How should a Kansas county treasurer calculate delinquent property-tax interest after BOTA or another competent authority reduces the property's valuation?

Plain-English summary

Kansas PVD Directive 92-014 requires a two-step recalculation when the Board of Tax Appeals (BOTA), or another competent jurisdiction, reduces the valuation behind a delinquent property-tax bill:

1. Recalculate the tax due using the reduced valuation.
2. Apply the statutory delinquent-interest rate or rates to that adjusted tax due.

The result is that interest follows the corrected tax amount. The county treasurer should not leave interest calculated against the higher tax that resulted from the valuation later reduced.

The directive does not state a percentage or select among possible rates. Its instruction is to apply whatever statutory rate or rates govern the delinquency to the adjusted tax due.

What this means for you

Property owners who win a valuation reduction

If the affected property taxes are delinquent, the reduction should change more than the principal tax amount. The interest calculation should also be redone using the adjusted tax due.

County treasurers

Do not simply reduce the tax principal while leaving the old interest calculation in place. Recalculate the tax, then apply the governing statutory rate or rates to the new amount.

Accountants and tax professionals

The directive supplies the calculation order but not the rate. Verify the applicable interest statute for the delinquency period before checking the county's revised balance.

Common questions

Q: What triggers the recalculation?
A: A valuation reduction by BOTA or another competent jurisdiction.

Q: Does the treasurer recalculate only the tax principal?
A: No. If the tax is delinquent, interest is applied to the adjusted tax due.

Q: Does the directive give a fixed interest rate?
A: No. It refers to the statutory rate or rates.

Q: Is interest still computed on the original tax amount?
A: No. The directive says the statutory rate applies to the adjusted tax due after recalculation.

Q: Does the rule apply only to BOTA reductions?
A: No. It also covers a valuation reduction by another competent jurisdiction.

Citations and references

• L. 1992, ch. 249, § 1 — authority cited for adopting the directive.
• Operative calculation: recalculate the tax after the valuation reduction, then apply the statutory interest rate or rates to the adjusted tax due.

Source

• Landing page: Kansas Property Tax Directives
• Original PDF: PVD Directive 92-014

Original ruling text

STATE OF KANSAS

David C. Cunningham, Director
Robert B. Docking State Office Building (913) 296-2365
915 S.W. Harrison St. FAX (913) 296-2320
Topeka, Kansas 66612-1585

                                           Department of Revenue
                                      Division of Property Valuation



                                        DIRECTIVE #92-014

    TO:              County Treasurers

    SUBJECT: Computation of Interest on Delinquent Taxes
             Following Reduction by the Board of Tax Appeals


    This directive is adopted pursuant to the provisions of L. 1992, ch. 249, § 1, and
    shall be in force and effect from and after the Director's approval date.

    County treasurers shall recalculate the tax due whenever the state board of
    tax appeals, or other competent jurisdiction, reduces valuation. If such taxes
    are delinquent, the statutory rate(s) shall be applied to the adjusted tax due.




    Approved: November 3, 1992
                                                         David C. Cunningham
                                                         Director of Property Valuation