Session of 2024
House Concurrent Resolution No. 5025
By Committee on Taxation
Requested by Representative A.Smith on behalf of the 2023 Special
Committee on Taxation
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1 A PROPOSITION to amend section 1 of article 11 of the constitution of
2 the state of Kansas; relating to property taxation; valuing residential
3 real property based on the average fair market value of the prior 10
4 calendar years.
5
6 Be it resolved by the Legislature of the State of Kansas, two-thirds of the
7 members elected (or appointed) and qualified to the House of
8 Representatives and two-thirds of the members elected (or appointed)
9 and qualified to the Senate concurring therein:
10 Section 1. The following proposition to amend the constitution of
11 the state of Kansas shall be submitted to the qualified electors of the state
12 for their approval or rejection: Section 1 of article 11 of the constitution
13 of the state of Kansas is hereby amended to read as follows:
14 "§ 1. System of taxation; classification; exemption. (a) The
15 provisions of this subsection shall govern the assessment and
16 taxation of property on and after January 1, 2013 2026, and each
17 year thereafter. Except as otherwise hereinafter specifically
18 provided, the legislature shall provide for a uniform and equal
19 basis of valuation and rate of taxation of all property subject to
20 taxation. The legislature may provide for the classification and the
21 taxation uniformly as to class of recreational vehicles and
22 watercraft, as defined by the legislature, or may exempt such class
23 from property taxation and impose taxes upon another basis in lieu
24 thereof. The provisions of this subsection shall not be applicable to
25 the taxation of motor vehicles, except as otherwise hereinafter
26 specifically provided, mineral products, money, mortgages, notes
27 and other evidence of debt and grain.
28 The valuation of any parcel of real property used for
29 residential purposes including multi-family residential real
30 property and real property necessary to accommodate a
31 residential community of mobile or manufactured homes
32 including the real property upon which such homes are located,
33 classified for property tax purposes pursuant to subclass (1) of
34 class 1, shall be determined based on the average fair market
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1 value of the parcel of the 10 calendar years immediately
2 preceding the year of valuation. The legislature may provide for
3 valuation adjustments by law for new construction or
4 improvements, changes in property use, property that is listed
5 as escaped or omitted property, changes to the description of
6 the land, lot or parcel and property that lacks established
7 valuations for any of the prior 10 calendar years.
8 Property shall be classified into the following classes for the
9 purpose of assessment and assessed at the percentage of value
10 prescribed therefor:
11 Class 1 shall consist of real property. Real property shall be
12 further classified into seven subclasses. Such property shall be
13 defined by law for the purpose of subclassification and assessed
14 uniformly as to subclass at the following percentages of value:
15 (1) Real property used for residential purposes including multi-family
16 residential real property and real property necessary to
17 accommodate a residential community of mobile or manufactured
18 homes including the real property upon which such homes are
19 located...................................................................................... 11½%
20 (2) Land devoted to agricultural use which shall be valued upon the
21 basis of its agricultural income or agricultural productivity pursuant
22 to section 12 of article 11 of the constitution............................. 30%
23 (3) Vacant lots.................................................................................. 12%
24 (4) Real property which is owned and operated by a not-for-profit
25 organization not subject to federal income taxation pursuant to
26 section 501 of the federal internal revenue code, and which is
27 included in this subclass by law...................................................12%
28 (5) Public utility real property, except railroad real property which shall
29 be assessed at the average rate that all other commercial and
30 industrial property is assessed......................................................33%
31 (6) Real property used for commercial and industrial purposes and
32 buildings and other improvements located upon land devoted to
33 agricultural use........................................................................... 25%
34 (7) All other urban and rural real property not otherwise specifically
35 subclassified................................................................................ 30%
36 Class 2 shall consist of tangible personal property. Such
37 tangible personal property shall be further classified into six
38 subclasses, shall be defined by law for the purpose of
39 subclassification and assessed uniformly as to subclass at the
40 following percentages of value:
41 (1) Mobile homes used for residential purposes........................... 11½%
42 (2) Mineral leasehold interests except oil leasehold interests the average
43 daily production from which is five barrels or less, and natural gas
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1 leasehold interests the average daily production from which is 100
2 mcf or less, which shall be assessed at 25%............................... 30%
3 (3) Public utility tangible personal property including inventories
4 thereof, except railroad personal property including inventories
5 thereof, which shall be assessed at the average rate all other
6 commercial and industrial property is assessed.......................... 33%
7 (4) All categories of motor vehicles not defined and specifically valued
8 and taxed pursuant to law enacted prior to January 1, 1985....... 30%
9 (5) Commercial and industrial machinery and equipment which, if its
10 economic life is seven years or more, shall be valued at its retail cost
11 when new less seven-year straight-line depreciation, or which, if its
12 economic life is less than seven years, shall be valued at its retail
13 cost when new less straight-line depreciation over its economic life,
14 except that, the value so obtained for such property, notwithstanding
15 its economic life and as long as such property is being used, shall
16 not be less than 20% of the retail cost when new of such property.....
17 25%
18 (6) All other tangible personal property not otherwise specifically
19 classified..................................................................................... 30%
20 (b) All property used exclusively for state, county, municipal,
21 literary, educational, scientific, religious, benevolent and charitable
22 purposes, farm machinery and equipment, merchants' and
23 manufacturers' inventories, other than public utility inventories
24 included in subclass (3) of class 2, livestock, and all household
25 goods and personal effects not used for the production of income,
26 shall be exempted from property taxation."
27 Sec. 2. The following statement shall be printed on the ballot with
28 the amendment as a whole:
29 "Explanatory statement. This amendment would value real
30 property used for residential purposes provided under
31 section 1 of article 11 of the Constitution of the State of
32 Kansas in subclass (1) of class 1 based on the average fair
33 market value of the parcel of the 10 calendar years
34 immediately preceding the year of valuation. The
35 amendment would also authorize the legislature to provide
36 valuation adjustments by law in certain circumstances.
37 "A vote for this proposition would value parcels of real property
38 used for residential purposes including multi-family
39 residential real property and real property necessary to
40 accommodate a residential community of mobile or
41 manufactured homes including the real property upon which
42 such homes are located based on the average fair market
43 value of the parcel of the 10 calendar years immediately
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1 preceding the year of valuation. The amendment would also
2 authorize the legislature to provide valuation adjustments for
3 new construction or improvements, changes in property use,
4 property that is listed as escaped or omitted property,
5 changes to the description of the land, lot or parcel and
6 property that lacks established valuations for any of the prior
7 10 calendar years.
8 "A vote against this proposition would provide no change to the
9 Kansas Constitution."
10 Sec. 3. This resolution, if approved by two-thirds of the members
11 elected (or appointed) and qualified to the House of Representatives and
12 two-thirds of the members elected (or appointed) and qualified to the
13 Senate, shall be entered on the journals, together with the yeas and nays.
14 The secretary of state shall cause this resolution to be published as
15 provided by law and shall cause the proposed amendment to be submitted
16 to the electors of the state at the general election in November in the year
17 2024, unless a special election is called at a sooner date by concurrent
18 resolution of the legislature, in which case such proposed amendment
19 shall be submitted to the electors of the state at the special election.