BUSINESS Machinery and Equipment Credit
INCOME AND PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after December 31, 1997.
Any taxpayer may claim an income or privilege tax credit for personal property tax paid on commercial and industrial machinery and equipment.
QUALIFICATIONS
The property tax must have been levied and timely paid during the
tax year for which the credit is taken.
The machinery and equipment must be classified for property taxation purposes as subclass 2, 5 or 6 of class 2 under section 1 of article 11 of the Kansas Constitution.
CREDIT AMOUNT
The credit is 15% of the personal property tax levied for property
tax years 2002, 2003, and 2004, 20% of the property tax levied for
property tax years 2005 and 2006, and 25% of the property tax levied
for property tax year 2007 and all such years thereafter, actually
and timely paid on specific commercial and industrial machinery
and equipment.
MACHINERY AND EQUIPMENT REFUND
The amount of credit which exceeds the tax liability for a taxable
year is refunded to the taxpayer.
PROCEDURES TO CLAIM THE CREDIT
You may download Schedule K-64
to claim the machinery and equipment credit. This schedule must
be completed and submitted with the income or privilege tax return.
You may also call the Department of Revenue voice mail system at
(785) 296-4937 to request Schedule K-64. You will be asked to give
your name, address, phone number and form(s) you desire. Please
allow two weeks for delivery of your forms.
MACHINERY AND EQUIPMENT DEFINITIONS
CLASS 2,
SUBCLASS 2
Class 2, subclass 2 of article 11, section 1 of the Kansas Constitution
includes machinery and equipment used in mineral leasehold interest.
This includes but is not limited to: drilling rigs, service units,
mud pumps, water injection pumps, torque converters, tanks, line
piping, diesel engines, electric motors, oil separators, oil well
tubing pumps and pumping jacks.
CLASS 2,
SUBCLASS 5
Class 2, subclass 5 of article 11, section 1 of the Kansas Constitution
includes commercial and industrial machinery and equipment used
for income producing purposes. This includes but is not limited
to: manufacturing equipment, cash registers, computers, copiers,
furniture, refrigeration equipment, gas pumps, medical equipment,
construction equipment and other tangible personal property used
for profit.
CLASS 2, SUBCLASS 6
Class 2, subclass 6 of article 11, section 1 of the Kansas Constitution
includes all other tangible personal property not otherwise specifically
classified for property tax. This includes but is not limited to:
spare parts and supplies with a retail cost when new of greater
than $250.