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 9  AN ACT relating to taxation; concerning the administration and prose-
10    cution of certain tax appeals; establishing the Kansas tax review com-
11    mission and prescribing authorities, duties and functions therefor;
12    abolishing the state board of tax appeals; amending K.S.A. 74-2426
13    and K.S.A. 1996 Supp. 74-2438, 79-213 and 79-2005 and repealing the
14    existing sections; also repealing K.S.A. 74-2433a, 74-2433b, 74-2433c,
15    74-2433d, 74-2433e, 74-2434, 74-2435, 74-2436, 74-2437, 74-2437a,
16    74-2437b and 74-2439 and K.S.A. 1996 Supp. 74-2433.
17
18  Be it enacted by the Legislature of the State of Kansas:
19    New Section 1.  (a) The state board of tax appeals established by
20  K.S.A. 74-2433 is hereby abolished, and all of the powers, duties, func-
21  tions, records, property and personnel of the state board of tax appeals
22  are hereby transferred to the Kansas tax review commission, except as
23  otherwise provided in this act.
24    (b)  The Kansas tax review commission established by this act shall be
25  a continuation of the state board of tax appeals with regard to the powers,
26  duties and functions prescribed by this act.
27    New Sec. 2.  (a) The Kansas tax review commission shall be the suc-
28  cessor in every way to the powers, duties and functions of the state board
29  of tax appeals in which such powers, duties and functions were vested
30  prior to the effective date of this act, except as otherwise provided in this
31  act.
32    (b)  Whenever the state board of tax appeals, or words of like effect,
33  is referred to or designated by a statute, contract or other document, such
34  reference or designation shall be deemed to apply to the Kansas tax re-
35  view commission.
36    (c)  All rules and regulations and all orders and directives of the state
37  board of tax appeals in existence on the effective date of this act shall
38  continue to be effective and shall be deemed to be the rules and regu-
39  lations and orders or directives of the Kansas tax review commission until
40  revised, amended, repealed or nullified pursuant to law.
41    New Sec. 3.  (a) On the effective date of this act, all unexpended
42  balances of appropriations to the state board of tax appeals shall be trans-
43  ferred to the Kansas tax review commission to carry out the powers, duties
SB 348
                                     

 1  and functions transferred to the Kansas tax review commission by the
 2  provisions of this act.
 3    (b)  On the effective date of this act, liability for all accrued compen-
 4  sation or salaries of officers and employees who, immediately prior to
 5  such date, were engaged in the performance of powers, duties or func-
 6  tions of the state board of tax appeals abolished or transferred by this act
 7  shall be assumed and paid by the Kansas tax review commission as estab-
 8  lished by this act.
 9    New Sec. 4.  No appeal, suit, action or other proceedings, judicial or
10  administrative, lawfully commenced, or which could have been com-
11  menced, before the state board of tax appeals abolished by this act shall
12  abate by reason of the governmental reorganization effected under the
13  provisions of this act. Jurisdiction over any such appeal, suit, action or
14  other proceeding shall be succeeded to by the Kansas tax review com-
15  mission.
16    New Sec. 5.  On the effective date of this act, all officers and em-
17  ployees who were engaged immediately prior to the effective date of this
18  act in the performance of powers, duties and functions of the state board
19  of tax appeals and who, in the opinion of the Kansas tax review commis-
20  sion are necessary to perform the powers, duties and functions transferred
21  to the Kansas tax review commission under the provisions of this act shall
22  become officers and employees of the Kansas tax review commission.  Any
23  such officer or employee shall retain all retirement benefits and rights of
24  civil service which had accrued to or vested in such officer or employee
25  prior to the effective date of this act, and the service of each such officer
26  and employee so transferred shall be deemed to have been continuous.
27  All transfers and any abolishment of positions of personnel in the classi-
28  fied civil service under the Kansas civil service act shall be in accordance
29  with civil service laws and any rules and regulations adopted thereunder.
30    New Sec. 6.  (a) When any conflict arises as to the disposition of any
31  power, duty or function, the disposition of necessary officers and em-
32  ployees or the unexpended balance of any appropriation or any unex-
33  pended moneys received by the state board of tax appeals as a result of
34  any abolishment or transfer made by this act, or under authority of this
35  act, such conflict shall be resolved by the governor, and the decision of
36  the governor shall be final.
37    (b)  When any conflict arises as to the proper disposition of any prop-
38  erty or records as a result of any abolishment or transfer made under this
39  act, or under authority of this act, such conflict shall be resolved by the
40  governor, and the decision of the governor shall be final.
41    New Sec. 7.  (a) There is hereby created the Kansas tax review com-
42  mission. The Kansas tax review commission shall consist of three com-
43  missioners appointed by the governor from a list of nominees selected by
SB 348
                                     

 1  the supreme court nominating commission. Each commissioner shall be
 2  appointed for a term of eight years, except that of the commissioners first
 3  appointed, one shall be appointed for a term of four years, one shall be
 4  appointed for a term of six years and one shall be appointed for a term
 5  of eight years. Each commissioner may be appointed to one additional
 6  eight-year term by the governor. If a vacancy occurs on the Kansas tax
 7  review commission, the governor shall appoint a successor to fill the va-
 8  cancy for the unexpired term.
 9    (b)  Two of such commissioners shall: (1) Have been regularly admit-
10  ted to practice law in the state of Kansas; (2) be a resident of Kansas at
11  the time of taking the oath of office and shall maintain residency in Kansas
12  while holding office; and (3) for a period of at least five years, have en-
13  gaged in the active practice of law as a lawyer, judge of a court of record
14  or any other court in this state, as a full-time teacher of law in an accred-
15  ited law school or as a certified public accountant who has maintained
16  registration as an active attorney with the Kansas supreme court, or any
17  combination thereof; and one commissioner shall be a person classified
18  as a certified general real property appraiser pursuant to the state certified
19  and licensed real property appraisers act.
20    (c)  The Kansas tax review commission shall have no capacity to sue
21  or be sued.
22    New Sec. 8.  (a) There shall be a division of the Kansas tax review
23  commission known as the small claims division. The small claims division
24  shall consist of five hearing officers, to of whom shall be commissioners
25  of the Kansas tax review commission. Each hearing officer shall have
26  authority to hear and decide cases heard in the small claims division.
27    (b)  At the election of the taxpayer, the small claims division shall have
28  jurisdiction over: (1) Any determination of additional tax due or denial of
29  refund of tax made by the director of taxation when the amount in con-
30  troversy does not exceed $20,000, or in the case of a multiple year as-
31  sessment of tax or denial of refund of tax, when the amount of tax in
32  controversy does not exceed $20,000 for any year included therein. This
33  procedure shall be deemed to be in lieu of any formal hearing before the
34  director prescribed by law, but shall not preclude any informal procedure
35  existing for the resolution of any such determination; or (2) any appeal of
36  a decision, finding, order or ruling of the director of taxation in which the
37  amount of tax in controversy does not exceed $20,000, or in the case of
38  a multiple year assessment of tax or denial of refund of tax, the amount
39  of tax in controversy does not exceed $20,000 for any year included
40  therein; or (3) hearing and deciding applications for the refund of pro-
41  tested taxes under the provisions of K.S.A. 79-2005, and amendments
42  thereto, where the amount of taxes in issue is less than $20,000; or (4)
43  hearing and deciding appeals from decisions rendered pursuant to the
SB 348
                                     

 1  provisions of article 16 of chapter 79 of the Kansas Statutes Annotated,
 2  and acts amendatory thereof or supplemental thereto.
 3    (c)  A taxpayer may elect to appeal any application or decision refer-
 4  enced in subsection (b) to the regular division of the Kansas tax review
 5  commission. The filing of an appeal with the small claims division shall
 6  not be a prerequisite for filing an appeal with the regular division of the
 7  Kansas tax review commission under this section. Final decisions of the
 8  small claims division may be appealed to the Kansas tax review commis-
 9  sion. Any appeal from the small claims division to the Kansas tax review
10  commission shall not be heard by the commissioner who rendered the
11  decision in the small claims division.
12    (d)  A taxpayer shall commence a proceeding in the small claims di-
13  vision by filing a notice of appeal in the form prescribed by the rules of
14  the Kansas tax review commission which shall state the nature of the
15  taxpayer's claim. Notice of appeal shall be provided to the appropriate
16  unit of government named in the notice of appeal. A taxpayer who appeals
17  to the small claims division, shall not appeal to the regular division in the
18  same matter.
19    (e)  The hearing in the small claims division shall be informal. The
20  hearing officer may hear any testimony and receive any evidence the
21  hearing officer deems necessary or desirable for a just determination of
22  the case. All testimony shall be given under oath. A party may appear
23  personally or may be represented by an attorney or other representative.
24  No transcript of the proceedings shall be kept.
25    New Sec. 9.  (a) The hearing officers of the small claims division,
26  other than the two commissioners, shall be appointed by and serve at the
27  pleasure of the Kansas tax review commission. One of the hearing officers,
28  other than the two commissioners, shall be classified as a certified general
29  real property appraiser pursuant to the state certified and licensed real
30  property appraisers act. The remaining hearing officers, other than the
31  two commissioners, shall at a minimum have: (1) Been actively engaged
32  as a licensed real estate appraiser for the four years immediately preced-
33  ing their appointment; or (2) performed real estate appraisals as an oc-
34  cupation for at least five years preceding their appointment. All such
35  hearing officers shall be in the unclassified service of the Kansas civil
36  service act.
37    (b)  Each hearing officer of the small claims division, other than a
38  commissioner, shall receive an annual salary equal to the annual salary
39  paid to a magistrate judge by the state.
40    New Sec. 10.  The Kansas tax review commission is established as an
41  independent agency within the executive branch of state government. All
42  budgeting, purchasing and related management functions shall be ad-
43  ministered under the direction of the chairperson of the Kansas tax review
SB 348
                                     

 1  commission. All vouchers for expenditures from appropriations to or for
 2  the Kansas tax review commission shall be approved by the chairperson
 3  or a person or persons designated by the chairperson for that purpose.
 4  All records of the state board of tax appeals shall be transferred to the
 5  Kansas tax review commission on the effective date of this act.
 6    New Sec. 11.  (a) Each commissioner of the Kansas tax review com-
 7  mission shall receive an annual salary as provided in this section. Each of
 8  the commissioners of the Kansas tax review commission shall devote full
 9  time to the duties of such position.
10    (b) (1)  The annual salary of the chairperson shall be an amount equal
11  to the annual salary paid by the state to a district judge designated as
12  administrative judge.
13    (2)  The annual salary of a commissioner other than the chairperson
14  shall be an amount equal to the annual salary paid by the state to a district
15  judge.
16    New Sec. 12.  The Kansas tax review commission, within amounts
17  budgeted for it, may appoint such employees as may be necessary, and
18  such employees shall be in the unclassified service of the Kansas civil
19  service act.
20    New Sec. 13.  The Kansas tax review commission shall keep an ac-
21  curate record of its official proceedings and shall keep a seal, engraved
22  with the words, ``State of Kansas, Tax Review Commission.'' Such seal
23  may be used to authenticate the official acts of the Kansas tax review
24  commission or any commissioner thereof, but failure to use the seal shall
25  not invalidate any such act. The Kansas tax review commission adminis-
26  trator shall be the custodian of the seal and records and be authorized to
27  affix the seal in all proper cases.
28    New Sec. 14.  The Kansas tax review commission shall have the fol-
29  lowing powers and duties:
30    (a)  To hear appeals from the director of taxation and the director of
31  property valuation on decisions, findings, orders, rulings and interpreta-
32  tions by such directors, and to hear appeals from the small claims division;
33    (b)  to hear appeals from the director of property valuation on the
34  assessment of state assessed property;
35    (c)  to constitute, sit and act as the state board of equalization as pro-
36  vided in K.S.A. 79-1409, and amendments thereto;
37    (d)  to correct errors and irregularities under the provisions of article
38  17 of chapter 79 of the Kansas Statutes Annotated, and amendments
39  thereto;
40    (e)  to authorize the issuance of emergency warrants by taxing dis-
41  tricts, as provided in article 29 of chapter 79 of the Kansas Statutes An-
42  notated, and acts amendatory thereof or supplemental thereto, and au-
43  thorizing the issuance of warrants by cities or counties under statutes of
SB 348
                                     

 1  this state;
 2    (f)  to authorize increases in tax levies by taxing districts, as provided
 3  in article 19 of chapter 79 of the Kansas Statutes Annotated, and acts
 4  amendatory thereof or supplemental thereto;
 5    (g)  to review and decide applications for exemptions from property
 6  taxation submitted pursuant to K.S.A. 79-213, and amendments thereto;
 7    (h)  to adopt rules and regulations relating to the performance of its
 8  duties and particularly with reference to procedure before the court on
 9  hearings and appeals; and
10    (i)  such other powers as may be prescribed.
11    New Sec. 15.  Proceedings before the Kansas tax review commission
12  shall be governed by the provisions of the Kansas administrative proce-
13  dure act except as otherwise specifically provided herein. A taxpayer may
14  be represented by an attorney, any person enrolled to practice before the
15  United States tax court, or may appear pro se. Hearings shall be con-
16  ducted by one commissioner, unless the chairperson determines that the
17  case should be heard en banc. The hearing en banc may be allowed for
18  the original hearing or a hearing on reconsideration.
19    New Sec. 16.  The Kansas tax review commission shall have the
20  power to summon witnesses from any part of the state to appear and give
21  testimony, and to compel the witnesses to produce records, books, papers
22  and documents relating to any subject matter before the commission.
23  Summons, subpoenas and subpoenas duces tecum may be directed to the
24  sheriff of any county and may be made returnable at such time as the
25  Kansas tax review commission shall determine. No fees shall be charged
26  by the sheriff for service thereof. Witness fees and mileage shall be al-
27  lowed and may be taxed as costs to either party in the discretion of the
28  Kansas tax review commission.
29    The Kansas tax review commission shall have power to issue an order
30  directing depositions of witnesses residing within or without the state, to
31  be taken, upon proper notice to interested parties, if any, in like manner
32  that depositions of witnesses are taken in civil actions pending in district
33  court, in any matter before the Kansas tax review commission.
34    Sec. 17.  K.S.A. 74-2426 is hereby amended to read as follows: 74-
35  2426. (a) Orders of the board of tax appeals Any final action of the Kansas
36  tax review commission on any appeal, in any proceeding under the tax
37  protest, tax grievance or tax exemption statutes or in any other original
38  proceeding before the board Kansas tax review commission shall be ren-
39  dered and served in accordance with the provisions of the Kansas admin-
40  istrative procedure act. Notwithstanding the provisions of subsection (g)
41  of K.S.A. 77-526 and amendments thereto, a final order of the board
42  Kansas tax review commission shall be rendered in writing and served
43  within 120 days after the matter was fully submitted to the board unless
SB 348
                                     

 1  this period is waived or extended with the written consent of all parties
 2  or for good cause shown Kansas tax review commission.
 3    (b)  No final order of the board shall be subject to review pursuant to
 4  subsection (c) unless the aggrieved party first files a petition for recon-
 5  sideration of that order with the board in accordance with the provisions
 6  of K.S.A. 77-529 and amendments thereto.
 7    (c) (b)  Any final action of the board Kansas tax review commission
 8  pursuant to this section is subject to review in accordance with the act
 9  for judicial review and civil enforcement of agency actions, except that:
10    (1)  The parties to the action for judicial review shall be the same
11  parties as appeared before the board Kansas tax review commission in
12  the administrative proceedings before the board Kansas tax review com-
13  mission. The board Kansas tax review commission shall not be a party to
14  any action for judicial review of an action of the board Kansas tax review
15  commission.
16    (2)  There is no right to review of any order issued by the board com-
17  mission in a no-fund warrant proceeding pursuant to K.S.A. 12-110a, 12-
18  1662 et seq., 19-2752a, 79-2938, 79-2939 and 79-2951, and amendments
19  thereto, and statutes of a similar character.
20    (3)  The court of appeals has jurisdiction of any action for review per-
21  taining to property appraised and assessed by the director of property
22  valuation or excise, income or inheritance taxes assessed by the director
23  of taxation. The district court of the proper county has jurisdiction in all
24  other cases.
25    (4)  Review of orders issued by the board of tax appeals relating to
26  the valuation or assessment of property for ad valorem tax purposes or
27  relating to the tax protest shall be conducted by the district court of the
28  county in which the property is located or, if located in more than one
29  county, the district court of any county in which any portion of the prop-
30  erty is located. Review of orders relating to tax exemption under K.S.A.
31  79-201 et seq., and amendments thereto, shall be conducted by the dis-
32  trict court of Shawnee county.
33    (5) (4)  In addition to the cost of the preparation of the transcript, the
34  appellant shall pay to the board Kansas tax review commission the other
35  costs of certifying the record to the reviewing court. Such payment shall
36  be made prior to the transmission of the agency record to the reviewing
37  court.
38    (c)  A petition for review filed in accordance with the act for judicial
39  review and civil enforcement of agency actions shall contain a brief state-
40  ment of the pertinent facts, including the amount of tax assessed, and be
41  accompanied by certified copies of the final order issued by the Kansas
42  tax review commission.
43    (d)  If review of an order final action of the board Kansas tax review
SB 348
                                     

 1  commission relating to excise, income or inheritance taxes, is sought by a
 2  person other than the director of taxation, such person shall give bond
 3  for costs at the time the petition is filed. The bond shall be in the amount
 4  of 125% of the amount of taxes assessed or a lesser amount approved by
 5  the court of appeals and shall be conditioned on the petitioner's prose-
 6  cution of the review without delay and payment of all costs assessed
 7  against the petitioner.
 8    (e)  If review of an order final action of the Kansas tax review com-
 9  mission is sought by a party other than the director of property valuation
10  or a taxing subdivision and the order determines, approves, modifies or
11  equalizes the amount of valuation which is assessable and for which the
12  tax has not been paid, a bond shall be given in the amount of 125% of
13  the amount of the taxes assessed or a lesser amount approved by the
14  reviewing court. The bond shall be conditioned on the petitioner's pros-
15  ecution of the review without delay and payment of all costs assessed
16  against the petitioner.
17    Sec. 18.  K.S.A. 1996 Supp. 74-2438 is hereby amended to read as
18  follows: 74-2438. An appeal may be taken to the state board of tax appeals
19  Kansas tax review commission from any finding, ruling, order, decision,
20  final determination or other final action on any case of the director of
21  taxation or director of property valuation by any person aggrieved thereby,
22  or as provided by subsection (c) of section 8. An appeal may be taken to
23  the Kansas tax review commission from any finding, ruling, order, deci-
24  sion, final determination or other final action of the secretary of revenue
25  or the secretary's designee relating to the abatement of penalty and in-
26  terest, by any person aggrieved thereby. Notice of such appeal shall be
27  filed with the secretary of the board Kansas tax review commission within
28  30 days after such finding, ruling, order, decision, final determination or
29  other action on a case, and a copy served upon the director or other
30  official concerned. Upon receipt of a timely appeal, the board Kansas tax
31  review commission shall conduct a hearing in accordance with the pro-
32  visions of the Kansas administrative procedure act. The hearing before
33  the board Kansas tax review commission shall be a de novo hearing unless
34  the parties agree to submit the case on the record made before the di-
35  rector. With regard to any matter properly submitted to the board Kansas
36  tax review commission relating to the determination of valuation of resi-
37  dential property for taxation purposes, it shall be the duty of the county
38  or district appraiser to initiate the production of evidence to demonstrate,
39  by a preponderance of the evidence, the validity and correctness of such
40  determination. No presumption shall exist in favor of the county or district
41  appraiser with respect to the validity and correctness of such determi-
42  nation.  No interest shall accrue on the amount of the assessment of tax
43  subject to any such appeal beyond 120 days after the date the matter was
SB 348
                                     

 1  fully submitted, except that, if a final order is issued within such time
 2  period, interest shall continue to accrue until such time as the tax liability
 3  is fully satisfied, and if a final order is issued beyond such time period,
 4  interest shall recommence to accrue from the date of such order until
 5  such time as the tax liability is fully satisfied.
 6    Sec. 19.  K.S.A. 1996 Supp. 79-213 is hereby amended to read as
 7  follows: 79-213. (a) Any property owner requesting an exemption from
 8  the payment of ad valorem property taxes assessed, or to be assessed,
 9  against their property shall be required to file an initial request for ex-
10  emption, on forms approved by the board of tax appeals Kansas tax review
11  commission and provided by the county appraiser.
12    (b)  The initial exemption request shall identify the property for which
13  the exemption is requested and state, in detail, the legal and factual basis
14  for the exemption claimed.
15    (c)  The request for exemption shall be filed with the county appraiser
16  of the county where such property is principally located.
17    (d)  After a review of the exemption request, and after a preliminary
18  examination of the facts as alleged, the county appraiser shall recommend
19  that the exemption request either be granted or denied, and, if necessary,
20  that a hearing be held. If a denial is recommended, a statement of the
21  controlling facts and law relied upon shall be included on the form.
22    (e)  The county appraiser, after making such written recommenda-
23  tion, shall file the request for exemption and the recommendations of the
24  county appraiser with the board of tax appeals Kansas tax review com-
25  mission.
26    (f)  Upon receipt of the request for exemption, the board Kansas tax
27  review commission shall docket the same and notify the applicant and the
28  county appraiser of such fact.
29    (g)  After examination of the request for exemption, and the county
30  appraiser's recommendation related thereto, the board Kansas tax review
31  commission may fix a time and place for hearing, and shall notify the
32  applicant and the county appraiser of the time and place so fixed. In any
33  case where a party to such request for exemption requests a hearing
34  thereon, the same shall be granted. Hearings shall be conducted in ac-
35  cordance with the provisions of the Kansas administrative procedure act.
36  In all instances where the board Kansas tax review commission sets a
37  request for exemption for hearing, the county shall be represented by its
38  county attorney or county counselor.
39    (h)  In the event of a hearing, the same shall be originally set not later
40  than 90 days after the filing of the request for exemption with the board
41  Kansas tax review commission.
42    (i)  During the pendency of a request for exemption, no person, firm,
43  unincorporated association, company or corporation charged with real
SB 348
                                     

 1  estate or personal property taxes pursuant to K.S.A. 79-2004 and 79-
 2  2004a, and amendments thereto, on the tax books in the hands of the
 3  county treasurer shall be required to pay the tax from the date the request
 4  is filed with the county appraiser until the expiration of 30 days after the
 5  board Kansas tax review commission issued its order thereon and the
 6  same becomes a final order. In the event that taxes have been assessed
 7  against the subject property, no interest shall accrue on any unpaid tax
 8  for the year or years in question nor shall the unpaid tax be considered
 9  delinquent from the date the request is filed with the county appraiser
10  until the expiration of 30 days after the board issued its order thereon.
11  In the event the board determines an application for exemption is without
12  merit and filed in bad faith to delay the due date of the tax, the tax shall
13  be considered delinquent as of the date the tax would have been due
14  pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto, and
15  interest shall accrue as prescribed therein.
16    (j)  In the event the board Kansas tax review commission grants the
17  initial request for exemption, the same shall be effective beginning with
18  the date of first exempt use.
19    (k)  In conjunction with its authority to grant exemptions, the board
20  Kansas tax review commission shall have the authority to abate all unpaid
21  taxes that have accrued from and since the date of first exempt use. In
22  the event that taxes have been paid during the period where the subject
23  property has been determined to be exempt, the board Kansas tax review
24  commission shall have the authority to order a refund of taxes for a period
25  not to exceed three years.
26    (l)  The provisions of this section shall not apply to: (1) Farm machin-
27  ery and equipment exempted from ad valorem taxation by K.S.A. 79-201j,
28  and amendments thereto; (2) personal property exempted from ad valo-
29  rem taxation by K.S.A. 79-215, and amendments thereto; (3) wearing
30  apparel, household goods and personal effects exempted from ad valorem
31  taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5)
32  hay and silage exempted from ad valorem taxation by K.S.A. 79-201d, and
33  amendments thereto; (6) merchants' and manufacturers' inventories ex-
34  empted from ad valorem taxation by K.S.A. 79-201m and amendments
35  thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n,
36  and amendments thereto; (8) property exempted from ad valorem taxa-
37  tion by K.S.A. 79-201a Seventeenth and amendments thereto, including
38  all property previously acquired by the secretary of transportation or a
39  predecessor in interest, which is used in the administration, construction,
40  maintenance or operation of the state system of highways. The secretary
41  of transportation shall at the time of acquisition of property notify the
42  county appraiser in the county in which the property is located that the
43  acquisition occurred and provide a legal description of the property ac-
SB 348
                                     

 1  quired; (9) property exempted from ad valorem taxation by K.S.A. 79-
 2  201a Ninth, and amendments thereto, including all property previously
 3  acquired by the Kansas turnpike authority which is used in the adminis-
 4  tration, construction, maintenance or operation of the Kansas turnpike.
 5  The Kansas turnpike authority shall at the time of acquisition of property
 6  notify the county appraiser in the county in which the property is located
 7  that the acquisition occurred and provide a legal description of the prop-
 8  erty acquired; (10) aquaculture machinery and equipment exempted from
 9  ad valorem taxation by K.S.A. 79-201j, and amendments thereto. As used
10  in this section, ``aquaculture'' has the same meaning ascribed thereto by
11  K.S.A. 47-1901, and amendments thereto; (11) Christmas tree machinery
12  and equipment exempted from ad valorem taxation by K.S.A. 79-201j,
13  and amendments thereto; (12) property used exclusively by the state or
14  any municipality or political subdivision of the state for right-of-way pur-
15  poses. The state agency or the governing body of the municipality or
16  political subdivision shall at the time of acquisition of property for right-
17  of-way purposes notify the county appraiser in the county in which the
18  property is located that the acquisition occurred and provide a legal de-
19  scription of the property acquired; (13) machinery, equipment, materials
20  and supplies exempted from ad valorem taxation by K.S.A. 1996 Supp.
21  79-201w, and amendments thereto; and (14) vehicles owned by the state
22  or by any political or taxing subdivision thereof and used exclusively for
23  governmental purposes.
24    (m)  The provisions of this section shall apply to property exempt pur-
25  suant to the provisions of section 13 of article 11 of the Kansas consti-
26  tution.
27    Sec. 20.  K.S.A. 1996 Supp. 79-2005 is hereby amended to read as
28  follows: 79-2005. (a) Any taxpayer, before protesting the payment of such
29  taxpayer's taxes, shall be required, either at the time of paying such taxes,
30  or, if the whole or part of the taxes are paid prior to December 20, no
31  later than December 20, or, with respect to taxes paid in whole on or
32  before December 20 by an escrow or tax service agent, no later than
33  January 31 of the next year, to file a written statement with the county
34  treasurer, on forms approved by the state board of tax appeals Kansas tax
35  review commission and provided by the county treasurer, clearly stating
36  the grounds on which the whole or any part of such taxes are protested
37  and citing any law, statute or facts on which such taxpayer relies in pro-
38  testing the whole or any part of such taxes. When the grounds of such
39  protest is that the valuation or assessment of the property upon which
40  the taxes are levied is illegal or void, the county treasurer shall forward a
41  copy of the written statement of protest to the county appraiser who shall
42  within 15 days of the receipt thereof, schedule an informal meeting with
43  the taxpayer or such taxpayer's agent or attorney with reference to the
SB 348
                                     

 1  property in question. The county appraiser shall review the appraisal of
 2  the taxpayer's property with the taxpayer or such taxpayer's agent or at-
 3  torney and may change the valuation of the taxpayer's property, if in the
 4  county appraiser's opinion a change in the valuation of the taxpayer's
 5  property is required to assure that the taxpayer's property is valued ac-
 6  cording to law, and shall, within 15 business days thereof, notify the tax-
 7  payer in the event the valuation of the taxpayer's property is changed, in
 8  writing of the results of the meeting. In the event the valuation of the
 9  taxpayer's property is changed and such change requires a refund of taxes,
10  the county treasurer shall process the refund in the manner provided by
11  subsection (l).
12    (b)  No protest appealing the valuation or assessment of property shall
13  be filed pertaining to any year's valuation or assessment when an appeal
14  of such valuation or assessment was commenced pursuant to K.S.A. 79-
15  1448, and amendments thereto, nor shall the second half payment of taxes
16  be protested when the first half payment of taxes has been protested.
17  Notwithstanding the foregoing, this provision shall not prevent any sub-
18  sequent owner from protesting taxes levied for the year in which such
19  property was acquired, nor shall it prevent any taxpayer from protesting
20  taxes when the valuation or assessment of such taxpayer's property has
21  been changed pursuant to an order of the director of property valuation.
22    (c)  A protest shall not be necessary to protect the right to a refund
23  of taxes in the event a refund is required because the final resolution of
24  an appeal commenced pursuant to K.S.A. 79-1448, and amendments
25  thereto, occurs after the final date prescribed for the protest of taxes.
26    (d)  If the grounds of such protest shall be that the valuation or as-
27  sessment of the property upon which the taxes so protested are levied is
28  illegal or void, such statement shall further state the exact amount of
29  valuation or assessment which the taxpayer admits to be valid and the
30  exact portion of such taxes which is being protested.
31    (e)  If the grounds of such protest shall be that any tax levy, or any
32  part thereof, is illegal, such statement shall further state the exact portion
33  of such tax which is being protested.
34    (f)  Upon the filing of a written statement of protest, the grounds of
35  which shall be that any tax levied, or any part thereof, is illegal, the county
36  treasurer shall mail a copy of such written statement of protest to the
37  state board of tax appeals Kansas tax review commission and the govern-
38  ing body of the taxing district making the levy being protested.
39    (g)  Within 30 days after notification of the results of the informal
40  meeting with the county appraiser pursuant to subsection (a), the pro-
41  testing taxpayer may, if aggrieved by the results of the informal meeting
42  with the county appraiser, appeal such results to the state board of tax
43  appeals Kansas tax review commission.
SB 348
                                     

 1    (h)  After examination of the copy of the written statement of protest
 2  and a copy of the written notification of the results of the informal meet-
 3  ing with the county appraiser in cases where the grounds of such protest
 4  is that the valuation or assessment of the property upon which the taxes
 5  are levied is illegal or void, the board shall conduct a hearing in accor-
 6  dance with the provisions of the Kansas administrative procedure act,
 7  unless waived by the interested parties in writing. If the grounds of such
 8  protest is that the valuation or assessment of the property is illegal or void
 9  the board shall notify the county appraiser thereof.
10    (i)  In the event of a hearing, the same shall be originally set not later
11  than 90 days after the filing of the copy of the written statement of protest
12  and a copy, when applicable, of the written notification of the results of
13  the informal meeting with the county appraiser with the board Kansas
14  tax review commission. With regard to any matter properly submitted to
15  the board relating to the determination of valuation of residential property
16  for taxation purposes, it shall be the duty of the county appraiser to initiate
17  the production of evidence to demonstrate, by a preponderance of the
18  evidence, the validity and correctness of such determination. No pre-
19  sumption shall exist in favor of the county appraiser with respect to the
20  validity and correctness of such determination.  In all instances where the
21  board Kansas tax review commission sets a request for hearing and re-
22  quires the representation of the county by its attorney or counselor at
23  such hearing, the county shall be represented by its county attorney or
24  counselor.
25    (j)  When a determination is made as to the merits of the tax protest,
26  the board Kansas tax review commission shall render and serve its order
27  thereon. The county treasurer shall notify all affected taxing districts of
28  the amount by which tax revenues will be reduced as a result of a refund.
29    (k)  If a protesting taxpayer fails to file a copy of the written statement
30  of protest and a copy, when applicable, of the written notification of the
31  results of the informal meeting with the county appraiser with the board
32  Kansas tax review commission within the time limit prescribed, such pro-
33  test shall become null and void and of no effect whatsoever.
34    (l)  In the event the board Kansas tax review commission orders that
35  a refund be made and no appeal is taken from such order, the county
36  treasurer shall, as soon thereafter as reasonably practicable, refund to the
37  taxpayer such protested taxes from tax moneys collected but not distrib-
38  uted. Upon making such refund, the county treasurer shall charge the
39  fund or funds having received such protested taxes.
40    (m)  Whenever, by reason of the refund of taxes previously received
41  or the reduction of taxes levied but not received as a result of decreases
42  in assessed valuation, it will be impossible to pay for imperative functions
43  for the current budget year, the governing body of the taxing district
SB 348
                                     

 1  affected may issue no-fund warrants in the amount necessary. Such war-
 2  rants shall conform to the requirements prescribed by K.S.A. 79-2940,
 3  and amendments thereto, except they shall not bear the notation required
 4  by such section and may be issued without the approval of the state board
 5  of tax appeals Kansas tax review commission. The governing body of such
 6  taxing district shall make a tax levy at the time fixed for the certification
 7  of tax levies to the county clerk next following the issuance of such war-
 8  rants sufficient to pay such warrants and the interest thereon. All such
 9  tax levies shall be in addition to all other levies authorized by law.
10    (n)  The county treasurer shall disburse to the proper funds all por-
11  tions of taxes paid under protest and shall maintain a record of all portions
12  of such taxes which are so protested and shall notify the governing body
13  of the taxing district levying such taxes thereof and the director of ac-
14  counts and reports if any tax protested was levied by the state.
15    (o)  This statute shall not apply to the valuation and assessment of
16  property assessed by the director of property valuation and it shall not be
17  necessary for any owner of state assessed property, who has an appeal
18  pending before the board of tax appeals Kansas tax review commission,
19  to protest the payment of taxes under this statute solely for the purpose
20  of protecting the right to a refund of taxes paid under protest should that
21  owner be successful in that appeal.
22    Sec. 21.  K.S.A. 74-2426, 74-2433a, 74-2433b, 74-2433c, 74-2433d,
23  74-2433e, 74-2434, 74-2435, 74-2436, 74-2437, 74-2437a, 74-2437b and
24  74-2439 and K.S.A. 1996 Supp. 74-2433, 74-2438, 79-213 and 79-2005
25  are hereby repealed.
26    Sec. 22.  This act shall take effect and be in force from and after its
27  publication in the statute book.