12-1,109.   Same; exemptions.Gross earnings derived from the following shall be exempt from taxeslevied by counties, cities and townships pursuant to this act:

      (a)   Notes secured by mortgages on real estate, which mortgages havebeen recorded in this state and the registration fee or tax thereonpaid, as otherwise provided by law;

      (b)   all moneys, notes and other evidences of indebtedness held bythe trustee of a qualified trust described in section 401, 408 or501(c)(4), (5), (9), (17) or (18) of the internal revenue code of1986,as amended (26 U.S.C. 401, 408 or 501(c)(4), (5), (9), (17) or (18))which is part of a stock bonus, pension or profit-sharing plan of anemployer for the exclusive benefit of employees or their beneficiariesor health and welfare plan;

      (c) (1)   for the taxable year commencing after December 31, 1981, money,notes and other evidence of debt, to the extent of thetax liability hereinafter provided, which is owned by a person who has adisability or was 60 years of age or older on January 1 of the year in which anexemption is claimed hereunder. The exemption allowable under this subsectionshall be in an amount equal to the lesser of the following: (A) The amountof the tax liability on the first $3,000 of gross earnings from the money,notes and other evidence of debt; or (B) the amount of the tax liabilityon the first $3,000 of gross earnings from such money, notes and other evidenceof debt reduced by the amount that the owner's income exceeds $12,500,includingin such owner's income the income of such person's spouse, in the year nextpreceding that in which the exemption is claimed under this subsection.No person shall be eligible to claim an exemptionhereunder in the same year in which such person's spouse has claimed anexemption hereunder. As used in this subsection, the terms "income" and"disability" shall have the meanings ascribed to them inK.S.A. 79-4502, and amendments thereto; and (2) for all taxableyears commencing after December 31, 1982, money, notes and other evidencesof debt, to the extent of thetax liability hereinafter provided, which is owned by a person who has adisability or was 60 years of age or older on January 1 of the year in which anexemption is claimed hereunder. The exemption allowable under this subsectionshall be in an amount equal to the lesser of the following: (A) The amountof the tax liability on the first $5,000 of gross earnings from the money,notes and other evidences of debt; or (B) the amount of the tax liabilityon the first $5,000 of gross earnings from said money, notes and otherevidences of debt reduced by the amount that the owner's income exceeds$15,000, including in such owner's income the income of such person's spouse,in the year nextpreceding that in which the exemption is claimed under this subsection.No person shall be eligible to claim an exemptionhereunder in the same year in which such person's spouse has claimed anexemption hereunder. As used in this subsection, the terms "income" and"disability" shall have the meanings ascribed to them inK.S.A. 79-4502, and amendments thereto;

      (d)   money, notes and other evidence of debt owned by any creditunion, national banking association, state bank, trust company or federalor state-chartered savings and loan association;

      (e)   bonds or other evidence of indebtedness issued by the state, county,city, school district or other municipal or taxing subdivision of the state;

      (f)   except for distributions made from earnings or profits of any smallbusiness corporation, as defined by section 1371 of the internal revenuecode as enacted in 1986 (26 U.S.C. 1371), accumulated by thatcorporationprior to the time that it has made the election under section 1372 of theinternal revenue code of 1986 (26 U.S.C. 1372), all earnings orprofit distributedby any such small business corporation having such an election in effectto a person who was a shareholder of such corporation at the time of thedistribution;

      (g)   for all taxable years commencing after December 31, 1982, notes, otherthan notes described in subsection (a), to the extent that such earningsare a reimbursement of interest paid on another note the proceeds of whichwas the source of funds for the first note;

      (h)   money, notes and other evidenceof debt belonging exclusively to a hospital, as defined by K.S.A. 65-425 andamendments thereto, or a psychiatric hospital, as defined by K.S.A. 59-2902, asin effect on January 1, 1976,operated by a not-for-profit corporation, and used exclusively for hospital orpsychiatric hospital purposes;

      (i)   money, notes and other evidence of debt belonging exclusively to anadult care home as defined by K.S.A.39-923, and amendments thereto, operated by a not-for-profit corporation,and used exclusively for adult care home purposes;

      (j)   money, notes and other evidenceof debt belonging exclusively to a private children's home as defined byK.S.A. 75-3329, and amendments thereto, operated by a not-for-profitcorporation,and used exclusively for children's home purposes;

      (k)   money, notes and other evidence of debt belonging exclusively to acorporation organized not-for-profit which operates housing for elderlypersons having a limited or low income,which property and the income therefrom is used exclusively for housingfor such elderly persons;

      (l)   shares, shares of stock or other evidence of ownership of nationalbanking associations, state banks and federal or state-chartered savingsand loan associations located or doing business within the state and sharesof stock or other evidence of ownership of corporations holding stock ofa national banking association, state bank and federal or state-charteredsavings and loan associations located or doing business in Kansas, to theextent the income of such corporation is attributable to dividends receivedon such stock; and

      (m)   shares of stock issued by a corporation classified as aregulatedinvestment company under the provisions of the federal internal revenuecode of 1986, as amended.

      History:   L. 1982, ch. 63, § 9; L. 1983, ch. 61, § 5;L. 1995, ch. 130, § 2;L. 1996, ch. 167, § 43; Apr. 18.