Session of 1998
House Concurrent Resolution No. 5045
By Committee on Tourism
            9             A PROPOSITION to amend section 1 of article 11 of the constitution of
10             the state of Kansas, relating to the taxation of property.
12       Be it resolved by the Legislature of the State of Kansas, two-thirds of the
13             members elected (or appointed) and qualified to the House of Repre-
14             sentatives and two-thirds of the members elected (or appointed) and
15             qualified to the Senate concurring therein:
16                 Section 1. The following proposition to amend the constitution of the
17       state of Kansas shall be submitted to the qualified electors of the state
18       for their approval or rejection: Section 1 of article 11 of the constitution
19       of the state of Kansas is hereby amended to read as follows:
20             ``§ 1. System of taxation; classification; exemption. (a) The
21             provisions of this subsection shall govern the assessment and taxa-
22             tion of property on and after January 1, 1993, and each year there-
23             after. Except as otherwise hereinafter specifically provided, the leg-
24             islature shall provide for a uniform and equal basis of valuation and
25             rate of taxation of all property subject to taxation. The legislature
26             may provide for the classification and the taxation uniformly as to
27             class of recreational vehicles, including watercraft, as defined by
28             the legislature, or may exempt such class from property taxation
29             and impose taxes upon another basis in lieu thereof. The provisions
30             of this subsection shall not be applicable to the taxation of motor
31             vehicles, except as otherwise hereinafter specifically provided, min-
32             eral products, money, mortgages, notes and other evidence of debt
33             and grain. Property shall be classified into the following classes for
34             the purpose of assessment and assessed at the percentage of value
35             prescribed therefor:
36           Class 1 shall consist of real property. Real property shall be further
37       classified into seven subclasses. Such property shall be defined by law for
38       the purpose of subclassification and assessed uniformly as to subclass at
39       the following percentages of value:
40       (1) Real property used for residential purposes including multi-family residential real property and real property necessary to accommodate aresidential community of mobile or manufactured homes including thereal property upon which such homes are located 111/2%

HCR 5045


1       (2) Land devoted to agricultural use which shall be valued upon the basisof its agricultural income or agricultural productivity pursuant to section12 of article 11 of the constitution 30%
2       (3)Vacant lots 12%
3       (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%
4       (5) Public utility real property, except railroad real property which shall beassessed at the average rate that all other commercial and industrialproperty is assessed 33%
5       (6) Real property used for commercial and industrial purposes and build-ings and other improvements located upon land devoted to agriculturaluse 25%
6       (7) All other urban and rural real property not otherwise specifically sub-classified 30%
  7           Class 2 shall consist of tangible personal property. Such tangible per-
  8       sonal property shall be further classified into six subclasses, shall be de-
  9       fined by law for the purpose of subclassification and assessed uniformly
10       as to subclass at the following percentages of value:
11       (1)Mobile homes used for residential purposes 111/2%
12       (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 orless, which shall be assessed at 25% 30%
13       (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%
14       (4) All categories of motor vehicles not defined and specifically valued andtaxed pursuant to law enacted prior to January 1, 1985 30%
15       (5) Commercial and industrial machinery and equipment which, if its ec-onomic 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%of the retail cost when new of such property 25%
16       (6) All other tangible personal property not otherwise specifically classified 30%
17           (b) All property used exclusively for state, county, municipal, literary,
18       educational, scientific, religious, benevolent and charitable purposes,
19       farm machinery and equipment, merchants' and manufacturers' inven-

HCR 5045


  1       tories, other than public utility inventories included in subclass (3) of class
  2       2, livestock, and all household goods and personal effects not used for
  3       the production of income, shall be exempted from property taxation.''
  4           Sec. 2. The following statement shall be printed on the ballot with
  5       the amendment as a whole:
  6              ``Explanatory statement. This amendment would include water-
  7             craft as a recreational vehicle and allow flexibility in classifying and
  8             assessing such watercraft for taxation purposes.
  9              ``A vote for this proposition would as of January 1, 1999, change
10             the classification of watercraft from tangible personal property tax
11             classification for motor vehicles to create a separate classification
12             which would allow such property to be assessed at a more flexible
13             rate.
14              ``A vote against this proposition would continue the current clas-
15             sification of tangible personal property tax on watercraft and con-
16             tinue the assessment of watercraft at the same rate as a motor ve-
17             hicle.''
18           Sec. 3. This resolution, if approved by two-thirds of the members
19       elected (or appointed) and qualified to the House of Representatives, and
20       two-thirds of the members elected (or appointed) and qualified to the
21       Senate, shall be entered on the journals, together with the yeas and nays.
22       The secretary of state shall cause this resolution to be published as pro-
23       vided by law and shall cause the proposed amendment to be submitted
24       to the electors of the state at the general election to be held on November
25       3, 1998.