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Session of 2026
HOUSE BILL No. 2443
By Committee on Taxation
Requested by Representative Hoheisel on behalf of CATALYST
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AN ACT concerning property taxation; relating to public utilities;
providing that certain natural gas storage facilities shall not be
classified as public utilities; amending K.S.A. 79-5a01 and repealing
the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 79-5a01 is hereby amended to read as follows: 79-
5a01. (a) As used in this act, the terms "public utility" or "public utilities"
means every individual, company, corporation, association of persons,
brokers, marketers, lessees or receivers that now or hereafter own, broker
or market natural gas inventories stored for resale in an underground
formation in this state, or now or hereafter are in control, manage or
operate a business of:
(1) A railroad or railroad corporation, if such railroad or railroad
corporation owns or holds, by deed or other instrument, an interest in
right-of-way, track, franchise, roadbed or trackage in this state;
(2) transmitting to, from, through or in this state telegraphic
messages;
(3) transmitting to, from, through or in this state telephonic messages;
(4) transporting or distributing to, from, through or in this state
natural gas, oil or other commodities in pipes or pipelines , or engaging
primarily in the business of storing natural gas in an underground
formation;
(5) generating, conducting or distributing to, from, through or in this
state electric power;
(6) transmitting to, from, through or in this state water if for profit or
subject to regulation of the state corporation commission; and
(7) transporting to, from, through or in this state cargo or passengers
by means of any vessel or boat used in navigating any of the navigable
watercourses within or bordering upon this state.
(b) The terms "Public utility" or "public utilities" shall not include:
(1) Rural water districts established under the laws of the state of
Kansas; or
(2) any individual, company, corporation, association of persons,
lessee or receiver owning or operating an oil or natural gas production
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gathering line which that is situated within one county in this state and
does not cross any state boundary line;
(3) any individual, company, corporation, association of persons,
lessees or receiver owning or operating a natural gas storage facility
constructed after January 1, 2026, that is situated within one county in
this state and does not cross any state boundary line;
(4) any individual, company, corporation, association of persons,
lessee or receiver owning any vessel or boat operated upon the surface of
any manmade waterway located entirely within one county in the state;
(4)(5) for all taxable years commencing after December 31, 1998, any
natural gas distribution system which that is owned and operated by a
nonprofit public utility described by K.S.A. 66-104c, and amendments
thereto, and which is operated predominantly for the purpose of providing
fuel for the irrigation of land devoted to agricultural use; or
(5)(6) any individual, company, corporation, association of persons,
lessees or receivers to the extent any activity or facility of such entity
generates, markets or sells electricity at wholesale only, has no retail
customers and is generated by an electric generation facility or addition to
an electric generation facility that is actually and regularly used
predominantly to produce and generate electricity utilizing renewable
energy resources or technologies as defined in K.S.A. 79-201, and
amendments thereto.
(c) The provisions of subsection (a) as amended by this act shall be
applicable to all taxable years commencing after December 31, 2008 2025.
Sec. 2. K.S.A. 79-5a01 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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