Opinion ID: 2636968
Heading Depth: 1
Heading Rank: 1

Heading: Kansas Christian

Text: Exemption was sought pursuant to K.S.A. 79-201b Fifth as property used exclusively for elderly housing purposes. BOTA found that Kansas Christian established that the property at issue will be used exclusively for elderly housing purposes. Kansas Christian is a not-for-profit corporation organized in Kansas. Kansas Christian is exempt from paying federal income tax under I.R.C. § 501(c)(3). Thus, contributions to Kansas Christian are deductible for state income tax purposes by virtue of K.S.A. 79-32,120 for individuals and K.S.A. 79-32,138 for corporations. Based on Kansas Christian's financial statements of operating expenses for fiscal years ending December 31, 1985, through 1996, BOTA found that Kansas Christian's charges to residents exceeded its cost of operation by $2,793,089. However, when BOTA took other expenses, such as depreciation, administrative, and bad debt, into account it found that Kansas Christian has not achieved a net profit of greater than $46,500 in a year. BOTA also found that without its contributions, Kansas Christian would be operating at an enormous loss. On the basis of these findings, BOTA concluded that Kansas Christian provides services to its residents at the lowest feasible cost. The exemption was granted. BOTA denied Harvey County's request for reconsideration of the decision.