18 Jan Kansas Dept. of Revenue Releases 2023 Grain Elevator Guide
The Kansas Dept. of Revenue has released its 2023 Grain Elevator Guide and Addendum, a revised guide worksheet and a draft taxpayer letter for reference by members of the Kansas Grain and Feed Association.
In 2022, the Kansas Court of Appeals released a decision in Dodge City Coop v. Gray County which clarified the grain elevator machinery and equipment is to be classified as personal property for property tax purposes, rather than as fixtures to the realty. This stands as a major, and positive, change in how our industry assets were previously classified and tax.
To provide clarity on the issue to county appraisers, and taxpayers, the Kansas Dept. of Revenue’s Property Valuation Division (PVD) has released an addendum to our Grain Industry Property Valuation Guide. Classifying machinery and equipment as personal property puts a reporting burden on the property owner, as such property must be listed with the county appraiser on or before March 15 of each year.
Under Kansas law, a penalty is to be assessed for any personal property that is not listed by that date. PVD hopes to release its guidance document in the coming days. Machinery and equipment installed after July 1, 2006, is exempt from personal property tax in Kansas.
Initially, PVD is requesting that property owners complete and submit a comprehensive personal property rendition for all personal property machinery and equipment items by the March 15th deadline. It will then be the responsibility of the county appraiser to review the completed rendition and determine which items qualify for the tax exemption (based on installment date). Any item qualifying for the tax exemption would not be required to be reported in future years.
Please contact your association with any questions or concerns. KGFA’s senior vice president of government affairs and general counsel, Randy Stookey is available by phone: 785-234-0461 or by email randy@kansasag.org.