Ch. 41             1997 Session Laws of Kansas             115

An Act enacting the education and tax reform act of 1997; amending K.S.A. 72-6414, 79-
4505 and 79-4508 and K.S.A. 1996 Supp. 72-6407, 72-6410, 72-6412, 72-6431, 72-6438,
72-6441, 72-6442, 79-32,110, 79-4502 and 79-5105 and repealing the existing sections;
also repealing K.S.A. 79-4520 and K.S.A. 1996 Supp. 72-6412a, 72-6431a, 72-6442a, 72-
8191 and 72-8192.

Be it enacted by the Legislature of the State of Kansas:

Section 1. On July 1, 1997, K.S.A. 1996 Supp. 72-6407 shall be and
is hereby amended to read as follows: 72-6407. (a) ``Pupil'' means any
person who is regularly enrolled in a district and attending kindergarten
or any of the grades one through 12 maintained by the district or who is
regularly enrolled in a district and attending kindergarten or any of the
grades one through 12 in another district in accordance with an agree-
ment entered into under authority of K.S.A. 72-8233, and amendments
thereto, or who is regularly enrolled in a district and attending special
education services provided for preschool-aged exceptional children by
the district. Except as otherwise provided in this subsection, a pupil in
attendance full time shall be counted as one pupil. A pupil in attendance
part time shall be counted as that proportion of one pupil (to the nearest
1/10) that the pupil's attendance bears to full-time attendance. A pupil
attending kindergarten shall be counted as 1/2 pupil. A pupil enrolled in
and attending an institution of postsecondary education which is author-
ized under the laws of this state to award academic degrees shall be
counted as one pupil if the pupil's postsecondary education enrollment
and attendance together with the pupil's attendance in either of the
grades 11 or 12 is at least 5/6 time, otherwise the pupil shall be counted
as that proportion of one pupil (to the nearest 1/10) that the total time of
the pupil's postsecondary education attendance and attendance in grade
11 or 12, as applicable, bears to full-time attendance. A pupil enrolled in

116             1997 Session Laws of Kansas             Ch. 41

and attending an area vocational school, area vocational-technical school
or approved vocational education program shall be counted as one pupil
if the pupil's vocational education enrollment and attendance together
with the pupil's attendance in any of grades nine through 12 is at least 5/6
time, otherwise the pupil shall be counted as that proportion of one pupil
(to the nearest 1/10) that the total time of the pupil's vocational education
attendance and attendance in any of grades nine through 12 bears to full-
time attendance. A pupil enrolled in a district and attending special ed-
ucation services, except special education services for preschool-aged ex-
ceptional children, provided for by the district shall be counted as one
pupil. A pupil enrolled in a district and attending special education serv-
ices for preschool-aged exceptional children provided for by the district
shall be counted as 1/2 pupil. A pupil in the custody of the secretary of
social and rehabilitation services and enrolled in unified school district
No. 259, Sedgwick county, Kansas, but housed, maintained, and receiving
educational services at the Judge James V. Riddel Boys Ranch, shall be
counted as two pupils. A pupil residing at the Flint Hills job corps center
shall not be counted. A pupil confined in and receiving educational serv-
ices provided for by a district at a juvenile detention facility shall not be
counted. A pupil enrolled in a district but housed, maintained, and re-
ceiving educational services at a state institution shall not be counted.

(b) ``Preschool-aged exceptional children'' means exceptional chil-
dren, except gifted children, who have attained the age of three years but
are under the age of eligibility for attendance at kindergarten.

(c) ``At-risk pupils'' means pupils who are eligible for free meals un-
der the national school lunch act and for whom who are enrolled in a
district which maintains an approved at-risk pupil assistance plan.

(d) ``Enrollment'' means, for districts scheduling the school days or
school hours of the school term on a trimestral or quarterly basis, the
number of pupils regularly enrolled in the district on September 20 plus
the number of pupils regularly enrolled in the district on February 20
less the number of pupils regularly enrolled on February 20 who were
counted in the enrollment of the district on September 20; and for dis-
tricts not hereinbefore specified, the number of pupils regularly enrolled
in the district on September 20. Notwithstanding the foregoing, if en-
rollment in a district in any school year has decreased from enrollment
in the preceding school year, enrollment of the district in the current
school year may be computed by adding one-half the number of pupils
by which enrollment in the current school year has decreased from en-
rollment in the preceding school year to enrollment in the current school
year, except that such computation shall not be applied to decreases in
enrollment in the current school year that are in excess of 4% on the basis
of enrollment in the preceding school year.

(e) ``Adjusted enrollment'' means enrollment adjusted by adding at-
risk pupil weighting, program weighting, low enrollment weighting, if any,

Ch. 41             1997 Session Laws of Kansas             117

correlation weighting, if any, school facilities weighting, if any, ancillary
school facilities weighting, if any, and transportation weighting to enroll-
ment.

(f) ``At-risk pupil weighting'' means an addend component assigned
to enrollment of districts on the basis of enrollment of at-risk pupils.

(g) ``Program weighting'' means an addend component assigned to
enrollment of districts on the basis of pupil attendance in educational
programs which differ in cost from regular educational programs.

(h) ``Low enrollment weighting'' means, for any school year in which
the provisions of K.S.A. 1996 Supp. 72-6442a are operational, an addend
component assigned to enrollment of districts having 1,800-1,899 or un-
der enrollment on the basis of costs attributable to maintenance of edu-
cational programs by such districts in comparison with costs attributable
to maintenance of educational programs by districts having 1,800-1,899
or over enrollment, for the school year in which the provisions of K.S.A.
1996 Supp. 72-6442 become operational and each school year thereafter,
an addend component assigned to enrollment of districts having under
1,800 enrollment on the basis of costs attributable to maintenance of
educational programs by such districts in comparison with costs attrib-
utable to maintenance of educational programs by districts having 1,800
or over enrollment.

(i) ``School facilities weighting'' means an addend component as-
signed to enrollment of districts on the basis of costs attributable to com-
mencing operation of new school facilities. School facilities weighting may
be assigned to enrollment of a district only if the district has adopted a
local option budget and budgeted therein the total amount authorized for
the school year. School facilities weighting may be assigned to enrollment
of the district only in the school year in which operation of a new school
facility is commenced and in the next succeeding school year.

(j) ``Transportation weighting'' means an addend component assigned
to enrollment of districts on the basis of costs attributable to the provision
or furnishing of transportation.

(k) ``Correlation weighting'' means, for any school year in which the
provisions of K.S.A. 1996 Supp. 72-6442a are operational, an addend
component assigned to enrollment of districts having 1,800-1,899 or over
enrollment on the basis of costs attributable to maintenance of educa-
tional programs by such districts as a correlate to low enrollment weight-
ing assigned to enrollment of districts having 1,800-1,899 or under en-
rollment, for the school year in which the provisions of K.S.A. 1996 Supp.
72-6442 become operational and each school year thereafter, an addend
component assigned to enrollment of districts having 1,800 or over en-
rollment on the basis of costs attributable to maintenance of educational
programs by such districts as a correlate to low enrollment weighting
assigned to enrollment of districts having under 1,800 enrollment.

(l) ``Ancillary school facilities weighting'' means an addend compo-

118             1997 Session Laws of Kansas             Ch. 41

nent assigned to enrollment of districts to which the provisions of K.S.A.
1996 Supp. 72-6441, and amendments thereto, apply on the basis of costs
attributable to commencing operation of new school facilities. Ancillary
school facilities weighting may be assigned to enrollment of a district only
if the district has levied a tax under authority of K.S.A. 1996 Supp. 72-
6441, and amendments thereto, and remitted the proceeds from such tax
to the state treasurer. Ancillary school facilities weighting is in addition
to assignment of school facilities weighting to enrollment of any district
eligible for such weighting.

Sec. 2. On July 1, 1997, K.S.A. 1996 Supp. 72-6410 shall be and is
hereby amended to read as follows: 72-6410. (a) ``State financial aid''
means an amount equal to the product obtained by multiplying base state
aid per pupil by the adjusted enrollment of a district.

(b) ``Base state aid per pupil'' means an amount of state financial aid
per pupil. Subject to the other provisions of this subsection, the amount
of base state aid per pupil is $3,648 $3,670. The amount of base state aid
per pupil is subject to reduction commensurate with any reduction under
K.S.A. 1996 Supp. 75-6704, and amendments thereto, in the amount of
the appropriation from the state general fund for general state aid. If the
amount of appropriations for general state aid is insufficient to pay in full
the amount each district is entitled to receive for any school year, the
amount of base state aid per pupil for such school year is subject to
reduction commensurate with the amount of the insufficiency.

(c) ``Local effort'' means the sum of an amount equal to the proceeds
from the tax levied under authority of K.S.A. 72-6431, and amendments
thereto, and an amount equal to any unexpended and unencumbered
balance remaining in the general fund of the district, except amounts
received by the district and authorized to be expended for the purposes
specified in K.S.A. 72-6430, and amendments thereto, and an amount
equal to any unexpended and unencumbered balances remaining in the
program weighted funds of the district, except any amount in the voca-
tional education fund of the district if the district is operating an area
vocational school, and an amount equal to any remaining proceeds from
taxes levied under authority of K.S.A. 72-7056 and 72-7072, and amend-
ments thereto, prior to the repeal of such statutory sections, and an
amount equal to the amount deposited in the general fund in the current
school year from amounts received in such year by the district under the
provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto,
and an amount equal to the amount deposited in the general fund in the
current school year from amounts received in such year by the district
pursuant to contracts made and entered into under authority of K.S.A.
72-6757, and amendments thereto, and an amount equal to the amount
credited to the general fund in the current school year from amounts
distributed in such year to the district under the provisions of articles 17

Ch. 41             1997 Session Laws of Kansas             119

and 34 of chapter 12 of Kansas Statutes Annotated and under the pro-
visions of articles 42 and 51 of chapter 79 of Kansas Statutes Annotated,
and an amount equal to the federal impact aid of a district.

(d) ``Federal impact aid'' means an amount equal to the federally
qualified percentage of the amount of moneys a district receives in the
current school year under the provisions of title I of public law 874 and
congressional appropriations therefor, excluding amounts received for as-
sistance in cases of major disaster and amounts received under the low-
rent housing program. The amount of federal impact aid defined herein
as an amount equal to the federally qualified percentage of the amount
of moneys provided for the district under title I of public law 874 shall
be determined by the state board in accordance with terms and conditions
imposed under the provisions of the public law and rules and regulations
thereunder.

Sec. 3. On July 1, 1997, K.S.A. 1996 Supp. 72-6412 shall be and is
hereby amended to read as follows: 72-6412. For the school year in which
the provisions of K.S.A. 1996 Supp. 72-6442 become operational and each
school year thereafter, The low enrollment weighting of each district with
under 1,800 enrollment shall be determined by the state board as follows:

(a) Determine the amount of the median budget per pupil for the
1991-92 school year of districts with 75-125 enrollment in such school
year;

(b) determine the amount of the median budget per pupil for the
1991-92 school year of districts with 200-399 enrollment in such school
year;

(c) determine the amount of the median budget per pupil for the
1991-92 school year of districts with 1,900 or over enrollment;

(d) prescribe a schedule amount for each of the districts by preparing
a schedule based upon an accepted mathematical formula and derived
from a linear transition between (1) the median budgets per pupil deter-
mined under (a) and (b), and (2) the median budgets per pupil deter-
mined under (b) and (c). The schedule amount for districts with 0-99
enrollment is an amount equal to the amount of the median budget per
pupil determined under (a). The schedule amount for districts with
100-299 enrollment is the amount derived from the linear transition un-
der (1). The schedule amount for districts with 300-1,899 enrollment is
the amount derived from the linear transition under (2);

(e) for districts with 0-99 enrollment:

(1) Subtract the amount determined under (c) from the amount de-
termined under (a);

(2) divide the remainder obtained under (1) by the amount deter-
mined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the

120             1997 Session Laws of Kansas             Ch. 41

district in the current school year. The product is the low enrollment
weighting of the district;

(f) for districts with 100-299 enrollment:

(1) Subtract the amount determined under (c) from the schedule
amount of the district;

(2) divide the remainder obtained under (1) by the amount deter-
mined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the
district in the current school year. The product is the low enrollment
weighting of the district;

(g) for districts with 300-1,799 enrollment:

(1) Subtract the amount determined under (c) from the schedule
amount of the district;

(2) divide the remainder obtained under (1) by the amount deter-
mined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the
district in the current school year. The product is the low enrollment
weighting of the district.

Sec. 4. On July 1, 1997, K.S.A. 72-6414 shall be and is hereby
amended to read as follows: 72-6414. (a) The at-risk pupil weighting of
each district shall be determined by the state board by multiplying the
number of at-risk pupils included in enrollment of the district by .05 .065.
The product is the at-risk pupil weighting of the district.

(b) The provisions of this section shall take effect and be in force
from and after July 1, 1992.

New Sec. 5. (a) The ancillary school facilities weighting of each dis-
trict shall be determined in each school year in which such weighting may
be assigned to enrollment of the district as follows:

(1) Add the amount authorized under subsection (a) of K.S.A. 1996
Supp. 72-6441, and amendments thereto, to be produced by a tax levy
and certified to the state board by the board of tax appeals to the amount,
if any, computed under subsection (b) of K.S.A. 1996 Supp. 72-6441, and
amendments thereto, to be produced by a tax levy;

(2) divide the sum obtained under (1) by base state aid per pupil.
The quotient is the ancillary school facilities weighting of the district.

(b) The provisions of this section shall take effect and be in force
from and after July 1, 1997.

Sec. 6. On July 1, 1997, K.S.A. 1996 Supp. 72-6431 shall be and is
hereby amended to read as follows: 72-6431. (a) The board of each district
shall levy an ad valorem tax upon the taxable tangible property of the
district in the school years specified in subsection (b) for the purpose of:

(1) Financing that portion of the district's general fund budget which
is not financed from any other source provided by law;

(2) paying a portion of the costs of operating and maintaining public

Ch. 41             1997 Session Laws of Kansas             121

schools in partial fulfillment of the constitutional obligation of the legis-
lature to finance the educational interests of the state; and

(3) with respect to any redevelopment district established prior to July
1, 1996, pursuant to K.S.A. 12-1771, and amendments thereto, paying a
portion of the principal and interest on bonds issued by cities under au-
thority of K.S.A. 12-1774, and amendments thereto, for the financing of
redevelopment projects upon property located within the district.

(b) The tax required under subsection (a) shall be levied at a rate of
35 mills in the 1996-97 school year, 33 27 mills in the 1997-98 school year
and not exceeding 31 mills in the 1998-99 school year.

(c) The proceeds from the tax levied by a district under authority of
this section, except the proceeds of such tax levied for the purpose of
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
nancing of redevelopment projects upon property located within the dis-
trict, shall be deposited in the general fund of the district.

(d) On June 1 of each year, the amount, if any, by which a district's
local effort exceeds the amount of the district's state financial aid, as
determined by the state board, shall be remitted to the state treasurer.
Upon receipt of any such remittance, the state treasurer shall deposit the
same in the state treasury to the credit of the state school district finance
fund.

(e) No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-
1964b, and amendments to such sections.

Sec. 7. On July 1, 1997, K.S.A. 1996 Supp. 72-6438 shall be and is
hereby amended to read as follows: 72-6438. (a) The state school district
finance fund, established by K.S.A. 1991 Supp. 72-7081 prior to its repeal
by this act, is hereby continued in existence and shall consist of (1) all
moneys credited to such fund under K.S.A. 72-6418 and 72-6431 and
K.S.A. 1996 Supp. 72-6441, and amendments thereto, and (2) all amounts
transferred to such fund.

(b) The state school district finance fund shall be used for the purpose
of school district finance and for no other governmental purpose. It is the
intent of the legislature that the fund shall remain intact and inviolate for
such purpose, and moneys in the fund shall not be subject to the provi-
sions of K.S.A. 75-3722, 75-3725a and 75-3726a, and amendments
thereto.

(c) Amounts in the state school district finance fund shall be allocated
and distributed to school districts as a portion of general state aid enti-
tlements provided for under this act.

Sec. 8. On July 1, 1997, K.S.A. 1996 Supp. 72-6441 shall be and is
hereby amended to read as follows: 72-6441. (a) (1) The board of any
district to which the provisions of this subsection apply may levy an ad
valorem tax on the taxable tangible property of the district each year for

122             1997 Session Laws of Kansas             Ch. 41

a period of time not to exceed two years in an amount not to exceed the
amount authorized by the state board of tax appeals under this subsection
for the purpose of financing that portion of the costs incurred by the state
that are directly attributable to commencing operation of one or more
new school facilities which is not financed from any other source provided
by law assignment of ancillary school facilities weighting to enrollment of
the district. The state board of tax appeals may authorize the district to
make a levy which will produce an amount that is not greater than the
difference between the amount of costs directly attributable to com-
mencing operation of one or more new school facilities and the amount
that is financed from any other source provided by law for such purpose
under the school district finance and quality performance act, including
any amount attributable to assignment of school facilities weighting to
enrollment of the district for each school year in which the district is
eligible for such weighting. If the district is not eligible, or will be ineli-
gible, for school facilities weighting in any one or more years during the
two-year period for which the district is authorized to levy a tax under
this subsection, the state board of tax appeals may authorize the district
to make a levy, in such year or years of ineligibility, which will produce
an amount that is not greater than the actual amount of costs attributable
to commencing operation of the facility or facilities.

(2) The board of tax appeals shall certify to the state board of edu-
cation the amount authorized to be produced by the levy of a tax under
subsection (a).

(2) (3) The state board of tax appeals may adopt rules and regulations
necessary to properly effectuate the provisions of this subsection, includ-
ing rules relating to the evidence required in support of a district's claim
that the costs attributable to commencing operation of one or more new
school facilities are in excess of the amount that is financed from any
other source provided by law for such purpose under the school district
finance and quality performance act.

(3) (4) The provisions of this subsection apply to any district that (A)
commenced operation of one or more new school facilities in the school
year preceding the current school year or has commenced or will com-
mence operation of one or more new school facilities in the current school
year or any or all of the foregoing, and (B) is authorized to adopt and has
adopted a local option budget in an amount equal to the state prescribed
percentage of the amount of state financial aid determined for the district
in the current school year, and (C) is experiencing extraordinary enroll-
ment growth as determined by the state board of education.

(b) The board of any district that has levied an ad valorem tax on the
taxable tangible property of the district each year for a period of two years
under authority of subsection (a) for the purpose of financing a portion
of the costs attributable to commencing operation of one or more new
school facilities may continue to levy such a tax for such purpose under

Ch. 41             1997 Session Laws of Kansas             123

authority of this subsection each year for an additional period of time not
to exceed three years in an amount not to exceed the amount computed
by the state board of education as provided in this subsection if the board
of the district determines that the costs attributable to commencing op-
eration of such one or more new school facility or facilities are significantly
greater than the costs attributable to the operation of other school facil-
ities in the district. The tax authorized under this subsection may be levied
at a rate which will produce an amount that is not greater than the amount
computed by the state board of education as provided in this subsection.
In computing such amount, the state board shall (1) determine the
amount produced by the tax levied by the district under authority of
subsection (a) in the second year for which such tax was levied and add
to such amount the amount of general state aid directly attributable to
school facilities weighting that was received by the district in the same
year, and (2) compute 75% of the amount of the sum obtained under (1),
which computed amount is the amount the district may levy in the first
year of the three-year period for which the district may levy a tax under
authority of this subsection, and (3) compute 50% of the amount of the
sum obtained under (1), which computed amount is the amount the dis-
trict may levy in the second year of the three-year period for which the
district may levy a tax under authority of this subsection, and (4) compute
25% of the amount of the sum obtained under (1), which computed
amount is the amount the district may levy in the third year of the three-
year period for which the district may levy a tax under authority of this
subsection.

(c) The proceeds from the tax levied by a district under authority of
this section shall be deposited in the supplemental general fund of the
district, budgeted in the local option budget of the district as an addition
to the amount of such budget adopted under authority of and in accor-
dance with the provisions of K.S.A. 72-6433, and amendments thereto,
and used exclusively to supplement amounts expended from the general
fund of the district for payment of the costs attributable to commencing
operation of new school facilities remitted to the state treasurer. Upon
receipt of such remittance, the state treasurer shall deposit the same in
the state treasury to the credit of the state school district finance fund.

Sec. 9. On July 1, 1997, K.S.A. 1996 Supp. 72-6442 shall be and is
hereby amended to read as follows: 72-6442. (a) In any school year com-
mencing after any school year in which the provisions of K.S.A. 1996
Supp. 72-6442a are operational, if the state board determines that the
amount of appropriations for general state aid, inclusive of the amount
determined necessary for effectuation of this section, is sufficient to pay
in full the amount each district is entitled to receive for the school year,
the provisions of this section shall become operational and The correlation

124             1997 Session Laws of Kansas             Ch. 41

weighting of each district with 1,800 or over enrollment shall be deter-
mined by the state board as follows:

(1) (a) Determine the schedule amount for a district with 1,800 en-
rollment as derived from the linear transition under (d) of K.S.A. 72-
6412, and amendments thereto, and subtract the amount determined
under (c) of K.S.A. 72-6412, and amendments thereto, from the schedule
amount so determined;

(2) (b) divide the remainder obtained under (1) (a) by the amount
determined under (c) of K.S.A. 72-6412, and amendments thereto, and
multiply the quotient by the enrollment of the district in the current
school year. The product is the correlation weighting of the district.

(b) The provisions of this section shall take effect and be in force
from and after July 1, 1995.

New Sec. 10. (a) For the purposes of the school district finance and
quality performance act, and notwithstanding any provision of the act to
the contrary, the school facilities weighting of each district to which the
provisions of this section apply shall be determined in the 1996-97 school
year as follows:

(1) Determine the number of pupils, included in enrollment of the
district, who are attending a new school facility;

(2) multiply the number of pupils determined under (1) by .33. The
product is the school facilities weighting of the district.

(b) For districts to which the provisions of this section apply, the
school facilities weighting prescribed under subsection (a) is in lieu of the
school facilities weighting prescribed under K.S.A. 72-6415, and amend-
ments thereto.

(c) For the purpose of assigning the school facilities weighting pre-
scribed under subsection (a) to enrollment of the districts to which the
provisions of this section apply, the term ``new school facility'' means any
school facility which a district commenced operating in the 1995-96
school year or in the 1996-97 school year.

(d) The provisions of this section apply to any district that (1) com-
menced operation of one or more new school facilities in the 1992-93
school year or in any school year succeeding the 1992-93 school year up
to and including the 1996-97 school year, and (2) is authorized to adopt
and has adopted a local option budget in an amount equal to the state
prescribed percentage of the amount of state financial aid determined for
the district in the current school year, and (3) is experiencing extraordi-
nary enrollment growth as determined by the state board of education,
and (4) has been authorized to levy an ad valorem tax on the taxable
tangible property of the district under K.S.A. 1996 Supp. 72-6441, and
amendments thereto.

(e) The proceeds from the tax levied by a district under authority of
K.S.A. 1996 Supp. 72-6441, and amendments thereto, prior to the effec-

Ch. 41             1997 Session Laws of Kansas             125

tive date of this act shall be retained in the supplemental general fund of
the district and used exclusively to reduce the amount of the tax levied
by the district in the 1997-98 school year under authority of K.S.A. 72-
6435, and amendments thereto.

(f) The provisions of subsections (a) through (d) shall expire on June
30, 1997. The provisions of subsection (e) and this subsection shall expire
on June 30, 1998.

New Sec. 11. (a) For taxable years 1997 and 1998, the following de-
scribed property, to the extent herein specified, shall be and is hereby
exempt from the property tax levied pursuant to the provisions of K.S.A.
1996 Supp. 72-6431, and amendments thereto: Property used as a single
family residence, to the extent of $20,000 of its appraised valuation.

Sec. 12. On July 1, 1997, K.S.A. 1996 Supp. 79-5105 shall be and is
hereby amended to read as follows: 79-5105. (a) A tax is hereby levied
upon every motor vehicle, as the same is defined by K.S.A. 79-5101, and
amendments thereto, in an amount which shall be determined in the
manner hereinafter prescribed, except that: (1) (A) For 1995, the tax on
any motorcycle shall not be less than $6 and the tax on any other motor
vehicle shall not be less than $12; and (B) the tax on each motor vehicle
the age of which is 15 years or older shall not be more than $12; and (2)
for 1996, and each year thereafter: (A) The tax on any motorcycle shall
not be less than $12 and the tax on any other motor vehicle shall not be
less than $24, except as otherwise provided by clause (B) and (C); (B) the
tax on any motorcycle the model year of which is 1980 or earlier shall be
$6 and the tax on any other motor vehicle the model year of which is
1980 or earlier shall be $12; and (C) if the tax on any motorcycle in 1995
was more than $6 but less than $12, the tax shall be determined for 1996
and each year thereafter in the manner hereinafter prescribed but shall
not be less than $6, and if the tax on any other motor vehicle in 1995 was
more than $12 but less than $24, the tax shall be determined for 1996
and each year thereafter in the manner hereinafter prescribed but shall
not be less than $12.

(b) The amount of such tax on a motor vehicle shall be computed by:
(1) Determining the amount representing the midpoint of the values in-
cluded within the class in which such motor vehicle is classified under
K.S.A. 79-5102 or 79-5103, and amendments thereto, except that the
midpoint of class 20 shall be $21,000 plus $2,000 for each $2,000 or
portion thereof by which the trade-in value of the vehicle exceeds
$22,000; (2) if the model year of the motor vehicle is a year other than
the year for which the tax is levied, by reducing such midpoint amount
by an amount equal to 16% in 1995, and all years prior thereto, and 15%
in 1996, and all years thereafter, of the remaining balance for each year
of difference between the model year of the motor vehicle and the year
for which the tax is levied if the model year of the motor vehicle is 1981

126             1997 Session Laws of Kansas             Ch. 41

or a later year or (B) the remaining balance for each year of difference
between the year 1980 and the year for which the tax is levied if the
model year of the motor vehicle is 1980 or any year prior thereto; (3) by
multiplying the amount determined after application of clause (2) above
by 30% during calendar year 1995, 28.5% during the calendar year 1996,
26.5% during the calendar year 1997, 24.5% during the calendar year
1998, 22.5% during the calendar year 1999, and 20% during all calendar
years thereafter, which shall constitute the taxable value of the motor
vehicle; and (4) by multiplying the taxable value of the motor vehicle
produced under clause (3) above by the county average tax rate.

(c) The ``county average tax rate'' means the total amount of general
property taxes levied within the county by the state, county and all other
taxing subdivisions levying such taxes within such county in the second
calendar year before the calendar year in which the owner's full registra-
tion year begins divided by the total assessed tangible valuation of prop-
erty within such county as of November 1 of such second calendar year
before the calendar year in which the owner's full registration year begins
as certified by the secretary of revenue, except that: (1) As of November
1, 1994, such rate shall be computed without regard to 11.429% of the
general property taxes levied by school districts pursuant to K.S.A. 72-
6431, and amendments thereto; (2) as of November 1, 1995, such rate
shall be computed without regard to 31.429% of the general property
taxes levied by school districts pursuant to K.S.A. 72-6431, and amend-
ments thereto; (3) as of November 1, 1996, such rate shall be computed
without regard to 54.286% of the general property taxes levied by school
districts pursuant to K.S.A. 72-6431, and amendments thereto; (4) as of
November 1, 1997, such rate shall be computed without regard to 75.75%
70.36% of the general property taxes levied by school districts pursuant
to K.S.A. 72-6431, and amendments thereto; and (5) as of November 1,
1998, and such date in all years thereafter, such rate shall be computed
without regard to the general property taxes levied by school districts
pursuant to K.S.A. 72-6431, and amendments thereto.

Sec. 13. On July 1, 1997, K.S.A. 1996 Supp. 79-32,110 shall be and
is hereby amended to read as follows: 79-32,110. (a) Resident Individuals.
Except as otherwise provided by subsection (a) of K.S.A. 79-3220, and
amendments thereto, a tax is hereby imposed upon the Kansas taxable
income of every resident individual, which tax shall be computed in ac-
cordance with the following tax schedules:

(1) Married individuals filing joint returns.

If the taxable income is:
        The tax is:

Not over $30,000 ...............
 3.5% of Kansas taxable income

Over $30,000 but not over $60,000 
 $1,050 plus 6.25% of excess over
     $30,000

Over $60,000 ...................
 $2,925 plus 6.45% of excess over
     $60,000

Ch. 41             1997 Session Laws of Kansas             127

(2) All other individuals.
(A) For tax year 1997:

If the taxable income is:
        The tax is:

Not over $20,000 ...............
 4.4% 4.1% of Kansas taxable income

Over $20,000 but not over $30,000 
 $880 $820 plus 7.5% of excess over
     $20,000

Over $30,000 ...................
 $1,630 $1,570 plus 7.75% of excess over
     $30,000

If the taxable income is:
        The tax is:

Not over $15,000 ...............
 3.5% of Kansas taxable income

Over $15,000 but not over $30,000 
 $525 plus 6.75% of excess over
     $15,000

Over $30,000 ...................
 $1,537.50 plus 7.75% of excess over
     $30,000

If the taxable income is:
        The tax is:

Not over $15,000 ...............
 3.5% of Kansas taxable income

Over $15,000 but not over $30,000 
 $525 plus 6.25% of excess over
     $15,000

Over $30,000 ...................
 $1,462.50 plus 7.45% of excess over
     $30,000

If the taxable income is:
        The tax is:

Not over $15,000 ...............
 3.5% of Kansas taxable income

Over $15,000 but not over $30,000 
 $525 plus 6.25% of excess over
     $15,000

Over $30,000 ...................
 $1,462.50 plus 6.45% of excess over
     $30,000

(b) Nonresident Individuals. A tax is hereby imposed upon the Kansas
taxable income of every nonresident individual, which tax shall be an
amount equal to the tax computed under subsection (a) as if the nonres-
ident were a resident multiplied by the ratio of modified Kansas source
income to Kansas adjusted gross income.

(c) Corporations. A tax is hereby imposed upon the Kansas taxable
income of every corporation doing business within this state or deriving
income from sources within this state. Such tax shall consist of a normal
tax and a surtax and shall be computed as follows:

(1) The normal tax shall be in an amount equal to 4% of the Kansas
taxable income of such corporation; and

(2) the surtax shall be in an amount equal to 3.35% of the Kansas
taxable income of such corporation in excess of $50,000.

(d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable
income of estates and trusts at the rates provided in paragraph (2) of
subsection (a) hereof.

New Sec. 14. (a) For all taxable years commencing after December
31, 1996, there shall be allowed as a credit against the tax liability of a
resident individual imposed under the Kansas income tax act an amount
equal to 25% of the amount of the credit allowed against such taxpayer's
federal income tax liability pursuant to section 23 determined without
regard to subsection (c) thereof of the federal internal revenue code for
the taxable year in which such credit was claimed against the taxpayer's
federal income tax liability.

128             1997 Session Laws of Kansas             Ch. 41

(b) For all taxable years commencing after December 31, 1996, there
shall be allowed as a credit against the tax liability of a resident individual
imposed under the Kansas income tax act an amount equal to $1,500 for
the taxable year in which occurs the lawful adoption of a child in the
custody of the secretary of social and rehabilitation services or a child
with special needs, whether or not such individual is reimbursed for all
or part of qualified adoption expenses or has received a public or private
grant therefor. As used in this subsection, terms and phrases shall have
the meanings ascribed thereto by the provisions of section 23 of the fed-
eral internal revenue code. No credit shall be allowed under subsection
(a) for any qualified adoption expenses incurred in the adoption of a child
described by this subsection.

(c) The credit allowed by subsections (a) and (b) shall not exceed the
amount of the tax imposed by K.S.A. 79-32,110, and amendments thereto,
reduced by the sum of any other credits allowable pursuant to law. If the
amount of such tax credit exceeds the taxpayer's income tax liability for
such taxable year, the amount thereof which exceeds such tax liability may
be carried over for deduction from the taxpayer's income tax liability in
the next succeeding taxable year or years until the total amount of the tax
credits has been deducted from tax liability, except that no such tax credit
shall be carried over for deduction after the fifth taxable year succeeding
the taxable year in which the credit was claimed.

Sec. 15. On and after October 16, 1997, K.S.A. 1996 Supp. 79-4502
is hereby amended to read as follows: 79-4502. As used in this act, unless
the context clearly indicates otherwise:

(a) ``Income'' means the sum of adjusted gross income under the
Kansas income tax act, maintenance, support money, cash public assis-
tance and relief (not including any refund granted under this act), the
gross amount of any pension or annuity (including all monetary retire-
ment benefits from whatever source derived, including but not limited
to, railroad retirement benefits, all payments received under the federal
social security act and veterans disability pensions), all dividends and in-
terest from whatever source derived not included in adjusted gross in-
come, workers compensation and the gross amount of ``loss of time'' in-
surance. It does not include gifts from nongovernmental sources or
surplus food or other relief in kind supplied by a governmental agency,
nor shall net operating losses and net capital losses be considered in the
determination of income.

(b) ``Household'' means a claimant, a claimant and spouse who oc-
cupy the homestead or a claimant and one or more individuals not related
as husband and wife who together own or rent and occupy a homestead.

(c) ``Household income'' means all income received by all persons of
a household in a calendar year while members of such household.

(d) ``Homestead'' means the dwelling, or any part thereof, whether

Ch. 41             1997 Session Laws of Kansas             129

owned or rented, which is occupied as a residence by the household and
so much of the land surrounding it, as defined as a home site for ad
valorem tax purposes, and may consist of a part of a multi-dwelling or
multi-purpose building and a part of the land upon which it is built or a
manufactured home or mobile home and the land upon which it is situ-
ated. ``Owned'' includes a vendee in possession under a land contract, a
life tenant, a beneficiary under a trust and one or more joint tenants or
tenants in common.

(e) ``Claimant'' means a person who has filed a claim under the pro-
visions of this act and was, during the entire calendar year preceding the
year in which such claim was filed for refund under this act, except as
provided in K.S.A. 79-4503, and amendments thereto, both domiciled in
this state and was: (1) A person having a disability; (2) a person who is 55
years of age or older or (3) a person other than a person included under
(1) or (2) having one or more dependent children under 18 years of age
residing at the person's homestead during the calendar year immediately
preceding the year in which a claim is filed under this act.

When a homestead is occupied by two or more individuals and more
than one of the individuals is able to qualify as a claimant, the individuals
may determine between them as to whom the claimant will be. If they
are unable to agree, the matter shall be referred to the secretary of rev-
enue whose decision shall be final.

(f) ``Property taxes accrued'' means property taxes, exclusive of special
assessments, delinquent interest and charges for service, levied on a
claimant's homestead in 1979 or any calendar year thereafter by the state
of Kansas and the political and taxing subdivisions of the state. When a
homestead is owned by two or more persons or entities as joint tenants
or tenants in common and one or more of the persons or entities is not
a member of claimant's household, ``property taxes accrued'' is that part
of property taxes levied on the homestead that reflects the ownership
percentage of the claimant's household. For purposes of this act, property
taxes are ``levied'' when the tax roll is delivered to the local treasurer with
the treasurer's warrant for collection. When a claimant and household
own their homestead part of a calendar year, ``property taxes accrued''
means only taxes levied on the homestead when both owned and occupied
as a homestead by the claimant's household at the time of the levy, mul-
tiplied by the percentage of 12 months that the property was owned and
occupied by the household as its homestead in the year. When a house-
hold owns and occupies two or more different homesteads in the same
calendar year, property taxes accrued shall be the sum of the taxes allo-
cable to those several properties while occupied by the household as its
homestead during the year. Whenever a homestead is an integral part of
a larger unit such as a multi-purpose or multi-dwelling building, property
taxes accrued shall be that percentage of the total property taxes accrued
as the value of the homestead is of the total value. For the purpose of

130             1997 Session Laws of Kansas             Ch. 41

this act, the word ``unit'' refers to that parcel of property covered by a
single tax statement of which the homestead is a part.

(g) ``Disability'' means:

(1) Inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be
expected to result in death or has lasted or can be expected to last for a
continuous period of not less than 12 months, and an individual shall be
determined to be under a disability only if the physical or mental im-
pairment or impairments are of such severity that the individual is not
only unable to do the individual's previous work but cannot, considering
age, education and work experience, engage in any other kind of sub-
stantial gainful work which exists in the national economy, regardless of
whether such work exists in the immediate area in which the individual
lives or whether a specific job vacancy exists for the individual, or whether
the individual would be hired if application was made for work. For pur-
poses of the preceding sentence (with respect to any individual), ``work
which exists in the national economy'' means work which exists in signif-
icant numbers either in the region where the individual lives or in several
regions of the country; for purposes of this subsection, a ``physical or
mental impairment'' is an impairment that results from anatomical, phys-
iological or psychological abnormalities which are demonstrable by med-
ically acceptable clinical and laboratory diagnostic techniques; or

(2) blindness and inability by reason of blindness to engage in sub-
stantial gainful activity requiring skills or abilities comparable to those of
any gainful activity in which the individual has previously engaged with
some regularity and over a substantial period of time.

(h) ``Blindness'' means central visual acuity of 20/200 or less in the
better eye with the use of a correcting lens. An eye which is accompanied
by a limitation in the fields of vision such that the widest diameter of the
visual field subtends an angle no greater than 20 degrees shall be consid-
ered for the purpose of this paragraph as having a central visual acuity of
20/200 or less.

(i) ``Rent constituting property taxes accrued'' means 15% 20% of the
gross rent actually paid in cash or its equivalent in 1979 or any taxable
year thereafter by a claimant and claimant's household solely for the right
of occupancy of a Kansas homestead on which ad valorem property taxes
were levied in full for that year. When a household occupies two or more
different homesteads in the same calendar year, rent constituting prop-
erty taxes accrued shall be computed by adding the rent constituting
property taxes accrued for each property rented by the household while
occupied by the household as its homestead during the year.

(j) ``Gross rent'' means the rental paid at arm's length solely for the
right of occupancy of a homestead or space rental paid to a landlord for
the parking of a mobile home, exclusive of charges for any utilities, serv-
ices, furniture and furnishings or personal property appliances furnished

Ch. 41             1997 Session Laws of Kansas             131

by the landlord as a part of the rental agreement, whether or not expressly
set out in the rental agreement. Whenever the director of taxation finds
that the landlord and tenant have not dealt with each other at arms length
and that the gross rent charge was excessive, the director may adjust the
gross rent to a reasonable amount for the purposes of the claim.

Sec. 16. On and after October 16, 1997, K.S.A. 79-4505 is hereby
amended to read as follows: 79-4505. Except as provided in K.S.A. 79-
4517, and amendments thereto, no claim in respect of property taxes
levied in any year shall be paid or allowed unless such claim is actually
filed with and in the possession of the department of revenue on or before
October April 15 of the year next succeeding the year in which said taxes
were levied.

Sec. 17. On and after October 16, 1997, K.S.A. 79-4508 is hereby
amended to read as follows: 79-4508. The amount of any claim pursuant
to this act shall be computed by deducting the amount computed under
column (2) from the amount of claimant's property tax accrued and/or
rent constituting property tax accrued.

(1)                          (2)

Claimants householdincome    Deduction from property tax accruedand/or rent
     constituting

At least
  But not more than
  property tax accrued

$0
        $3,000
             0

$3,000.0
  3,500
              1% of income in excess of $3,000

3,500.01
  4,000
              $ 5 plus 2% of income in excess of
     $3,500

4,000.01
  4,500
              $ 15 plus 3% of income in excess of
     $4,000

4,500.01
  7,000
              $ 30 plus 4% of income in excess of
     $4,500

7,000.01
                         $130 plus 4 1/2% of income in excess of
     $7,000

$0
        $3,000
             $0

3,001
     4,000
              12%

4,001
     25,000
             12% plus 4% of every $1,000,  or fraction
     thereof, of  income in excess of $4,001

The director of taxation shall prepare a table under which claims under
this act shall be determined. The amount of claim for each bracket shall
be computed only to the nearest one dollar ($1) $1.

The claimant may elect not to record the amount claimed on the claim.
The claim allowable to persons making this election shall be computed
by the department which shall notify the claimant by mail of the amount
of the allowable claim.

Sec. 18. On and after October 16, 1997, K.S.A. 79-4505, 79-4508 and
79-4520 and K.S.A. 1996 Supp. 79-4502 are hereby repealed.

Sec. 19. On July 1, 1997, K.S.A. 72-6414 and K.S.A. 1996 Supp.
72-6407, 72-6410, 72-6412, 72-6412a, 72-6431, 72-6431a, 72-6438, 72-
6441, 72-6442, 72-6442a, 72-8191, 72-8192, 79-5105 and 79-32,110 shall
be and are hereby repealed.

132             1997 Session Laws of Kansas             Ch. 41

Sec. 20. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 4, 1997.

Published in the Kansas Register: April 10, 1997.