[As Amended by House Committee of the Whole]

As Amended by House Commettee

          Session of 1998
House Concurrent Resolution No. 5039
By Representative Tanner
          12             A PROPOSITION to amend section 1 of article 11 of the constitution of
13             the state of Kansas.
16       Be it resolved by the Legislature of the State of Kansas, two-thirds of the
17             members elected (or appointed) and qualified to the House of Repre-
18             sentatives and two-thirds of the members elected (or appointed) and
19             qualified to the Senate concurring therein:
20                 Section 1. The following proposition to amend the constitution of the
21       state of Kansas shall be submitted to the qualified electors of the state
22       for their approval or rejection: Section 1 of article 11 of the constitution
23       of the state of Kansas is hereby amended to read as follows:
24             ``§ 1. System of taxation; classification; exemption. (a) The
25             provisions of this subsection shall govern the assessment and taxa-
26             tion of property on and after January 1, 1993, and each year there-
27             after. Except as otherwise hereinafter specifically provided by this
28             section, the legislature shall provide for a uniform and equal basis
29             of valuation and rate of taxation of all property subject to taxation.
30             The legislature may provide by law for limitations upon the increase
31             from one taxable period to the next such period of the appraised
32             valuation of all or any subclass of real property. The legislature may
33             provide for the classification and the taxation uniformly as to class
34             of recreational vehicles, as defined by the legislature, or may exempt
35             such class from property taxation and impose taxes upon another
36             basis in lieu thereof. The provisions of this subsection shall not be
37             applicable to the taxation of motor vehicles, except as otherwise
38             hereinafter specifically provided, mineral products, money, mort-
39             gages, notes and other evidence of debt and grain. Property shall
40             be classified into the following classes for the purpose of assessment
41             and assessed at the percentage of value prescribed therefor:
42                 Class 1 shall consist of real property. Real property shall be fur-
43             ther classified into seven subclasses. Such property shall be defined
44             by law for the purpose of subclassification and assessed uniformly
45             as to subclass at the following percentages of value:

HCR 5039--Am. by HCW


1       (1) Real property used for residential purposes including multi-family residential real property and real property necessary to accommodate a res-idential community of mobile or manufactured homes including the realproperty upon which such homes are located 111/2%
2       (2) Land devoted to agricultural use which shall be valued upon the basis ofits agricultural income or agricultural productivity pursuant to section 12of article 11 of the constitution 30%
3       (3) Vacant lots 12%
4       (4) Real property which is owned and operated by a not-for-profit organi-zation not subject to federal income taxation pursuant to section 501 ofthe federal internal revenue code, and which is included in this subclassby law 12%
5       (5) Public utility real property, except railroad real property which shall beassessed at the average rate that all other commercial and industrial prop-erty is assessed 33%
6       (6) Real property used for commercial and industrial purposes and buildingsand other improvements located upon land devoted to agricultural use 25%
7       (7) All other urban and rural real property not otherwise specifically sub-classified 30%
  8           Class 2 shall consist of tangible personal property. Such tangible per-
  9       sonal property shall be further classified into six subclasses, shall be de-
10       fined by law for the purpose of subclassification and assessed uniformly
11       as to subclass at the following percentages of value:
12       (1) Mobile homes used for residential purposes 111/2%
13       (2) Mineral leasehold interests except oil leasehold interests the averagedaily production from which is five barrels or less, and natural gas lease-hold interests the average daily production from which is 100 mcf or less,which shall be assessed at 25% 30%
14       (3) Public utility tangible personal property including inventories thereof,except railroad personal property including inventories thereof, whichshall be assessed at the average rate all other commercial and industrialproperty is assessed 33%
15       (4) All categories of motor vehicles not defined and specifically valued andtaxed pursuant to law enacted prior to January 1, 1985 30%
16       (5) Commercial and industrial machinery and equipment which, if its eco-nomic life is seven years or more, shall be valued at its retail cost whennew less seven-year straight-line depreciation, or which, if its economiclife is less than seven years, shall be valued at its retail cost when newless straight-line depreciation over its economic life, except that, thevalue so obtained for such property, notwithstanding its economic lifeand as long as such property is being used, shall not be less than 20% ofthe retail cost when new of such property 25%
17       (6) All other tangible personal property not otherwise specifically classified 30%

HCR 5039--Am. by HCW


  1        (b) (1) Except as otherwise provided by paragraph (2) of this
  2       subsection, the appraised valuation of all real property, other than
  3       land devoted to agricultural use, shall not increase from one tax-
  4       able year to the next such year by a percentage exceeding the
  5       percentage by which the average consumer price index for all ur-
  6       ban consumers published by the federal department of labor as of
  7       the close of the 12-month period ending on August 31 of the first
  8       calendar year preceding the appropriate taxable year exceeds such
  9       index as of such period ending on August 31 of the second calendar
10       year preceding the appropriate taxable year.
11           (2) The appraised valuation for new or newly improved real
12       property shall, in its initial year of valuation, be based upon the
13       comparison with values of other real property of known or rec-
14       ognized value which is subject to the provisions of paragraph (1).
15           (b) (c) All property used exclusively for state, county, municipal, lit-
16       erary, educational, scientific, religious, benevolent and charitable pur-
17       poses, farm machinery and equipment, merchants' and manufacturers'
18       inventories, other than public utility inventories included in subclass (3)
19       of class 2, livestock, and all household goods and personal effects not used
20       for the production of income, shall be exempted from property taxation.``
21           Sec. 2. The following statement shall be printed on the ballot with
22       the amendment as a whole:
23              ``Explanatory statement. This amendment would allow the leg-
24             islature to provide limitations upon the increase of the appraised
25             valuation of real property subject to taxation.
26              ``A vote for this proposition would allow pursuant to enactment
27             by the legislature the limiting of limit to the percentage increase
28             of the consumer price index real estate appraised valuation in-
29             creases from one tax period to another.
30              ``A vote against this proposition would maintain the current sys-
31             tem of property taxation.''
32           Sec. 3. This resolution, if approved by two-thirds of the members
33       elected (or appointed) and qualified to the House of Representatives, and
34       two-thirds of the members elected (or appointed) and qualified to the
35       Senate shall be entered on the journals, together with the yeas and nays.
36       The secretary of state shall cause this resolution to be published as pro-
37       vided by law and shall cause the proposed amendment to be submitted
38       to the electors of the state at the general election to be held on November
39       3, 1998.