SCR 1624

 Session of 2026
               Senate Concurrent Resolution No. 1624
                   By Committee on Assessment and Taxation
                                      3-4
1 A PROPOSITION to amend the constitution of the state of Kansas by
2   revising article 11; establishing the freedom from taxes fund;
3   establishing the temporary Kansas citizens freedom review board;
4   authorizing the board to review tax exemptions and approve or
5   eliminate such exemptions; eliminating the motor vehicle property
6   taxes and fees, state-mandated and state-imposed property taxes and
7   state-imposed income and privilege taxes.
8
9 Be it resolved by the Legislature of the State of Kansas, two-thirds of the
10     members elected (or appointed) and qualified to the Senate and two-
11     thirds of the members elected (or appointed) and qualified to the
12     House of Representatives concurring therein:
13     Section 1. The following proposition to amend the constitution of
14 the state of Kansas shall be submitted to the qualified electors of the state
15 for their approval or rejection: Article 11 of the constitution of the state of
16 Kansas is hereby revised by amending Section 2 and adding a new
17 section to read as follows:
18"§ 2. Taxation of incomes. Except as provided further, the
19     state shall have power to levy and collect taxes on incomes from
20     whatever source derived, which taxes may be graduated and
21     progressive. Upon the adoption by the legislature of a concurrent
22     resolution to eliminate the state income and privilege tax pursuant
23     to section 14 of this article 11, the provisions of this section shall
24     be null and void and have no force or effect.
25"§ 14. Freedom from taxes section. (a) There is hereby
26     established the freedom from taxes fund. There shall be three sub-
27     funds within the freedom from taxes fund:
28(1) The state motor vehicle property tax elimination fund,
29     which shall be solely dedicated to the elimination of motor
30     vehicle property taxes and any fees charged by either the state
31     or any subdivision of the state in order to register or title a
32     motor vehicle. There shall be a sub-fund in the state motor
33     vehicle property tax elimination fund to be called the motor
34     vehicle tax reserve fund, which shall be used solely to maintain
35     stable motor vehicle tax replacement payments. The motor
36     vehicle tax reserve fund shall not exceed 150% of the
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1   authorized annual transfer from the state motor vehicle property
2   tax elimination fund to the state general fund. In any year that
3   the motor vehicle tax reserve fund meets such limitation, the
4   state treasurer shall not make any transfers into the motor
5   vehicle tax reserve fund, and such moneys shall be retained in
6   the state motor vehicle property tax elimination fund;
7(2) the state property tax elimination fund, which shall be
8   solely dedicated to the elimination of state-mandated property
9   taxes and state-imposed property taxes. There shall be a sub-
10   fund in the state property tax elimination fund to be called the
11   property tax reserve fund, which shall be used solely to
12   maintain stable property tax replacement payments. The
13   property tax reserve fund shall not exceed 150% of the
14   authorized annual transfer from the state property tax
15   elimination fund to the state general fund. In any year that the
16   property tax reserve fund meets such limitation, the state
17   treasurer shall not make any transfers into the property tax
18   reserve fund, and such moneys shall be retained in the state
19   property tax elimination fund; and
20(3) the state income and privilege tax elimination fund,
21   which shall be solely dedicated to the elimination of state-
22   imposed income and privilege taxes. There shall be a sub-fund
23   in the state income and privilege tax elimination fund to be
24   called the income tax reserve fund, which shall be used solely to
25   maintain stable income and privilege tax replacement payments.
26   The income tax reserve fund shall not exceed 150% of the
27   authorized annual transfer from the state income and privilege
28   tax elimination fund to the state general fund. In any year that
29   the income tax reserve fund meets such limitation, the state
30   treasurer shall not make any transfers into the income tax
31   reserve fund, and such moneys shall be retained in the state
32   income and privilege tax elimination fund.
33(b) The freedom from taxes fund and any sub-funds within
34   such fund shall be administered by the state treasurer. All
35   expenditures from the freedom from taxes fund shall be solely
36   for the elimination of motor vehicle property taxes and fees,
37   state-mandated property taxes and state-imposed property taxes
38   and state-imposed income and privilege taxes and only
39   expended under the provisions of this section. All moneys
40   received by the state treasurer that are identified as moneys
41   collected by the state of Kansas as a result of the elimination, in
42   whole or in part, of the state sales and compensating use tax
43   exemptions, hereafter referred to as tax exemptions, and interest
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1   earnings on such moneys shall be deposited in and credited to
2   the freedom from taxes fund.
3(c) All moneys received by the state treasurer that are
4   identified as moneys collected by the state of Kansas as a result
5   of the elimination, in whole or in part, of the state tax
6   exemptions, including all moneys identified as principal in the
7   freedom from taxes fund, shall remain intact and inviolate and
8   shall not be appropriated, transferred, encumbered, borrowed
9   against or otherwise diminished for any purpose whatsoever.
10   Only the interest earnings on the freedom from taxes fund may
11   be expended or transferred as provided for under the provisions
12   of this section.
13(d) All moneys in the freedom from taxes fund, including
14   principal and reserve balances, shall be invested and reinvested
15   by a money manager in a prudent and reasonable manner in
16   accordance with investment policies provided by law. The state
17   treasurer shall contract for the management of the moneys in the
18   freedom from taxes fund by a money manager. Prior to entering
19   into such contract, the contract shall be approved by the
20   legislature by the adoption of a concurrent resolution during any
21   regular or special session of the legislature. If the legislature
22   fails to adopt a concurrent resolution approving a contract, the
23   state treasurer is authorized to enter into such contract. The
24   contract shall be for a maximum term of five years but may be
25   renewed by the state treasurer and the legislature subject to the
26   provisions of this subsection. During any time following the
27   adjournment of the legislature sine die until the convening of
28   the ensuing session of the legislature, if for any reason the
29   money manager resigns or otherwise fails to perform such
30   manager's contractual duties, the state treasurer shall perform
31   the duties as money manager until a new contract has been
32   entered into and approved by the legislature as provided by this
33   subsection.
34(e) (1) There is hereby established the Kansas citizens
35   freedom review board, which shall exist for the limited
36   purposes as provided for in this section.
37(2) The composition, qualifications and manner of
38   appointment for the board shall be prescribed by law.
39(3) The board shall review and approve or eliminate, in
40   whole or in part, any existing state tax exemptions to go into
41   effect for the next ensuing tax year.
42(4) Upon completion of the review and issuance of the
43   determinations on all existing tax exemptions, the board shall
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1   issue and submit a final report to the governor, the state
2   treasurer and the legislature not later than one year following
3   the effective date of the law to carry out the purposes of this
4   section. On the date of the submission of the final report, the
5   board shall be dissolved.
6(f) (1) Following the elimination of such tax exemptions,
7   the state treasurer shall annually identify in each tax year the
8   amount of moneys collected in the state treasury that are
9   collected because of the elimination of such tax exemptions.
10(2) Annually, the state treasurer shall transfer the amount
11   of such moneys to the state motor vehicle property tax
12   elimination fund of the freedom from taxes fund. Except as
13   provided further, the interest earnings on the state motor vehicle
14   property tax elimination fund shall be retained in such fund.
15   The state treasurer shall present an annual report to the
16   legislature on the balance of the state motor vehicle property tax
17   elimination fund identified by principal and interest earnings.
18(3) When the state treasurer determines that the amount of
19   moneys identified as projected interest earnings in the state
20   motor vehicle property tax elimination fund is an amount
21   greater than: (A) An amount of moneys equal to 45% of the
22   interest earnings needed to eliminate all motor vehicle property
23   taxes and fees; (B) plus an amount of moneys needed to retain
24   45% of the interest earnings in the state motor vehicle property
25   tax elimination fund; and (C) plus an amount of moneys equal
26   to 10% of the interest earnings to be transferred to the motor
27   vehicle tax reserve fund, the state treasurer shall present such
28   determination to the legislature. Such determination shall be
29   approved by the legislature by the adoption of a concurrent
30   resolution during any regular or special session of the
31   legislature. Upon the adoption of such concurrent resolution,
32   such motor vehicle property taxes and fees shall be eliminated
33   in the next ensuing tax year. In such year, the state treasurer
34   shall transfer from the state motor vehicle property tax
35   elimination fund to the state general fund interest earnings in
36   the amount equal to the amount of moneys not collected
37   because of the elimination of motor vehicle property taxes and
38   fees. The state treasurer shall certify the amount of such
39   transfer. The legislature shall provide by law for any
40   distribution to local taxing subdivisions. In the ensuing tax
41   years, the amount transferred to the state general fund from the
42   state motor vehicle property tax elimination fund shall not
43   exceed 45% of the interest earned on the state motor vehicle
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1   property tax elimination fund, subject to further adjustment
2   based on a five-year rolling average of interest earnings. During
3   the first five years in which the motor vehicle property taxes
4   and fees have been eliminated, the state treasurer shall
5   determine the average amount of interest earned during such
6   years, and annually determine such average interest earned.
7   During such years, the transfer from the state motor vehicle
8   property tax elimination fund to the state general fund shall be
9   further adjusted to include the amount of moneys equal to the
10   amount equating the average interest earned in dollars for that
11   year. In the sixth and subsequent years, the state treasurer shall
12   use the preceding five years to determine the average interest
13   earned and subject to transfer. Following the elimination of
14   motor vehicle property taxes and fees, in each year, the state
15   treasurer shall transfer an amount of moneys equal to 10% of
16   the average interest earnings to the motor vehicle tax reserve
17   fund and retain 45% of the average interest earnings in the state
18   motor vehicle property tax elimination fund.
19(4) When the state treasurer makes the determination that
20   property tax or fees shall not be levied on any motor vehicle in
21   this state and the legislature approves such determination
22   pursuant to a concurrent resolution as provided in subsection (f)
23   (3), property tax or fees shall not be levied on any motor vehicle
24   in this state.
25(5) Upon the elimination of motor vehicle property taxes
26   and fees, annually, the state treasurer shall transfer the amount
27   of such moneys that continue to be collected because of the
28   elimination of such tax exemptions to the state property tax
29   elimination fund of the freedom from taxes fund. Except as
30   provided further, the interest earnings on the state property tax
31   elimination fund shall be retained in such fund. The state
32   treasurer shall present an annual report to the legislature on the
33   balance of the state property tax elimination fund identified by
34   principal and interest earnings.
35(6) When the state treasurer determines that the amount of
36   moneys identified as projected interest earnings in the state
37   property tax elimination fund is an amount greater than: (A) An
38   amount of moneys equal to 45% of the interest earnings needed
39   to eliminate state-mandated property tax levies and state-
40   imposed property taxes; (B) plus an amount of moneys needed
41   to retain 45% of the interest earnings in the state property tax
42   elimination fund; and (C) plus an amount of moneys equal to
43   10% of the interest earnings to be transferred to the property tax
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1   reserve fund, the state treasurer shall present such determination
2   to the legislature. Such determination shall be approved by the
3   legislature by the adoption of a concurrent resolution during any
4   regular or special session of the legislature. Upon the adoption
5   of such concurrent resolution, such state-mandated property tax
6   levies and state-imposed property taxes shall be eliminated in
7   the next ensuing tax year. In such year, the state treasurer shall
8   transfer from the state property tax elimination fund to the state
9   general fund interest earnings in the amount equal to the amount
10   of moneys not collected because of the elimination of state-
11   mandated property tax levies and state-imposed property taxes.
12   The state treasurer shall certify the amount of such transfer. The
13   legislature shall provide by law for any distribution to local
14   taxing subdivisions. In the ensuing tax years, the amount
15   transferred to the state general fund from the state property tax
16   elimination fund shall not exceed 45% of the interest earned on
17   the state property tax elimination fund, subject to further
18   adjustment based on a five-year rolling average of interest
19   earnings. During the first five years in which the state-mandated
20   property tax levies and state-imposed property taxes have been
21   eliminated, the state treasurer shall determine the average
22   amount of interest earned during such years, and annually
23   determine such average interest earned. During such years, the
24   transfer from the state property tax elimination fund to the state
25   general fund shall be further adjusted to include the amount of
26   moneys equal to the amount equating the average interest
27   earned in dollars for that year. In the sixth and succeeding years,
28   the state treasurer shall use the preceding five years to
29   determine the average interest earned and subject to transfer.
30   Following the elimination of state-mandated property tax levies
31   and state-imposed property taxes, in each year, the state
32   treasurer shall transfer an amount of moneys equal to 10% of
33   the average interest earnings to the property tax reserve fund
34   and retain 45% of the average interest earnings in the state
35   property tax elimination fund.
36(7) When the state treasurer makes the determination that
37   state-mandated property tax or state-imposed property tax shall
38   not be levied on any property in this state and the legislature
39   approves such determination pursuant to a concurrent resolution
40   as provided in subsection (f)(6), state-mandated property tax or
41   state-imposed property tax shall not be levied on any property
42   in this state.
43(8) Upon the elimination of motor vehicle property taxes
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1   and fees, state-mandated property tax levies and state-imposed
2   property taxes, annually, the state treasurer shall transfer the
3   amount of such moneys that continue to be collected because of
4   the elimination of such tax exemptions to the state income and
5   privilege tax elimination fund of the freedom from taxes fund.
6   Except as provided further, the interest earnings on the state
7   income and privilege tax elimination fund shall be retained in
8   such fund. The state treasurer shall present an annual report to
9   the legislature on the balance of the state income and privilege
10   tax elimination fund identified by principal and interest
11   earnings.
12(9) When the state treasurer determines that the amount of
13   moneys that are identified as projected interest earnings in the
14   state income and privilege tax elimination fund is an amount
15   greater than: (A) An amount of moneys equal to 45% of the
16   interest earnings needed to eliminate all state income and
17   privilege tax; (B) plus an amount of moneys needed to retain
18   45% of the interest earnings in the state income and privilege
19   tax elimination fund; and (C) plus an amount of moneys equal
20   to 10% of the interest earnings to be transferred to the income
21   tax reserve fund, the state treasurer shall present such
22   determination to the legislature. Such determination shall be
23   approved by the legislature by the adoption of a concurrent
24   resolution during any regular or special session of the
25   legislature. Upon the adoption of such concurrent resolution,
26   such state income and privilege tax shall be eliminated in the
27   next ensuing tax year. In such year, the state treasurer shall
28   transfer from the state income and privilege tax elimination
29   fund to the state general fund interest earnings in the amount
30   equal to the amount of moneys not collected because of the
31   elimination of state income and privilege tax. The state treasurer
32   shall certify the amount of such transfer. In the ensuing tax
33   years, the amount transferred to the state general fund from the
34   state income and privilege tax elimination fund shall not exceed
35   45% of the interest earned on the state income and privilege tax
36   elimination fund, subject to further adjustment based on a five-
37   year rolling average of interest earnings. During the first five
38   years in which the state income and privilege tax have been
39   eliminated, the state treasurer shall determine the average
40   amount of interest earned during such years, and annually
41   determine such average interest earned. During such years, the
42   transfer from the state income and privilege tax elimination
43   fund to the state general fund shall be further adjusted to
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1   include the amount of moneys equal to the amount equating the
2   average interest earned in dollars for that year. In the sixth and
3   succeeding years, the state treasurer shall use the preceding five
4   years to determine the average interest earned and subject to
5   transfer. Following the elimination of state income and privilege
6   tax, in each year, the state treasurer shall transfer an amount of
7   moneys equal to 10% of the average interest earnings to the
8   income tax reserve fund and shall retain 45% of the average
9   interest earnings in the state income and privilege tax
10   elimination fund.
11(10) When the state treasurer makes the determination that
12   a state income tax on any income earned in this state or
13   privilege tax on net income on national banking associations,
14   banks, trust companies, federally chartered savings banks and
15   savings and loan associations shall not be levied in this state
16   and the legislature approves such determination pursuant to a
17   concurrent resolution as provided in subsection (f)(9), a state
18   income tax on any income earned in this state or privilege tax
19   on net income on national banking associations, banks, trust
20   companies, federally chartered savings banks and savings and
21   loan associations shall not be levied in this state.
22(g) (1) If the Kansas citizens freedom review board
23   eliminates, in whole or in part, any existing state tax
24   exemptions, the legislature may enact new, identical or similar
25   tax exemptions during any following regular or special session
26   of the legislature. If the legislature enacts any state tax
27   exemptions, such tax exemptions shall expire at the end of the
28   tax year that is five years from the date of enactment, and the
29   legislature may eliminate such state tax exemptions at any time
30   during such five year period.
31(2) If the Kansas citizens freedom review board approves,
32   in whole or in part, any existing state tax exemptions, such tax
33   exemptions shall expire at the end of the tax year that is five
34   years from the date of the submission of the final report.
35(3) The legislature shall not consider renewing any tax
36   exemption that is currently in effect until the regular legislative
37   session immediately prior to the expiration of such tax
38   exemption.
39(4) If the legislature enacts a law to eliminate, in whole or
40   in part, any existing state tax exemptions or any existing state
41   tax exemptions are allowed to expire, all moneys received by
42   the state treasurer that are identified as moneys collected by the
43   state of Kansas as a result of such elimination or expiration of
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1    any state tax exemption shall be deposited in the state treasury
2    and credited to the freedom from taxes fund as provided for in
3    this section.
4(5) If the legislature enacts a law to transfer or deposit
5    moneys into the freedom from taxes fund, such moneys shall be
6    transferred or deposited pursuant to such law until repealed. The
7    legislature shall not suspend such transfer or deposit through an
8    appropriation bill.
9(h) Upon the date that the state treasurer determines that
10    the motor vehicle property tax elimination fund, the state
11    property tax elimination fund and the state income and privilege
12    tax elimination fund are fully funded in order for the interest
13    earnings from each such fund to reimburse the state general
14    fund or any local taxing subdivision, or both, for the lost
15    revenue as a result of eliminating the motor vehicle property tax
16    and fees, the state-mandated and state-imposed property tax and
17    the state income and privilege taxes, during any ensuing regular
18    session of the legislature, the legislature may:
19(1) Determine, by two-thirds of the members elected (or
20    appointed) and qualified to the House of Representatives and
21    two-thirds of the members elected (or appointed) and qualified
22    to the Senate, whether to deposit the amount of moneys that are
23    identified as moneys collected by the state of Kansas as a result
24    of the elimination, in whole or in part, of the state tax
25    exemptions in the state general fund; or
26(2) propose to the citizens of Kansas a constitutional
27    amendment to eliminate other forms of taxes or other forms of
28    governmental expenditures.
29(i) The provisions of this section shall not apply to:
30(1) Any federal exemptions established by the constitution
31    of the United States or federal law; or
32(2) any exemptions that exist in law as of July 1, 2026, and
33    if elimination would result in the imposition of multiple layers
34    of sales taxes on the item of tangible personal property prior to
35    final sale of either the item or inclusion of the item as part of
36    another item when sold at retail.
37(j) The legislature may enact laws to carry out the purposes
38    of this section.
39(k) This amendment shall be effective on and after January
40    1, 2027."
41    Sec. 2. The following statement shall be printed on the ballot with
42 the amendment as a whole:
43    "Explanatory statement. This amendment creates the freedom
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1from taxes fund to eliminate property taxes and fees on
2motor vehicles, reduce home property taxes and phase out
3state income and privilege taxes over time.
4     "The fund is funded by ending wasteful or outdated tax
5exemptions. A temporary Kansas citizens freedom review
6board will review all exemptions and decide which to keep
7or remove. If a popular tax break is cut, your elected
8representatives can restore it. All special interest tax breaks
9would be reviewed at least every five years.
10     "The fund would be a permanent savings account for the state.
11It will grow over time and earn interest, and that interest will
12be used to help pay for schools, roads and other priorities—
13so the state can stop collecting certain taxes from you. The
14freedom from taxes fund itself is protected by this
15constitutional amendment, which means politicians are
16legally blocked from spending or raiding it for other
17purposes—guaranteeing it remains focused solely on
18reducing your taxes now and for future generations of
19Kansans.
20     "A vote for this proposition means ending state taxes on motor
21vehicles, lowering home property taxes, and phasing out
22state income and privilege taxes over time—without cutting
23essential services. It creates the freedom from taxes fund and
24a temporary Kansas citizens freedom review board to decide
25which tax breaks to keep or eliminate. Future tax exemptions
26would be limited to a duration of not to exceed five years
27without further enactment by the legislature.
28     "A vote against this proposition means that the state of Kansas
29will continue taxing motor vehicles, property, income and
30privilege taxes to fund government operations. The state
31constitution would remain unchanged."
32     Sec. 3. This resolution, if approved by two-thirds of the members
33 elected (or appointed) and qualified to the Senate and two-thirds of the
34 members elected (or appointed) and qualified to the House of
35 Representatives, shall be entered on the journals, together with the yeas
36 and nays. The secretary of state shall cause this resolution to be published
37 as provided by law and shall cause the proposed amendment to be
38 submitted to the electors of the state at the general election in November
39 in the year 2026, unless a special election is called at a sooner date by
40 concurrent resolution of the legislature, in which case the proposed
41 amendment shall be submitted to the electors of the state at the special
42 election.