Opinion ID: 2518337
Heading Depth: 1
Heading Rank: 2

Heading: The Governing Statutes

Text: K.S.A. 79-5a01 provides: (a) As used in this act, the terms `public utility' or `public utilities' shall mean every individual, company, corporation, association of persons, lessees or receivers that now or hereafter are in control, manage or operate a business of: . . . . (4) transporting or distributing to, from, through or in this state natural gas, oil or other commodities in pipes or pipelines, or engaging primarily in the business of storing natural gas in an underground formation; . . . . (b) The terms `public utility' or `public utilities' shall not include: . . . . (2) any individual, company, corporation, association of persons, lessee or receiver owning or operating an oil or natural gas production gathering line which is situated within one county in this state and does not cross any state boundary line. (Emphasis added.) K.S.A. 79-1439 assigns assessment rates according to a property's classification. It provides in pertinent part: (a) All real and tangible personal property which is subject to general ad valorem taxation shall be appraised uniformly and equally as to class and, unless otherwise specified herein, shall be appraised at its fair market value . . . . (b) Property shall be classified into the following classes and assessed at the percentage of value prescribed therefor: . . . . (2) Personal property shall be classified into the following classes assessed at the percentage of value prescribed therefor: . . . . (C) public utility tangible personal property including inventories thereof . . . at 33%. As used in this paragraph, `public utility' shall have the meaning ascribed thereto by K.S.A. 79-5a01, and amendments thereto; . . . . (E) 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 as long as it is being used shall not be less than 20% of the retail cost when new of such property at 25% . . . .