Purpose for farm machinery and equipment property tax exemption

79-201i. Purpose for farm machinery and equipment property tax exemption. It is the purpose of K.S.A. 79-201j of this act to promote, stimulate and develop the general welfare, economic development and prosperity of the state of Kansas by fostering the growth and development of agricultural endeavors within the state. Agriculture, as conducted in farming and ranching operations throughout the state, is the primary basis of the Kansas economy. Communities, regions, and the state as a whole are materially dependent upon agricultural endeavors and derive substantial financial benefit from the success of Kansas agriculture. Farming and ranching operations require the investment of large sums of capital for the purpose of providing the land on which the operations are conducted, and the farm machinery and equipment necessary to satisfactorily carry out such endeavors. Because of agriculture's unique requirements of substantial capital investment, the property tax burden becomes a deterrent to such investment and, in some instances, an encouragement to farm and ranch abandonment. Kansas, and all its citizens, will benefit from any improvement in the economic environment of Kansas agriculture. The exemption from the ad valorem property tax of farm machinery and equipment actually and regularly used in farming and ranching operations will constitute an incentive to agriculture and will improve the general economy of the state. Considering this state's heavy reliance on agriculture, the enhancement of agricultural endeavors is deemed to be a public purpose which will promote the general welfare of the state and be for the benefit of the people of the state. History: L. 1982, ch. 390, § 2; May 20. Law Review and Bar Journal References: "Survey of Kansas Law: Taxation," Sandra Craig McKenzie and Virginia Ratzlaff, 33 K.L.R. 71, 73 (1984). Attorney General's Opinions: Property exempt from taxation; farm machinery and equipment held as inventory. 86-132. Constitutional exemption from property taxation for farm machinery and equipment does not require that property be exclusively used for farming. 97-11. CASE ANNOTATIONS 1. Property owned by nontax-exempt entity leased or providing service for profit to tax-exempt entity taxable. Farmers Co-op v. Kansas Bd. of Tax Appeals, 236 Kan. 632, 640, 694 P.2d 462 (1985). 2. Machinery and equipment used in commercial feedlot not within exemption from taxation as farming or ranching. T-Bone Feeders, Inc. v. Martin, 236 Kan. 641, 649, 693 P.2d 1187 (1985). 3. Property rented for profit is nonexempt regardless if used for purpose stated in Kansas Constitution, article 11, § 13. Board of Wyandotte County Comm'rs v. Kansas Ave. Properties, 246 Kan. 161, 171, 786 P.2d 1141 (1990). 4. Cited; a saw mill is not a farming operation; tax exemption denied. In re Tax Exemption Application of Goddard, 39 Kan. App. 2d 325, 329, 332, 180 P.3d 604 (2008). Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents USEFUL LINKS Session Laws Kansas Administrative Regulations OTHER LEGISLATIVE SITES Kansas Legislature Administrative Services Division of Post Audit Research Department Contact Us PDF Help www.ksrevisor.gov 2026