INCOME AND PRIVILEGE TAXPAYERS-Effective for all taxable years beginning after Dec. 31, 1997 and before Jan. 1, 2012.
Any taxpayer may claim an income or privilege tax credit for personal property tax paid on commercial and industrial machinery and equipment.
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.
The credit is 15 percent of the personal property tax levied for property tax years 2002, 2003, and 2004, 20 percent of the property tax levied for property tax years 2005 and 2006, and 25 percent 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.
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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.