Session of 1999
House Concurrent Resolution No. 5035
By Committee on Federal and State Affairs

  9             A PROPOSITION to amend section 1 of article 11 of the constitution of
10             the state of Kansas.
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 pro-
22             visions of this subsection shall govern the assessment and taxation
23             of property on and after January 1, 1993, and each year thereafter.
24             Except as otherwise hereinafter specifically provided by this section,
25             the legislature shall provide for a uniform and equal basis of valu-
26             ation and rate of taxation of all property subject to taxation. The
27             legislature may provide for the classification and the taxation uni-
28             formly as to class of recreational vehicles, as defined by the legis-
29             lature, or may exempt such class from property taxation and impose
30             taxes upon another basis in lieu thereof. The provisions of this sub-
31             section shall not be applicable to the taxation of motor vehicles,
32             except as otherwise hereinafter specifically provided, mineral prod-
33             ucts, money, mortgages, notes and other evidence of debt and grain.
34             Property shall be classified into the following classes for the purpose
35             of assessment and assessed at the percentage of value prescribed
36             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       (1) Real property used for residential purposes including multi-family residential real property and real property necessary to accommodate a residentialcommunity of mobile or manufactured homes including the real propertyupon which such homes are located 111/2%

HCR 5035


1       (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%
2       (3) Vacant lots 12%
3       (4) Real property which is owned and operated by a not-for-profit organizationnot subject to federal income taxation pursuant to section 501 of the federalinternal revenue code, and which is included in this subclass by law 12%
4       (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%
5       (6) Real property used for commercial and industrial purposes and buildingsand other improvements located upon land devoted to agricultural use 25%
6       (7) All other urban and rural real property not otherwise specifically subclas-sified 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 average dailyproduction from which is five barrels or less, and natural gas leaseholdinterests the average daily production from which is 100 mcf or less, whichshall be assessed at 25% 30%
13       (3) Public utility tangible personal property including inventories thereof, ex-cept railroad personal property including inventories thereof, which shallbe assessed at the average rate all other commercial and industrial propertyis 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 economiclife is seven years or more, shall be valued at its retail cost when new lessseven-year straight-line depreciation, or which, if its economic life is lessthan seven years, shall be valued at its retail cost when new less straight-line depreciation over its economic life, except that, the value so obtainedfor such property, notwithstanding its economic life and as long as suchproperty is being used, shall not be less than 20% of the retail cost whennew of such property 25%
16       (6) All other tangible personal property not otherwise specifically classified 30%
17             (b)  (1) Except as otherwise provided by paragraph (2) of this sub-
18       section, the appraised valuation of all real property, other than land de-
19       voted to agricultural use, shall not increase from one taxable year to the
20       next such year by a percentage exceeding the percentage by which the
21       average consumer price index for all urban consumers published by the

HCR 5035


  1       federal department of labor as of the close of the 12-month period ending
  2       on August 31 of the first calendar year preceding the appropriate taxable
  3       year exceeds such index as of such period ending on August 31 of the
  4       second calendar year preceding the appropriate taxable year.
  5             (2) The appraised valuation for new or newly improved real property
  6       shall, in its initial year of valuation, be based upon the comparison with
  7       values of other real property of known or recognized value which is sub-
  8       ject to the provisions of paragraph (1).
  9             (b) (c) All property used exclusively for state, county, municipal, lit-
10       erary, educational, scientific, religious, benevolent and charitable pur-
11       poses, farm machinery and equipment, merchants' and manufacturers'
12       inventories, other than public utility inventories included in subclass (3)
13       of class 2, livestock, and all household goods and personal effects not used
14       for the production of income, shall be exempted from property taxation."
15             Sec.  2. The following statement shall be printed on the ballot with
16       the amendment as a whole:
17       "Explanatory statement. This amendment would provide limitations upon
18             the increase of the appraised valuation of real property subject to
19             taxation.
20             "A vote for this proposition would limit to the percentage increase of the
21             consumer price index real estate appraised valuation increases from
22             one tax period to another.
23             "A vote against this proposition would maintain the current system of
24             property taxation."
25                   Sec.  3. This resolution, if approved by two-thirds of the members
26       elected (or appointed) and qualified to the House of Representatives, and
27       two-thirds of the members elected (or appointed) and qualified to the
28       Senate shall be entered on the journals, together with the yeas and nays.
29       The secretary of state shall cause this resolution to be published as pro-
30       vided by law and shall cause the proposed amendment to be submitted
31       to the electors of the state at the general election to be held on November
32       7, 2000.