CHAPTER 57 SENATE BILL No. 44 (Amended by Chapter 167) An Act relating to property taxation; concerning the administration of certain refunds
thereof; amending K.S.A. 79-32,105, 79-4501 and 79-4521 and K.S.A. 2000 Supp. 79-
255 and 79-4504 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 79-4501 is hereby amended to read as follows: 79-
4501. The title of this act shall be the homestead property tax refund act.
The purpose of this act shall be to provide ad valorem tax refunds to: (a)
Certain female persons of qualifying age who are the surviving spouses
of husbands who died during marriage, who own or rent their homestead,
so long as they remain unmarried; (b) certain persons other than persons
included under the provisions of (a) who are of qualifying age who own
or rent their homestead; (c) (b) certain persons who have a disability, who
own or rent their homestead; and (d) (c) certain persons other than per-
sons included under the provisions of (a), or (b) and (c) who have low
incomes and dependent children and own or rent their homestead.

      Sec.  2. K.S.A. 2000 Supp. 79-4504 is hereby amended to read as
follows: 79-4504. Subject to the limitations provided in this act or the
provisions of K.S.A. 79-4530, and amendments thereto, as the case re-
quires, a claimant may claim property tax relief under the homestead
property tax refund act or the provisions of K.S.A. 79-4530, and amend-
ments thereto, with respect to property taxes accrued, and after audit by
the division of taxation with respect to homestead property tax refund
act, the allowable amount of such claim shall be paid, except as otherwise
provided in K.S.A. 79-4521, to the claimant from funds appropriated for
such purposes the income tax refund fund upon warrants of the director
of accounts and reports pursuant to vouchers approved by the director of
taxation or by any person designated by the claimant, but no warrant
issued hereunder shall be drawn in an amount of less than $5. No interest
shall be allowed on any payment made to a claimant pursuant to this act.

      Sec.  3. K.S.A. 79-4521 is hereby amended to read as follows: 79-
4521. (a) Beginning in 1992 2001, and in each succeeding year, any person
who owns a homestead, as defined by K.S.A. 79-4502, and amendments
thereto, and who will be entitled to claim a refund of property taxes under
the provisions of article 45 of chapter 79 of the Kansas Statutes Anno-
tated, may make application to the county clerk of the county in which
the homestead is located for a certificate of eligibility for such refund and
the director of taxation shall issue a certificate of eligibility for refund to
each claimant who received a refund of property taxes under the home-
stead property tax refund act for the prior year. After the certificate has
been completed by the claimant and the county clerk of the county in
which the property is located, the claimant may present such certificate
to the county treasurer on or before the time prescribed for the payment
of the first half of taxes levied on such homestead in the current year in
lieu of paying that portion of such taxes the first half of taxes on the
claimant's homestead in the current year which equals the amount of the
homestead property tax refund received by the claimant for taxes levied
in the preceding year up to the amount of the first half of the property
taxes due. Any person making an application shall present such proof as
to eligibility for the refund as prescribed in rules and regulations adopted
by the secretary of revenue. If the county clerk is satisfied that such
person will be eligible for a refund, the county clerk shall make out a
certificate of eligibility for such person on a form prescribed by the sec-
retary of revenue. The certificate shall be signed by the county clerk and
the person making application therefor. An eligible applicant shall also
assign, in a space provided on the certificate, the refund to the county to
pay the taxes on the applicant's homestead for the year in which such
application is made.

      (b) Prior to presenting the certificate to the county treasurer the
claimant shall sign the certificate, and shall also assign, in a space pro-
vided on the certificate, the refund to the county to pay the taxes on the
claimant's homestead for the year in which such certificate is issued. The
claimant shall then submit the certificate of eligibility to the county clerk
for review. The county clerk shall review the claim, based on proof of
eligibility as prescribed in rules and regulations adopted by the secretary
of revenue, to determine whether the claimant will be eligible for the
refund. If the county clerk is satisfied the claimant will be eligible, the
county clerk shall sign the certificate and return it to the claimant.

      (b) (c) The county treasurer shall send daily a copy of each certificate
of eligibility to the director of taxation by December 31 of each year. After
receiving a claim of any claimant who has obtained a certificate of eligi-
bility under this section, the director shall examine the same, and if the
claim is valid, the director of accounts and reports shall draw a warrant
in favor of the county in which claimant's homestead is located upon a
voucher approved by the director of taxation in the amount of the allow-
able claim for refund. Sufficient information to identify the claimant shall
be directed to the county treasurer with each warrant. Any taxes levied
in any year on the homestead of any claimant who has obtained the cer-
tificate of eligibility herein provided for in excess of the amount paid to
the county by the state and by the claimant on or before December 20
of such year shall be paid by the claimant on or before June 20 of the
succeeding year.

      Sec.  4. K.S.A. 79-32,105 is hereby amended to read as follows: 79-
32,105. (a) The director shall pay to the treasurer of the state daily the
entire amount collected during the preceding day, under the provisions
of this act and from the income tax imposed upon individuals, corpora-
tions, estates or trusts pursuant to the ``Kansas income tax act'' less
amounts withheld as provided in subsection (b) and any amounts credited
to the IMPACT program repayment fund or the IMPACT program serv-
ices fund under K.S.A. 74-50,107 and amendments thereto, which
amounts shall be credited to the state general fund.

      (b) A revolving fund, designated as ``income tax refund fund'' not to
exceed $4,000,000 shall be set apart and maintained by the director from
income tax collections, withholding tax collections, and estimated tax col-
lections and held by the state treasurer for prompt payment of all income
tax refunds and, for the payment of interest as provided in subsection (e),
for payment of homestead property tax refunds in accordance with the
homestead property tax refund act and for payment of property tax re-
funds allowed pursuant to the provisions of K.S.A. 2000 Supp. 79-255,
and amendments thereto. The fund shall be in such amount, within the
limit set by this section, as the director determines is necessary to meet
current refunding requirements under this act.

      (c) If the director discovers from the examination of the return, or
upon claim duly filed by the taxpayer or upon final judgment of the court
that the income tax, withholding tax, declaration of estimated tax or any
penalty or interest paid by or credited to any taxpayer is in excess of the
amount legally due, the director shall certify to the director of accounts
and reports the name of the taxpayer, the amount of refund and such
other information as the director may require. Upon receipt of such cer-
tification the director of accounts and reports shall issue a warrant on the
state treasurer for the payment to the taxpayer out of the fund provided
in subsection (b), except that no refund shall be made for a sum less than
$5, but such amount may be claimed by the taxpayer as a credit against
the taxpayer's tax liability in the taxpayer's next succeeding taxable year.

      (d) When a resident taxpayer dies, and the director determines that
a refund is due the claimant not in excess of $100, the director shall certify
to the director of accounts and reports the name and address of the
claimant entitled to the refund and the amount of the refund. A refund
may be made upon a claim duly made on behalf of the estate of the
deceased or in the absence of any such claim upon a claim by a surviving
spouse and if none upon the claim by any heir at law. Upon receipt of
such certification the director of accounts and reports shall issue a warrant
on the state treasurer for the payment to the claimant out of the fund
provided in subsection (b).

      (e) Interest shall be allowed and paid at the rate of 12% per annum
upon any overpayment of the income tax imposed upon individuals, cor-
porations, estates or trusts pursuant to the Kansas income tax act for any
period prior to January 1, 1995, 6% per annum for the period commenc-
ing on January 1, 1995, and ending on December 31, 1997, and at the
rate prescribed and determined pursuant to K.S.A. 79-2968, and amend-
ments thereto, for any period thereafter.

      For the purposes of this subsection:

      (1) Any return filed before the last day prescribed for the filing
thereof shall be considered as filed on such last day, determined without
regard to any extension of time granted the taxpayer;

      (2) any tax paid by the taxpayer before the last day prescribed for its
payment, any income tax withheld from the taxpayer during any calendar
year and any amount paid by the taxpayer as estimated income tax for a
taxable year shall be deemed to have been paid on the last day prescribed
for filing the return for the taxable year to which such amount constitutes
a credit or payment, determined without regard to any extension of time
granted the taxpayer;

      (3) if any overpayment of tax results from a carryback of a net oper-
ating loss or net capital loss, such overpayment shall be deemed not to
have been made prior to the close of the taxable year in which such net
operating loss or net capital loss arises. For purposes of this paragraph,
the return for the loss year shall not be deemed to be filed before claim
for such overpayment is filed;

      (4) in the case of a credit, interest shall be allowed and paid from the
date of the overpayment to the due date of the amount against which the
credit is taken, except that if any overpayment of income tax is claimed
as a credit against estimated tax for the succeeding taxable year, such
amount shall be considered as a payment of the income tax for the suc-
ceeding taxable year, whether or not claimed as a credit in the return of
estimated tax for such succeeding taxable year, and no interest shall be
allowed or paid in such overpayment for the taxable year in which the
overpayment arises;

      (5) in the case of a tax return which is filed after the last date pre-
scribed for filing such return, determined with regard to extensions, no
interest shall be allowed or paid for any period before the date on which
the return is filed;

      (6) in the case of a refund, interest shall be allowed and paid from
the date of the overpayment to a date preceding the date of the refund
check by not more than 30 days, as determined by the director, whether
or not such refund check is accepted by the taxpayer after tender of such
check to the taxpayer, but acceptance of such check shall be without
prejudice to any right of the taxpayer to claim any additional overpayment
and interest thereon; and

      (7) if any overpayment is refunded within two months after the last
date prescribed, or permitted by extension of time, for filing the return
of such tax, or within two months after the return was filed, whichever is
later, no interest shall be allowed or paid. For the purposes of this section,
an overpayment shall be deemed to have been refunded at the time the
refund check in the amount of the overpayment, plus any interest due
thereon, is deposited in the United States mail.

      Sec.  5. K.S.A. 2000 Supp. 79-255 is hereby amended to read as fol-
lows: 79-255. (a) For all taxable years commencing after December 31,
1999, and subject to the provisions of this section, there shall be allowed
as a property tax refund to the operator of an oil lease an amount equal
to 50% of the total amount of property tax levied and actually and timely
paid by the operator for a property tax year which is attributable to the
working interest of an oil lease the average daily production per well from
which is 15 barrels or less when the price per barrel of oil is $16 or less,
as prescribed in the oil and gas appraisal guide by the director of property
valuation for the applicable tax year. No refund shall be allowed for prop-
erty tax paid upon machinery and equipment for which a credit is claimed
pursuant to K.S.A. 2000 Supp. 79-32,206 and amendments thereto.

      (b) No claim for a refund allowable pursuant to subsection (a) shall
be paid unless filed with and in possession of the department of revenue
on or before April 15 of the year next succeeding the year in which such
taxes were paid, except that the director of taxation may extend the time
for filing any claim or accept a claim filed after the deadline for filing
when good cause exists therefor if the claim has been filed within three
years of the deadline.

      (c) The allowable amount of such claim shall be paid to the operator
from funds appropriated for such purposes the income tax refund fund
upon warrants of the director of accounts and reports pursuant to vouch-
ers approved by the director of taxation or by any person designated by
the claimant, but no warrant issued hereunder shall be drawn in an
amount of less than $5. No interest shall be allowed on any payment made
to an operator pursuant to this section.

      (d) Insofar as the same may be made applicable, the provisions of
K.S.A. 79-3226, and amendments thereto, shall apply to claims for re-
funds allowable pursuant to this section which may become in dispute.

      (e) The department of revenue shall devise and provide forms and
instructions necessary to administer this section, and the secretary of rev-
enue may adopt rules and regulations for such purpose.

 Sec.  6. K.S.A. 79-32,105, 79-4501 and 79-4521 and K.S.A. 2000
Supp. 79-255 and 79-4504 are hereby repealed.
 Sec.  7. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 2, 2001.
 Published in the Kansas Register April 12, 2001.
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