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City of Salina/Dominion Resources Exemption 2024-4881-IRBXBEFORE THE BOARD OF TAX APPEALS STATE OF KANSAS IN THE MATTER OF THE APPLICATION OF CITY OF SALINA/DOMINION RESOURCES, L.L.C. FOR EXEMPTION OF PROPERTY LOCATED IN SALINE Docket No. 2024-4881-IRBX COUNTY, KANSAS ORDER Now the above -captioned matter comes on for consideration by the Board of Tax Appeals of the State of Kansas. The Board finds and concludes as follows: The Board has jurisdiction of the subject matter and the parties, as an application for exemption has been filed pursuant to K.S.A. 79-213. The subject property of this tax exemption application is described as follows: Real estate and improvements - 1835 Wall Street, Salina County, Kansas, known as Parcel ID# 085-132-03-0-40-02-005.00-0. The subject property is not within a redevelopment district as defined by K.S.A. 12-1770 et seq. The subject property is leased to Dominion Resources, L.L.C., who uses the property as a manufacturing facility. The applicant constructed or purchased the subject property with the proceeds of revenue bonds issued in an aggregate principal amount of $3,729,417.31 on December 20, 2023, pursuant to K.S.A. 12-1740 through K.S.A. 12-1741b, K.S.A. 12-1742, K.S.A. 12-1743, K.S.A. 12-1744, K.S.A. 12-1744a, K.S.A. 12-1744b, K.S.A. 12-1744c, K.S.A. 12-1744d, and K.S.A. 12-744e through 12-1749d. Pursuant to K.S.A. 12-1749d, the applicant conducted a public hearing on September 26, 2022, after publishing notice of the hearing in The Salina Journal at least once seven days prior thereto, and notifying the Clerk of Saline County, Kansas and USD #306. The applicant completed a cost -benefit analysis that demonstrated the effects on state revenues. The applicant passed Ordinance # 23- 11184, which stated that the property for which the exemption is to be granted will be used exclusively for the purposes specified in section 13 of article 11 of the constitution of the state of Kansas. Docket No. 2024-4881-IRBX Saline County, Kansas Page 2 The subject property qualifies for exemption pursuant to K.S.A. 79-201a Second. The exemption is limited to that portion of the property constructed or purchased with the proceeds of the bonds issued on December 20, 2023, in an aggregate principal amount of $3,729,417.31 ($3,729,417.31 for improvements.) The applicant is required to file its annual claim for exemption with the county appraiser prior to March 1, as provided in K.S.A. 79-210. The taxpayer must report to the county appraiser any property acquired, regardless of whether the property is acquired with revenue bond proceeds. See K.S.A. 79-301 et seq. The period of exemption is ten (10) calendar years beginning January 1, 2024, through December 31, 2033, or for so long as the bonds remain outstanding whichever period is shorter. The exemption shall terminate upon a failure to pay all taxes levied on that portion of the subject property which is not exempt, and the entire property shall then be subject to sale in the manner prescribed by K.S.A. 79- 2301 et seq. Pursuant to 2017 Kansas Senate Bill 19, § 52, this grant of tax exemption shall not be deemed to exempt any such property from the ad valorem property tax levied by a school district pursuant to the provisions of K.S.A. 72-8801, and amendments thereto. 2017 Kansas Senate Bill 19, § 52, however, shall not apply to exemptions granted by this Board when the associated resolution of intent, letter of intent or inducement resolution to issue revenue bonds and grant property tax abatement was approved by any governing body of any city or the board of commissioners of any county or the public hearing required by K.S.A. 79-251, and amendments thereto, was conducted prior to May 1, 2017. IT IS THEREFORE ORDERED that the application for exemption from ad valorem taxation is granted from January 1, 2024, through December 31, 2033, pursuant to Ordinance #23-11184, and the terms and conditions of any applicable payment in lieu of tax agreement, so long as the applicant pays all taxes levied on non -exempted property. IT IS FURTHER ORDERED that any refund due and owing the applicant shall be made pursuant to K.S.A. 79-213(k), which limits the refund to the year immediately preceding the year in which the application is filed in accordance with K.S.A. 79-213(a). Any party who is aggrieved by this order may file a written petition for reconsideration with this Board as provided in K.S.A. 77-529, and amendments thereto. See K.S.A. 74-2426(b), and amendments thereto. The written petition for reconsideration shall set forth specifically and in adequate detail the particular and specific respects in which it is alleged that the Board's order is unlawful, unreasonable, capricious, improper or unfair. Any petition for reconsideration shall Docket No. 2024-4881-IRBX Saline County, Kansas Page 3 be mailed to the Secretary of the Board of Tax Appeals. The written petition must be received by the Board within 15 days of the certification date of this order (allowing an additional three days for mailing pursuant to statute). Rather than filing a petition for reconsideration, any aggrieved person has the right to appeal this order of the Board by filing a petition with the court of appeals or the district court pursuant to K.S.A. 74-2426(c)(4)(A), and amendments thereto. Any person choosing to petition for judicial review of this order must file the petition with the appropriate court within 30 days from the date of certification of this order. See K.S.A. 77-613(b) and (c) and K.S.A. 74-2426(c), and amendments thereto. Pursuant to K.S.A. 77-529(d), and amendments thereto, any party choosing to petition for judicial review of this order is hereby notified that the Secretary of the Board of Tax Appeals is to receive service of a copy of the petition for judicial review. Please note, however, that the Board would not be a party to any judicial review because the Board does not have the capacity or power to sue or be sued. See K.S.A. 74-2433(f), and amendments thereto. The address for the Secretary of the Board of Tax Appeals is Board of Tax Appeals, Eisenhower State Office Building, 700 SW Harrison St., Suite 1022, Topeka, KS 66603. A party filing any petition shall also serve a complete copy of the petition on all other parties. IT IS SO ORDERED THE KANSAS BOARD OF TAX APPEALS 110 11111 F TAX KPI.KTEN D. WHEELER, CHAIR `m,ya' @'cb VIRGINIA(A. POWELL, MEMBER OF,,,„"```,,`r DE SPREC R, MEMBER 4Al,? �� OELENE R. ALLEN, SECRETARY Docket No. 2024-4881-IRBX Saline County, Kansas Page 4 CERTIFICATE OF SERVICE I, Joelene R. Allen, Secretary of the Board of Tax Appeals of the State of Kansas, do hereby certify that a true and correct copy of this order in Docket No. 2024-4881-IRBX and any attachments thereto, was placed in the United States Mail, on this day of jAU.CLl S+- , 2029 , addressed to: Nikki Goding, City Clerk City of Salina 300 W Ash St Salina, KS 67401 Larry Kejr, Treasurer Dominion Resources LLC 1835 Wall St Salina, KS 67401 Sarah O Steele, Attorney Gilmore & Bell PC 100 N Main Ste 800 Wichita, KS 67202-1311 Sean Robertson, Saline County Appraiser Saline County Courthouse PO Box 5040 Salina, KS 67402-5040 Jim DuBois, Saline County Treasurer Saline County Courthouse PO Box 5040 Salina, KS 67402-5040 and a copy was placed in the capitol complex building mail addressed to: Kansas Department of Commerce Attn: Rachael Willis 1000 SW Jackson, Suite 100 Topeka, KS 66612-1354 Division of Property Valuation Kansas Department of Revenue Attn: Veronica Dean 300 SW 29th St PO Box 3506 Topeka, KS 66601-3506 IN TESTIMONY WHEREOF, I have hereunto subscribed my name at Topeka, Kansas. Joelene R. Allen, Secretary