Personal Property

What is Personal Property?

Kansas property tax law requires that all property be taxed uniformly and equally as to class, and unless otherwise specified, be valued at its fair market value as of January 1st. Article 11, Section 1 of the Kansas Constitution places real property and personal property into separate classes. Class 2 is tangible personal property. Tangible personal property is further classified into six subclasses and assessed at the following percentages of value.

How do I calculate Personal Property taxes?

The appraised value is multiplied by the assessment rate to create the assessed value. The assessed value is then multiplied by the Mill Levy for the tax unit where the property is located as of the assessment date (January 1st). This will give you the full year property tax amount
a. Example: 2.06A Appraised Value is $5,000
b. $5,000 x .30 = $1,500 (assessed value) Multiply the assessed value by the "mill levy"
a. Example: $1,500 x .146919 = $220.38 (Tax Value)
b. Once taxing groups (school districts, cities, county, etc.) set their Mill Levy, this amount is used to calculate your taxes (.146919)

How do I know my assessment rate?

CLASS	DEFINITION	Asmt Rate %
2.01	Manufactured/Mobile Homes used for residential purposes	11.5%
2.02	Mineral leasehold interests, except oil leasehold interests the average daily production from which is five barrels or less, and natural gas leasehold interests the average daily production from which is 100 mcf or less.	25%
2.03	Public Utility tangible personal property including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed.	33%
2.04	All categories of Motor Vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985. (motor vehicles valued under K.S.A. 79-5100 Series)	30%
2.05	Commercial and industrial machinery and equipment, which, if its economic life is seven years or more, shall be valued at its retail cost when new less seven-year straight-line depreciation. Or which, if its economic life is less than seven years shall be valued at its retail cost when new less straight-line depreciation over its economic life, except that the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property.	25%
2.06	All other tangible personal property not otherwise specifically classified. "Extra" boat trailers or motors not paired up with a watercraft boat or vessel. These "extra" items of marine equipment would be in the "Other" sublclass at market value and assessed at this rate.	30%
Watercraft	Defined as; any boat or vessel designed to be propelled by machinery, oars, paddles or wind action upon a sail for navigation on the water that cannot be exempt by other provisions of law. Documented vessels are included in this watercraft definition. Simplified, a boat or vessel is either a watercraft or exempt. Each watercraft may include one trailer which is designed to launch, retrieve, transport and store this boat or vessel and any non-electric motor or motors which are necessary to operate this boat or vessel on the water.	5% As of 1/1/2015

*Source 2015 Personal Property Valuation Guide Kansas Department of Revenue

Recent Legislation Regarding Watercraft began January 1st, 2014 HB 2422

''Watercraft'' is defined as any boat or vessel designed to be propelled by machinery, oars, paddles or wind action upon a sail for navigation on the water that cannot be exempt by other provisions of law. Documented vessels are now included in this watercraft definition. Simplified, a boat or vessel is either a watercraft or exempt. Each watercraft may include one trailer which is designed to launch, retrieve, transport and store this boat or vessel and any non-electric motor or motors which are necessary to operate this boat or vessel on the water.

The assessment rates applied to the appraised value are: 11.5% in tax year 2014; and 5% in tax year 2015 and all tax years thereafter. In no case shall the assessed value of any watercraft cause the tax upon such watercraft to be less than $12.

The levy used to calculate the tax on watercraft shall be the county average tax rate from the prior tax year. 2014 Franklin County Average Tax Rate (To be determined). Minimum Appraised Value $ (To be determined).

Any of these boats would be exempt:

If it wasn't for the provisions of the new watercraft law and a boat was exempt or could be exempt as commercial and industrial machinery and equipment (subclass 5) acquired after June 30, 2006, it would continue to be exempt.
If it wasn't for the provisions of the new watercraft law and a boat and/or a motor and/or a boat trailer was exempt because the purchase price was $750 or less, it would continue to be exempt.
Any boat that is designed to be propelled through the water through human power alone shall be exempt. Examples would be canoes, kayaks, paddle boards, John boats and pedal-power paddle boats.

The only items now included in the "Other" subclass would be "extra" boat trailers or motors not paired up with a watercraft boat or vessel. These "extra" items of marine equipment would be in the "Other" subclass (all other personal property not elsewhere classified) at market value and assessed at 30%.