Session of 1998
House Concurrent Resolution No. 5034
By Committee on Taxation
            9             A PROPOSITION to amend section 1 of article 11 of the constitution of
10             the state of Kansas, relating to the classification and taxation of aircraft
11             and watercraft.
13       Be it resolved by the Legislature of the State of Kansas, two-thirds of the
14             members elected (or appointed) and qualified to the House of Repre-
15             sentatives and two-thirds of the members elected (or appointed) and
16             qualified to the Senate concurring therein:
17                 Section 1. The following proposition to amend the constitution of the
18       state of Kansas shall be submitted to the qualified electors of the state
19       for their approval or rejection: Section 1 of article 11 of the constitution
20       of the state of Kansas is hereby amended to read as follows:
21             ``§ 1. System of taxation; classification; exemption. (a) The
22             provisions of this subsection shall govern the assessment and taxa-
23             tion of property on and after January 1, 1993, and each year there-
24             after. Except as otherwise hereinafter specifically provided, the leg-
25             islature shall provide for a uniform and equal basis of valuation and
26             rate of taxation of all property subject to taxation. The legislature
27             may provide for the classification and the taxation uniformly as to
28             class of recreational vehicles, including aircraft and watercraft, as
29             defined by the legislature, or may exempt such class from property
30             taxation and impose taxes upon another basis in lieu thereof. The
31             provisions of this subsection shall not be applicable to the taxation
32             of motor vehicles, except as otherwise hereinafter specifically pro-
33             vided, mineral products, money, mortgages, notes and other evi-
34             dence of debt and grain. Property shall be classified into the follow-
35             ing classes for the purpose of assessment and assessed at the
36             percentage of value prescribed therefor:
37           Class 1 shall consist of real property. Real property shall be further
38       classified into seven subclasses. Such property shall be defined by law for
39       the purpose of subclassification and assessed uniformly as to subclass at
40       the following percentages of value:
41       \tb\(1) Real property used for residential purposes including multi-family
42                       residential real property and real property necessary to accommo-
43                       [et

HCR 5034


1           (1) date a residential community of mobile or manufactured homes including the real property upon which such homes are located[cm111/2%[cm     (2) Land devoted to agricultural use which shall be valued upon thebasis of its agricultural income or agricultural productivity pursuantto section 12 of article 11 of the constitution[cm30%[cm     (3) Vacant lots[cm12%[cm     (4) Real property which is owned and operated by a not-for-profit or-ganization not subject to federal income taxation pursuant to section501 of the federal internal revenue code, and which is included inthis subclass by law[cm12%[cm     (5) Public utility real property, except railroad real property which shallbe assessed at the average rate that all other commercial and indus-trial property is assessed[cm33%[cm     (6) Real property used for commercial and industrial purposes andbuildings and other improvements located upon land devoted to ag-ricultural use[cm25%[cm     (7) All other urban and rural real property not otherwise specificallysubclassified[cm30%
  2                           Class 2 shall consist of tangible personal property. Such tangible per-
  3                       sonal property shall be further classified into six subclasses, shall be de-
  4                       fined by law for the purpose of subclassification and assessed uniformly
  5                       as to subclass at the following percentages of value:
  6       \tb\(1) Mobile homes used for residential purposes[cm111/2%[cm
  7       (2) Mineral leasehold interests except oil leasehold interests the average
  8               daily production from which is five barrels or less, and natural gas
  9               leasehold interests the average daily production from which is 100
10               mcf or less, which shall be assessed at 25%[cm30%[cm
11       (3) Public utility tangible personal property including inventories
12               thereof, except railroad personal property including inventories
13               thereof, which shall be assessed at the average rate all other com-
14               mercial and industrial property is assessed[cm33%[cm
15       (4) All categories of motor vehicles not defined and specifically valued
16               and taxed pursuant to law enacted prior to January 1, 1985[cm30%[cm
17       (5) Commercial and industrial machinery and equipment which, if its
18               economic life is seven years or more, shall be valued at its retail cost
19               when new less seven-year straight-line depreciation, or which, if its
20               economic life is less than seven years, shall be valued at its retail cost
21               when new less straight-line depreciation over its economic life, ex-
22               cept that, the value so obtained for such property, notwithstanding
23               its economic life and as long as such property is being used, shall
24               not be less than 20% of the retail cost when new of such
25               property[cm25%[cm

HCR 5034


  1       (6) All other tangible personal property not otherwise specifically
  2                                                                               classified[cm30%[et

  3                   (b) All property used exclusively for state, county, municipal, literary,
  4               educational, scientific, religious, benevolent and charitable purposes,
  5               farm machinery and equipment, merchants' and manufacturers' inven-
  6               tories, other than public utility inventories included in subclass (3) of class
  7               2, livestock, and all household goods and personal effects not used for
  8               the production of income, shall be exempted from property taxation.''
  9           Sec. 2. The following statement shall be printed on the ballot with
10       the amendment as a whole:
11             ``Explanatory statement. This amendment would allow the leg-
12             islature to classify and tax aircraft and watercraft upon a basis dif-
13             ferent from other property.
14                 ``A vote for this proposition would permit the legislature to pro-
15             vide for separate classification and taxation of aircraft and watercraft
16             and to exempt such property from property taxation and impose
17             taxes in lieu thereof.''
18                 ``A vote against this proposition would continue the taxation of
19             aircraft and watercraft in the same manner as all other property.''
20           Sec. 3. This resolution, if approved by two-thirds of the members
21       elected (or appointed) and qualified to the House of Representatives, and
22       two-thirds of the members elected (or appointed) and qualified to the
23       Senate, shall be entered on the journals, together with the yeas and nays.
24       The secretary of state shall cause this resolution to be published as pro-
25       vided by law and shall cause the proposed amendment to be submitted
26       to the electors of the state at the general election to be held on November
27       3, 1998.