SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2036
As Recommended by House Committee on
Taxation
Brief*
HB 2036 would create, beginning in tax year 2024, a
graduated property tax exemption for homestead property
owned by and actually and regularly occupied by certain
disabled veterans or surviving spouses of disabled veterans.
The graduated exemption would apply as follows:
●Veterans with a service-connected disability rating
of at least 30.0 percent, but less than 40.0 percent,
would receive an exemption of 60.0 percent of
assessed value;
●Veterans with a service-connected disability rating
of at least 40.0 percent, but less than 50.0 percent,
would receive an exemption of 70.0 percent of
assessed value;
●Veterans with a service-connected disability rating
of at least 50.0 percent, but less than 60.0 percent,
would receive an exemption of 80.0 percent of
assessed value; and
●Veterans with a service-connected disability rating
of at least 60.0 percent, but less than 70.0 percent,
would receive an exemption of 90.0 percent of
assessed value.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Veterans with a service-connected disability rating in
excess of 70.0 percent, those who are permanently confined
to a wheelchair, and those who are at least 65 years old
would receive a full exemption.
Individuals receiving less than a full exemption would be
eligible for refunds under the Homestead Property Tax
Refund Act, but individuals receiving a full exemption would
be ineligible for such refunds.
Surviving spouses of eligible disabled veterans would
continue to be eligible unless they remarry.
The bill would specify that if any provision of the bill is
found to be invalid, such invalidity would not affect any other
provisions of the bill that can be given effect without the
invalid provision.
Background
The bill was introduced by Representatives Proctor,
Blex, Buehler, Butler, Clifford, Collins, Dodson, Ellis, Johnson,
Neelly, Thompson, and Turk.
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Proctor, representatives of
Kansas Disabled Veterans Lobby and Military Officers
Association of America-Kansas, and a private citizen. The
proponents generally stated the bill would provide property
tax relief for disabled veterans, some of whom may not
qualify for existing residential property tax relief programs.
Written-only proponent testimony was provided by
representatives of Aftermarket Logistics, Kansas Association
of Counties, Santa Fe Trail VFW Post 846, and VFW, and by
ten private citizens.
2- 2036 Written-only opponent testimony was provided by a
representative of the League of Kansas Municipalities.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue estimates
enactment of the bill would reduce property tax revenues to
the two state building funds by $570,000 in FY 2025,
$600,000 in FY 2026, and $645,000 in FY 2027. Revenues
from the statewide school finance levy would be reduced by
$7.6 million in FY 2025, $8.1 million in FY 2026, and $8.6
million in FY 2027. Additionally the Kansas Association of
Counties and League of Kansas Municipalities indicate the
bill would reduce local property taxes by an indeterminate
amount.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Taxation; property tax; exemption; homestead; disabled veterans
3- 2036