Session of 1999
         
SENATE BILL No. 374
         
By Senator Salisbury
         
11-19
         

11             AN  ACT relating to property taxation; concerning aggrieved taxpayer ap-
12             peals; amending K.S.A. 1999 Supp. 74-2433f and 79-1609 and repeal-
13             ing the existing sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1999 Supp. 74-2433f is hereby amended to read as
17       follows: 74-2433f. On and after January 1, 1999, (a) there shall be a di-
18       vision of the state board of tax appeals known as the small claims division.
19       Hearing officers appointed by the executive director shall have authority
20       to hear and decide cases heard in the small claims division.
21             (b) At the election of the taxpayer, the small claims division shall have
22       jurisdiction over: (1) Any appeal of a decision, finding, order or ruling of
23       the director of taxation, except an appeal, finding, order or ruling relating
24       to an assessment issued pursuant to K.S.A. 79-5201 et seq., and amend-
25       ments thereto, in which the amount of tax in controversy does not exceed
26       $15,000; (2) hearing and deciding applications for the refund of protested
27       taxes under the provisions of K.S.A. 79-2005, and amendments thereto,
28       where the value of the property, other than property devoted to agricul-
29       tural use, is less than $2,000,000 as reflected on the valuation notice or
30       the property constitutes single family residential property; or (3) hearing
31       and deciding appeals from decisions rendered pursuant to the provisions
32       of K.S.A. 79-1448, and amendments thereto, and of article 16 or 17 of
33       chapter 79 of the Kansas Statutes Annotated, and acts amendatory thereof
34       or supplemental thereto, other than those relating to land devoted to
35       agricultural use, wherein the value of the property is less than $2,000,000
36       as reflected on the valuation notice or the property constitutes single
37       family residental property.
38             (c) In accordance with the provisions of K.S.A. 74-2438, and amend-
39       ments thereto, any party may elect to appeal any application or decision
40       referenced in subsection (b)(1), and any taxpayer may elect to appeal any
41       application or decision referenced in subsection (b)(2) and (3), to the state
42       board of tax appeals. The filing of an appeal with the small claims division
43       shall not be a prerequisite for filing an appeal with the state board of tax


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  1       appeals under this section. Final decisions of the small claims division
  2       may be appealed to the state board of tax appeals. An appeal of a decision
  3      
  4       of the small claims division to the state board of tax appeals shall be de
  5       novo.
  6             (d) A taxpayer shall commence a proceeding in the small claims di-
  7       vision by filing a notice of appeal in the form prescribed by the rules of
  8       the state board of tax appeals which shall state the nature of the taxpayer's
  9       claim. Notice of appeal shall be provided to the appropriate unit of gov-
10       ernment named in the notice of appeal by the taxpayer. In any valuation
11       appeal or tax protest commenced pursuant to articles 14 and 20 of chapter
12       79 of the Kansas Statutes Annotated, and amendments thereto, the hear-
13       ing shall be conducted in the county where the property is located or a
14       county adjacent thereto. In any appeal from a final determination by the
15       secretary of revenue, the hearing shall be conducted in the county in
16       which the taxpayer resides or a county adjacent thereto.
17             (e) The hearing in the small claims division shall be informal. The
18       hearing officer may hear any testimony and receive any evidence the
19       hearing officer deems necessary or desirable for a just determination of
20       the case. A hearing officer shall have the authority to administer oaths in
21       all matters before the hearing officer. All testimony shall be given under
22       oath. A party may appear personally or may be represented by an attorney,
23       a certified public accountant, a certified general appraiser, a member of
24       the taxpayer's immediate family or an authorized employee of the tax-
25       payer. No transcript of the proceedings shall be kept.
26             (f) The hearing in the small claims division shall be conducted within
27       60 days after the appeal is filed in the small claims division. A decision
28       shall be rendered by the hearing officer within 30 days after the hearing
29       is concluded. Documents provided by a taxpayer or county or district
30       appraiser shall be returned to the taxpayer or the county or district ap-
31       praiser by the hearing officer and shall not become a part of the board's
32       permanent records. Documents provided to the hearing officer shall be
33       confidential and may not be disclosed, except as otherwise specifically
34       provided.
35             (g) With regard to any matter properly submitted to the division re-
36       lating to the determination of valuation of property for taxation purposes,
37       it shall be the duty of the county appraiser to initiate the production of
38       evidence to demonstrate, by a preponderance of the evidence, the validity
39       and correctness of such determination. No presumption shall exist in fa-
40       vor of the county appraiser with respect to the validity and correctness of
41       such determination.
42             Sec.  2. K.S.A. 1999 Supp. 79-1609 is hereby amended to read as
43       follows: 79-1609. Any person taxpayer aggrieved by any order of the hear-


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  1       ing officer or panel may appeal to the state board of tax appeals by filing
  2       a written notice of appeal, on forms approved by the state board of tax
  3       appeals and provided by the county clerk for such purpose, stating the
  4      
  5       grounds thereof and a description of any comparable property or prop-
  6       erties and the appraisal thereof upon which they rely as evidence of in-
  7       equality of the appraisal of their property, if that be a ground of the
  8       appeal, with the board of tax appeals and by filing a copy thereof with
  9       the county clerk within 30 days after the date of the order from which
10       the appeal is taken. A county or district appraiser may appeal to the state
11       board of tax appeals from any order of the hearing officer or panel. With
12       regard to any matter properly submitted to the board relating to the
13       determination of valuation of residential property or real property used
14       for commercial and industrial purposes for taxation purposes, it shall be
15       the duty of the county appraiser to initiate the production of evidence to
16       demonstrate, by a preponderance of the evidence, the validity and cor-
17       rectness of such determination except that no such duty shall accrue with
18       regard to leased commercial and industrial property unless the property
19       owner has furnished to the county or district appraiser a complete income
20       and expense statement for the property for the three years next preceding
21       the year of appeal. No presumption shall exist in favor of the county
22       appraiser with respect to the validity and correctness of such
23       determination. 
24       Sec.  3. K.S.A. 1999 Supp. 74-2433f and 79-1609 are hereby
25       repealed.
26        Sec.  4. This act shall take effect and be in force from and after its
27       publication in the statute book.