As Amended by House Committee
         
Session of 1999
         
House Concurrent Resolution No. 5002
         
By Special Committee on Assessment and Taxation
         
12-16
         

10             A PROPOSITION to amend section 13 of article 11 of the constitution
11             of the state of Kansas, relating to exemption of property used for oil
12             and gas development, exploration and production purposes.
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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
21       the state of Kansas shall be submitted to the qualified electors of the state
22       for their approval or rejection: Section 13 of article 11 of the constitution
23       of the state of Kansas is hereby amended to read as follows:
24             "§  13. Exemption of property for economic development pur-
25             poses; procedure; limitations. (a) The board of county commission-
26             ers of any county or the governing body of any city may, by resolution
27             or ordinance, as the case requires, exempt from all ad valorem taxation
28             all or any portion of the appraised valuation of: (1) All buildings, to-
29             gether with the land upon which such buildings are located, and all
30             tangible personal property associated therewith used exclusively by a
31             business for the purpose of: (A) Manufacturing articles of commerce;
32             (B) conducting research and development; or (C) storing goods or
33             commodities which are sold or traded in interstate commerce, which
34             commences operations after the date on which this amendment is ap-
35             proved by the electors of this state; or (2) all buildings, or added im-
36             provements to buildings constructed after the date on which this
37             amendment is approved by the electors of this state, together with the
38             land upon which such buildings or added improvements are located,
39             and all tangible personal property purchased after such date and as-
40             sociated therewith, used exclusively for the purpose of: (A) Manufac-
41             turing articles of commerce; (B) conducting research and develop-
42             ment; or (C) storing goods or commodities which are sold or traded
43             in interstate commerce, which is necessary to facilitate the expansion
44             of any such existing business if, as a result of such expansion, new
45             employment is created; or (3) all property actually and regularly used
46             in conjunction with the development, exploration and production of oil
47             and gas.
48              (b) Any ad valorem tax exemption granted pursuant to subsection
49             (a) shall be in effect for not more than 10 calendar years after the
50             calendar year in which the business commences its operations or the
51             calendar year in which expansion of an existing business is completed,
52             as the case requires.
53              (c) The legislature may limit or prohibit the application of this
54             section by enactment uniformly applicable to all cities or counties.
55              (d) The provisions of this section shall not be construed to affect
56             exemptions of property from ad valorem taxation granted by this con-
57             stitution or by enactment of the legislature, or to affect the authority
58             of the legislature to enact additional exemptions of property from ad
59             valorem taxation found to have a public purpose and promote the
60             general welfare."
61             Sec. 2. The following statement shall be printed on the ballot with
62       the amendment as a whole:
63              "Explanatory statement. This amendment would specifically au-
64             thorize the exemption from property taxation of certain property used
65             for oil and gas development, exploration and production purposes.
66              "A vote for this proposition would specifically allow the governing
67             body of a city or county to exempt from property taxation property
68             used in the development, exploration and production of oil and gas.
69              "A vote against this proposition would continue to allow the exemp-
70             tion from property taxation of property used exclusively for certain
71             economic development purposes by the governing body of a city or
72             county."
73             Sec. 3. This resolution, if approved by two-thirds of the members
74       elected (or appointed) and qualified to the House of Representatives and
75       two-thirds of the members elected (or appointed) and qualified to the
76       Senate, shall be entered on the journals, together with the yeas and nays.
77       The secretary of state shall cause this resolution to be published as pro-
78       vided by law and shall cause the proposed amendment to be submitted
79       to the electors of the state at the general election to be held on November
80       7, 2000, in April, 1999, or the earliest possible general election
81       thereafter unless a special election is called at a sooner date by concur-
82       rent resolution of the legislature, in which case it shall be submitted to
83       the electors of the state at the special election.