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Kan. House advances property tax classification

Published on -5/10/2012, 9:30 AM

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TOPEKA, Kan. (AP) -- Kansas House members have given first-round approval to a bill that seeks to buy time for defining what constitutes real and personal business property.

Wednesday's voice vote advanced the measure to final House action, expected Thursday. House passage would send the measure to the Senate.

At issue is property that has previously been exempt from property taxes because of abatements granted by cities and counties. As those abatements expire, the property must be classified as either real or personal for tax purposes.

However, legislators approved a bill in 2006 that removed business machinery and equipment from tax rolls.

Legislators want to take two years to define real and personal property. Their goal is to prevent previously exempt equipment from being reclassified as real property, forcing higher property taxes on businesses.

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