Brief(1)
H.C.R. 5002 would amend Article 11, Section 13 of the Kansas Constitution dealing with property tax exemptions for economic development (EDXs). This bill would add property used in conjunction with the development, exploration, and production of oil and gas to the list of purposes for which an EDX may be granted. Under current law, EDXs may be granted only for property used for manufacturing, research and development, or warehousing of goods and commodities for interstate commerce.
Background
H.C.R. 5002 was recommended by the Special Committee on Assessment and Taxation which studied this topic during the 1998 Interim. A similar resolution was introduced both in 1996 and 1997.
The House Economic Development Committee held a hearing on this bill, at which time proponents included the Kansas Independent Oil and Gas Association, the Kansas Association of Counties, and the Trego County Commissioners. The House Committee amended the bill to require that it be placed on the ballot for the April 1999 local government elections or the earliest possible general election instead of the November 7, 2000 general election.
According to the office of the Secretary of State, the state would incur a publication cost of $48,048 for placing this proposed amendment on the April 1999 ballot.
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/bill_search.html.