HB 2467--
Session of 1997
By Representative Carmody

9 AN ACT relating to property taxation; concerning the exemption there- 10 from for real property used for religious purposes; amending K.S.A. 11 1996 Supp. 79-201 and repealing the existing section. 12 13 Be it enacted by the Legislature of the State of Kansas: 14 Section 1. K.S.A. 1996 Supp. 79-201 is hereby amended to read as 15 follows: 79-201. 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 First. All buildings used exclusively as places of public worship and all 19 buildings used exclusively by school districts and school district interlocal 20 cooperatives organized under the laws of this state, with the furniture and 21 books therein contained and used exclusively for the accommodation of 22 religious meetings or for school district or school district interlocal co- 23 operative purposes, whichever is applicable, together with the grounds 24 owned thereby if not leased or otherwise used for the realization of profit, 25 except that: (a) (1) Any school building, or portion thereof, together with 26 the grounds upon which the building is located, shall be considered to be 27 used exclusively by the school district for the purposes of this section 28 when leased by the school district to any political or taxing subdivision of 29 the state, including a school district interlocal cooperative, or to any as- 30 sociation, organization or nonprofit corporation entitled to tax exemption 31 with respect to such property; and (2) any school building, together with 32 the grounds upon which the building is located, shall be considered to be 33 used exclusively by a school district interlocal cooperative for the purposes 34 of this section when being acquired pursuant to a lease-purchase agree- 35 ment; and (b) any building, or portion thereof, used as a place of worship, 36 together with the grounds upon which the building is located, shall be 37 considered to be used exclusively for the religious purposes of this section 38 when used as a not-for-profit day care center for children which is li- 39 censed pursuant to K.S.A. 65-501 et seq., and amendments thereto, or 40 when used to house an area where the congregation of a church society 41 and others may purchase tracts, books and other items relating to the 42 promulgation of the church society's religious doctrines. 43 Second. All real property, and all tangible personal property, actually HB 2467

 1  and regularly used exclusively for literary, educational, scientific, relig-
 2  ious, benevolent or charitable purposes, including property used exclu-
 3  sively for such purposes by more than one agency or organization for one
 4  or more of such exempt purposes. Except with regard to real property
 5  which is owned by a religious organization, is to be used exclusively for
 6  religious purposes and is not used for a nonexempt purpose prior to its
 7  exclusive use for religious purposes which property shall be deemed to be
 8  actually and regularly used exclusively for religious purposes for the pur-
 9  poses of this paragraph, this exemption shall not apply to such property,
10  not actually used or occupied for the purposes set forth herein, nor to
11  such property held or used as an investment even though the income or
12  rentals received therefrom is used wholly for such literary, educational,
13  scientific, religious, benevolent or charitable purposes. This exemption
14  shall not be deemed inapplicable to property which would otherwise be
15  exempt pursuant to this paragraph because an agency or organization: (a)
16  Is reimbursed for the provision of services accomplishing the purposes
17  enumerated in this paragraph based upon the ability to pay by the recip-
18  ient of such services; or (b) is reimbursed for the actual expense of using
19  such property for purposes enumerated in this paragraph; or (c) uses such
20  property for a nonexempt purpose which is minimal in scope and insub-
21  stantial in nature if such use is incidental to the exempt purposes of this
22  paragraph; or (d) charges a reasonable fee for admission to cultural or
23  educational activities or permits the use of its property for such activities
24  by a related agency or organization, if any such activity is in furtherance
25  of the purposes of this paragraph.
26    Third. All moneys and credits belonging exclusively to universities, col-
27  leges, academies or other public schools of any kind, or to religious, lit-
28  erary, scientific or benevolent and charitable institutions or associations,
29  appropriated solely to sustain such institutions or associations, not ex-
30  ceeding in amount or in income arising therefrom the limit prescribed
31  by the charter of such institution or association.
32    Fourth. The reserve or emergency funds of fraternal benefit societies
33  authorized to do business under the laws of the state of Kansas.
34    Fifth. All buildings of private nonprofit universities or colleges which
35  are owned and operated by such universities and colleges as student union
36  buildings, presidents' homes and student dormitories.
37    Sixth. All real and tangible personal property actually and regularly
38  used exclusively by the alumni association associated by its articles of
39  incorporation with any public or nonprofit Kansas college or university
40  approved by the Kansas board of regents to confer academic degrees or
41  with any community college approved by its board of trustees to grant
42  certificates of completion of courses or curriculum, to provide accom-
43  modations and services to such college or university or to the alumni, staff
HB 2467

 1  or faculty thereof.
 2    Seventh. All parsonages owned by a church society and actually and
 3  regularly occupied and used exclusively as a residence by a minister or
 4  other clergyman of such church society who is actually and regularly en-
 5  gaged in conducting the services and religious ministrations of such so-
 6  ciety, and the land upon which such parsonage is located to the extent
 7  necessary for the accommodation of such parsonage.
 8    Eighth. All real property, all buildings located on such property and all
 9  personal property contained therein, actually and regularly used exclu-
10  sively by any individually chartered organization of honorably discharged
11  military veterans of the United States armed forces or auxiliary of any
12  such organization, which is exempt from federal income taxation pursuant
13  to section 501(c)(19) of the federal internal revenue code of 1986, for
14  clubhouse, place of meeting or memorial hall purposes, and real property
15  to the extent of not more than two acres, and all buildings located on
16  such property, actually and regularly used exclusively by any such veter-
17  ans' organization or its auxiliary as a memorial park.
18    Ninth. All real property and tangible personal property actually and
19  regularly used by a community service organization for the predominant
20  purpose of providing humanitarian services, which is owned and operated
21  by a corporation organized not for profit under the laws of the state of
22  Kansas or by a corporation organized not for profit under the laws of
23  another state and duly admitted to engage in business in this state as a
24  foreign not-for-profit corporation if: (a) The directors of such corporation
25  serve without pay for such services; (b) the corporation is operated in a
26  manner which does not result in the accrual of distributable profits, re-
27  alization of private gain resulting from the payment of compensation in
28  excess of a reasonable allowance for salary or other compensation for
29  services rendered or the realization of any other form of private gain; (c)
30  no officer, director or member of such corporation has any pecuniary
31  interest in the property for which exemption is claimed; (d) the corpo-
32  ration is organized for the purpose of providing humanitarian services;
33    (e) the actual use of property for which an exemption is claimed must be
34  substantially and predominantly related to the purpose of providing hu-
35  manitarian services, except that, the use of such property for a nonexempt
36  purpose which is minimal in scope and insubstantial in nature shall not
37  result in the loss of exemption if such use is incidental to the purpose of
38  providing humanitarian services by the corporation; (f) the corporation is
39  exempt from federal income taxation pursuant to section 501(c)(3) of the
40  internal revenue code of 1986 and; (g) contributions to the corporation
41  are deductible under the Kansas income tax act. As used in this clause,
42  ``humanitarian services'' means the conduct of activities which substan-
43  tially and predominantly meet a demonstrated community need and
HB 2467

 1  which improve the physical, mental, social, cultural or spiritual welfare of
 2  others or the relief, comfort or assistance of persons in distress or any
 3  combination thereof including but not limited to health and recreation
 4  services, child care, individual and family counseling, employment and
 5  training programs for handicapped persons and meals or feeding pro-
 6  grams. Notwithstanding any other provision of this clause, motor vehicles
 7  shall not be exempt hereunder unless such vehicles are exclusively used
 8  for the purposes described therein.
 9    Tenth. For all taxable years commencing after December 31, 1986, any
10  building, and the land upon which such building is located to the extent
11  necessary for the accommodation of such building, owned by a church or
12  nonprofit religious society or order which is exempt from federal income
13  taxation pursuant to section 501(c)(3) of the federal internal revenue code
14  of 1986, and actually and regularly occupied and used exclusively for
15  residential and religious purposes by a community of persons who are
16  bound by vows to a religious life and who conduct or assist in the conduct
17  of religious services and actually and regularly engage in religious, be-
18  nevolent, charitable or educational ministrations or the performance of
19  health care services.
20    The provisions of this section, except as otherwise more specifically
21  provided, shall apply to all taxable years commencing after December 31,
22  1988 1996.
23    Sec. 2.  K.S.A. 1996 Supp. 79-201 is hereby repealed.
24    Sec. 3.  This act shall take effect and be in force from and after its
25  publication in the statute book.