Printable Format74-2438. Appeals to state board; notice and hearing; interest tolled, when; procedure; duties of county or district appraisers. (a) An appeal may be taken to the state board of tax appeals from any finding, ruling, order, decision, final determination or other final action, including action relating to abatement or reduction of penalty and interest, on any case of the secretary of revenue or the secretary's designee by any person aggrieved thereby. Notice of such appeal shall be filed with the secretary of the board within 30 days after such finding, ruling, order, decision, final determination or other action on a case, and a copy served upon the secretary of revenue or the secretary's designee. An appeal may also be taken to the state board of tax appeals at any time when no final determination has been made by the secretary of revenue or the secretary's designee after 270 days has passed since the date of the request for informal conference pursuant to K.S.A. 79-3226, and amendments thereto, and no written agreement by the parties to further extend the time for making such final determination is in effect.
(b) Upon receipt of a timely appeal, the board shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act. The hearing before the board shall be a de novo hearing unless the parties agree to submit the case on the record made before the secretary of revenue or the secretary's designee.
(c) (1) With regard to any matter properly submitted to the board relating to the determination of valuation of residential property or real property used for commercial and industrial purposes for taxation purposes, it shall be the duty of the county or district appraiser to initiate the production of evidence to demonstrate, by a preponderance of the evidence, the validity and correctness of such determination, except that no such duty shall accrue with regard to leased commercial and industrial property unless the property owner has furnished to the county or district appraiser a complete income and expense statement for the property for the three years next preceding the year of appeal. Any appraisal made by the county or district appraiser must be released through the discovery process to the taxpayer, the taxpayer's attorney or the taxpayer's representative. No presumption shall exist in favor of the county or district appraiser with respect to the validity and correctness of such determination. If a taxpayer presents a single property appraisal with an effective date of January 1 of the year appealed which has been conducted by a certified general real property appraiser which determines the subject property's valuation to be less than that determined by a mass real estate appraisal conducted by the county or district appraiser, then the taxpayer's property-specific appraisal shall be accepted into evidence by the board. No interest shall accrue on the amount of the assessment of tax subject to any such appeal beyond 120 days after the date the matter was fully submitted, except that, if a final order is issued within such time period, interest shall continue to accrue until such time as the tax liability is fully satisfied, and if a final order is issued beyond such time period, interest shall recommence to accrue from the date of such order until such time as the tax liability is fully satisfied.
(2) With regard to any matter properly submitted to the board relating to the determination of valuation of real property, if the director of property valuation has developed and adopted methodologies to value such type of property, then it shall be the duty of the county or district appraiser to demonstrate compliance with such methodologies.
History: L. 1957, ch. 429, § 11; L. 1963, ch. 404, § 1; L. 1972, ch. 342, § 80; L. 1987, ch. 293, § 1; L. 1988, ch. 356, § 288; L. 1996, ch. 264, § 10; L. 1997, ch. 126, § 5; L. 1999, ch. 126, § 8; L. 2002, ch. 186, § 3; L. 2008, ch. 109, § 16; L. 2014, ch. 141, § 6; L. 2016, ch. 112, § 5; July 1.
Cross References to Related Sections:
Appeals from certain final orders of board, see 74-2426.
Law Review and Bar Journal References:
Administrative hearings in the department of revenue, Ray E. Cooley, 41 J.B.A.K. 361, 362 (1972).
"Survey of Kansas Law: Taxation," R. Chris Robe, 27 K.L.R. 313, 316 (1979).
"Kansas Inheritance Tax Joins the Twentieth Century," Benjamin J. Neill, 48 J.B.A.K. 313, 330 (1979).
"Survey of Kansas Law: Taxation," Sandra Craig McKenzie and Eric B. Milstead, 37 K.L.R. 961, 1002 (1989).
"The Kansas Retailers' Sales Tax: An Overview," Michael Lennen, 62 J.K.B.A. No. 10, 24 (1993).
Attorney General's Opinions:
Suspension or termination of county appraiser; hearing. 93-89.
State board of tax appeals; formal hearings; participation and representation of parties. 93-100.
CASE ANNOTATIONS
1. Cited; K.S.A. 74-2426 applicable only to matters appealed from director of revenue or director of property valuation. City of Kansas City v. Jones & Laughlin Steel Corp., 187 Kan. 701, 704, 360 P.2d 29; Union Pacific Railroad Co. v. Sloan, 188 Kan. 231, 232, 233, 361 P.2d 889.
2. Mentioned; provisions paraphrased. Sprague Oil Service v. Fadely, 189 Kan. 23, 26, 367 P.2d 56.
3. Mentioned in connection with an appeal by pipeline company objecting to assessment of its property. Panhandle Eastern Pipe Line Co. v. Dwyer, 207 Kan. 417, 418, 485 P.2d 149. Affirmed: 208 Kan. 304, 491 P.2d 961.
4. Assessment of ad valorem tax is administrative matter and board of tax appeals' order thereon is final, absent evidence order is arbitrary, unreasonable or fraudulent. Northern Natural Gas Co. v. Dwyer, 208 Kan. 337, 340, 492 P.2d 147.
5. Applied hereunder; valuation and assessment of property by board approved. Mobil Pipeline Co. v. Rohmiller, 214 Kan. 905, 908, 522 P.2d 923.
6. Appeal by taxpayer from order of director of taxation to district court properly dismissed. Wray v. State Dept. of Revenue, 224 Kan. 234, 579 P.2d 717.
7. Mentioned in holding that district court had no authority to hear appeal of tax grievance from board of tax appeals under either K.S.A. 60-2101(d) or 74-2426. In re Lakeview Gardens, Inc., 227 Kan. 161, 169, 605 P.2d 576.
8. Jurisdiction of district court to hear appeal pursuant to K.S.A. 74-2426 lacking as rehearing requirements thereof not complied with. In re K-Mart Corp., 232 Kan. 387, 388, 654 P.2d 470 (1982).
9. Cited in holding method of valuation under K.S.A. 79-5a04 not shown to be retaliatory. Burlington Northern R. Co. v. Lennen, 573 F. Supp. 1155, 1167 (1982).
10. Trial court's denial of intervention by county commissions and appraisers in action involving statewide valuation and assessment of real property examined. State ex rel. Stephan v. Kansas Dept. of Revenue, 253 Kan. 412, 421, 856 P.2d 151 (1993).
11. Cited regarding exhaustion of administrative remedies claim in drug stamp act case. Dickerson v. Kansas Dept. of Revenue, 253 Kan. 843, 853, 863 P.2d 364 (1993).
12. Whether counties lack standing to challenge state's assessment of property under section examined. Board of Meade County Comm'rs v. State Director of Property Valuation, 18 Kan. App. 2d 719, 723, 725, 726, 727, 728, 861 P.2d 1348 (1993).
13. Statutory procedures regarding public utilities right to appeal assessment and valuation of property examined. Colorado Interstate Gas Co. v. Beshears, 18 Kan. App. 2d 814, 815, 816, 819, 820, 860 P.2d 56 (1993).
14. Whether BOTA can transact business without a quorum of two members present examined. Sunflower Racing, Inc. v. Board of Wyandotte County Comm'rs, 256 Kan. 426, 439, 885 P.2d 1233 (1994).
15. Where parties stipulated to facts and only questions of law remaining BOTA may dispose of appeal without hearing. In re Tax Appeal of Colorado Interstate Gas Co., 258 Kan. 310, 318, 903 P.2d 154 (1995).
16. Taxpayers do not meet the elements for governmental estoppel set out in Allen v. United States, 630 F. Supp. 367 (D. Kan 1984). In re Application of Kinnet, 26 Kan. App. 2d 250, 258, 984 P.2d 725 (1999).
17. BOTA has duty to make its own assessment of property value without giving deference to Division of Property Valuation. In re Appeal of Colorado Interstate Gas Co., 270 Kan. 303, 14 P.3d 1099 (2000).
18. In contested hearing, BOTA analogous to district court; no authority to raise an affirmative defense, party must so plead; hearing de novo unless submitted on record. In re Tax Appeal of Trickett, 27 Kan. App. 2d 651, 8 P.3d 18 (2000).
19. Cited regarding Board of Tax Appeals jurisdiction. In re Tax Appeal of Professional Engineering Consultants, 281 Kan. 633, 639, 134 P.3d 661 (2006).
20. Appeals and tax exemption applications timely, taxpayers were not public utilities as defined by K.S.A. 79-5a01. In re Appeal of Director of Property Valuation, 284 Kan. 592, 594, 161 P.3d 755 (2007).