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§ 13. Exemption of property for economic development purposes; procedure; limitations. (a) The board of county commissioners of any county or the governing body of any city may, by resolution or ordinance, as the case requires, exempt from all ad valorem taxation all or any portion of the appraised valuation of: (1) All buildings, together with the land upon which such buildings are located, and all tangible personal property associated therewith used exclusively by a business for the purpose of: (A) Manufacturing articles of commerce; (B) conducting research and development; or (C) storing goods or commodities which are sold or traded in interstate commerce, which commences operations after the date on which this amendment is approved by the electors of this state; or (2) all buildings, or added improvements to buildings constructed after the date on which this amendment is approved by the electors of this state, together with the land upon which such buildings or added improvements are located, and all tangible personal property purchased after such date and associated therewith, used exclusively for the purpose of: (A) Manufacturing articles of commerce; (B) conducting research and development; or (C) storing goods or commodities which are sold or traded in interstate commerce, which is necessary to facilitate the expansion of any such existing business if, as a result of such expansion, new employment is created.

(b) Any ad valorem tax exemption granted pursuant to subsection (a) shall be in effect for not more than 10 calendar years after the calendar year in which the business commences its operations or the calendar year in which expansion of an existing business is completed, as the case requires.

(c) The legislature may limit or prohibit the application of this section by enactment uniformly applicable to all cities or counties.

(d) The provisions of this section shall not be construed to affect exemptions of property from ad valorem taxation granted by this constitution or by enactment of the legislature, or to affect the authority of the legislature to enact additional exemptions of property from ad valorem taxation found to have a public purpose and promote the general welfare.

History: L. 1986, ch. 423, § 1; August 5, 1986.

Law Review and Bar Journal References:

Spurring Economic Development in Kansas Through Property Tax Exemptions -Are We Getting the Results We Want? Laura Ellen Johnson, 30 W.L.J. 82, 83 (1990).

Survey of Kansas Law: Taxation, Sandra Craig McKenzie, 41 K.L.R. 727, 739 (1993).

Avoiding Economic Injury: Considerations in the Application of the Economic Development Exemption, J. K. Wilson, 4 Kan. J.L. & Pub. Pol'y, No. 2, 51 (1995).

Pork, Pollution, and Pig Farming: The Truth About Corporate Hog Production in Kansas, Eric Voogt, 5 Kan. J.L. & Pub. Pol'y, No. 3, 219, 225 (1996).

Attorney General's Opinions:

Finance and taxation; exemption of property for economic development purposes. 86-168.

Exemption of property for economic development purposes. 87-5.

Corporate swine and poultry confinement facilities; not exempt from ad valorem taxation. 87-35.

Tax exempt property; machinery and equipment of electric utility company. 88-158.

Unlawful release, discharge, remission or commutation of taxes; interest and penalties owed by cities; claim for tax exemption to be filed annually. 91-6.

Property of an LLC operating within Fort Riley is subject to taxation, absent a specific exemption. 2009-1.

CASE ANNOTATIONS

1. Property rented or leased for profit nonexempt even though lessee uses property for purpose stated in § 13. Board of Wyandotte County Comm'rs v. Kansas Ave. Properties, 246 Kan. 161, 177, 786 P.2d 1141 (1990).

2. Denial of exemption under subparagraph (a)(2)(C) upheld where goods in plaintiff's warehouse were inventory not sold or traded in interstate commerce. Famous Brands Distributors, Inc. v. Shawnee Co. Comm'rs, 21 Kan. App. 2d 67, 68, 72, 894 P.2d 925 (1995).

3. Board of tax appeals decision reversed, which denied tax exemption of after acquired personal property. In re Tax Exemption Application of Abbott Aluminum, Inc., 269 Kan. 689, 8 P.3d 729 (2000).