[As Amended by House Committee of the Whole]

As Amended by House Committee

Session of 2000
HOUSE BILL No. 2620 By Representative Sloan 1-12

11 AN ACT relating to property taxation; concerning property valuation ap-
12 peals procedures; amending K.S.A. 1999 Supp. 74-2433f[, 79-1448]
13 and 79-1606 and repealing 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
18 division of the state board of tax appeals known as the small claims divi-
19 sion. Hearing officers appointed by the executive director shall have au-
20 thority 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) to the state board of tax appeals. The filing
41 of an appeal with the small claims division shall not be a prerequisite for
42 filing an appeal with the state board of tax appeals under this section.

2
1 Final decisions of the small claims division may be appealed to the state
2 board of tax appeals. An appeal of a decision of the small claims division
3 to the state board of tax appeals shall be de novo.
4 (d) A taxpayer shall commence a proceeding in the small claims di-
5 vision by filing a notice of appeal in the form prescribed by the rules of
6 the state board of tax appeals which shall state the nature of the taxpayer's
7 claim. Notice of appeal shall be provided to the appropriate unit of gov-
8 ernment named in the notice of appeal by the taxpayer. In any valuation
9 appeal or tax protest commenced pursuant to articles 14 and 20 of chapter
10 79 of the Kansas Statutes Annotated, and amendments thereto, the hear-
11 ing shall be conducted in the county where the property is located or a
12 county adjacent thereto. In any appeal from a final determination by the
13 secretary of revenue, the hearing shall be conducted in the county in
14 which the taxpayer resides or a county adjacent thereto.
15 (e) The hearing in the small claims division shall be informal. The
16 hearing officer may hear any testimony and receive any evidence the
17 hearing officer deems necessary or desirable for a just determination of
18 the case. A hearing officer shall have the authority to administer oaths in
19 all matters before the hearing officer. All testimony shall be given under
20 oath. A party may appear personally or may be represented by an attorney,
21 a certified public accountant, a certified general appraiser, a member of
22 the taxpayer's immediate family or an authorized employee of the tax-
23 payer. No transcript of the proceedings shall be kept.
24 (f) The hearing in the small claims division shall be conducted within
25 60 days after the appeal is filed in the small claims division. A decision
26 shall be rendered by the hearing officer within 30 days after the hearing
27 is concluded and, in cases arising from appeals described by subsections
28 (b)(2) and (3), shall be accompanied by ~~the findings of fact and law~~ a
29 written explanation of the reasoning upon which such decision is
30 based. Documents provided by a taxpayer or county or district appraiser
31 shall be returned to the taxpayer or the county or district appraiser by
32 the hearing officer and shall not become a part of the board's permanent
33 records. Documents provided to the hearing officer shall be confidential
34 and may not be disclosed, except as otherwise specifically 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. 79-1448 is hereby amended to read
43 as follows: 79-1448. Any taxpayer may complain or appeal to the

3
1 county appraiser from the classification or appraisal of the tax-
2 payer's property by giving notice to the county appraiser within
3 30 days subsequent to the date of mailing of the valuation notice
4 required by K.S.A. 79-1460, and amendments thereto, for real
5 property, and on or before May 15 for personal property. The
6 county appraiser or the appraiser's designee shall arrange to hold
7 an informal meeting with the aggrieved taxpayer with reference
8 to the property in question. At such meeting it shall be the duty of
9 the county appraiser or the county appraiser's designee to initiate
10 production of evidence to substantiate the valuation of such prop-
11 erty, including the affording to the taxpayer of the opportunity to
12 review the data sheet of comparable sales utilized in the deter-
13 mination of such valuation. The county appraiser may extend the
14 time in which the taxpayer may informally appeal from the clas-
15 sification or appraisal of the taxpayer's property for just and ade-
16 quate reasons. Except as provided in K.S.A. 79-1404, and amend-
17 ments thereto, no informal meeting regarding real property shall
18 be scheduled to take place after May 15, nor shall a final deter-
19 mination be given by the appraiser after May 20. Any final deter-
20 mination shall be accompanied by a written explanation of the reasoning
21 upon which such determination is based when such determination is not
22 in favor of the taxpayer. Any taxpayer who is aggrieved by the final
23 determination of the county appraiser may appeal to the hearing
24 officer or panel appointed pursuant to K.S.A. 79-1611, and amend-
25 ments thereto, and such hearing officer, or panel, for just cause
26 shown and recorded, is authorized to change the classification or
27 valuation of specific tracts or individual items of real or personal
28 property in the same manner provided for in K.S.A. 79-1606, and
29 amendments thereto. In lieu of appealing to a hearing officer or
30 panel appointed pursuant to K.S.A. 79-1611, and amendments
31 thereto, any taxpayer aggrieved by the final determination of the
32 county appraiser, except with regard to land devoted to agricul-
33 tural use, wherein the value of the property, is less than
34 $2,000,000, as reflected on the valuation notice, or the property
35 constitutes single family residential property, may appeal to the
36 small claims division of the state board of tax appeals within the
37 time period prescribed by K.S.A. 79-1606, and amendments
38 thereto. Any taxpayer who is aggrieved by the final determination
39 of a hearing officer or panel may appeal to the state board of tax
40 appeals as provided in K.S.A. 79-1609, and amendments thereto.
41 An informal meeting with the county appraiser or the appraiser's
42 designee shall be a condition precedent to an appeal to the county
43 or district hearing panel.]

4
1 Sec. 2. [3.] K.S.A. 1999 Supp. 79-1606 is hereby amended to read
2 as follows: 79-1606. (a) The county or district appraiser, hearing officer
3 or panel and arbitrator shall adopt, use and maintain the following re-
4 cords, the form and method of use of which shall be prescribed by the
5 director of property valuation: (1) Appeal form, (2) hearing docket, and
6 (3) record of cases, including the disposition thereof.
7 (b) The county clerk shall furnish appeal forms to any taxpayer who
8 desires to appeal the final determination of the county or district appraiser
9 as provided in K.S.A. 79-1448, and amendments thereto. Any such appeal
10 shall be in writing and filed with the county clerk within 18 days of the
11 date that the final determination of the appraiser was mailed to the
12 taxpayer.
13 (c) The hearing officer or panel shall hear and determine any appeal
14 made by any taxpayer or such taxpayer's agent or attorney. All such hear-
15 ings shall be held in a suitable place in the county or district. Sufficient
16 evening and Saturday hearings shall be provided as shall be necessary to
17 hear all parties making requests for hearings at such times.
18 (d) Every appeal so filed shall be set for hearing by the hearing officer
19 or panel, which hearing shall be held on or before July 1, and the hearing
20 officer or panel shall have no authority to be in session thereafter, except
21 as provided in K.S.A. 79-1404, and amendments thereto. The county clerk
22 shall notify each appellant and the county or district appraiser of the date
23 for hearing of the taxpayer's appeal at least 10 days in advance of such
24 hearing. It shall be the duty of the county or district appraiser to initiate
25 the production of evidence to demonstrate, by a preponderance of the
26 evidence, the validity and correctness of the classification or appraisal of
27 residential property or real property used for commercial and industrial
28 purposes, except that no such duty shall accrue with regard to leased
29 commercial and industrial property unless the property owner has fur-
30 nished to the county or district appraiser a complete income and expense
31 statement for the property for the three years next proceeding the year
32 of appeal. No presumption shall exist in favor of the county or district
33 appraiser with respect to the validity or correctness of any such classifi-
34 cation or valuation. Every such appeal shall be determined by order of
35 the hearing officer or panel~~, and such~~ which shall be accompanied by ~~the~~
36 ~~findings of fact and law~~ a written explanation of the reasoning upon
37 which such order is based. Such order shall be recorded in the minutes
38 of such hearing officer or panel on or before July 5. Such recorded orders
39 and minutes shall be open to public inspection. Notice as to disposition
40 of the appeal shall be mailed by the county clerk to the taxpayer and the
41 county or district appraiser within five days after the determination.
42 Sec. 3. [4.] K.S.A. 1999 Supp. 74-2433f[, 79-1448] and 79-1606 are
43 hereby repealed.

5
1 Sec. 4. [5.] This act shall take effect and be in force from and after
2 its publication in the statute book.