Tim Heenan, representing Ash Grove Cement, Chanute, made Allen County commissioners aware Tuesday morning about proposed legislation that would define what is personal property in cement manufacturing plants, as opposed to real estate.
If it were to become law, the provision would have little effect in Allen County and on Monarch Cement, Humboldt, said Appraiser Sandy Drake.
“We already appraise those things (machinery and equipment) as personal property,” she said.
The advantage is that personal property depreciates while real estate tends to appreciate. Also, a law that became effective July 1, 2006, removed from tax rolls new equipment and machinery.
The legislation proposed is specific only to cement plants — Ash Grove and Monarch are the only ones in Kansas — and was prompted by a change in Neosho County, where an out-of-state appraiser categorized much machinery bolted in place at Ash Grove as real estate.
Initially, Allen commissioners thought the proposed legislation would affect property tax collections here, but a review later in the day by Drake and County Counselor Alan Weber found that was not to be the case.
“It could affect our tax collections a little, but not by much,” Drake said.
In a conference call to Ed Bideau, who represents most of Allen and Neosho counties in the Kansas House, Commission Chairman Dick Works asked Bideau to be “vigilant and keep us informed” of the proposal’s standing the Legislature.
“I’m generally not in favor of special legislation for an industry,” Bideau said, and noted he doubted the proposal would have a hearing in this year’s session, which resumed today. If so, the current appraisal for Ash Grove in Neosho County would stand.
Legislation harmless to county
