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14  AN ACT relating to property taxation; concerning the exemption of cer-
15    tain industrial training center buildings; concerning county ap-
16    praiser appointments; amending K.S.A. 19-430 and K.S.A. 1996
17    Supp. 79-201a and repealing the existing section sections.
18
19  Be it enacted by the Legislature of the State of Kansas:
20    Section 1.  K.S.A. 1996 Supp. 79-201a is hereby amended to read as
21  follows: 79-201a. The following described property, to the extent herein
22  specified, shall be exempt from all property or ad valorem taxes levied
23  under the laws of the state of Kansas:
24    First. All property belonging exclusively to the United States, except
25  property which congress has expressly declared to be subject to state and
26  local taxation.
27    Second. All property used exclusively by the state or any municipality
28  or political subdivision of the state. All property owned, being acquired
29  pursuant to a lease-purchase agreement or operated by the state or any
30  municipality or political subdivision of the state, including property which
31  is vacant or lying dormant, which is used or is to be used for any govern-
32  mental or proprietary function and for which bonds may be issued or
33  taxes levied to finance the same, shall be considered to be ``used exclu-
34  sively'' by the state, municipality or political subdivision for the purposes
35  of this section. The lease by a municipality or political subdivision of the
36  state of any real property owned or being acquired pursuant to a lease-
37  purchase agreement for the purpose of providing office space necessary
38  for the performance of medical services by a person licensed to practice
39  medicine and surgery or osteopathic medicine by the board of healing
40  arts pursuant to K.S.A. 65-2801 et seq., and amendments thereto, shall
41  be construed to be a governmental function, and such property actually
42  and regularly used for such purpose shall be deemed to be used exclu-
43  sively for the purposes of this paragraph. The lease by a municipality or
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 1  political subdivision of the state of any real property, or portion thereof,
 2  owned or being acquired pursuant to a lease-purchase agreement to any
 3  entity for the exclusive use by it for an exempt purpose, including the
 4  purpose of displaying or exhibiting personal property by a museum or
 5  historical society, if no portion of the lease payments include compensa-
 6  tion for return on the investment in such leased property shall be deemed
 7  to be used exclusively for the purposes of this paragraph.  All property
 8  leased, other than property being acquired pursuant to a lease-purchase
 9  agreement, to the state or any municipality or political subdivision of the
10  state by any private entity shall not be considered to be used exclusively
11  by the state or any municipality or political subdivision of the state for
12  the purposes of this section except that the provisions of this sentence
13  shall not apply to any such property subject to lease on the effective date
14  of this act until the term of such lease expires but property taxes levied
15  upon any such property prior to tax year 1989, shall not be abated or
16  refunded. Any property constructed or purchased with the proceeds of
17  industrial revenue bonds issued prior to July 1, 1963, as authorized by
18  K.S.A. 12-1740 to 12-1749, or purchased with proceeds of improvement
19  district bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-
20  2776, or with proceeds of bonds issued prior to July 1, 1963, as authorized
21  by K.S.A. 19-3815a and 19-3815b, or any property improved, purchased,
22  constructed, reconstructed or repaired with the proceeds of revenue
23  bonds issued prior to July 1, 1963, as authorized by K.S.A. 13-1238 to 13-
24  1245, inclusive, or any property improved, reimproved, reconstructed or
25  repaired with the proceeds of revenue bonds issued after July 1, 1963,
26  under the authority of K.S.A. 13-1238 to 13-1245, inclusive, which had
27  previously been improved, reconstructed or repaired with the proceeds
28  of revenue bonds issued under such act on or before July 1, 1963, shall
29  be exempt from taxation for so long as any of the revenue bonds issued
30  to finance such construction, reconstruction, improvement, repair or pur-
31  chase shall be outstanding and unpaid. Any property constructed or pur-
32  chased with the proceeds of any revenue bonds authorized by K.S.A. 13-
33  1238 to 13-1245, inclusive, 19-2776, 19-3815a and 19-3815b, and
34  amendments thereto, issued on or after July 1, 1963, shall be exempt
35  from taxation only for a period of 10 calendar years after the calendar
36  year in which the bonds were issued. Any property, all or any portion of
37  which is constructed or purchased with the proceeds of revenue bonds
38  authorized by K.S.A. 12-1740 to 12-1749, inclusive, and amendments
39  thereto, issued on or after July 1, 1963 and prior to July 1, 1981, shall be
40  exempt from taxation only for a period of 10 calendar years after the
41  calendar year in which the bonds were issued. Except as hereinafter pro-
42  vided, any property constructed or purchased wholly with the proceeds
43  of revenue bonds issued on or after July 1, 1981, under the authority of
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 1  K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be
 2  exempt from taxation only for a period of 10 calendar years after the
 3  calendar year in which the bonds were issued. Except as hereinafter pro-
 4  vided, any property constructed or purchased in part with the proceeds
 5  of revenue bonds issued on or after July 1, 1981, under the authority of
 6  K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be
 7  exempt from taxation to the extent of the value of that portion of the
 8  property financed by the revenue bonds and only for a period of 10 cal-
 9  endar years after the calendar year in which the bonds were issued. The
10  exemption of that portion of the property constructed or purchased with
11  the proceeds of revenue bonds shall terminate upon the failure to pay all
12  taxes levied on that portion of the property which is not exempt and the
13  entire property shall be subject to sale in the manner prescribed by K.S.A.
14  79-2301 et seq., and amendments thereto. Property constructed or pur-
15  chased in whole or in part with the proceeds of revenue bonds issued on
16  or after January 1, 1995, under the authority of K.S.A. 12-1740 to 12-
17  1749, inclusive, and amendments thereto, and used in any retail enter-
18  prise identified under the standard industrial classification codes, major
19  groups 52 through 59, inclusive, except facilities used exclusively to house
20  the headquarters or back office operations of such retail enterprises iden-
21  tified thereunder, shall not be exempt from taxation. For the purposes of
22  the preceding provision ``standard industrial classification code'' means a
23  standard industrial classification code published in the Standard Industrial
24  Classification manual, 1987, as prepared by the statistical policy division
25  of the office of management and budget of the office of the president of
26  the United States. ``Headquarters or back office operations'' means a fa-
27  cility from which the enterprise is provided direction, management, ad-
28  ministrative services, or distribution or warehousing functions in support
29  of transactions made by the enterprise. Property purchased, constructed,
30  reconstructed, equipped, maintained or repaired with the proceeds of
31  industrial revenue bonds issued under the authority of K.S.A. 12-1740 et
32  seq., and amendments thereto, which is located in a redevelopment pro-
33  ject area established under the authority of K.S.A. 12-1770 et seq. shall
34  not be exempt from taxation. Property purchased, acquired, constructed,
35  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
36  modeled with all or any part of the proceeds of revenue bonds issued
37  under authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
38  ments thereto for any poultry confinement facility on agricultural land
39  which is owned, acquired, obtained or leased by a corporation, as such
40  terms are defined by K.S.A. 17-5903 and amendments thereto, shall not
41  be exempt from such taxation. Property purchased, acquired, constructed,
42  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
43  modeled with all or any part of the proceeds of revenue bonds issued
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 1  under the authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
 2  ments thereto, for a rabbit confinement facility on agricultural land which
 3  is owned, acquired, obtained or leased by a corporation, as such terms
 4  are defined by K.S.A. 17-5903 and amendments thereto, shall not be
 5  exempt from such taxation.
 6    Third. All works, machinery and fixtures used exclusively by any rural
 7  water district or township water district for conveying or production of
 8  potable water in such rural water district or township water district.
 9    Fourth. All fire engines and other implements used for the extinguish-
10  ment of fires, with the buildings used exclusively for the safekeeping
11  thereof, and for the meeting of fire companies, whether belonging to any
12  rural fire district, township fire district, town, city or village, or to any fire
13  company organized therein or therefor.
14    Fifth. All property, real and personal, owned by county fair associations
15  organized and operating under the provisions of K.S.A. 2-125 et seq. and
16  amendments thereto.
17    Sixth. Property acquired and held by any municipality under the mu-
18  nicipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto,
19  except that such exemption shall not apply to any portion of the project
20  used by a nondwelling facility for profit making enterprise.
21    Seventh. All property of a municipality, acquired or held under and for
22  the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and
23  amendments thereto except that such tax exemption shall terminate when
24  the municipality sells, leases or otherwise disposes of such property in an
25  urban renewal area to a purchaser or lessee which is not a public body
26  entitled to tax exemption with respect to such property.
27    Eighth. All property acquired and held by the Kansas armory board for
28  armory purposes under the provisions of K.S.A. 48-317, and amendments
29  thereto.
30    Ninth. All property acquired and used by the Kansas turnpike authority
31  under the authority of K.S.A. 68-2001 et seq., and amendments thereto,
32  K.S.A. 68-2030 et seq., and amendments thereto, K.S.A. 68-2051 et seq.,
33  and amendments thereto, and K.S.A. 68-2070 et seq., and amendments
34  thereto.
35    Tenth. All property acquired and used for state park purposes by the
36  Kansas department of wildlife and parks.
37    Eleventh. The state office building constructed under authority of
38  K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which
39  such building is located.
40    Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et
41  seq., and amendments thereto, and all other student union buildings and
42  student dormitories erected upon the campus of any institution men-
43  tioned in K.S.A. 76-6a01, and amendments thereto, by any other non-
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 1  profit corporation.
 2    Thirteenth. All buildings, as the same is defined in subsection (c) of
 3  K.S.A. 76-6a13, and amendments thereto, which are erected, constructed
 4  or acquired under the authority of K.S.A. 76-6a13 et seq., and amend-
 5  ments thereto, and building sites acquired therefor.
 6    Fourteenth. All that portion of the waterworks plant and system of the
 7  city of Kansas City, Missouri, now or hereafter located within the territory
 8  of the state of Kansas pursuant to the compact and agreement adopted
 9  by chapter 304 of the 1921 Session Laws of the state of Kansas. [See
10  K.S.A. 79-205].
11    Fifteenth. All property, real and personal, owned by a groundwater
12  management district organized and operating pursuant to K.S.A. 82a-
13  1020, and amendments thereto.
14    Sixteenth. All property, real and personal, owned by the joint water
15  district organized and operating pursuant to K.S.A. 80-1616 et seq., and
16  amendments thereto.
17    Seventeenth. All property, including interests less than fee ownership,
18  acquired for the state of Kansas by the secretary of transportation or a
19  predecessor in interest which is used in the administration, construction,
20  maintenance or operation of the state system of highways, regardless of
21  how or when acquired.
22    Eighteenth. Any building used primarily as an industrial training cen-
23  ter for academic or vocational education programs designed for and op-
24  erated under contract with private industry, and located upon a site
25  owned, leased or being acquired by or for [an area vocational school,
26  an area vocational-technical school, a technical college, or] a com-
27  munity college, as defined by K.S.A. 71-701 [72-4412], and amendments
28  thereto, pursuant to a lease-purchase agreement, and the site upon which
29  any such building is located.
30    The provisions of this section shall apply to all taxable years commenc-
31  ing after December 31, 1994 1996.
32    Sec. 2.  K.S.A. 19-430 is hereby amended to read as follows: 19-
33  430. On July 1, 1993, and on July 1 of each fourth year thereafter,
34  the board of county commissioners of each county shall by reso-
35  lution appoint a county appraiser for such county who shall serve
36  for a term of four years and until a successor is appointed. County
37  appraisers appointed in counties having a population of more than
38  20,000 shall devote full time to the duties of such office but county ap-
39  praisers appointed in counties having a population of 20,000 25,000 or
40  less or a real property parcel population of 20,000 or less may be ap-
41  pointed either as a full-time or a part-time county appraiser as
42  prescribed in the resolution providing for such appointment. In all
43  other cases county appraisers shall be appointed to devote full time to the
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 1  duties of such office. No person shall be appointed or reappointed
 2  to or serve as county appraiser in any county under the provisions
 3  of this act unless such person shall have at least one year of ap-
 4  praisal experience and be qualified by the director of property
 5  valuation as an eligible Kansas appraiser under the provisions of
 6  this act. Whenever a vacancy shall occur in the office of county
 7  appraiser the board of county commissioners shall appoint an el-
 8  igible Kansas appraiser to fill such vacancy for the unexpired term
 9  and until a successor is appointed. The person holding the office
10  of county assessor or performing the duties thereof on the effective
11  date of this act shall continue to hold such office and perform such
12  duties until a county appraiser is appointed under the provisions
13  of this act. No person shall be appointed to the office of county or
14  district appraiser or to fill a vacancy therein unless such person is
15  currently a state licensed real property appraiser, a certified gen-
16  eral real property appraiser or certified residential real property
17  appraiser pursuant to article 41 of chapter 58 of the Kansas Stat-
18  utes Annotated, and amendments thereto, except that from and
19  after July 1, 1997, no person shall be appointed to the office of
20  county or district appraiser or to fill a vacancy therein, in any
21  county under the provisions of this act unless such person is cur-
22  rently a certified general real property appraiser pursuant to ar-
23  ticle 41 of chapter 58 of the Kansas Statutes Annotated and amend-
24  ments thereto.  Notwithstanding the foregoing provision, any
25  person who holds the office of county appraiser upon the expira-
26  tion of the term of such office shall be eligible for reappointment
27  to such office regardless of whether such person is so certified or
28  licensed.
29    Sec. 2 3.  K.S.A. 19-430 and K.S.A. 1996 Supp. 79-201a is are
30  hereby repealed.
31    Sec. 3 4.  This act shall take effect and be in force from and after its
32  publication in the statute book.