had, it shall
 2  be made to appear to the satisfaction of the board that the appraisal of
 3  real property or tangible personal property in any county is not in sub-
 4  stantial compliance with law and the guidelines and timetables prescribed
 5  by the director of property valuation, and that the interest of the public
 6  will be promoted by a reappraisal of such property, the state board of tax
 7  appeals shall order a reappraisal of all or any part of the property in such
 8  county to be made by one or more persons, to be appointed by the state
 9  board of tax appeals for that purpose, the expense of any such reappraisal
10  to be borne by the county in which is situated the property to be reap-
11  praised. The state board of tax appeals shall, upon its own motion, after
12  a hearing, order any such reappraisal if it shall clearly appear that the
13  public would be benefited thereby. Due notice of the time and place
14  fixed for such summary proceeding or hearing shall be mailed to the
15  county clerk and the county appraiser of the county involved, the director
16  of property valuation, who shall be made a party to the proceeding, and
17  to the party filing any such complaint. Upon ordering such a reappraisal
18  the state board of tax appeals may order all or any part of the taxable real
19  property and tangible personal property in such county to be reappraised,
20  and shall either designate the person or persons to make such reappraisal
21  or permit the board of county commissioners to designate such persons
22  with the approval of the state board of tax appeals. The cost of such
23  reappraisal shall be paid from the county general fund, the special coun-
24  tywide reappraisal fund established by K.S.A. 79-1482, and amendments
25  thereto, the issuance of no-fund warrants, or from a special assessment
26  equalization fund in the same manner as provided in K.S.A. 79-1607 and
27  79-1608, and any amendments thereto, for the payment of the cost of
28  appraisals.
29    The persons designated shall have access to all official records in the
30  office of the county clerk, county treasurer, county or district appraiser
31  and register of deeds pertaining to listing, assessment, and records of the
32  ownership of real property and tangible personal property in such county
33  and all powers of the assessing officials in the county pertaining to dis-
34  covery of taxable property in the county. They shall reappraise all such
35  taxable real property and tangible personal property in the county as shall
36  be ordered by the state board of tax appeals, except that which is state
37  assessed. They shall make such reappraisals on forms approved by the
38  state director of property valuation, and shall deliver the same upon com-
39  pletion to the county or district appraiser who shall retain the same for
40  use of the county or district appraisers, the county board of equalization
41  and the state board of tax appeals.
42    No person, firm, corporation, partnership, or association, other than
43  the county or district appraiser, shall commence any contracted reap-
SB 161--Am.
                                     

 1  praisal in any county until a written agreement has been entered into
 2  between the board of county commissioners and such contractors. Such
 3  agreement shall specifically set out the duties of the reappraisers, and
 4  shall contain a stipulation that upon completion of the reappraisal and
 5  before final payment to the reappraisers under the agreement, the reap-
 6  praisers will notify each taxpayer of its recommendations as to the valu-
 7  ation of such taxpayer's property, by mailing such information to the tax-
 8  payer's last known address. Pursuant to K.S.A. 79-1460, and amendments
 9  thereto, the county or district appraiser shall not be authorized to use the
10  valuations submitted by the reappraisers in the year the reappraisal was
11  completed unless the reappraisal was completed and delivered to such
12  appraiser on or before March 1 of the year in which the valuations estab-
13  lished are used as a basis for the levy of taxes. Before entering into any
14  contracts with the county commissioners for reappraisals of property,
15  every reappraiser shall give and file with the board of county commis-
16  sioners a good and sufficient surety bond by a surety company authorized
17  to do business in this state, approved by the county attorney, in such sum
18  as the county commissioners shall fix, but not less than the amount to be
19  received by the reappraisers under the terms of the contract and condi-
20  tioned for the faithful performance of all duties required of such reap-
21  praisers under the terms of the contract entered into, and the execution
22  and filing of such a bond shall be a condition precedent to entering into
23  such an agreement and to commencing work on the contract of reap-
24  praisal. Such bond shall be further conditioned to remain in full force
25  and effect for one year subsequent to the date of the printing of the
26  change of value notices for the reappraisal and the delivery thereof to the
27  county or district appraiser.
28    Sec. 13.  K.S.A. 79-1426 is hereby amended to read as follows: 79-
29  1426. Any county assessor or district appraiser, deputy assessor appraiser,
30  member of the state board of tax appeals, director of property valuation,
31  or member of any county board of equalization, and every other person
32  whose duty it is to list, value, assess or equalize real estate or tangible
33  personal property for taxation, who shall knowingly or willfully fail to list
34  or return for assessment or valuation any real estate or personal property,
35  or who shall knowingly or willfully list or return for assessment or valu-
36  ation any real estate or personal property at other than as provided for
37  by law, or any assessing officer who shall willfully or knowingly fail to
38  appraise, assess or to equalize the values of any real estate or tangible
39  personal property, which is subject to general property taxes as required
40  in K.S.A. 79-1439, and amendments thereto, shall be deemed guilty of a
41  misdemeanor, and upon conviction thereof shall be fined in any sum not
42  exceeding five hundred dollars ($500) $500 or imprisonment in the
43  county jail for a period not exceeding ninety (90) 90 days, and in addition
SB 161--Am.
                                     

 1  thereto shall forfeit his or her office if an officer mentioned herein. A
 2  variance of 10% in the appraisal at fair market value in money shall not
 3  be considered a violation of this section.
 4    Sec. 14.  K.S.A. 1996 Supp. 79-1437f is hereby amended to read as
 5  follows: 79-1437f. The contents of the real estate sales validation ques-
 6  tionnaire shall be made available only to the following people for the
 7  purposes listed hereafter:
 8    (a)  County officials for cooperating with and assisting the director of
 9  property valuation in developing the information as provided for in K.S.A.
10  1996 Supp. 79-1487, and amendments thereto;
11    (b)  any property owner, or the owner's representative, for prosecut-
12  ing an appeal of the valuation of such owner's property or for determining
13  whether to make such an appeal, but access shall be limited to the con-
14  tents of those questionnaires concerning the same constitutionally pre-
15  scribed subclass of property as that of such owner's property;
16    (c)  the county appraiser and appraisers employed by the county for
17  the appraisal of property located within the county;
18    (d)  appraisers licensed or certified pursuant to K.S.A. 58-4101 et seq.,
19  and amendments thereto, for appraisal of property and preparation of
20  appraisal reports;
21    (e)  financial institutions for conducting appraisals as required by fed-
22  eral and state regulators;
23    (f)  the county appraiser or the appraiser's designee, hearing officers
24  or panels appointed pursuant to K.S.A. 79-1602 or K.S.A. 1996 Supp. 79-
25  1611 74-2439, and amendments thereto, and the state board of tax ap-
26  peals for conducting valuation appeal proceedings;
27    (g)  the board of county commissioners for conducting any of the
28  board's statutorily prescribed duties; and
29    (h)  the director of property valuation for conducting any of the di-
30  rector's statutorily prescribed duties.
31    Sec. 15.  K.S.A. 1996 Supp. 79-1448 is hereby amended to read as
32  follows: 79-1448. Any taxpayer may complain or appeal to the county
33  appraiser from the classification or appraisal of the taxpayer's property by
34  giving notice to the county appraiser on or before April 15 for real prop-
35  erty and on or before May 15 for personal property. The county appraiser
36  or the appraiser's designee shall arrange to hold an informal meeting with
37  the aggrieved taxpayer with reference to the property in question. At such
38  meeting it shall be the duty of the county appraiser or the county ap-
39  praiser's designee to initiate production of evidence to substantiate the
40  valuation of such property. The county appraiser may extend the time in
41  which the taxpayer may informally appeal from the classification or ap-
42  praisal of the taxpayer's property for just and adequate reasons. Except
43  as provided in K.S.A. 79-1404, and amendments thereto, no informal
SB 161--Am.
                                     

 1  meeting regarding real property shall be scheduled to take place after
 2  May 15, nor shall a final determination be given by the appraiser after
 3  May 20. Any owner of a single-family residence and any other taxpayer
 4  who receives a final determination of value of property other than land
 5  devoted to agricultural use from the county or district appraiser of less
 6  than $500,000 and who is aggrieved by the final determination of the
 7  county appraiser may appeal to the hearing officer or panel appointed
 8  pursuant to K.S.A. 1996 Supp. 79-1611 74-2439, and amendments
 9  thereto, and such hearing officer, or panel, for just cause shown and
10  recorded, is authorized to change the classification or valuation of specific
11  tracts or individual items of real or personal property in the same manner
12  provided for in K.S.A. 79-1606 and amendments thereto by section 2.
13  Any owner of a multiple-family residence and any other taxpayer who
14  receives a final determination of value from the county or district ap-
15  praiser of $500,000 or more or of value of land devoted to agricultural
16  use and who is aggrieved by the final determination of the county or
17  district appraiser may appeal directly to the board of tax appeals as pro-
18  vided in section 2. Any taxpayer party who is aggrieved by the final de-
19  termination of a hearing officer or panel may appeal to the state board
20  of tax appeals as provided in K.S.A. 79-1609, by section 3, and amend-
21  ments thereto. An informal meeting with the county appraiser or the
22  appraiser's designee shall be a condition precedent to an appeal to the
23  county or district hearing panel hearing officer or state board of tax ap-
24  peals.
25    Sec. 16.  K.S.A. 79-1458 is hereby amended to read as follows: 79-
26  1458. The county appraiser shall install and maintain such records and
27  data relating to the identification and appraisal of all property in the
28  county, taxable and exempt, required by the director of property valua-
29  tion.
30    Except as specifically provided by law, all records of the county or
31  district appraiser, the county board of equalization and the director of
32  property valuation relating to the identification and appraisal of real and
33  personal property shall be open at all reasonable times to public inspec-
34  tion.
35    Sec. 17.  K.S.A. 79-1472 is hereby amended to read as follows: 79-
36  1472. The county or district appraiser or the appraiser's designee shall
37  attend meetings of the hearing officer or panel or the county board of
38  equalization for the purpose of aiding such hearing officer or panel or
39  board in matters involving the appraisal of property appointed pursuant
40  to K.S.A. 74-2439, and amendments thereto, and the county or district
41  appraiser shall make all records concerned therewith available to the
42  hearing officer or panel or the county board of equalization cooperate
43  with the hearing officer and taxpayer in facilitating the exchange of rel-
SB 161--Am.
                                     

 1  evant information concerning the valuation and classification of the prop-
 2  erty at issue. The absence of the county or district appraiser or the ap-
 3  praiser's designee from any such meeting shall not affect the authority to
 4  meet and conduct the business of the hearing officer or panel or the
 5  board.
 6    Sec. 18.  K.S.A. 1996 Supp. 79-1604 is hereby amended to read as
 7  follows: 79-1604. Immediately after the completion of the labors of the
 8  hearing officer or county or district hearing panel informal meetings con-
 9  ducted pursuant to K.S.A. 79-1448, and amendments thereto, the county
10  clerk shall prepare an abstract of the assessment rolls of the county and
11  forward it to the director of property valuation on or before July 15. Said
12  abstract shall be made in the form prescribed by the director of property
13  valuation and shall give the information asked by the director of property
14  valuation under the various subjects fully and completely as required. The
15  director shall have authority to prescribe a statewide database format.
16  The abstract on motor vehicles will include only those motor vehicles
17  assessed as of the date the abstract is prepared previous to mailing to the
18  director of property valuation. Any motor vehicles acquired, purchased,
19  traded or sold during the time the abstract is being prepared and until
20  September 1, will be assessed and added or subtracted from the original
21  assessment allowing an additional valuation to the abstracted figure on
22  motor vehicles. After the levy is set according to law, valuations of motor
23  vehicles would be credited as supplementary assessments are now cred-
24  ited.
25    Sec. 19.  K.S.A. 1996 Supp. 79-1606 is hereby amended to read as
26  follows: 79-1606. (a) The county or district appraiser, hearing officer or
27  panel and arbitrator shall adopt, use and maintain the following records,
28  the form and method of use of which shall be prescribed by the director
29  of property valuation: (1) Appeal form Informal meeting request form, (2)
30  hearing docket, and (3) record of cases, including the disposition thereof.
31    (b)  The county clerk shall furnish appeal forms prescribed by the state
32  board of tax appeals to any taxpayer who desires to appeal the final de-
33  termination of the county or district appraiser as provided in K.S.A. 79-
34  1448, and amendments thereto. Any such appeal shall be in writing and
35  filed with the county clerk secretary of the state board of tax appeals
36  within 18 days of the date that the final determination of the appraiser
37  was mailed to the taxpayer.
38    (c)  The hearing officer or panel shall hear and determine any appeal
39  made by any taxpayer or such taxpayer's agent or attorney. All such hear-
40  ings shall be held in a suitable place in the county or district. Sufficient
41  evening and Saturday hearings shall be provided as shall be necessary to
42  hear all parties making requests for hearings at such times.
43    (d)  Every appeal so filed shall be set for hearing by the hearing officer
SB 161--Am.
                                     

 1  or panel, which hearing shall be held on or before July 1, and the hearing
 2  officer or panel shall have no authority to be in session thereafter, except
 3  as provided in K.S.A. 79-1404, and amendments thereto. The county clerk
 4  shall notify each appellant and the county or district appraiser of the date
 5  for hearing of the taxpayer's appeal at least 10 days in advance of such
 6  hearing. It shall be the duty of the county or district appraiser to initiate
 7  the production of evidence to demonstrate, by a preponderance of the
 8  evidence, the validity and correctness of the classification or appraisal of
 9  residential property. No presumption shall exist in favor of the county or
10  district appraiser with respect to the validity or correctness of any such
11  classification or valuation. Every such appeal shall be determined by order
12  of the hearing officer or panel, and such order shall be recorded in the
13  minutes of such hearing officer or panel on or before July 5. Such re-
14  corded orders and minutes shall be open to public inspection. Notice as
15  to disposition of the appeal shall be mailed by the county clerk to the
16  taxpayer and the county or district appraiser within five days after the
17  determination.
18    Sec. 20.  K.S.A. 1996 Supp. 79-1608 is hereby amended to read as
19  follows: 79-1608. The board of county commissioners of any county by
20  resolution is hereby authorized and empowered to transfer at the close
21  of any budget year all or any part of the balance of the money in the
22  county general fund, and subject to legal expenditure in such year, to a
23  special appraisal fund. Upon the adoption of such resolution, a copy
24  thereof shall be delivered to the county treasurer and the treasurer shall
25  credit the amount provided in such resolution to such special fund and
26  shall debit the general fund.
27    Such transfers may be made notwithstanding the provisions of K.S.A.
28  79-2925 to 79-2937, and amendments thereto. All moneys credited to
29  such special fund shall be used by the county for the purpose of assuring
30  that all property in the county is classified and appraised according to law
31  and for the purpose of the employment of or contracting for appraisal
32  assistance , hearing officers or panels and arbitrators. Such special ap-
33  praisal fund shall not be subject to the provisions of K.S.A. 79-2925 to
34  79-2937, and amendments thereto, except that in making the budgets of
35  such counties the amounts credited to, and the amount on hand in such
36  special fund, and the amount expended therefrom shall be shown thereon
37  for the information of the taxpayers of the county.
38    If the board of county commissioners shall determine at any time that
39  all or any part of the money which has been transferred to such special
40  fund is not needed for the purposes for which so transferred, the board
41  of county commissioners is hereby authorized and empowered by reso-
42  lution to retransfer such amount not needed to the general fund of the
43  county, and such retransfer and expenditure thereof shall be subject to
SB 161--Am.
                                     

 1  the provisions of K.S.A. 79-2925 to 79-2937, and amendments thereto.
 2    New Sec. 21.  The provisions of this act shall be applicable to all tax-
 3  able years commencing after December 31, 1997.
 4    Sec. 22.  K.S.A. 74-2426, 74-2437, 74-2439, 79-331, 79-1409, 79-
 5  1412a, 79-1426, 79-1458, 79-1470 and 79-1472 and K.S.A. 1996 Supp.
 6  79-1404, 79-1404a, 79-1413a, 79-1437f, 79-1448, 79-1481, 79-1494, 79-
 7  1604, 79-1606, 79-1608, 79-1609, 79-1610 and 79-1611 are hereby
 8  repealed.
 9    Sec. 23.  This act shall take effect and be in force from and after its
10  publication in the statute book.