KS
Kansas House Bill HCR5014

Kansas 2025-2026 Regular Session

Kansas House Bill HCR5014 Compare Versions

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11 Session of 2025
22 House Concurrent Resolution No. 5014
33 By Committee on Taxation
44 Requested by Representative B. Carpenter
55 3-14
66 A PROPOSITION to amend article 11 of the constitution of the state of
77 Kansas by adding a new section thereto; establishing the freedom
88 from taxes fund; establishing the Kansas citizens freedom review
99 board; authorizing the board to review tax exemptions and approve or
1010 eliminate such exemptions; eliminating the state-imposed property
1111 taxes, income and privilege taxes.
1212
1313 Be it resolved by the Legislature of the State of Kansas, two-thirds of the
1414 members elected (or appointed) and qualified to the House of
1515 Representatives and two-thirds of the members elected (or appointed)
1616 and qualified to the Senate concurring therein:
1717 Section 1. The following proposition to amend the constitution of
1818 the state of Kansas shall be submitted to the qualified electors of the state
1919 for their approval or rejection: Article 11 of the constitution of the state of
2020 Kansas is hereby amended by adding a new section to read as follows:
2121 "§ 14. Freedom from taxes section. (a) There is
2222 hereby established the freedom from taxes fund. There shall be
2323 two sub-funds within the freedom from taxes fund:
2424 (1) The state property tax elimination fund, which shall be
2525 solely dedicated to the elimination of state-imposed property
2626 taxes; and
2727 (2) the state income and privilege tax elimination fund,
2828 which shall be solely dedicated to the elimination of state-
2929 imposed income and privilege taxes.
3030 (b) The freedom from taxes fund and any sub-funds within
3131 such fund shall be administered by the state treasurer. All
3232 expenditures from the freedom from taxes fund shall be solely
3333 for the elimination of state-imposed property and income and
3434 privilege taxes and only expended under the provisions of this
3535 section. All moneys received by the state treasurer that are
3636 identified as moneys collected by the state of Kansas as a result
3737 of the elimination, in whole or in part, of the state sales and
3838 compensating use tax exemptions, hereafter referred to as tax
3939 exemptions, and interest earnings on such moneys shall be
4040 deposited in and credited to the freedom from taxes fund.
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7676 (c) All moneys received by the state treasurer that are
7777 identified as moneys collected by the state of Kansas as a result
7878 of the elimination, in whole or in part, of the state tax
7979 exemptions including all moneys identified as principal in the
8080 freedom from taxes fund shall remain intact and inviolate and
8181 shall not be appropriated, transferred, encumbered, borrowed
8282 against or otherwise diminished for any purpose whatsoever.
8383 Only the interest earnings on the freedom from taxes fund may
8484 be expended or transferred as provided for under the provisions
8585 of this section.
8686 (d) All moneys in the freedom from taxes fund shall be
8787 invested and reinvested by the state treasurer in a prudent and
8888 reasonable manner in accordance with investment policies
8989 provided by law.
9090 (e) (1) There is hereby established the Kansas citizens
9191 freedom review board, which shall exist for the limited
9292 purposes as provided for in this section.
9393 (2) The composition, qualifications and manner of
9494 appointment for the board shall be prescribed by law.
9595 (3) The board shall review and approve or eliminate, in
9696 whole or in part, any existing state tax exemptions to go into
9797 effect for the next ensuing tax year.
9898 (4) Upon completion of the review and issuance of the
9999 determinations on all existing tax exemptions, the board shall
100100 issue and submit a final report to the governor, the state
101101 treasurer and the legislature not later than one year following
102102 the effective date of the law to carry out the purposes of this
103103 section. On the date of the submission of the final report, the
104104 board shall be dissolved.
105105 (f) (1) Following the elimination of such tax exemptions,
106106 the state treasurer shall annually identify in each tax year the
107107 amount of moneys collected in the state treasury that are
108108 collected because of the elimination of such tax exemptions.
109109 (2) Annually, the state treasurer shall transfer the amount
110110 of such moneys to the state property tax elimination fund of the
111111 freedom from taxes fund. Except as provided further, the
112112 interest earnings on the state property tax elimination fund shall
113113 be retained in such fund. The state treasurer shall present an
114114 annual report to the legislature on the balance of the state
115115 property tax elimination fund identified by principal and interest
116116 earnings.
117117 (3) When the state treasurer determines that the amount of
118118 moneys identified as projected interest earnings in the state
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162162 property tax elimination fund is an amount greater than the
163163 amount of moneys needed to eliminate state-mandated property
164164 tax levies and state-imposed property taxes, such property taxes
165165 shall be eliminated in the next ensuing tax year. In such year,
166166 the state treasurer shall transfer from the state property tax
167167 elimination fund to the state general fund interest earnings in
168168 the amount equal to the amount of moneys not collected
169169 because of the elimination of state-mandated property tax levies
170170 and state-imposed property taxes. The state treasurer shall
171171 certify the amount of such transfer. In the ensuing tax years
172172 thereafter, the amount transferred to the state general fund shall
173173 not exceed an amount equal to the amount of moneys
174174 transferred from the state property tax elimination fund in the
175175 immediately preceding tax year multiplied by 3%.
176176 (4) When the state treasurer makes the determination as
177177 provided in subsection (f)(3), the legislature shall not levy a
178178 state-mandated property tax or state-imposed property tax on
179179 any property in this state.
180180 (5) Upon the elimination of state-mandated property tax
181181 levies and state-imposed property taxes, annually, the state
182182 treasurer shall transfer the amount of such moneys that continue
183183 to be collected because of the elimination of such tax
184184 exemptions to the state income and privilege tax elimination
185185 fund of the freedom from taxes fund. Except as provided
186186 further, the interest earnings on the state income and privilege
187187 tax elimination fund shall be retained in such fund. The state
188188 treasurer shall present an annual report to the legislature on the
189189 balance of the state income and privilege tax elimination fund
190190 identified by principal and interest earnings.
191191 (6) When the state treasurer determines that the amount of
192192 moneys that are identified as projected interest earnings in the
193193 state income and privilege tax elimination fund is an amount
194194 greater than the amount of moneys needed to eliminate state
195195 income and privilege tax, state income tax and state privilege
196196 tax shall be eliminated in the next ensuing tax year. In such
197197 year, the state treasurer shall transfer from the state income and
198198 privilege tax elimination fund to the state general fund interest
199199 earnings in the amount equal to the amount of moneys not
200200 collected because of the elimination of state income and
201201 privilege taxes. The state treasurer shall certify the amount of
202202 such transfer. In the ensuing tax years thereafter, the amount
203203 transferred to the state general fund shall not exceed an amount
204204 equal to the amount of moneys transferred from the state
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248248 income and privilege tax elimination fund in the immediately
249249 preceding tax year multiplied by 3%.
250250 (7) When the state treasurer makes the determination as
251251 provided in subsection (f)(6), the legislature shall not levy a
252252 state income tax on any income earned in this state or privilege
253253 tax on net income on national banking associations, banks, trust
254254 companies, federally chartered savings banks and savings and
255255 loan associations in this state.
256256 (g) (1) If the Kansas citizens freedom review board
257257 eliminates, in whole or in part, any existing state tax
258258 exemptions, the legislature may enact new, identical or similar
259259 tax exemptions during any following regular session of the
260260 legislature. If the legislature enacts any state tax exemptions,
261261 such tax exemptions shall expire at the end of the tax year that
262262 is five years from the date of enactment.
263263 (2) If the Kansas citizens freedom review board approves,
264264 in whole or in part, any existing state tax exemptions, such tax
265265 exemptions shall expire at the end of the tax year that is five
266266 years from the date of the submission of the final report.
267267 (3) The legislature shall not consider renewing any
268268 eliminated or expired tax exemption until the regular legislative
269269 session immediately prior to such elimination or expiration.
270270 (4) If the legislature enacts a law to eliminate, in whole or
271271 in part, any existing state tax exemptions or any existing state
272272 tax exemptions are allowed to expire, all moneys received by
273273 the state treasurer that are identified as moneys collected by the
274274 state of Kansas as a result of such elimination or expiration of
275275 any state tax exemption shall be deposited in the state treasury
276276 and credited to the freedom from taxes fund as provided for in
277277 this section.
278278 (5) If the legislature enacts a law to transfer or deposit
279279 moneys into the freedom from taxes fund, such funds shall be
280280 transferred or deposited pursuant to such law until repealed. The
281281 legislature shall not suspend such transfer or deposit through an
282282 appropriation bill.
283283 (h) Upon the date that the state treasurer determines that
284284 the state property tax elimination fund and the state income and
285285 privilege tax elimination fund are fully funded in order for the
286286 interest earnings from each such fund to reimburse the state
287287 general fund for the lost revenue as a result of eliminating the
288288 state property tax and the state income and privilege taxes,
289289 during any ensuing regular session of the legislature, the
290290 legislature may:
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334334 (1) Determine, by two-thirds of the members elected (or
335335 appointed) and qualified to the House of Representatives and
336336 two-thirds of the members elected (or appointed) and qualified
337337 to the Senate, whether to deposit the amount of moneys that are
338338 identified as moneys collected by the state of Kansas as a result
339339 of the elimination, in whole or in part, of the state tax
340340 exemptions in the state general fund; or
341341 (2) propose to the citizens of Kansas a constitutional
342342 amendment to eliminate other forms of taxes.
343343 (i) The provisions of this section shall not apply to any
344344 federal exemptions established by the constitution of the United
345345 States or federal law.
346346 (j) The legislature may enact laws to carry out the purposes
347347 of this section.
348348 (k) This amendment shall be effective on and after January
349349 1, 2027."
350350 Sec. 2. The following statement shall be printed on the ballot with
351351 the amendment as a whole:
352352 "Explanatory statement. This amendment would establish the
353353 freedom from taxes fund, which would lead to the eventual
354354 elimination of state-imposed property taxes and income and
355355 privilege taxes. The Kansas citizens freedom review board
356356 would be created, and they would review tax exemptions
357357 and approve or eliminate them. The money provided from
358358 such eliminations would be deposited into the freedom from
359359 taxes fund, to be used to eliminate state-imposed property
360360 tax and state income and privilege taxes. Any future tax
361361 exemptions would not be allowed to exceed five years
362362 without further enactment by the legislature.
363363 "A vote for this proposition would lead to the future elimination
364364 of state-imposed property taxes and state income and
365365 privilege taxes. The Kansas citizens freedom review board
366366 would be established to review all current tax exemptions for
367367 their approval or elimination. Future tax exemptions would
368368 be limited to a duration of not to exceed five years without
369369 further enactment by the legislature.
370370 "A vote against this proposition means the state of Kansas will
371371 continue to levy property taxes, income and privilege taxes
372372 and sales taxes to fund government operations, with no
373373 changes made to the state constitution."
374374 Sec. 3. This resolution, if approved by two-thirds of the members
375375 elected (or appointed) and qualified to the House of Representatives and
376376 two-thirds of the members elected (or appointed) and qualified to the
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420420 Senate, shall be entered on the journals, together with the yeas and nays.
421421 The secretary of state shall cause this resolution to be published as
422422 provided by law and shall cause the proposed amendment to be submitted
423423 to the electors of the state at the general election in November in the year
424424 2026, unless a special election is called at a sooner date by concurrent
425425 resolution of the legislature, in which case the proposed amendment shall
426426 be submitted to the electors of the state at the special election.
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