As Amended by Senate Committee
Session of 2000
SENATE BILL No. 428
By Committee on Transportation and Tourism
1-18
10 AN ACT relating
to property taxation; exempting motor vehicles used by
11 not-for-profit
entities in coordinated transit districts; amending
K.S.A.
12 1999 Supp.
79-201 and repealing the existing section.
13
14 Be it enacted by the Legislature of the
State of Kansas:
15 Section
1. The following described property, to the extent
herein
16 specified, shall be and is hereby
exempt from all property or ad valorem
17 taxes levied under the laws of the
state of Kansas:
18 (a) All
motor vehicles used by a not-for-profit entity for the
purpose
19 of participating in a coordinated
transit district in accordance with the
20 provisions of K.S.A. 75-5032
through 75-5037, and amendments thereto,
21 and K.S.A. 75-5051 through 75-5058,
and amendments thereto.
22 (b) The
provisions of this section shall apply to all taxable years
com-
23 mencing after December 31,
1999.
24 Section
1. K.S.A. 1999 Supp. 79-201 is hereby amended to
25 read as follows: 79-201. The
following described property, to the
26 extent herein specified, shall be and
is hereby exempt from all prop-
27 erty or ad valorem taxes levied under
the laws of the state of Kansas:
28
First. All buildings used exclusively as places of
public worship
29 and all buildings used exclusively by
school districts and school
30 district interlocal cooperatives
organized under the laws of this
31 state, with the furniture and books
therein contained and used ex-
32 clusively for the accommodation of
religious meetings or for school
33 district or school district
interlocal cooperative purposes, which-
34 ever is applicable, together with the
grounds owned thereby if not
35 leased or otherwise used for the
realization of profit, except that:
36 (a) (1) Any school building, or
portion thereof, together with the
37 grounds upon which the building is
located, shall be considered to
38 be used exclusively by the school
district for the purposes of this
39 section when leased by the school
district to any political or taxing
40 subdivision of the state, including a
school district interlocal co-
41 operative, or to any association,
organization or nonprofit corpo-
42 ration entitled to tax exemption with
respect to such property; and
43 (2) any school building, together
with the grounds upon which the
2
1 building is located, shall be
considered to be used exclusively by a
2 school district interlocal
cooperative for the purposes of this section
3 when being acquired pursuant to
a lease-purchase agreement; and
4 (b) any building, or portion
thereof, used as a place of worship,
5 together with the grounds upon
which the building is located, shall
6 be considered to be used
exclusively for the religious purposes of
7 this section when used as a
not-for-profit day care center for chil-
8 dren which is licensed pursuant
to K.S.A. 65-501 et seq., and
amend-
9 ments thereto, or when used to
house an area where the congrega-
10 tion of a church society and others
may purchase tracts, books and
11 other items relating to the
promulgation of the church society's re-
12 ligious doctrines.
13
Second. All real property, and all tangible personal
property, ac-
14 tually and regularly used exclusively
for literary, educational, sci-
15 entific, religious, benevolent or
charitable purposes, including
16 property used exclusively for such
purposes by more than one
17 agency or organization for one or
more of such exempt purposes.
18 Except with regard to real property
which is owned by a religious
19 organization, is to be used
exclusively for religious purposes and is
20 not used for a nonexempt purpose
prior to its exclusive use for re-
21 ligious purposes which property shall
be deemed to be actually and
22 regularly used exclusively for
religious purposes for the purposes
23 of this paragraph, this exemption
shall not apply to such property,
24 not actually used or occupied for the
purposes set forth herein, nor
25 to such property held or used as an
investment even though the
26 income or rentals received therefrom
is used wholly for such liter-
27 ary, educational, scientific,
religious, benevolent or charitable pur-
28 poses. In the event any such property
which has been exempted
29 pursuant to the preceding sentence is
not used for religious purposes
30 prior to its conveyance which results
in its use for nonreligious pur-
31 poses, there shall be a recoupment of
property taxes in an amount
32 equal to the tax which would have
been levied upon such property
33 except for such exemption for all
taxable years for which such ex-
34 emption was in effect. Such
recoupment tax shall become due and
35 payable in such year as provided by
K.S.A. 79-2004, and amend-
36 ments thereto. A lien for such taxes
shall attach to the real property
37 subject to the same on November 1 in
the year such taxes become
38 due and all such taxes remaining due
and unpaid after the date
39 prescribed for the payment thereof
shall be collected in the manner
40 provided by law for the collection of
delinquent taxes. Moneys col-
41 lected from the recoupment tax
hereunder shall be credited by the
42 county treasurer to the several
taxing subdivisions within which
43 such real property is located in the
proportion that the total tan-
3
1 gible property tax levies made
in the preceding year for each such
2 taxing subdivision bear to the
total of all such levies made in that
3 year by all such taxing
subdivisions. Such moneys shall be credited
4 to the general fund of the
taxing subdivision or if such taxing sub-
5 division is making no property
tax levy for the support of a general
6 fund such moneys may be
credited to any other tangible property
7 tax fund of general application
of such subdivision. This exemption
8 shall not be deemed
inapplicable to property which would other-
9 wise be exempt pursuant to this
paragraph because an agency or
10 organization: (a) Is reimbursed for
the provision of services accom-
11 plishing the purposes enumerated in
this paragraph based upon the
12 ability to pay by the recipient of
such services; or (b) is reimbursed
13 for the actual expense of using such
property for purposes enumer-
14 ated in this paragraph; or (c) uses
such property for a nonexempt
15 purpose which is minimal in scope and
insubstantial in nature if
16 such use is incidental to the exempt
purposes of this paragraph; or
17 (d) charges a reasonable fee for
admission to cultural or educational
18 activities or permits the use of its
property for such activities by a
19 related agency or organization, if
any such activity is in furtherance
20 of the purposes of this
paragraph.
21
Third. All moneys and credits belonging exclusively to
universi-
22 ties, colleges, academies or other
public schools of any kind, or to
23 religious, literary, scientific or
benevolent and charitable institu-
24 tions or associations, appropriated
solely to sustain such institu-
25 tions or associations, not exceeding
in amount or in income arising
26 therefrom the limit prescribed by the
charter of such institution or
27 association.
28
Fourth. The reserve or emergency funds of fraternal
benefit so-
29 cieties authorized to do business
under the laws of the state of
30 Kansas.
31
Fifth. All buildings of private nonprofit universities
or colleges
32 which are owned and operated by such
universities and colleges as
33 student union buildings, presidents'
homes and student dormitories.
34
Sixth. All real and tangible personal property
actually and regu-
35 larly used exclusively by the alumni
association associated by its
36 articles of incorporation with any
public or nonprofit Kansas col-
37 lege or university approved by the
Kansas board of regents to confer
38 academic degrees or with any
community college approved by its
39 board of trustees to grant
certificates of completion of courses or
40 curriculum, to provide accommodations
and services to such college
41 or university or to the alumni, staff
or faculty thereof.
42
Seventh. All parsonages owned by a church society and
actually
43 and regularly occupied and used
predominantly as a residence by
4
1 a minister or other clergyman
of such church society who is actually
2 and regularly engaged in
conducting the services and religious min-
3 istrations of such society, and
the land upon which such parsonage
4 is located to the extent
necessary for the accommodation of such
5 parsonage.
6
Eighth. All real property, all buildings located on
such property
7 and all personal property
contained therein, actually and regularly
8 used exclusively by any
individually chartered organization of hon-
9 orably discharged military
veterans of the United States armed
10 forces or auxiliary of any such
organization, which is exempt from
11 federal income taxation pursuant to
section 501(c)(19) of the fed-
12 eral internal revenue code of 1986,
for clubhouse, place of meeting
13 or memorial hall purposes, and real
property to the extent of not
14 more than two acres, and all
buildings located on such property,
15 actually and regularly used
exclusively by any such veterans' or-
16 ganization or its auxiliary as a
memorial park.
17
Ninth. All real property and tangible personal
property actually
18 and regularly used by a community
service organization for the
19 predominant purpose of providing
humanitarian services, which is
20 owned and operated by a corporation
organized not for profit under
21 the laws of the state of Kansas or by
a corporation organized not
22 for profit under the laws of another
state and duly admitted to en-
23 gage in business in this state as a
foreign not-for-profit corporation
24 if: (a) The directors of such
corporation serve without pay for such
25 services; (b) the corporation is
operated in a manner which does
26 not result in the accrual of
distributable profits, realization of pri-
27 vate gain resulting from the payment
of compensation in excess of
28 a reasonable allowance for salary or
other compensation for serv-
29 ices rendered or the realization of
any other form of private gain;
30 (c) no officer, director or member of
such corporation has any pe-
31 cuniary interest in the property for
which exemption is claimed; (d)
32 the corporation is organized for the
purpose of providing humani-
33 tarian services; (e) the actual use
of property for which an exemp-
34 tion is claimed must be substantially
and predominantly related to
35 the purpose of providing humanitarian
services, except that, the use
36 of such property for a nonexempt
purpose which is minimal in scope
37 and insubstantial in nature shall not
result in the loss of exemption
38 if such use is incidental to the
purpose of providing humanitarian
39 services by the corporation; (f) the
corporation is exempt from fed-
40 eral income taxation pursuant to
section 501(c)(3) of the internal
41 revenue code of 1986 and; (g)
contributions to the corporation are
42 deductible under the Kansas income
tax act. As used in this clause,
43 ``humanitarian services'' means the
conduct of activities which sub-
5
1 stantially and predominantly
meet a demonstrated community need
2 and which improve the physical,
mental, social, cultural or spiritual
3 welfare of others or the
relief, comfort or assistance of persons in
4 distress or any combination
thereof including but not limited to
5 health and recreation services,
child care, individual and family
6 counseling, employment and
training programs for handicapped
7 persons and meals or feeding
programs. Notwithstanding any other
8 provision of this clause, motor
vehicles shall not be exempt here-
9 under unless such vehicles are
exclusively used for the purposes
10 described therein, except
that the use of any such vehicle for the purpose
11 of participating in a coordinated
transit district in accordance with the
12 provisions of K.S.A. 75-5032 through
75-5037, and amendments thereto,
13 or K.S.A. 75-5051 through 75-5058, and
amendments thereto, shall be
14 deemed as exclusive
use.
15
Tenth. For all taxable years commencing after December
31,
16 1986, any building, and the land upon
which such building is lo-
17 cated to the extent necessary for the
accommodation of such build-
18 ing, owned by a church or nonprofit
religious society or order which
19 is exempt from federal income
taxation pursuant to section
20 501(c)(3) of the federal internal
revenue code of 1986, and actually
21 and regularly occupied and used
exclusively for residential and re-
22 ligious purposes by a community of
persons who are bound by vows
23 to a religious life and who conduct
or assist in the conduct of relig-
24 ious services and actually and
regularly engage in religious, benev-
25 olent, charitable or educational
ministrations or the performance
26 of health care services.
27
Eleventh. For all taxable years commencing after
December 31,
28 1998, all real property upon which is
located facilities which utilize
29 renewable energy resources or
technologies for the purpose and as
30 the primary means to produce and
generate electricity and which
31 is used predominantly for such
purpose, to the extent necessary to
32 accommodate such facilities, and all
tangible personal property
33 which comprises such facilities. For
purposes of this section, ``re-
34 newable energy resources or
technologies'' shall include wind, so-
35 lar, thermal, photovoltaic, biomass,
hydropower, geothermal and
36 landfill gas resources or
technologies. For purposes of valuation of
37 property subject to valuation under
K.S.A. 79-5a01 et seq., and
38 amendments thereto, the value of the
exempt property set forth in
39 this clause shall be removed from the
unit value prior to apportion-
40 ment under K.S.A. 79-5a25, and
amendments thereto.
41 The provisions
of this section, except as otherwise more specifi-
42 cally provided, shall apply to all
taxable years commencing after
43 December 31, 1995.
6
1 Sec. 2. K.S.A. 1999
Supp. 79-201 is hereby repealed.
2 Sec. 2.
3. This act shall take effect and be in force
from and after its
3 publication in the statute book.