Business Personal Property

The Business Personal Property Division appraises all business’ tangible personal property, also known as commercial and industrial machinery and equipment. Article 11, Section 1 of the Kansas Constitution establishes that these assets are assessed at 25 percent of their appraised value.

What assets should I report?

Any tangible personal property purchased and used to produce income or is depreciated or expensed for IRS purposes (except state assessed property and motor vehicles) is assessable as Commercial and Industrial Machinery and Equipment (CIME).

Assets which have a "retail cost when new" of $1,500 or less and are stand alone items are exempt; however, it’s requested that you list these assets.

Any new assets purchased after June 30th 2006, do not need to be reported or listed on your filing.

What’s retail cost when new?

The dollar amount an item would cost when new to a purchaser at the retail level of trade. It is not a used sale price, nor a wholesale or manufacturer’s cost. Another way to describe it is the total cost a taxpayer incurs to acquire new property in order to produce income over a period of years in a commercial or industrial setting. The term "retail cost when new" does not include sales tax, freight or installation charges that are separate and readily discernible from the set retail price.

How do you determine appraised value?

The Kansas Constitution provides that commercial and industrial property will be appraised starting at its "retail cost when new" and depreciated straight line over a maximum of seven years. If the economic life of the machinery or equipment is less than seven years, it will be depreciated straight line over the shorter life. However, so long as the property is "being used" the appraised value shall not be less than 20 percent of the retail cost when new of such property.

How are business personal property taxes calculated in Kansas?

To determine property tax on business personal property, the appraised value is multiplied by the appropriate percentage established in Article 11, Section 1 of the Kansas Constitution to determine the assessed value.

Article 11, Section 1 of the Kansas Constitution classifies personal property into the following classes for the purpose of assessment:

• Subclass 1: Mobile or manufactured homes used for residential purposes 11.5%
• Subclass 2: Mineral leasehold interests 25/30%
• Subclass 3: Public Utilities 33%
• Subclass 4: Motor vehicles other than tax-when-tagged motor vehicles, state assessed motor vehicles and leased motor vehicles that are taxed based upon their gross receipts 30%
• Subclass 5: Commercial & Industrial machinery & equipment 25%
• Subclass 6: All other tangible personal property 30%
• Subclass : All watercraft 5%

The assessed value is then multiplied by the mill levy for the taxing unit in which the property is located.

Appraised Value X Assessment Rate = Assessed Value X Mill Levy = Tax

I’m starting a business in Sedgwick County. Do I need to let you know?

Depends Anyone owning and/or leasing tangible personal property prior to July 1, 2006 with the intent to establish a business (home occupations included) whether as an individual, corporation, or partnership, must file a Commercial Personal Property Rendition with the County Appraiser's Office per Kansas Statute 79-303 and 79-306.

You will need to provide the following information: business name; business location; mailing address; owner’s name; person to contact; telephone number; date business began (in Kansas); and type of business. Once you provide our office with this information, we will set your business up in the system and mail you a personal property return to complete and return to our office. Just starting a business and need to report the above information?

If you owned or leased personal property as of January 1, you are liable to report such property by the filing deadline.

Tax Calendar for Personal Property

Note: to avoid incurring state mandated penalties, renditions must be filed by the deadline date. Counties have no authority to abate, waive, or refund the penalty mandated by K.S.A. 79-1422. Only the Board of Tax Appeals has the authority to abate, waive, or refund the penalty.