Both real and tangible personal property are subject to ad valorem taxation by cities, counties and special taxing districts. Intangible property, to the extent it is taxable, is classified and taxed separately. All property is appraised at its fair market value, except for agricultural land, commercial and industrial personal property and certain vehicles. The assessment rate set forth in Art. 11, § 1 of the Kansas Constitution and K.S.A. 79-1439 is applied to the appraised value to determine the assessed value. The rate of tax depends on the levy of the local taxing district and will vary within the state by location. Both real and tangible personal property are assessed by the county appraiser in the taxing district in which the property is located. Taxes are paid to the county treasurer. Property taxation is administered by the Department of Revenue’s Division of Property Valuation, together with local taxing officers. Public utilities are treated separately for property tax purposes. Utility property is assessed and apportioned to local taxing districts by the Division of Property Valuation. There are several property tax exemptions that may be available to businesses for certain qualifying real and tangible personal property. Generally, a property owner must apply for a property tax exemption with the Kansas Board of Tax Appeals (K.S.A. 79-213). The Board of Tax Appeals or appeals courts will decide whether a specific property qualifies for exemption. There are a few exceptions to the filing requirement including machinery and equipment qualifying for exemption pursuant to K.S.A. 79-223 or K.S.A. 79-224 and items of business machinery, equipment and supplies qualifying for exemption pursuant to K.S.A. 79-201w (K.S.A. 79-213(l)).