Session of 1999
House Concurrent Resolution No. 5036
By Committee on Taxation

  9             A PROPOSITION to amend section 1 of article 11 of the constitution of
10             the state of Kansas.
14             Be it resolved by the Legislature of the State of Kansas, two-thirds of the
15             members elected (or appointed) and qualified to the House of Repre-
16             sentatives and two-thirds of the members elected (or appointed) and
17             qualified to the Senate concurring therein:
18                   Section  1. The following proposition to amend the constitution of the
19       state of Kansas shall be submitted to the qualified electors of the state
20       for their approval or rejection: Section 1 of article 11 of the constitution
21       of the state of Kansas is hereby amended to read as follows:
22              "§  1. System of taxation; classification; exemption. (a) The
23             provisions of this subsection shall govern the assessment and taxa-
24             tion of property on and after January 1, 1993, and each year there-
25             after. Except as otherwise hereinafter specifically provided, the leg-
26             islature shall provide for a uniform and equal basis of valuation and
27             rate of taxation of all property subject to taxation. The legislature
28             may provide for the appraised valuations of real property estab-
29             lished pursuant to such basis to be averaged over a period of years
30             for the purpose of application in a taxable year for property taxation
31             purposes. The legislature may provide for the classification and the
32             taxation uniformly as to class of recreational vehicles, as defined by
33             the legislature, or may exempt such class from property taxation
34             and impose taxes upon another basis in lieu thereof. The provisions
35             of this subsection shall not be applicable to the taxation of motor
36             vehicles, except as otherwise hereinafter specifically provided, min-
37             eral products, money, mortgages, notes and other evidence of debt
38             and grain. Property shall be classified into the following classes for
39             the purpose of assessment and assessed at the percentage of value
40             prescribed therefor:
41              Class 1 shall consist of real property. Real property shall be fur-
42             ther classified into seven subclasses. Such property shall be defined
43             by law for the purpose of subclassification and assessed uniformly
44             as to subclass at the following percentages of value:

HCR 5036


1       (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%
2       (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%
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 industrialproperty is assessed 33%
6       (6) Real property used for commercial and industrial purposes and build-ings and other improvements located upon land devoted to agriculturaluse 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
  9             personal property shall be further classified into six subclasses, shall
10             be defined by law for the purpose of subclassification and assessed
11             uniformly 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 orless, 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 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%

HCR 5036


1       (6) All other tangible personal property not otherwise specifically classified 30%
  2              (b) All property used exclusively for state, county, municipal,
  3             literary, educational, scientific, religious, benevolent and charitable
  4             purposes, farm machinery and equipment, merchants' and manu-
  5             facturers' inventories, other than public utility inventories included
  6             in subclass (3) of class 2, livestock, and all household goods and
  7             personal effects not used for the production of income, shall be
  8             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 provide for the averaging over a period of years of certain
13             real estate appraised valuations for application in a taxable year.
14              "A vote for this proposition would allow pursuant to enactment
15             by the legislature the averaging of certain real estate appraised val-
16             uations over a period of years for utilization in a taxable year for
17             property taxation purposes.
18              "A vote against this proposition would maintain the current sys-
19             tem of property taxation."
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       7, 2000.