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 9  AN ACT relating to property taxation; concerning political subdivision
10    exemption therefrom; amending K.S.A. 1996 Supp. 79-201a and re-
11    pealing the existing section.
12
13  Be it enacted by the Legislature of the State of Kansas:
14    Section 1.  K.S.A. 1995 Supp. 79-201a is hereby amended to read as
15  follows: 79-201a. The following described property, to the extent herein
16  specified, shall be exempt from all property or ad valorem taxes levied
17  under the laws of the state of Kansas:
18    First. All property belonging exclusively to the United States, except
19  property which congress has expressly declared to be subject to state and
20  local taxation.
21    Second. All property used exclusively by the state or any municipality
22  or political subdivision of the state. All property owned, being acquired
23  pursuant to a lease-purchase agreement or operated by the state or any
24  municipality or political subdivision of the state, including property which
25  is vacant or lying dormant, which is used or is to be used for any govern-
26  mental or proprietary function and for which bonds may be issued or
27  taxes levied to finance the same, shall be considered to be ``used exclu-
28  sively'' by the state, municipality or political subdivision for the purposes
29  of this section. The lease by a municipality or political subdivision of the
30  state of any real property owned or being acquired pursuant to a lease-
31  purchase agreement for the purpose of providing office space necessary
32  for the performance of medical: (a) Medical services by a person licensed
33  to practice medicine and surgery or osteopathic medicine by the board
34  of healing arts pursuant to K.S.A. 65-2801 et seq., and amendments
35  thereto,; (b) optometry services by a person licensed by the board of ex-
36  aminers in optometry pursuant to K.S.A. 65-1501 et seq., and amend-
37  ments thereto, or K.S.A. 74-1501 et seq., and amendments thereto; or (c)
38  podiatry services by a person licensed by the board of healing arts pur-
39  suant to K.S.A. 65-2001 et seq., and amendments thereto, shall be con-
40  strued to be a governmental function, and such property actually and
41  regularly used for such purpose shall be deemed to be used exclusively
42  for the purposes of this paragraph. The lease by a municipality or political
43  subdivision of the state of any real property, or portion thereof, owned
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 1  or being acquired pursuant to a lease-purchase agreement to any entity
 2  for the exclusive use by it for an exempt purpose, including the purpose
 3  of displaying or exhibiting personal property by a museum or historical
 4  society, if no portion of the lease payments include compensation for
 5  return on the investment in such leased property shall be deemed to be
 6  used exclusively for the purposes of this paragraph.  All property leased,
 7  other than property being acquired pursuant to a lease-purchase agree-
 8  ment, to the state or any municipality or political subdivision of the state
 9  by any private entity shall not be considered to be used exclusively by the
10  state or any municipality or political subdivision of the state for the pur-
11  poses of this section except that the provisions of this sentence shall not
12  apply to any such property subject to lease on the effective date of this
13  act until the term of such lease expires but property taxes levied upon
14  any such property prior to tax year 1989, shall not be abated or refunded.
15  Any property constructed or purchased with the proceeds of industrial
16  revenue bonds issued prior to July 1, 1963, as authorized by K.S.A. 12-
17  1740 to 12-1749, or purchased with proceeds of improvement district
18  bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-2776, or
19  with proceeds of bonds issued prior to July 1, 1963, as authorized by
20  K.S.A. 19-3815a and 19-3815b, or any property improved, purchased,
21  constructed, reconstructed or repaired with the proceeds of revenue
22  bonds issued prior to July 1, 1963, as authorized by K.S.A. 13-1238 to 13-
23  1245, inclusive, or any property improved, reimproved, reconstructed or
24  repaired with the proceeds of revenue bonds issued after July 1, 1963,
25  under the authority of K.S.A. 13-1238 to 13-1245, inclusive, which had
26  previously been improved, reconstructed or repaired with the proceeds
27  of revenue bonds issued under such act on or before July 1, 1963, shall
28  be exempt from taxation for so long as any of the revenue bonds issued
29  to finance such construction, reconstruction, improvement, repair or pur-
30  chase shall be outstanding and unpaid. Any property constructed or pur-
31  chased with the proceeds of any revenue bonds authorized by K.S.A. 13-
32  1238 to 13-1245, inclusive, 19-2776, 19-3815a and 19-3815b, and
33  amendments thereto, issued on or after July 1, 1963, shall be exempt
34  from taxation only for a period of 10 calendar years after the calendar
35  year in which the bonds were issued. Any property, all or any portion of
36  which is constructed or purchased with the proceeds of revenue bonds
37  authorized by K.S.A. 12-1740 to 12-1749, inclusive, and amendments
38  thereto, issued on or after July 1, 1963 and prior to July 1, 1981, shall be
39  exempt from taxation only for a period of 10 calendar years after the
40  calendar year in which the bonds were issued. Except as hereinafter pro-
41  vided, any property constructed or purchased wholly with the proceeds
42  of revenue bonds issued on or after July 1, 1981, under the authority of
43  K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be
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 1  exempt from taxation only for a period of 10 calendar years after the
 2  calendar year in which the bonds were issued. Except as hereinafter pro-
 3  vided, any property constructed or purchased in part with the proceeds
 4  of revenue bonds issued on or after July 1, 1981, under the authority of
 5  K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be
 6  exempt from taxation to the extent of the value of that portion of the
 7  property financed by the revenue bonds and only for a period of 10 cal-
 8  endar years after the calendar year in which the bonds were issued. The
 9  exemption of that portion of the property constructed or purchased with
10  the proceeds of revenue bonds shall terminate upon the failure to pay all
11  taxes levied on that portion of the property which is not exempt and the
12  entire property shall be subject to sale in the manner prescribed by K.S.A.
13  79-2301 et seq., and amendments thereto. Property constructed or pur-
14  chased in whole or in part with the proceeds of revenue bonds issued on
15  or after January 1, 1995, under the authority of K.S.A. 12-1740 to 12-
16  1749, inclusive, and amendments thereto, and used in any retail enter-
17  prise identified under the standard industrial classification codes, major
18  groups 52 through 59, inclusive, except facilities used exclusively to house
19  the headquarters or back office operations of such retail enterprises iden-
20  tified thereunder, shall not be exempt from taxation. For the purposes of
21  the preceding provision ``standard industrial classification code'' means a
22  standard industrial classification code published in the Standard Industrial
23  Classification manual, 1987, as prepared by the statistical policy division
24  of the office of management and budget of the office of the president of
25  the United States. ``Headquarters or back office operations'' means a fa-
26  cility from which the enterprise is provided direction, management, ad-
27  ministrative services, or distribution or warehousing functions in support
28  of transactions made by the enterprise. Property purchased, constructed,
29  reconstructed, equipped, maintained or repaired with the proceeds of
30  industrial revenue bonds issued under the authority of K.S.A. 12-1740 et
31  seq., and amendments thereto, which is located in a redevelopment pro-
32  ject area established under the authority of K.S.A. 12-1770 et seq. shall
33  not be exempt from taxation. Property purchased, acquired, constructed,
34  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
35  modeled with all or any part of the proceeds of revenue bonds issued
36  under authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
37  ments thereto for any poultry confinement facility on agricultural land
38  which is owned, acquired, obtained or leased by a corporation, as such
39  terms are defined by K.S.A. 17-5903 and amendments thereto, shall not
40  be exempt from such taxation. Property purchased, acquired, constructed,
41  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
42  modeled with all or any part of the proceeds of revenue bonds issued
43  under the authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
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 1  ments thereto, for a rabbit confinement facility on agricultural land which
 2  is owned, acquired, obtained or leased by a corporation, as such terms
 3  are defined by K.S.A. 17-5903 and amendments thereto, shall not be
 4  exempt from such taxation.
 5    Third. All works, machinery and fixtures used exclusively by any rural
 6  water district or township water district for conveying or production of
 7  potable water in such rural water district or township water district.
 8    Fourth. All fire engines and other implements used for the extinguish-
 9  ment of fires, with the buildings used exclusively for the safekeeping
10  thereof, and for the meeting of fire companies, whether belonging to any
11  rural fire district, township fire district, town, city or village, or to any fire
12  company organized therein or therefor.
13    Fifth. All property, real and personal, owned by county fair associations
14  organized and operating under the provisions of K.S.A. 2-125 et seq. and
15  amendments thereto.
16    Sixth. Property acquired and held by any municipality under the mu-
17  nicipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto,
18  except that such exemption shall not apply to any portion of the project
19  used by a nondwelling facility for profit making enterprise.
20    Seventh. All property of a municipality, acquired or held under and for
21  the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and
22  amendments thereto except that such tax exemption shall terminate when
23  the municipality sells, leases or otherwise disposes of such property in an
24  urban renewal area to a purchaser or lessee which is not a public body
25  entitled to tax exemption with respect to such property.
26    Eighth. All property acquired and held by the Kansas armory board for
27  armory purposes under the provisions of K.S.A. 48-317, and amendments
28  thereto.
29    Ninth. All property acquired and used by the Kansas turnpike authority
30  under the authority of K.S.A. 68-2001 et seq., and amendments thereto,
31  K.S.A. 68-2030 et seq., and amendments thereto, K.S.A. 68-2051 et seq.,
32  and amendments thereto, and K.S.A. 68-2070 et seq., and amendments
33  thereto.
34    Tenth. All property acquired and used for state park purposes by the
35  Kansas department of wildlife and parks.
36    Eleventh. The state office building constructed under authority of
37  K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which
38  such building is located.
39    Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et
40  seq., and amendments thereto, and all other student union buildings and
41  student dormitories erected upon the campus of any institution men-
42  tioned in K.S.A. 76-6a01, and amendments thereto, by any other non-
43  profit corporation.
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 1    Thirteenth. All buildings, as the same is defined in subsection (c) of
 2  K.S.A. 76-6a13, and amendments thereto, which are erected, constructed
 3  or acquired under the authority of K.S.A. 76-6a13 et seq., and amend-
 4  ments thereto, and building sites acquired therefor.
 5    Fourteenth. All that portion of the waterworks plant and system of the
 6  city of Kansas City, Missouri, now or hereafter located within the territory
 7  of the state of Kansas pursuant to the compact and agreement adopted
 8  by chapter 304 of the 1921 Session Laws of the state of Kansas. [See
 9  K.S.A. 79-205].
10    Fifteenth. All property, real and personal, owned by a groundwater
11  management district organized and operating pursuant to K.S.A. 82a-
12  1020, and amendments thereto.
13    Sixteenth. All property, real and personal, owned by the joint water
14  district organized and operating pursuant to K.S.A. 80-1616 et seq., and
15  amendments thereto.
16    Seventeenth. All property, including interests less than fee ownership,
17  acquired for the state of Kansas by the secretary of transportation or a
18  predecessor in interest which is used in the administration, construction,
19  maintenance or operation of the state system of highways, regardless of
20  how or when acquired.
21    The provisions of this section shall apply to all taxable years commenc-
22  ing after December 31, 1994 1996.
23    Sec. 2.  K.S.A. 1996 Supp. 79-201a is hereby repealed.
24    Sec. 3.  This act shall take effect and be in force from and after its
25  publication in the statute book.