In re Application of AAS Oil Company, Inc.

Decision Date31 August 2020
Docket Number2020-512-TX
PartiesIN THE MATTER OF THE APPLICATION OF AAS OIL COMPANY, INC. FOR EXEMPTION FROM AD VALOREM TAXATION IN COWLEY COUNTY, KANSAS
CourtTax Court of Kansas

IN THE MATTER OF THE APPLICATION OF AAS OIL COMPANY, INC. FOR EXEMPTION FROM AD VALOREM TAXATION IN COWLEY COUNTY, KANSAS

No. 2020-512-TX

Tax Court of Kansas

August 31, 2020


ORDER

RO'NALD C. MASON, CHAIR

Now the above-captioned matter comes on for consideration and decision 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. 2018 Supp. 79-213.

The subject matter of this tax exemption application is described as follows:

Personal property located in SEC 19-34-03, Cowley County
Kansas, also known as ID #018-CARNEY-JONES 1 BARTON 1 LEASE

The applicant requests exemption from ad valorem taxation pursuant to K.S.A. 2018 Supp. 79-20It, which provides an exemption from ad valorem taxes for "[a]U oil leases, other than royalty interests therein, the average daily production from which is three barrels or less per producing well, or five barrels or less per producing well which has a completion depth of 2, 000 feet or more."

The County recommends the request for exemption from ad valorem taxation be granted. The County does not request a hearing.

Based on the record and the County's verified affirmative recommendation, the Board finds that the production from the applicant's lease satisfies the conditions enumerated in K.S.A. 2018 Supp. 79-201t(a).

IT IS THEREFORE ORDERED that the application for exemption from ad valorem taxation is granted commencing with the ad valorem personal property taxes assessed on the applicant's 2019 oil production, and each succeeding year, so long as the property continues to be used for exempt purposes. In the event the exempt property ceases to be used for exempt purposes, the applicant must report that fact to the Cowley County Appraiser within 30 days. See K.S.A. 79-214.

IT IS FURTHER ORDERED that any refund due and owing the applicant shall be made pursuant to K.S.A. 2018 Supp. 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. 2018 Supp. 79-213(a). All unpaid taxes that have accrued from and since the effective date of the exemption shall be abated.

Any party who is aggrieved by this order may file a written petition for reconsideration with this Board as provided in K.S.A. 2018 Supp. 77-529. See K.S.A. 2018 Supp. 7...

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