State of Kansas Department of Revenue

1 State of Kansas Department of Revenue Laura Kelly, Governor Mark A. Burghart, Secretary Division of Property valuation David N. Harper, Director 2022 Personal Property Guide Zibell Office Bldg, 300 SW 29th St, Topeka, KS 66611 Mail: Box 3506, Topeka, KS 66601-3506 Phone (785) 296-2365 Fax (785) 296-2320 Hearing Impaired TTY (785) 296-2366 2022 Personal Property Guide Changes The following are notable changes in the 2022 guide: Updated values in the 16M/20M Minimum Appraised Value Chart Web address for the KDOR Vehicle Property Tax Lookup has changed Address has now changed to Added distinction between real vs. personal property for solar panels attached to real structure and solar farms Military exemption language has been changed per HB 2313 Added language and valuation guidelines for shipping containers Web address for the KDOR Website has changed Address has now changed to Other guide changes may consist of dates, page numbers, formatting, and additional language for clarification 2022 Personal Property valuation Guide Revised 12/2021 Page ii 2022 Personal Property valuation Guide Revised 12/2021 Page iii Introduction Kansas law states that all real property and personal property in this State , not expressly exempt, is subject to taxation.

2 All tangible personal property owned as of January 1st must be listed in the name of the owner, with the county appraiser each year for taxation purposes. The statutory definition of personal property is .. every tangible thing which is the subject of ownership, not forming part or parcel of real property [ 79-101, 79-102, 79-301, 79-303] The Personal Property valuation Guide is written by the Property valuation Division in the Kansas Department of Revenue . It is intended to be used by county appraisers as the actual personal property valuation guide for the purposes of Directive 17-048, 79-505, 79-1412a Sixth and 79-1456. This publication is not all-inclusive and refers to valuation information contained in statutes, directives and guidelines. Whenever personal property is required to be valued at fair market value, the county appraiser may deviate from the procedures shown in this guide, on an individual piece of property, for just cause shown and, in a manner, consistent with achieving fair market value.

3 [ 79-1456] The Personal Property valuation Guide outlines procedures for valuing each subclass of personal property set forth in the Kansas Constitution. For an overview of laws and procedures pertaining to the assessment and taxation of personal property, other than valuation information, refer to the Kansas Personal Property Summary publication available on the web site. Personal property guides, directives, memorandums, forms and other related information can be accessed through the Division s web site at Kansas statutes and other information can be accessed through the Kansas Department of Revenue Policy Library link. 2022 Personal Property valuation Guide Revised 12/2021 Page iv Table of Contents Contents Introduction .. iii Real Property or Tangible Personal Property .. xiii Personal Property Filing Penalties.

4 Xiv Personal Property Classification and Assessment .. 1 Listing Personal Property: Due Date and Location (Situs) .. 2 Mobile and Manufactured Homes .. 3 Discovery of Manufactured Homes .. 4 Classifying Manufactured Homes .. 5 Mineral Leasehold Interests (Oil and Gas) .. 7 Public Utilities .. 8 Motor Vehicles .. 9 valuation Summary for Taxable Vehicles .. 10 Vehicle Identification Numbers .. 12 Taxed When Tagged Motor Vehicles .. 15 Class Codes for Taxed When Tagged and 16M/20M Motor Vehicles .. 18 Property Tax Exceptions in MOVRS .. 20 Tax Roll Motor Vehicles .. 22 Motorcycles (Non-highway titled motorcycles designed for use on public roads) .. 23 Autos & Light Duty Trucks (Light duty trucks - GVW of 14,000 or less) .. 24 Medium (GVW 14,001 or greater) & Heavy Duty Trucks .. 25 16M or 20M Motor Vehicles.

5 26 Proration of Tax Roll and 16M/20M Motor 30 Flow Chart for valuation and taxation of taxed when tagged , tax roll and 16M/20M motor vehicles 34 RV Titled Recreational Vehicles .. 35 2022 Personal Property valuation Guide Revised 12/2021 Page v Table of Contents Antique Titled Motor Vehicles .. 37 valuation of Kit or Assembled Vehicle Worksheet .. 39 Assembled Vehicles .. 40 Gray Market Motor Vehicles .. 41 Ambulances .. 42 School Small Buses .. 46 Intermediate and Large Transit Buses .. 48 Inter-City Buses .. 49 Hearses .. 50 Limousines .. 51 Kalmar/Ottawa and Capacity Brand Yard/Terminal Tractors .. 52 Commercial Vehicles .. 53 Commercial/Industrial machinery and equipment .. 54 Retail cost when new (RCWN): .. 55 Economic Life: .. 55 The Used Factor: .. 57 Used for Commercial Purposes vs.

6 Not Used : .. 59 $1500 Exemption for Commercial equipment : .. 60 Commercial/Industrial machinery and equipment Exemption: .. 61 Computer Software Tangible vs. Intangible: .. 62 Truck Beds & Bodies (Commercial): .. 63 Wireless Communication Towers .. 64 Summary of Key Terms .. 65 Other Personal Property Not Elsewhere Classified .. 67 2022 Personal Property valuation Guide Revised 12/2021 Page vi Table of Contents valuation Guidelines for Other Personal Property .. 67 Aircraft .. 68 Hot Air Balloons .. 69 Golf Carts .. 72 ATVs, Snowmobiles, Off Road Motorcycles, RUVS, Motorized Bicycles (Mopeds) .. 73 Truck Campers and Travel Trailers (Without RV Title) .. 74 Tiny Homes .. 75 Shipping Trailers (Non-Business) .. 77 Truck Beds and Bodies (Non-Business) .. 77 $1500 Exemption for Commercial equipment .

7 78 Valuing marine equipment in the Other subclass: .. 79 81 Proration of Watercraft: .. 82 Glossary of Key Terms .. 89 APPENDIX A .. APPENDIX B .. APPENDIX 2022 Personal Property valuation Guide Page xiii Real Property or Tangable Persoonal Property Revised 12/2021 Real Property or Tangible Personal Property It is the responsibility of the Kansas county appraiser to classify all taxable and exempt real and personal property. ( 79-1459) Classification for the purposes of ad valorem taxation is delineated in Article 11, Section 1 of the Kansas Constitution. Under this section, property subject to taxation is divided into two principle classes; 1) real and 2) tangible personal property. Both classes contain several subclasses, each with its own assessment rate. Also see 79-1439.

8 Current law provides in part, (i)n determining the classification of property for ad valorem tax purposes, the county appraiser shall conform to the definitions of real and personal property in Kansas law and to the factors set forth in the personal property guide devised or prescribed by the director of property . 2015 Supp. 79-261(b)(1) 79-102 defines real property and personal property in the following manner: That the terms real property, real estate, and land .. shall include not only the land itself, but all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs and wells, rights and privileges appertaining thereto. The term personal property shall include every tangible thing which is the subject of ownership, not forming part or parcel of real In some instances, it can be a difficult task for the county appraiser to determine when property is personal property or real property, more specifically when machinery or equipment becomes a fixture, hence real property.

9 The Kansas Supreme Court has long ago recognized the difficulty in separating real from personal property, particularly in regard to fixtures. It is frequently a difficult and vexatious question to ascertain the dividing line between real and personal property, and to decide on which side of the line certain property belongs. Atchison, Topeka & Santa Fe Railroad Co. v. Morgan, 42 Kan. 23, 21P. 809, 811 (1889). Where the proper classification of commercial and industrial machinery and equipment is not clearly determined from the definitions of real and personal property provided in Kansas law, the appraiser shall use the three-part fixture law test as set forth in the personal property guide prescribed by the director of property valuation pursuant to 75-5105a(b), and amendments thereto, and shall consider the following: A.

10 The annexation of the machinery and equipment to the real estate; B. the adaptation to the use of the realty to which it is attached and determination whether the property at issue serves the real estate; and C. the intention of the party making the annexation, based on the nature of the item affixed; the relation and situation of the party making the annexation; the structure and mode of annexation; and the purpose or use for which the annexation was made. 2015 Supp. 79-261(b)(2) 2022 Personal Property valuation Guide Page xiii Real Property or Tangable Persoonal Property Revised 12/2021 The answer must be YES to all three questions before it can be said that personal property has become a fixture and thus part of the real property. The Kansas Court of Appeals has applied the 3-part fixture law test in a case pertaining to the value of property for ad valorem taxation purposes.