Opinion ID: 2521087
Heading Depth: 1
Heading Rank: 5

Heading: Lietz Construction's equipment.

Text: The final issue is whether BOTA correctly determined that Lietz Construction's equipment qualified for tax exemption under K.S.A. 2001 Supp. 79-201j(a). Wabaunsee County complains that Lietz Construction failed to present substantial competent evidence to meet its burden of clear proof. Under K.S.A. 77-621(c)(7), this court may grant relief from BOTA's decision if the agency action is based on a determination of fact, made or implied by the agency, that is not supported by evidence that is substantial when viewed in light of the record as a whole, which includes the agency record for judicial review, supplemented by any additional evidence received by the court under this act. To reach the conclusion that Lietz Construction's equipment qualified for the farm machinery and equipment exemption, BOTA had to first make the legal determination that the equipment in question was personal property used in a farming or ranching operation. In addition, BOTA also had to make the factual determination that the equipment was actually and regularly used in farming or in farm work for hire. In response to a letter from David Patton, chairman of BOTA, Merle and Nora Lietz stated that Lietz Construction was a soil conservation contractor and [we] use our equipment 75-80 percent of the time for that purpose doing work for area farmers. That letter was made part of BOTA's record. At the BOTA hearing, Merle Lietz took an oath to tell the truth. When counsel for Wabaunsee County questioned him about jobs performed other than employment on farms constructing terraces and other conservation work, Lietz responded that about 20 percent of Lietz Construction jobs were non-farm related. In regard to the rock quarry, Lietz testified that another party took rock from their property, but their equipment was only used to uncover the rock and to do the reclamation work after quarrying is finished. Lietz later reemphasized that 80 percent of time their equipment was used solely for the soil conservation reclamation and improvement work and that the work at the quarry was not included in that 80 percent. Moreover, Lietz stated that since he had been in business there was not a year where his equipment was used less than 50 percent of the time for soil conservation or land improvement work. There is no evidence in the record suggesting that Lietz' sworn testimony was untruthful. At the hearing and on appeal, his testimony is uncontroverted. Therefore, Lietz' testimony provided substantial competent evidence for BOTA's factual determination that Lietz Construction's equipment was actually and regularly used in farm work for hire. Viewed in light of the record as a whole, substantial evidence supports BOTA's decision. Wabaunsee County also contends that BOTA's decision failed to adequately set forth its findings of fact and conclusions of law, precluding meaningful judicial review. It notes that an administrative tribunal must set forth a concise and explicit statement of the underlying facts of record supporting its findings of fact under K.S.A. 77-526. Wabaunsee County states that this court cannot perform a meaningful review of the case under the standards of K.S.A. 77-621(c)(3) and (7) unless it remands this matter to BOTA for further fact finding. Under K.S.A. 77-621(c), an appellate court may grant relief if it determines that: (3) the agency has not decided an issue requiring resolution, or (7) the agency action is based on a determination of fact ... not supported by evidence that is substantial. In its order, BOTA found: 7. The Board finds that the subject property is actually and regularly used as farm equipment. The Board concludes that the applicant satisfies the conditions enumerated in K.S.A. 79-201j(a), and amendments thereto. 8. The applicant has also requested an exemption for the trailer that hauls the various dozers and scrapers. The Board finds that because the dozers and scrapers that the trailer hauls is [sic] farm equipment as defined in K.S.A. 79-201(j), and amendments thereto, the trailer that hauls the dozers and scrapers can also qualify for an exemption pursuant to K.S.A. 79-201(j), and amendments thereto. We have already determined that substantial evidence supports BOTA's factual determination. As for Wabaunsee County's contention that BOTA may have left an issue unresolved in contravention of K.S.A. 77-621(c)(3), it fails to outline what issue may have been left unresolved. Wabaunsee County simply complains that BOTA made virtually no explicit findings of material fact and failed to articulate any standard for determining whether earth-moving equipment met the requirements of K.S.A. 2001 Supp. 79-201j(a) and whether the trailers met the requirements of K.S.A. 8-126(z). In essence, Wabaunsee County is disputing BOTA's legal conclusions, not its factual findings. We have approved BOTA's interpretation of K.S.A. 2001 Supp. 79-201j(a), allowing ad valorem tax exemption for equipment used in soil conservation work for farmers. We also find that BOTA's determinations of fact were based on substantial evidence. For the reasons discussed, Wabaunsee County's numerous claims of error fail. Affirmed.