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How is
Personal Property Valued and Assessed?
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Commercial
Businesses |
The Kansas Constitution provide that commercial and industrial
personal property will be appraised at its “retail cost when
new” and straight line depreciated over a maximum of seven
years. If the economic life of the property is less than
seven years old, it will be depreciated straight line over the
shorter life. The economic life that is assigned to
commercial assets comes from guidelines issued by the
State of
Kansas, Internal Revenue Service (IRS) publications and the
Marshall & Swift Valuation Services However, so
long as the property is “being used” the appraised value shall
not be less than 20% of the retail cost when new of such
property. “Retail cost when new”, means the dollar amount
an item would cost when new to a purchaser at the retail level
of trade. It DOES NOT include sales tax or freight and
installation charges that are separate and readily discernible
from the set retail price. |
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Individual Personal Property |
Many personal property assets belonging to individuals are
valued from market data, using appraisal guides and stat and
regional market sources. This market data is then used to
establish the current value of a particular asset.
Typically, this value will be based on the age of the asset and
market conditions. |
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Manufactured Homes |
Kansas’s law states that all manufactured homes are considered
to personal property unless: the title is in the name of the
same person (or the person’s spouse) as the deeded land owner
and
the home is on a permanent foundation (K.S.A. 79-340).
Residential manufactured homes are valued at market value, which
is determined by calculating the replacement cost new less
depreciation (RCNLD) for the home. The State of Kansas
Property Valuation Department has developed the
Manufactured Housing Cost Guide for
counties to use for valuation purposes. The information
needed to value a manufactured home is :year, make, model,
length, width, grade and condition. A manufactured home
will be valued the same whether it is determined to be personal
property or real property, including all improvements such as:
decks, porches, sheds, etc. |
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Mineral Leasehold Interest (Oil and Gas) |
All oil and gas leases and oil and gas wells, producing or
capable of producing oil or gas in paying quantities, together
with all casing, tubing and other equipment and materials used
in operating oil and gas wells are considered personal property.
(K.S.A. 79-329) A list of the current royalty owners,
their decimal interest, and their addresses, is to be provided
by the operator and is a requirement for filing the tax
rendition per the oil and gas guide provided by the State.
Oil and gas interests are valued at market value. |
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Motor Vehicles |
Motorcycles, automobiles and trucks that are tagged to operate
at 20,000 pounds or less on public roads are appraised for tax
purposes using a formula set forth in laws. The motor
vehicles approximate base wholesale price (dealer cost) when
first sold to the public is used to “classify” the vehicle
within a price range. The mid-point of this price range is
then 15% yearly (K.S.A. 79-5103). The property taxes are
paid at the time of registration.
Motor vehicles operating over 20,000 pounds or non-highway
vehicles are appraised at market value. The market value
is generally obtained using valuation publications prescribed by
the State. These vehicles are placed on the tax roll and
paid in receipt of a tax bill at the end of the year.
Automobiles owned and leased for a period of time not to
exceeding 28 days by a rental car company have an excise rental
tax imposed in lieu of a property tax (K.S.A. 79-5117).
Motor vehicles used by for hire motor carriers over the road to
transport persons or properties are state-assessed.
Contact the Motor Carrier Section of the Kansas Division of
Property Valuation for more information regarding property taxes
on state-assessed motor vehicles (785-296-2365). |
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Public Utilities |
Property owned by public utilities and railroads are appraised
by the Kansa Department of Revenue, Division of Property
Valuation. Public utility property is valued based upon
the fair market value of ‘unit’. |
