Sedgwick County, Kansas Appraiser's Office
Business Personal Property

The Business Personal Property Division 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 purchased prior to July 1, 2006 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 $1,500 or less and are stand alone items are exempt; however, it’s requested that you list these assets.

What’s Retail Cost When New?

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, nor a wholesale or manufacturer’s cost. Another way to describe 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, freight or installation charges that are separate and readily discernible from the set retail price.

How do you determine appraised value?

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 2006 "Used Factor" Table can be accessed by clicking here.  The 2006 Commercial and Industrial Machinery and Equipment (CIME) appraised factor table can be accessed by clicking here.

How are business personal property taxes calculated in Kansas?

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.

Appraised Value X Assessment Rate = Assessed Value X Mill Levy = Tax

I’m starting a business in Sedgwick County.  Do I need to let you know?

Yes!  Anyone owning and/or leasing tangible personal property prior to July 1, 2005 with the intent to establish a business (home occupations included) whether as an individual, corporation, or partnership, must file a Commercial Personal Property Rendition with the County Appraiser's Office per Kansas Statute 79-303 and 79-306.

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 Kansas); 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 return 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 here.

If you owned or leased personal property as of January 1, you are liable to report such property by the filing deadline.

Note:  to avoid incurring state mandated penalties, renditions must be filed by the deadline date.  Counties have no authority to abate, waive, or refund the penalty mandated by K.S.A. 79-1422.  Only the Board of Tax Appeals has the authority to abate, waive, or refund the penalty.

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last update: 11/14/07
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