Commercial / Business Personal Property
Types of Business Personal Property
Generally speaking, commercial and industrial machinery and equipment is any taxable, tangible personal property [except for state assessed property and motor vehicles] that is used to produce income or is depreciated or expensed for IRS purposes. The Kansas Constitution classifies personal property that qualifies as Commercial/Industrial Machinery and Equipment ("Commercial") into Class 2, Subclass 5 (2.05). "Commercial" personal property is listed on a tangible personal property assessment form (rendition) pursuant to K.S.A. 79-300 series. Property in the "Commercial" subclass of personal property is listed on schedule 5 of the rendition.
$1500 Exemption for Commercial Equipment
Effective January 1, 2007, Commercial/Industrial machinery and equipment with a "retail cost when new" (RCWN) of $1500 or less per "item" are exempt from personal property taxation. County appraisers must determine whether the property qualifies as an "item" and the "retail cost when new" of the "item" must be established in order to determine whether the "item" qualifies for exemption. Whenever a commercial/industrial "item" is purchased "used", the "retail cost when new" must be established in order to determine whether the "item" qualifies for the exemption. [K.S.A 79-201w]
Commercial/Industrial Machinery and Equipment Exemption
Effective January 1, 2007, machinery and equipment acquired by qualified purchase or lease made or entered into after June 30, 2006, as the result of a bona fide transaction, which was not consummated for the purpose of avoiding taxation, is exempt from property taxation in Kansas. Machinery and equipment transported into state after June 30, 2006, for the expansion of an existing business or creation of a new business or creation of a new business is also exempt from taxation in Kansas. [K.S.A. 79-223]