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12  AN ACT relating to property taxation; concerning the exemption there-
13    from for farm machinery and equipment exemptions therefrom;
14    amending K.S.A. 1996 Supp. 79-201 and 79-201j and repealing the
15    existing section sections.
16
17  Be it enacted by the Legislature of the State of Kansas:
18    Section 1.  K.S.A. 1996 Supp. 79-201j is hereby amended to read as
19  follows: 79-201j. The following described property, to the extent specified
20  by this section, shall be exempt from all property or ad valorem taxes
21  levied under the laws of the state of Kansas:
22    (a)  All farm machinery and equipment. The term ``farm machinery
23  and equipment'' means that personal property actually and regularly used
24  exclusively in any farming or ranching operation. Any such property
25  which is being acquired pursuant to a lease-purchase agreement shall be
26  deemed to be actually and regularly used exclusively for the purposes of
27  this subsection. The term ``farming or ranching operation'' shall include
28  the operation of a feedlot and the performing of farm or ranch work for
29  hire. The term ``farm machinery and equipment'' shall not include any
30  passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer,
31  other than a farm trailer, as the terms are defined by K.S.A. 8-126 and
32  amendments thereto.
33    The provisions of this subsection shall apply to all taxable years com-
34  mencing after December 31, 1984.
35    (b) (1)  All aquaculture machinery and equipment. The term ``aqua-
36  culture machinery and equipment'' means that personal property actually
37  and regularly used exclusively in any aquaculture operation. Any such
38  property which is being acquired pursuant to a lease-purchase agreement
39  shall be deemed to be actually and regularly used exclusively for the pur-
40  poses of this subsection. The term ``aquaculture operation'' shall include
41  the feeding out of aquatic plants and animals; breeding, growing or rear-
42  ing aquatic plants and animals; and selling or transporting aquatic plants
43  and animals. The term ``aquaculture machinery and equipment'' shall not
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 1  include any passenger vehicle, truck, truck tractor, trailer, semitrailer or
 2  pole trailer.
 3    (2)  All Christmas tree machinery and equipment. The term ``Christ-
 4  mas tree machinery and equipment'' means that personal property ac-
 5  tually and regularly used exclusively in any Christmas tree operation. Any
 6  such property which is being acquired pursuant to a lease-purchase agree-
 7  ment shall be deemed to be actually and regularly used exclusively for the
 8  purposes of this subsection. The term ``Christmas tree operation'' shall
 9  include the planting, cultivating and harvesting of Christmas trees; and
10  selling or transporting Christmas trees. The term ``Christmas tree ma-
11  chinery and equipment'' shall not include any passenger vehicle, truck,
12  truck tractor, trailer, semitrailer or pole trailer.
13    The provisions of this subsection shall apply to all taxable years com-
14  mencing after December 31, 1992.
15    Sec. 2.  K.S.A. 1996 Supp. 79-201 is hereby amended to read
16  as follows: 79-201. The following described property, to the extent
17  herein specified, shall be and is hereby exempt from all property
18  or ad valorem taxes levied under the laws of the state of Kansas:
19    First. All buildings used exclusively as places of public worship
20  and all buildings used exclusively by school districts and school
21  district interlocal cooperatives organized under the laws of this
22  state, with the furniture and books therein contained and used
23  exclusively for the accommodation of religious meetings or for
24  school district or school district interlocal cooperative purposes,
25  whichever is applicable, together with the grounds owned thereby
26  if not leased or otherwise used for the realization of profit, except
27  that: (a) (1) Any school building, or portion thereof, together with
28  the grounds upon which the building is located, shall be consid-
29  ered to be used exclusively by the school district for the purposes
30  of this section when leased by the school district to any political or
31  taxing subdivision of the state, including a school district interlocal
32  cooperative, or to any association, organization or nonprofit cor-
33  poration entitled to tax exemption with respect to such property;
34  and (2) any school building, together with the grounds upon which
35  the building is located, shall be considered to be used exclusively
36  by a school district interlocal cooperative for the purposes of this
37  section when being acquired pursuant to a lease-purchase agree-
38  ment; and (b) any building, or portion thereof, used as a place of
39  worship, together with the grounds upon which the building is
40  located, shall be considered to be used exclusively for the religious
41  purposes of this section when used as a not-for-profit day care
42  center for children which is licensed pursuant to K.S.A. 65-501 et
43  seq., and amendments thereto, or when used to house an area
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 1  where the congregation of a church society and others may pur-
 2  chase tracts, books and other items relating to the promulgation
 3  of the church society's religious doctrines.
 4    Second. All real property, and all tangible personal property, ac-
 5  tually and regularly used exclusively for literary, educational, sci-
 6  entific, religious, benevolent or charitable purposes, including
 7  property used exclusively for such purposes by more than one
 8  agency or organization for one or more of such exempt purposes.
 9  Except with regard to real property which is owned by a religious organ-
10  ization, is to be used exclusively for religious purposes and is not used for
11  a nonexempt purpose prior to its exclusive use for religious purposes
12  which property shall be deemed to be actually and regularly used exclu-
13  sively for religious purposes for the purposes of this paragraph, this ex-
14  emption shall not apply to such property, not actually used or oc-
15  cupied for the purposes set forth herein, nor to such property held
16  or used as an investment even though the income or rentals re-
17  ceived therefrom is used wholly for such literary, educational, sci-
18  entific, religious, benevolent or charitable purposes. This exemp-
19  tion shall not be deemed inapplicable to property which would
20  otherwise be exempt pursuant to this paragraph because an
21  agency or organization: (a) Is reimbursed for the provision of serv-
22  ices accomplishing the purposes enumerated in this paragraph
23  based upon the ability to pay by the recipient of such services; or
24    (b) is reimbursed for the actual expense of using such property for
25  purposes enumerated in this paragraph; or (c) uses such property
26  for a nonexempt purpose which is minimal in scope and insubstan-
27  tial in nature if such use is incidental to the exempt purposes of
28  this paragraph; or (d) charges a reasonable fee for admission to
29  cultural or educational activities or permits the use of its property
30  for such activities by a related agency or organization, if any such
31  activity is in furtherance of the purposes of this paragraph.
32    Third. All moneys and credits belonging exclusively to universi-
33  ties, colleges, academies or other public schools of any kind, or to
34  religious, literary, scientific or benevolent and charitable institu-
35  tions or associations, appropriated solely to sustain such institu-
36  tions or associations, not exceeding in amount or in income arising
37  therefrom the limit prescribed by the charter of such institution
38  or association.
39    Fourth. The reserve or emergency funds of fraternal benefit so-
40  cieties authorized to do business under the laws of the state of
41  Kansas.
42    Fifth. All buildings of private nonprofit universities or colleges
43  which are owned and operated by such universities and colleges
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 1  as student union buildings, presidents' homes and student dormi-
 2  tories.
 3    Sixth. All real and tangible personal property actually and reg-
 4  ularly used exclusively by the alumni association associated by its
 5  articles of incorporation with any public or nonprofit Kansas col-
 6  lege or university approved by the Kansas board of regents to con-
 7  fer academic degrees or with any community college approved by
 8  its board of trustees to grant certificates of completion of courses
 9  or curriculum, to provide accommodations and services to such
10  college or university or to the alumni, staff or faculty thereof.
11    Seventh. All parsonages owned by a church society and actually
12  and regularly occupied and used exclusively predominantly as a res-
13  idence by a minister or other clergyman of such church society
14  who is actually and regularly engaged in conducting the services
15  and religious ministrations of such society, and the land upon
16  which such parsonage is located to the extent necessary for the
17  accommodation of such parsonage.
18    Eighth. All real property, all buildings located on such property
19  and all personal property contained therein, actually and regularly
20  used exclusively by any individually chartered organization of hon-
21  orably discharged military veterans of the United States armed
22  forces or auxiliary of any such organization, which is exempt from
23  federal income taxation pursuant to section 501(c)(19) of the fed-
24  eral internal revenue code of 1986, for clubhouse, place of meeting
25  or memorial hall purposes, and real property to the extent of not
26  more than two acres, and all buildings located on such property,
27  actually and regularly used exclusively by any such veterans' or-
28  ganization or its auxiliary as a memorial park.
29    Ninth. All real property and tangible personal property actually
30  and regularly used by a community service organization for the
31  predominant purpose of providing humanitarian services, which is
32  owned and operated by a corporation organized not for profit un-
33  der the laws of the state of Kansas or by a corporation organized
34  not for profit under the laws of another state and duly admitted to
35  engage in business in this state as a foreign not-for-profit corpo-
36  ration if: (a) The directors of such corporation serve without pay
37  for such services; (b) the corporation is operated in a manner
38  which does not result in the accrual of distributable profits, reali-
39  zation of private gain resulting from the payment of compensation
40  in excess of a reasonable allowance for salary or other compensa-
41  tion for services rendered or the realization of any other form of
42  private gain; (c) no officer, director or member of such corporation
43  has any pecuniary interest in the property for which exemption is
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 1  claimed; (d) the corporation is organized for the purpose of pro-
 2  viding humanitarian services; (e) the actual use of property for
 3  which an exemption is claimed must be substantially and predom-
 4  inantly related to the purpose of providing humanitarian services,
 5  except that, the use of such property for a nonexempt purpose
 6  which is minimal in scope and insubstantial in nature shall not
 7  result in the loss of exemption if such use is incidental to the pur-
 8  pose of providing humanitarian services by the corporation; (f) the
 9  corporation is exempt from federal income taxation pursuant to
10  section 501(c)(3) of the internal revenue code of 1986 and; (g) con-
11  tributions to the corporation are deductible under the Kansas in-
12  come tax act. As used in this clause, ``humanitarian services'' means
13  the conduct of activities which substantially and predominantly
14  meet a demonstrated community need and which improve the
15  physical, mental, social, cultural or spiritual welfare of others or
16  the relief, comfort or assistance of persons in distress or any com-
17  bination thereof including but not limited to health and recreation
18  services, child care, individual and family counseling, employment
19  and training programs for handicapped persons and meals or feed-
20  ing programs. Notwithstanding any other provision of this clause,
21  motor vehicles shall not be exempt hereunder unless such vehicles
22  are exclusively used for the purposes described therein.
23    Tenth. For all taxable years commencing after December 31,
24  1986, any building, and the land upon which such building is lo-
25  cated to the extent necessary for the accommodation of such build-
26  ing, owned by a church or nonprofit religious society or order
27  which is exempt from federal income taxation pursuant to section
28  501(c)(3) of the federal internal revenue code of 1986, and actually
29  and regularly occupied and used exclusively for residential and
30  religious purposes by a community of persons who are bound by
31  vows to a religious life and who conduct or assist in the conduct of
32  religious services and actually and regularly engage in religious,
33  benevolent, charitable or educational ministrations or the per-
34  formance of health care services.
35    The provisions of this section, except as otherwise more specif-
36  ically provided, shall apply to all taxable years commencing after
37  December 31, 1988 1995.
38    Sec. 2. 3.  K.S.A. 1996 Supp. 79-201j is 79-201 and 79-201j are
39  hereby repealed.
40    Sec. 3. 4.  This act shall take effect and be in force from and after its
41  publication in the statute book.