In Re for Tax Exemption of Kouri Place, L.L.C.

Leben, J.:

The Kansas Legislature has provided a real-estate tax exemption when the property is “used exclusively” as a group home for low-income people with special needs. Kouri Place, L.L.C., sought an exemption for such a property, one that has 14 of its 15 units used to house people with special needs and 1 unit devoted to housing on-site managers. The Kansas Court of Tax Appeals agreed that the exclusive physical use of the property qualified for the tax exemption. But the court nonetheless denied the exemption because Kouri Place financed most of the project’s construction through a…