SENATE BILL No. 9
By Special Committee on Assessment and Taxation
8 AN ACT relating to property taxation; concerning the timing of inspec-
9 tion of property for appraisal purposes; amending K.S.A. 79-1476 and
10 repealing the existing section.
12 Be it enacted by the Legislature of the State of Kansas:
13 Section 1. K.S.A. 79-1476 is hereby amended to read as fol-
14 lows: 79-1476. The director of property valuation is hereby directed and
15 empowered to administer and supervise a statewide program of reap-
16 praisal of all real property located within the state. Except as otherwise
17 authorized by K.S.A. 19-428, and amendments thereto, each county shall
18 comprise a separate appraisal district under such program, and the county
19 appraiser shall have the duty of reappraising all of the real property in
20 the county pursuant to guidelines and timetables prescribed by the di-
21 rector of property valuation and of updating the same on an annual basis.
22 In the case of multi-county appraisal districts, the district appraiser shall
23 have the duty of reappraising all of the real property in each of the coun-
24 ties comprising the district pursuant to such guidelines and timetables
25 and of updating the same on an annual basis. Commencing in
26 every parcel of real property shall be actually viewed and inspected by
27 the county or district appraiser once every
four six years. Any county or
28 district appraiser shall be deemed to be in compliance with the foregoing
29 requirement in any year if
25% 17% or more of the parcels in such county
30 or district are actually viewed and inspected.
31 Compilation of data for the initial preparation or updating of invento-
32 ries for each parcel of real property and entry thereof into the state com-
33 puter system as provided for in K.S.A. 79-1477, and amendments thereto,
34 shall be completed not later than January 1, 1989. Whenever the director
35 determines that reappraisal of all real property within a county is com-
36 plete, notification thereof shall be given to the governor and to the state
37 board of tax appeals.
38 Valuations shall be established for each parcel of real property at its
39 fair market value in money in accordance with the provisions of K.S.A.
40 79-503a, and amendments thereto.
41 In addition thereto valuations shall be established for each parcel of
42 land devoted to agricultural use upon the basis of the agricultural income
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1 or productivity attributable to the inherent capabilities of such land in its
2 current usage under a degree of management reflecting median produc-
3 tion levels in the manner hereinafter provided. A classification system for
4 all land devoted to agricultural use shall be adopted by the director of
5 property valuation using criteria established by the United States depart-
6 ment of agriculture soil conservation service. For all taxable years com-
7 mencing after December 31, 1989, all land devoted to agricultural use
8 which is subject to the federal conservation reserve program shall be
9 classified as cultivated dry land for the purpose of valuation for property
10 tax purposes pursuant to this section. Productivity of land devoted to
11 agricultural use shall be determined for all land classes within each county
12 or homogeneous region based on an average of the eight calendar years
13 immediately preceding the calendar year which immediately precedes the
14 year of valuation, at a degree of management reflecting median produc-
15 tion levels. The director of property valuation shall determine median
16 production levels based on information available from state and federal
17 crop and livestock reporting services, the soil conservation service, and
18 any other sources of data that the director considers appropriate.
19 The share of net income from land in the various land classes within
20 each county or homogeneous region which is normally received by the
21 landlord shall be used as the basis for determining agricultural income
22 for all land devoted to agricultural use except pasture or rangeland. The
23 net income normally received by the landlord from such land shall be
24 determined by deducting expenses normally incurred by the landlord
25 from the share of the gross income normally received by the landlord.
26 The net rental income normally received by the landlord from pasture or
27 rangeland within each county or homogeneous region shall be used as
28 the basis for determining agricultural income from such land. The net
29 rental income from pasture and rangeland which is normally received by
30 the landlord shall be determined by deducting expenses normally in-
31 curred from the gross income normally received by the landlord. Com-
32 modity prices, crop yields and pasture and rangeland rental rates and
33 expenses shall be based on an average of the eight calendar years im-
34 mediately preceding the calendar year which immediately precedes the
35 year of valuation. Net income for every land class within each county or
36 homogeneous region shall be capitalized at a rate determined to be the
37 sum of the contract rate of interest on new federal land bank loans in
38 Kansas on July 1 of each year averaged over a five-year period which
39 includes the five years immediately preceding the calendar year which
40 immediately precedes the year of valuation, plus a percentage not less
41 than .75% nor more than 2.75%, as determined by the director of prop-
42 erty valuation.
43 Based on the foregoing procedures the director of property valuation
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1 shall make an annual determination of the value of land within each of
2 the various classes of land devoted to agricultural use within each county
3 or homogeneous region and furnish the same to the several county ap-
4 praisers who shall classify such land according to its current usage and
5 apply the value applicable to such class of land according to the valuation
6 schedules prepared and adopted by the director of property valuation
7 under the provisions of this section.
8 It is the intent of the legislature that appraisal judgment and appraisal
9 standards be followed and incorporated throughout the process of data
10 collection and analysis and establishment of values pursuant to this
12 For the purpose of the foregoing provisions of this section the phrase
13 "land devoted to agricultural use" shall mean and include land, regardless
14 of whether it is located in the unincorporated area of the county or within
15 the corporate limits of a city, which is devoted to the production of plants,
16 animals or horticultural products, including but not limited to: Forages;
17 grains and feed crops; dairy animals and dairy products; poultry and poul-
18 try products; beef cattle, sheep, swine and horses; bees and apiary prod-
19 ucts; trees and forest products; fruits, nuts and berries; vegetables; nurs-
20 ery, floral, ornamental and greenhouse products. Land devoted to
21 agricultural use shall not include those lands which are used for recrea-
22 tional purposes, other than that land established as a controlled shooting
23 area pursuant to K.S.A. 32-943, and amendments thereto, which shall be
24 deemed to be land devoted to agricultural use, suburban residential acre-
25 ages, rural home sites or farm home sites and yard plots whose primary
26 function is for residential or recreational purposes even though such prop-
27 erties may produce or maintain some of those plants or animals listed in
28 the foregoing definition.
29 The term "expenses" shall mean those expenses typically incurred in
30 producing the plants, animals and horticultural products described above
31 including management fees, production costs, maintenance and depre-
32 ciation of fences, irrigation wells, irrigation laterals and real estate taxes,
33 but the term shall not include those expenses incurred in providing tem-
34 porary or permanent buildings used in the production of such plants,
35 animals and horticultural products.
36 The provisions of this act shall not be construed to conflict with any
37 other provisions of law relating to the appraisal of tangible property for
38 taxation purposes including the equalization processes of the county and
39 state board of tax appeals.
40 Sec. 2. K.S.A. 79-1476 is hereby repealed.
41 Sec. 3. This act shall take effect and be in force from and after its
42 publication in the statute book.