525 N. Main, #227  Wichita, KS.  67203, Tel: (316) 660-9110 Fax: (316) 383-7457 

BUSINESS PERSONAL PROPERTY

The Business Personal Property Division of Personal Property appraises all business’ tangible personal property, also known as Commercial and Industrial Machinery and Equipment. Article 11, Section 1 of the Kansas Constitution establishes that these assets are assessed at 25% of their appraised value.

What assets should I report?

Any tangible personal property that is used to produce income or is depreciated or expensed for IRS purposes (except state assessed property and motor vehicles) is assessable as Commercial and Industrial Machinery and Equipment (CIME). Assets which have a "retail cost when new" of $250 or less should not be reported.

The dollar amount an item would cost when new to a purchaser at the retail level of trade. It is not a used sale price, and it is not a wholesale or manufacturer’s cost. It is the total cost a taxpayer incurs to acquire new property in order to produce income over a period of years in a commercial or industrial setting. The term "retail cost when new" does not include sales tax or freight and installation charges that are separate and readily discernible from the set retail price.

The dollar amount an item would cost when new to a purchaser at the retail level of trade. It is not a used sale price, and it is not a wholesale or manufacturer’s cost. It is the total cost a taxpayer incurs to acquire new property in order to produce income over a period of years in a commercial or industrial setting. The term "retail cost when new" does not include sales tax or freight and installation charges that are separate and readily discernible from the set retail price.

The Kansas Constitution provides that commercial and industrial property will be appraised starting at its "retail cost when new" and depreciated straight line over a maximum of seven years. If the economic life of the machinery or equipment is less than seven years, it will be depreciated straight line over the shorter life. However, so long as the property is "being used" the appraised value shall not be less than 20% of the retail cost when new of such property. The 1999 "Used Factor" Table can be accessed by clicking Used Factor Table.  The 1999 Commercial and Industrial Machinery and Equipment (CIME) appraised factor table can be accessed by clicking CIME Appraised Factor Table.

To determine property tax on business personal property, the appraised value is multiplied by the appropriate percentage established in Article 11, Section 1 of the Kansas Constitution to determine the assessed value (click here to see subclasses). The assessed value is then multiplied by the mill levy for the taxing unit in which the property is located (click here to see 1999 Ad Valorem Tax Levies).

I’m starting a business in Sedgwick County, do I need to let you know?

Yes!  Anyone owning and/or leasing tangible personal property with the intent to establish a business (home occupations included) whether as an individual, corporation, or partnership, must file a Commercial Personal Property Statement with the County Appraisal Office per Kansas Statute 79-303 and 79-306.

If you owned or leased personal property as of January 1, you are liable to report such property by the filing deadline. To see filing deadlines, click Tax Calendar.

You will need to provide our office with the following information: Business name; Business location; Mailing address; Owner’s name; Person to contact; Telephone number; Date business began (in Sedgwick County); and Type of business. Once you provide our office with this information, we will set your business up in the system and mail you a personal property tax form to complete and return to our office. Just starting a business and need to report the above information? You may do so now by clicking New Business Form.