Brief⁽¹⁾

H.C.R. 5034, if approved by voters on November 3, would amend Article 11, Section 1, of the Kansas Constitution to authorize the Legislature to separately classify and tax aircraft and watercraft on a different basis from other property.

Background

The resolution is not self-executing and subsequent legislation would be needed before the taxation of aircraft or watercraft would be changed. Such property currently is assessed as "all other" personal property at 30 percent of its fair market value.

After a similar legislative authorization for "recreational vehicles" was adopted as part of a constitutional amendment in 1992, the Legislature in 1994 enacted a new tax system for such vehicles under which liability is based on the weight and the age of the vehicles (rather than on fair market value).

Aircraft are exempt from property taxation under current law if they are used exclusively for business purposes or are "antique" aircraft of at least 30 years old.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.