Session of 1998
By Committee on Taxation
            9             AN ACT enacting the business tax relief act of 1998; amending K.S.A.
10             79-201w and repealing the existing section.
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 79-201w is hereby amended to read as follows: 79-
14       201w. The following described property, to the extent specified by this
15       section, shall be exempt from all property or ad valorem taxes levied under
16       the laws of the state of Kansas:
17           (a) Any item of machinery, equipment, materials and supplies which,
18       except for the operation of the provisions of this section, would be re-
19       quired to be listed for the purpose of taxation pursuant to K.S.A. 79-306,
20       and amendments thereto, and which is actually and regularly used exclu-
21       sively for business purposes to earn income for the owner thereof in the
22       conduct of such owner's business, or in the conduct of activities by an
23       entity not subject to Kansas income taxation pursuant to K.S.A. 79-32,113,
24       and amendments thereto, whose original retail cost when new is $250
25       $500 or less.
26           (b) The provisions of this section shall apply to all taxable years com-
27       mencing after December 31, 1995 1997.
28           New Sec. 2. For all taxable years commencing after December 31,
29       1997, there shall be allowed as a credit against the tax liability of a taxpayer
30       imposed under the Kansas income tax act, the premiums tax upon insur-
31       ance companies imposed pursuant to K.S.A. 40-252, and amendments
32       thereto, and the privilege tax as measured by net income of financial
33       institutions imposed pursuant to article 11 of chapter 79 of the Kansas
34       Statutes Annotated, an amount equal to 15% of the property tax actually
35       paid during an income or privilege taxable year upon commercial and
36       industrial machinery and equipment classified for property taxation pur-
37       poses pursuant to section 1 of article 11 of the Kansas constitution in
38       subclass (5) or (6) of class 2 and machinery and equipment classified for
39       such purposes in subclass (2) of class 2. If the amount of such tax credit
40       exceeds the taxpayer's income tax liability for the taxable year, the amount
41       thereof which exceeds such tax liability shall be refunded to the taxpayer.
42           Sec. 3. K.S.A. 79-201w is hereby repealed.

HB 2706


  1           Sec. 4. This act shall take effect and be in force from and after its
  2       publication in the statute book.