As Amended by House Committee          

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Session of 1999
          House Concurrent Resolution No. 5019           By Committee on Taxation           2-2          

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11             A PROPOSITION to amend section 1 of article 11 of the constitution of
12             the state of Kansas, relating to the classification and taxation of aircraft
13             and watercraft certain public utility property.
14      
15      
16        Be it resolved by the Legislature of the State of Kansas, two-thirds of
17       the members elected (or appointed) and qualified to the House of Rep-
18       resentatives 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 provi-
25             sions of this subsection shall govern the assessment and taxation of
26             property on and after January 1, 1993, and each year thereafter. Except
27             as otherwise hereinafter specifically provided, the legislature shall pro-
28             vide for a uniform and equal basis of valuation and rate of taxation of
29             all property subject to taxation. The legislature may provide for the
30             classification and the taxation uniformly as to class of recreational ve-
31             hicles, aircraft and watercraft, as defined by the legislature, or may
32             exempt such class from property taxation and impose taxes upon an-
33             other basis in lieu thereof. The provisions of this subsection shall not
34             be applicable to the taxation of motor vehicles, except as otherwise
35             hereinafter specifically provided, mineral products, money, mortgages,
36             notes and other evidence of debt and grain. Property shall be classified
37             into the following classes for the purpose of assessment and assessed
38             at the percentage of value prescribed therefor:
39                   Class 1 shall consist of real property. Real property shall be further
40       classified into seven subclasses. Such property shall be defined by law for
41       the purpose of subclassification and assessed uniformly as to subclass at
42       the following percentages of value:

43	(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 includingthe real property upon which such homes are located	11½%
44	(2)	Land devoted to agricultural use which shall be valued upon the basisof its agricultural income or agricultural productivity pursuant to sec-tion 12 of article 11 of the constitution	30%
45	(3)	Vacant lots	12%
46	(4)	Real property which is owned and operated by a not-for-profit organ-ization not subject to federal income taxation pursuant to section 501of the federal internal revenue code, and which is included in thissubclass by law	12%
47	(5)	Public utility real property, except railroad real property which shallbe assessed at the average rate that all other commercial and industrialproperty is assessed	33%
48	(6)	Real property used for commercial and industrial purposes and build-ings and other improvements located upon land devoted to agricul-tural use	25%
49	(7)	All other urban and rural real property not otherwise specificallysubclassified	30%

50             Class 2 shall consist of tangible personal property. Such tangible per-

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  1       sonal property shall be further classified into six subclasses, shall be de-
  2       fined by law for the purpose of subclassification and assessed uniformly
  3       as to subclass at the following percentages of value:

4	(1)	Mobile homes used for residential purposes	11½%
5	(2)	Mineral leasehold interests except oil leasehold interests the averagedaily production from which is five barrels or less, and natural gasleasehold interests the average daily production from which is 100mcf or less, which shall be assessed at 25%	30%
6	(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 indus-trial property is assessed	33%
7	(4)	All categories of motor vehicles not defined and specifically valuedand taxed pursuant to law enacted prior to January 1, 1985	30%
8	(5)	Commercial and industrial machinery and equipment which, if its ec-onomic life is seven years or more, shall be valued at its retail costwhen new less seven-year straight-line depreciation, or which, if itseconomic life is less than seven years, shall be valued at its retail costwhen new less straight-line depreciation over its economic life, exceptthat, the value so obtained for such property, notwithstanding its ec-onomic life and as long as such property is being used, shall not beless than 20% of the retail cost when new of such property	25%
9	(6)	All other tangible personal property not otherwise specificallyclassified	30%

10             (b) The legislature may provide by law for the definition of
11       public utility services and the classification or reclassification of
12       property of any entity, or division thereof, providing public utility
13       services.
14             (b) (c) All property used exclusively for state, county, municipal, lit-
15       erary, educational, scientific, religious, benevolent and charitable pur-
16       poses, farm machinery and equipment, merchants' and manufacturers'
17       inventories, other than public utility inventories included in subclass (3)
18       of class 2, livestock, and all household goods and personal effects not used
19       for the production of income, shall be exempted from property taxation.''
20             Sec.  2. The following statement shall be printed on the ballot with
21       the amendment as a whole:
22              ``Explanatory statement. This amendment would allow the legisla-
23             ture to classify and tax aircraft and watercraft upon a basis different
24             from other property.
25              ``A vote for this proposition would permit the legislature to provide
26             for separate classification and taxation of aircraft and watercraft and to
27             exempt such property from property taxation and impose taxes in lieu
28             thereof.
29              ``A vote against this proposition would continue the taxation of air-
30             craft and watercraft in the same manner as all other property.''
31             ``Explanatory statement: This amendment would allow the legis-
32                   lature to provide by law for the classification or reclassifica-
33                   tion of property of public utility service providers for prop-
34                   erty tax assessment rate purposes.
35                   ``A vote for this proposition would grant the authority to the
36                   legislature to provide for the classification or reclassification
37                   of property of public utility service providers for property tax
38                   assessment rate purposes.
39                   ``A vote against this proposition would continue the existing
40                   property tax assessment rate treatment for all public utility
41                   service providers.''
42                   Sec.  3. This resolution, if approved by two-thirds of the members
43       elected (or appointed) and qualified to the House of Representatives, and

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  1       two-thirds of the members elected (or appointed) and qualified to the
  2       Senate, shall be entered on the journals, together with the yeas and nays.
  3       The secretary of state shall cause this resolution to be published as pro-
  4       vided by law and shall cause the proposed amendment to be submitted
  5       to the electors of the state at the general election to be held on November
  6       7, 2000.
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