12-3418.   Same; exercise of powers constitutes governmental function;tax exemption for property acquired, exceptions.The exercise of the powers granted by this act will be in all respectsfor the benefit of the people of the state, for the increase of theircommerce and prosperity, and for the improvement of their health andliving conditions, and the activities and operations of a portauthority will constitute the performance of essential governmentalfunctions. No port authority shall be required to pay any taxes orassessments upon any property acquired and used by it or leased to anotherunder the provisions of this act or upon the income therefrom, and any bondsissued under the provisions of this act, their transfer and the incometherefrom (including any profit made on the sale thereof) shall at alltimes be free from taxation within the state except that propertyacquired by a port authority shall be exempt from ad valorem propertytax only until the calendar year in which the same is rented, leased,subleased or developed and returns revenue to such authority in excessof the amount necessary to retire the obligations of the port authorityand pay administrative costs of the port authority, and in such yearsuch property shall be placed upon the tax rolls and thereafter advalorem property taxes shall be paid thereon as is provided by law. Theprovisions of this subsection shall not apply to Kansas retailers' salestax, ad valorem property tax on industrial-use facilities,state inheritance tax or any intangible tax.

      All sales of: (1) Tangible personal property and services purchased directlyby any port authority for use exclusively by such authority; (2) tangiblepersonal property or services purchased by a port authority for constructing,maintaining, equipping, reconstructing, repairing, enlarging, remodelingor furnishing port facilities other than an industrial-use facility; and(3) tangible personal property or services purchased with funds of a political subdivision by a contractor for constructing, reconstructing, repairing,enlarging or remodeling a port or industrial-use facility for any port authorityshall be exempt from the Kansas retailers' sales tax imposed by K.S.A. 79-3603,and amendments thereto.

      History:   L. 1969, ch. 89, § 18; L. 1980, ch. 70, § 7; L. 1981,ch. 76, § 13;L. 1987, ch. 75, § 13; July 1.