Kansas House Bill HB2443

Kansas 2025-2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

Providing that certain natural gas storage facilities shall not be classified as public utilities for property tax purposes.

Summary

HB 2443 amends Kansas property tax law governing the definition of “public utility” to exclude a narrow category of natural gas storage facilities from that classification. Specifically, the bill provides that a natural gas storage facility constructed after January 1, 2026, that is located entirely within one county and does not cross a state boundary line would not be treated as a public utility for purposes of K.S.A. 79-5a01. The bill also updates the effective taxable-year applicability date in the statute to taxable years beginning after December 31, 2025. The measure is framed as a property-tax classification change rather than a broader regulatory overhaul. By removing these facilities from the public-utility definition, the bill would affect how certain natural gas storage assets are assessed and taxed under Kansas law, potentially shifting them out of the utility property tax framework and into a different tax treatment. The bill leaves the rest of the public-utility definition intact, including provisions covering railroads, telecommunications, pipelines, electric power, water, and other listed activities.

Impact

HB 2443 would amend K.S.A. 79-5a01, the statute defining “public utility” and “public utilities” for Kansas property tax purposes, by carving out certain newly constructed, in-county natural gas storage facilities. The practical effect is to remove those facilities from the public-utility property tax classification, which could change how they are valued and taxed by the state. The bill also makes a conforming change to the applicability date so the amendment applies to taxable years beginning after December 31, 2025.

Sentiment

The available context suggests the bill is generally favorable and technical in nature, with no recorded committee opposition, floor debate, or votes in the provided materials. The bill was requested by Representative Hoheisel on behalf of CATALYST and was referred to the House Committee on Taxation, indicating it is likely intended to address a targeted industry tax issue rather than a controversial policy shift. Because no transcripts or vote history are included, there is no evidence here of formal support or opposition beyond the bill’s introduction and committee sponsorship.

Contention

The main point of contention, if any, would likely center on whether certain natural gas storage facilities should receive preferential treatment by being excluded from the public-utility tax classification. Supporters would likely argue that the carveout reflects the local, non-interstate nature of these facilities and aligns tax treatment with their actual footprint, while opponents could view it as a tax preference that narrows the utility tax base. The bill is narrowly drafted, however, and the provided record does not show any specific objections from legislators, regulators, utilities, or taxpayers.