79-223. Same; certain commercial and industrial machinery and equipment. (a) It is the purpose of this section to promote, stimulate, foster and encourage new investments in commercial and industrial machinery and equipment in the state of Kansas, to contribute to the economic recovery of the state, to enhance business opportunities in the state, to encourage the location of new businesses and industries in the state as well as the retention and expansion of existing businesses and industries and to promote the economic stability of the state by maintaining and providing employment opportunities, thereby contributing to the general welfare of the citizens of the state, by exempting from property taxation all newly purchased or leased commercial and industrial machinery and equipment, including machinery and equipment transferred into this state for the purpose of expanding an existing business or for the creation of a new business.
(b) The following described property, to the extent specified by this section, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:
First. Commercial and industrial machinery and equipment acquired by qualified purchase or lease made or entered into after June 30, 2006, as the result of a bona fide transaction not consummated for the purpose of avoiding taxation.
Second. Commercial and industrial machinery and equipment transported into this state after June 30, 2006, for the purpose of expanding an existing business or creation of a new business.
(c) Any purchase, lease or transportation of commercial and industrial machinery and equipment consummated for the purpose of avoiding taxation shall subject the property to the penalty provisions of K.S.A. 79-1422 and 79-1427a, and amendments thereto. The county appraiser shall not reclassify any property that is properly classified for property tax purposes within subclass (5) of class 2 of section 1 of article 11 of the constitution of the state of Kansas.
(d) As used in this section:
(1) "Acquired" shall not include the transfer of property pursuant to an exchange for stock securities, or the transfer of assets from one going concern to another due to a merger, reorganization or other consolidation;
(2) "commercial and industrial machinery and equipment" means property classified for property tax purposes within subclass (5) of class 2 of section 1 of article 11 of the constitution of the state of Kansas, but shall not include any electric generation facility or addition to an electric generation facility that is used predominately to produce and generate electricity utilizing renewable energy resources or technologies as defined in K.S.A. 79-201, and amendments thereto;
(3) "qualified lease" means a lease of commercial and industrial machinery and equipment for not less than 30 days for fair and valuable consideration where such machinery and equipment is physically transferred to the lessee to be used in the lessee's business or trade; and
(4) "qualified purchase" means a purchase of commercial and industrial machinery and equipment for fair and valuable consideration where such machinery and equipment is physically transferred to the purchaser to be used in the purchaser's business or trade.
(e) The secretary of revenue is hereby authorized to adopt rules and regulations to administer the provisions of this section.
History: L. 2006, ch. 205, § 1; L. 2008, ch. 182, § 18; L. 2015, ch. 75, § 5; July 1.
Structure Kansas Statutes
Article 2 - Property Exempt From Taxation
79-201a Property exempt from property and ad valorem taxes.
79-201c Same; wearing apparel; household goods and personal effects; graveyards.
79-201e Same; mined land; reclaimed surface mining operations.
79-201h Same; solar energy systems.
79-201i Purpose for farm machinery and equipment property tax exemption.
79-201k Property exempt from taxation; purpose; business aircraft.
79-201m Property exempt from taxation; merchants' and manufacturers' inventory.
79-201n Property exempt from taxation; grain.
79-201o Property exempt from taxation; construction hand tools.
79-201p Property exempt from taxation; motor vehicle inventories.
79-201r Property exempt from taxation; Strother Field airport.
79-201t Property exempt from taxation; oil leases.
79-201u Property exempt from taxation; motor vehicles donated for charitable auctions.
79-201w Property exempt from taxation; machinery, equipment, materials and supplies.
79-201x Property exempt from taxation; residential property exempt from statewide school levy.
79-205 Waterworks plants at Kansas City exempted from taxation.
79-219 Property exempt from taxation; mechanic's hand tools.
79-220 Property exempt from taxation; antique and amateur-built aircraft.
79-223 Same; certain commercial and industrial machinery and equipment.
79-225 Property exempt from taxation; certain integrated coal gasification power plant property.
79-226 Property exempt from taxation; certain refinery property.
79-227 Property exempt from taxation; certain crude oil or natural gas pipeline property.
79-229 Property exempt from taxation; certain biomass-to-energy plant property.
79-230 Property exempt from taxation; nuclear generation facility property.
79-232 Property exempt from taxation; biofuel storage and blending equipment.
79-233 Property exempt from taxation; carbon dioxide capture, sequestration or utilization property.
79-234 Same; certain tangible personal property.
79-253 Applicability of amendments to 79-201, 79-251 and 12-1749d.
79-254 Exempt property deemed used exclusively, when.
79-255 Property tax refund for oil lease property; claim procedures.
79-256 Independent power producer property and pollution control devices; definitions.
79-257 Same; exemption from taxation.
79-259 Property exempt from taxation; certain electric transmission lines and appurtenances.
79-260 Property exempt from taxation; new automobile manufacturing property.
79-261 Procedure governing classification of property for purposes of exemption under 79-223.
79-263 Property exempt from taxation; certain airports.
79-264 Property exempt from taxation; certain property owned by a redevelopment authority.