If item is $250 or less and can work independently of other equipment, it is exempted by law.

Owned or leased by an individual:

Automobiles and most recreational vehicles are classed and taxed at the time of registration for license plates or renewal decal.

What is market value?

The valuation of commercial personal property begins with the cost of the item.  Items are valued according to their historic purchase price when new or the used purchase price and the appropriate economic life of the item is applied.  The asset is then depreciated over its economic life to a remaining base or salvage value.

After December 31, 1995, any qualifying item of commercial personal property with original cost of $250 or less is exempt.  Please continue to list the items on your rendition as usual and the appraiser's office will determine if the item qualifies for this exemption.

The appropriate economic lives that are assigned to commercial items come from guidelines issued by the State of Kansas, Internal Revenue Service (IRS) publications and Marshall & Swift Valuation Services.

Businesses are also required to report any leased equipment they use.  Listing the name and address of the leasing company is very helpful to the county appraiser so the item gets filed under the correct name.

Many personal property items belong to individuals are valued from market data.  *Guidelines are provided by the State of Kansas to help establish market value as well as market data that is collected from our region.  This market data is then used to establish the current value of a particular item along with it's age and condition.  Oil and gas are also valued with the use of a guide published by the State of Kansas.
*Automobiles, light trucks and motorcycles are classed separately by the State of Kansas.

Who is to list property?

K.S.A. 79-303: "Every person, association, company or corporation who shall own or hold, subject to his or her control, any tangible personal property shall list said property for assessment."

K.S.A. 79-301: "All tangible personal property subject to taxation shall be listed and assessed as of the first day of January of each year in the name of the owner thereof."

Remember: It is your responsibility to file this information with the county appraiser's office.  If you own any tangible personal property with the intent to establish and/or operate a business (including a home based business), or if you own any recreational property or vehicles not taxed at the time of registration, or mobile homes not on a permanent foundation, you must file a rendition with the county appraiser's office.  The rendition form is available from the Morton County Appraiser's Office located in the County Courthouse in Elkhart.


You may write to P.O. Box 1430, Elkhart, KS 67950-1430 or call 620-697-2106 to receive a rendition.  Willena Boaldin, Morton County Personal Property Clerk will be glad to assist you.

Penalty Schedule (Except Oil & Gas)
As Required by K.S.A. 79-1422 and K.S.A. 79-1427a.

Penalty

Royalty Tax Explanation

Factors considered when determining market value of oil and gas leasehold properties include past and present production history, current oil and gas prices, and remaining reserves.  The State of Kansas publishes a guide that is followed to help in the determination of the market value of oil and gas.  The formula is used to "determine today's benefit for future revenues discounted to present value".

The ad valorem tax (local personal property tax) that you are billed for on your royalty tax statement is based upon value; therefore, there are some years in which the taxes may appear high and way out of line when your income is down.  Personal property taxes are always for the prior year so the prior year's production is used in the formula.  A loss in one year's income does not eradicate value.  An example of this would be a farmer who is hailed out one year, but does not see a decrease in the market value of his farm ground.

Gas wells may be shut in during the current year, but still have large reserves and are capable of producing a lot of gas, causing taxes to remain high with income down for the year.  The values placed on these royalty interests are supported by offers from several investors to purchase these properties.

The Taxpayers Role

You, the taxpayer, can play an effective role in the appraisal process if you know your rights, understand the remedies available to you and fulfill your responsibilities as a property owner and taxpayer.

Fulfill Your Responsibilities:

File a property rendition with the appraiser's office on or before March 15th of every year for personal property and on or before April 1st every year for oil and gas.

Verify that the property you own is listed and described correctly on the tax records, along with your correct name and address.

Follow the procedure prescribed by law at each level of the appeal process.

Know Your Rights:

You have the right to equal and uniform appraisal. Your value should be equitable to similar properties.

You have the right to have your property taxed on it's fair market value or cost.

Taxing districts must inform the public of proposed tax rate (mill levy) increases and give taxpayers time to comment on the proposed increases.

Understand Your Remedies:

You have the right to appeal the valuation of your property.

You can speak at the budget hearings your officials conduct before adopting resolutions and/or setting the tax levy. These hearings are open to the public.

Classification Chart

According to the Constitution of Kansas, real property will be taxed by classification for ad valorem tax purposes.  Following is a listing of these classifications and the percentages of market value or use value (for agricultural land):

Class Percentage of Assessment

Taxing Year At A Glance

In the Late Winter/Early Spring

Appraisal Process and Notification of Value

Personal property, oil and gas renditions are mailed to property owners already registered with the County Appraiser's Office.  Personal Property renditions must be returned by March 15th or they will receive a penalty.  Anyone owning taxable personal property must file a rendition with the appraiser's office before the March 15th deadline to avoid a penalty.  Oil and gas renditions must be returned by April 1st to avoid a penalty.  All personal property is appraised using published guides and guides issued by the State of Kansas.  Valuation notices are mailed to all owners of personal property by May 1st. (click here for "What Is Personal Property?")

The valuation notice identifies the property, the classification of the property (individual or commercial personal property), the appraised value and the assessed value for the current year.  (Click here for the Classification Chart)

If you feel the classification or appraised value of your personal property is inaccurate, you may appeal on or before May 15th.  (See Appeals Information and Understanding Appeals by clicking on the desired topic.)

At the same time, real estate property values are being calculated. Valuation notices will be mailed on real estate on or before March 1st.

The valuation notice identifies the real estate, the classification of the property, the appraised value and the assessed value for the current year and the previous year as well as instructions on how to appeal the appraisal.  If you feel the classification or appraised value of your real estate is inaccurate, you may appeal within 30 days of the mailing of your valuation notice.

In The Summer

Assessed Value And The Calculation Of Taxes

The county appraiser certifies the total appraised value of all personal property, oil and gas, and real estate to the county clerk.  Taxing jurisdictions (School districts, cities, county, ect.) hold public hearings to invite participation from citizens concerning their budgets.  Property owners can address their concerns over tax rates and the cost and quality of public service they receive.  Once the budget hearings are complete, each taxing jurisdiction submits it's budget to the County Clerk.  This is where the assessed value comes into play.  The sum of moneys needed each year by cities, school districts, the county, etc... determines what is called the mill levy (tax rate).  This mill levy is applied to each one thousand dollars of your property's assessed value.  The assessed value of your property is, by law, a fixed percentage of the market value determined by the county appraiser.

How To Figure Your Taxes:

Example:

In The Fall & Winter

Tax Bills

Once the County Clerk completes the calculation of assessed values and mill levies (tax rates), the county treasurer issues tax bills for payment.

Paying Your Taxes Under Protest

If you believe your tax bill was calculated incorrectly or the property value used by the appraiser is not correct, a payment under protest is appropriate.  However, if you feel your taxes are just to high but your value is ok, a payment under protest will not help.  The taxing jurisdictions public hearings held in the summer are the place to voice your concerns.

When you are ready to pay your taxes and wish to pay them under protest, ask your county treasurer for the protest form when you pay your first half.  You will be contacted by the appraiser's office with a date and time for your hearing to discuss the valuation of your property only.  Other taxation issues go directly to the State Board of Tax Appeals.

The payment under protest hearing with the appraiser is just like the informal appeal that is held in the spring.  Follow the same general guidelines for preparing for this hearing.

New Income Tax Credit Available to Business Machinery And Equipment Owners

The Kansas Tax Reduction and Reform Act of 1998 created an income tax credit for owners of machinery and equipment used in a business related activity.  If you paid this years personal income tax on business machinery and equipment in a timely manner, you may claim this new credit on your Kansas income tax, privilege tax, or insurance company premiums tax return.

How much is the credit?

The credit is 15% of the personal property tax paid on qualified machinery and equipment.

What types of machinery and equipment qualify for the credit?

"Qualifying machinery and equipment" means machinery and equipment required to be listed for property taxation on Schedule 2, Schedule 5, or Schedule 6 by a for-profit business required to file an income tax, privilege tax, or insurance company premiums tax credit.

Schedule 2 Property: Prescribed and/or itemized machinery and equipment used in mineral leasehold interests, including diesel engines, drilling rigs, electric motors, line piping, mud pumps, water injection pumps, oil separators, oil well tubing pumps, pumping jacks, service units, and tanks.

Schedule 5 Property: Commercial and industrial machinery and equipment, including cash registers, computers, construction equipment, fixtures, furniture, gas pumps, manufacturing equipment, medical equipment, signs, trailers and other tangible personal property used in a business.

Schedule 6 Property: All other business related tangible personal property not elsewhere classified, such as spare parts.

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.

What taxes qualify for the 1998 credit?

For tax year 1998, only the 1998 personal property tax timely paid in 1998 may be used for this credit.  The balance of your 1997 personal property tax paid in 1998, and any delinquent taxes do not qualify for the credit.

What taxes qualify in future years?

For 1999 and subsequent tax years, the personal property tax timely paid in the tax year on business machinery and equipment is the basis for the credit.  For example:  For tax year 1999, you may use the last half of 1998 taxes paid by June 20, 1999, and also the 1999 taxes paid by December 20, 1999.

Who may take the credit?

Any business owner paying personal property tax on qualified machinery and equipment is eligible for the credit.  This Includes:

To obtain Schedule K-64, call the Kansas Department of Revenue's voice mail forms request line at (785) 296-4937.  For more information on this tax credit, please contact the Kansas Department of Revenue offices listed or visit their web site at http://www.ink.org/public/kdor.  Contact your county officials for information or assistance in determining the amount of personal property taxes paid on commercial and industrial machinery and equipment.