| Types
of personal property
Taxable personal
property includes non-highway vehicles, trucks with a 16M or heavier
weight tag, mopeds, motorcycles that are not tagged, boats, boat
motors and boat trailers, jet skis, jet ski trailers, sailboats,
all other trailers whether tagged or not, snowmobiles, golf carts,
camping trailers not considered RV’s, slide-in campers, 4
wheelers, 3 wheelers, airplanes, helicopters, hot air balloons and
mobile homes. Business personal property would include all equipment,
machinery, tools, office equipment and furniture used in any type
of business, whether in an office or conducted out of an individual’s
home. Items of machinery and equipment, materials and supplies with
a retail cost new of $1500 or less is expressly exempt from taxation.
In addition, all machinery and equipment that is acquired after
June 30, 2006 via a bona fide purchase or is transported into the
state for expansion of an existing new business is expressly exempt
from taxation.
Listing
requirements
Every person
who owns or holds tangible personal property shall list said property
for assessment. (K.S.A. 79-303.) In Kansas, you are taxed on what
you own on January 1st of any given year.
Situs
rules
Personal property
items will be assessed for the full year if they were located in
Miami County on January 1st.
There are two
exceptions to this:
- A motor vehicle
(non-hwy and 16M or heavier tagged truck) is pro-rated for time
owned if purchased before September 1 or sold anytime during the
year.
- Watercraft
(boats, motors, boat trailers, jet skis) are pro-rated based on
the number of months owned during the year. The owner of record
is to notify the County Appraiser within 30 days of acquisition
or sale of water craft items.
There will be no pro-ration of taxes on watercraft
if notification of the sale is received more than 30 days after
per KSA 79-306e(b).
How
are different types of personal property appraised?
- Mobile
Homes are appraised each year based on data obtained
from sales prices of current sales. The appraised value is then
taken times 11.5% to arrive at the assessed value.
- Trucks
tagged with 16M tags and 20M tags are appraised the same as a
12M truck with a county wide levy. Taxes are not paid at the time
of registration,however they are paid at the end of the year through
a tax statement like other personal property. The assessment rate
is 20%.
- Business
equipment and machinery is taxed based on cost. A taxing factor
is applied to the Retail Cost New Price to determine appraised
value. A used factor and the taxing factor are both applied to
a used price to determine the appraised value. The assessment
rate is 25%.
- All other
personal property is appraised using guides and publications as
prescribed by the State of Kansas Property Valuation Department.
The assessment rate is 30%.
Income
tax credit information
The Business Machinery
and Equipment Tax Credit is an income tax credit equal to 15% of the
personal property tax levied for property tax years 2002, 2003, and
2004, 20% of the property tax levied for property tax years 2005 and
2006, and 25% of the property tax levied for property tax year 2007
and all such years thereafter, actually and timely paid on specific
commercial and industrial machinery and equipment. “Qualified
machinery and equipment” includes machinery and equipment required
to be listed for property taxation on Schedule 2, Schedule 5, or Schedule
6. Items that DO NOT qualify for the credit include motor vehicles,
personal property owned by a public utility, and property not used
for a business purpose. |
|
For the purpose
of valuation and taxation, all oil and gas leases and all oil and
gas wells, producing or capable of producing oil and gas in paying
quantities, together with all casing, tubing or other material therein,
and all other equipment and material, used in operating the oil
and gas wells are hereby declared to be personal property and shall
be assessed and taxed as such (K.S.A. 79-329).
Listing
requirements
Operators of
oil leases and gas leases are required to file rendition forms stating
the amount of production, the number of wells and the equipment
located on each lease by April 1 of each year.
How
are the leases appraised?
The County Appraiser
must use the oil and gas guide prescribed by the Director of Property
Valuation in establishing market value appraisals for each oil and
gas lease. Oil and gas appraisals are made annually on the basis
of reserves of product. Reserves are estimated from the reported
production adjusted by the percentage of the decline in production
over time. All producing and non-producing well equipment and tanks
on each lease is appraised at market value using the prescribed
guide. Each drilling rig and pulling unit is appraised using the
prescribed guide.
Oil and Gas
Appraisals are made annually on the basis of reserves of product.
Reserves are estimated from the reported production adjusted by
the percentage of the decline in production over time. |
