KS
Kansas House Bill HCR5025

Kansas 2023-2024 Regular Session

Kansas House Bill HCR5025 Compare Versions

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11 Session of 2024
22 House Concurrent Resolution No. 5025
33 By Committee on Taxation
44 Requested by Representative A.Smith on behalf of the 2023 Special
55 Committee on Taxation
66 3-7
77 A PROPOSITION to amend section 1 of article 11 of the constitution of
88 the state of Kansas; relating to property taxation; valuing residential
99 real property based on the average fair market value of the prior 10
1010 calendar years.
1111
1212 Be it resolved by the Legislature of the State of Kansas, two-thirds of the
1313 members elected (or appointed) and qualified to the House of
1414 Representatives and two-thirds of the members elected (or appointed)
1515 and qualified to the Senate concurring therein:
1616 Section 1. The following proposition to amend the constitution of
1717 the state of Kansas shall be submitted to the qualified electors of the state
1818 for their approval or rejection: Section 1 of article 11 of the constitution
1919 of the state of Kansas is hereby amended to read as follows:
2020 "§ 1. System of taxation; classification; exemption. (a) The
2121 provisions of this subsection shall govern the assessment and
2222 taxation of property on and after January 1, 2013 2026, and each
2323 year thereafter. Except as otherwise hereinafter specifically
2424 provided, the legislature shall provide for a uniform and equal
2525 basis of valuation and rate of taxation of all property subject to
2626 taxation. The legislature may provide for the classification and the
2727 taxation uniformly as to class of recreational vehicles and
2828 watercraft, as defined by the legislature, or may exempt such class
2929 from property taxation and impose taxes upon another basis in lieu
3030 thereof. The provisions of this subsection shall not be applicable to
3131 the taxation of motor vehicles, except as otherwise hereinafter
3232 specifically provided, mineral products, money, mortgages, notes
3333 and other evidence of debt and grain.
3434 The valuation of any parcel of real property used for
3535 residential purposes including multi-family residential real
3636 property and real property necessary to accommodate a
3737 residential community of mobile or manufactured homes
3838 including the real property upon which such homes are located,
3939 classified for property tax purposes pursuant to subclass (1) of
4040 class 1, shall be determined based on the average fair market
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7575 value of the parcel of the 10 calendar years immediately
7676 preceding the year of valuation. The legislature may provide for
7777 valuation adjustments by law for new construction or
7878 improvements, changes in property use, property that is listed
7979 as escaped or omitted property, changes to the description of
8080 the land, lot or parcel and property that lacks established
8181 valuations for any of the prior 10 calendar years.
8282 Property shall be classified into the following classes for the
8383 purpose of assessment and assessed at the percentage of value
8484 prescribed therefor:
8585 Class 1 shall consist of real property. Real property shall be
8686 further classified into seven subclasses. Such property shall be
8787 defined by law for the purpose of subclassification and assessed
8888 uniformly as to subclass at the following percentages of value:
8989 (1) Real property used for residential purposes including multi-family
9090 residential real property and real property necessary to
9191 accommodate a residential community of mobile or manufactured
9292 homes including the real property upon which such homes are
9393 located...................................................................................... 11½%
9494 (2) Land devoted to agricultural use which shall be valued upon the
9595 basis of its agricultural income or agricultural productivity pursuant
9696 to section 12 of article 11 of the constitution............................. 30%
9797 (3) Vacant lots.................................................................................. 12%
9898 (4) Real property which is owned and operated by a not-for-profit
9999 organization not subject to federal income taxation pursuant to
100100 section 501 of the federal internal revenue code, and which is
101101 included in this subclass by law...................................................12%
102102 (5) Public utility real property, except railroad real property which shall
103103 be assessed at the average rate that all other commercial and
104104 industrial property is assessed......................................................33%
105105 (6) Real property used for commercial and industrial purposes and
106106 buildings and other improvements located upon land devoted to
107107 agricultural use........................................................................... 25%
108108 (7) All other urban and rural real property not otherwise specifically
109109 subclassified................................................................................ 30%
110110 Class 2 shall consist of tangible personal property. Such
111111 tangible personal property shall be further classified into six
112112 subclasses, shall be defined by law for the purpose of
113113 subclassification and assessed uniformly as to subclass at the
114114 following percentages of value:
115115 (1) Mobile homes used for residential purposes........................... 11½%
116116 (2) Mineral leasehold interests except oil leasehold interests the average
117117 daily production from which is five barrels or less, and natural gas
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161161 leasehold interests the average daily production from which is 100
162162 mcf or less, which shall be assessed at 25%............................... 30%
163163 (3) Public utility tangible personal property including inventories
164164 thereof, except railroad personal property including inventories
165165 thereof, which shall be assessed at the average rate all other
166166 commercial and industrial property is assessed.......................... 33%
167167 (4) All categories of motor vehicles not defined and specifically valued
168168 and taxed pursuant to law enacted prior to January 1, 1985....... 30%
169169 (5) Commercial and industrial machinery and equipment which, if its
170170 economic life is seven years or more, shall be valued at its retail cost
171171 when new less seven-year straight-line depreciation, or which, if its
172172 economic life is less than seven years, shall be valued at its retail
173173 cost when new less straight-line depreciation over its economic life,
174174 except that, the value so obtained for such property, notwithstanding
175175 its economic life and as long as such property is being used, shall
176176 not be less than 20% of the retail cost when new of such property.....
177177 25%
178178 (6) All other tangible personal property not otherwise specifically
179179 classified..................................................................................... 30%
180180 (b) All property used exclusively for state, county, municipal,
181181 literary, educational, scientific, religious, benevolent and charitable
182182 purposes, farm machinery and equipment, merchants' and
183183 manufacturers' inventories, other than public utility inventories
184184 included in subclass (3) of class 2, livestock, and all household
185185 goods and personal effects not used for the production of income,
186186 shall be exempted from property taxation."
187187 Sec. 2. The following statement shall be printed on the ballot with
188188 the amendment as a whole:
189189 "Explanatory statement. This amendment would value real
190190 property used for residential purposes provided under
191191 section 1 of article 11 of the Constitution of the State of
192192 Kansas in subclass (1) of class 1 based on the average fair
193193 market value of the parcel of the 10 calendar years
194194 immediately preceding the year of valuation. The
195195 amendment would also authorize the legislature to provide
196196 valuation adjustments by law in certain circumstances.
197197 "A vote for this proposition would value parcels of real property
198198 used for residential purposes including multi-family
199199 residential real property and real property necessary to
200200 accommodate a residential community of mobile or
201201 manufactured homes including the real property upon which
202202 such homes are located based on the average fair market
203203 value of the parcel of the 10 calendar years immediately
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247247 preceding the year of valuation. The amendment would also
248248 authorize the legislature to provide valuation adjustments for
249249 new construction or improvements, changes in property use,
250250 property that is listed as escaped or omitted property,
251251 changes to the description of the land, lot or parcel and
252252 property that lacks established valuations for any of the prior
253253 10 calendar years.
254254 "A vote against this proposition would provide no change to the
255255 Kansas Constitution."
256256 Sec. 3. This resolution, if approved by two-thirds of the members
257257 elected (or appointed) and qualified to the House of Representatives and
258258 two-thirds of the members elected (or appointed) and qualified to the
259259 Senate, shall be entered on the journals, together with the yeas and nays.
260260 The secretary of state shall cause this resolution to be published as
261261 provided by law and shall cause the proposed amendment to be submitted
262262 to the electors of the state at the general election in November in the year
263263 2024, unless a special election is called at a sooner date by concurrent
264264 resolution of the legislature, in which case such proposed amendment
265265 shall be submitted to the electors of the state at the special election.
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