SB 23--
By Committee on Assessment and Taxation

AN ACT relating to property taxation; amending K.S.A. 1996 Supp. 79- 503a and 79-1448 and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 1996 Supp. 79-503a is hereby amended to read as follows: 79-503a. ``Fair market value'' means the amount in terms of money that a well informed buyer is justified in paying and a well in- formed seller is justified in accepting for property in an open and com- petitive market, assuming that the parties are acting without undue com- pulsion. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1. A variance of 10% in any individual appraisal at fair market value shall not be considered willful neglect of the county appraiser's duty to achieve fair market value. The foregoing provision shall not be construed to mean that a series of such variances does not constitute willful neglect. Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion: (a) The proper classification of lands and improvements; (b) the size thereof; (c) the effect of location on value; (d) depreciation, including physical deterioration or functional, eco- nomic or social obsolescence; (e) cost of reproduction of improvements; (f) productivity; (g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period; (h) rental or reasonable rental values; (i) sale value on open market with due allowance to abnormal infla- tionary factors influencing such values; (j) restrictions imposed upon the use of real estate by local governing bodies, including zoning and planning boards or commissions; and (k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes. The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures which are adaptable to mass appraisal and consistent with the definition of fair market value unless otherwise spec- ified by law. Sec. 2. K.S.A. 1996 Supp. 79-1448 is hereby amended to read as follows: 79-1448. Any taxpayer may complain or appeal to the county appraiser from the classification or appraisal of the taxpayer's property by giving notice to the county appraiser on or before April 15 within 30 days subsequent to the date of mailing of the valuation notice required by K.S.A. 79-1460, and amendments thereto, for real property, and on or before May 15 for personal property. The county appraiser or the ap- praiser's designee shall arrange to hold an informal meeting with the aggrieved taxpayer with reference to the property in question. At such meeting it shall be the duty of the county appraiser or the county ap- praiser's designee to initiate production of evidence to substantiate the valuation of such property. The county appraiser may extend the time in which the taxpayer may informally appeal from the classification or ap- praisal of the taxpayer's property for just and adequate reasons. Except as provided in K.S.A. 79-1404, and amendments thereto, no informal meeting regarding real property shall be scheduled to take place after May 15, nor shall a final determination be given by the appraiser after May 20. Any taxpayer who is aggrieved by the final determination of the county appraiser may appeal to the hearing officer or panel appointed pursuant to K.S.A. 1996 Supp. 79-1611, and amendments thereto, and such hearing officer, or panel, for just cause shown and recorded, is au- thorized to change the classification or valuation of specific tracts or in- dividual items of real or personal property in the same manner provided for in K.S.A. 79-1606, and amendments thereto. Any taxpayer who is aggrieved by the final determination of a hearing officer or panel may appeal to the state board of tax appeals as provided in K.S.A. 79-1609, and amendments thereto. An informal meeting with the county appraiser or the appraiser's designee shall be a condition precedent to an appeal to the county or district hearing panel. Sec. 3. K.S.A. 1996 Supp. 79-503a and 79-1448 are hereby repealed. Sec. 4. This act shall take effect and be in force from and after its publication in the statute book.