Kansas 2023-2024 Regular Session

Kansas Senate Bill SB311

Introduced
3/14/23  
Refer
3/15/23  
Report Pass
3/24/23  
Refer
1/9/24  
Report Pass
3/13/24  
Engrossed
3/18/24  
Refer
3/18/24  

Caption

Excluding internal revenue code section 1031 exchange, build-to-suit and sale-leaseback arrangement transactions as indicators of fair market value for property tax valuation purposes.

Impact

If enacted, SB311 would directly alter the criteria used for property valuation under Kansas law by amending K.S.A. 79-503a. It will establish that federal 1031 exchange transactions should not be utilized as comparable sales or valid sales when determining fair market value, thereby ensuring that property taxation reflects actual market dynamics rather than tax-advantaged scenarios. This change could lead to more stable and consistent property tax assessments across Kansas, affecting both commercial and residential property owners.

Summary

Senate Bill 311 aims to amend the property taxation framework in Kansas by specifically excluding transactions related to the Internal Revenue Code Section 1031 exchange from being considered indicators of fair market value. With this change, the bill seeks to clarify how property value assessments are conducted for taxation purposes, ensuring that such exchange transactions do not influence the perceived fair market value of properties during valuation processes. This aims to promote a more accurate reflection of true market conditions rather than valuations skewed by tax-related transactions.

Contention

The primary points of contention surrounding SB311 revolve around stakeholders who might be adversely affected by the exclusion of 1031 exchanges from valuation considerations. Real estate professionals and property investors may argue that this change could potentially lower property values for certain transactions and thus impact their overall financial stability. Additionally, there may be concerns that the removal of these exchanges as valid sales could hamper investment activity in the real estate market, leading to fewer transactions and potentially affecting the broader economy.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2096

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, increasing the tax credit amount for household and dependent care expenses, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing a property tax rebate for certain business property operated in competition with property owned or operated by a governmental entity, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS HB2408

Providing that leased ground owned by a county-recognized community land trust shall be considered as a factor in determining fair market value for property tax purposes.

KS HB2079

Requiring that comparable sales of residential property occur within the subdivision or township or the closest-located subdivision or township where such property is located for valuing real property.

KS HSB65

A bill for an act relating to the determination of market value for property tax assessment purposes and including applicability provisions.

KS HB2728

Requiring that comparable sales of residential property occur within the subdivision or township or closest located subdivision or township where such property is located for valuing real property.

KS HB613

Provides for the determination of fair market value for purposes of ad valorem property taxation (OR SEE FISC NOTE LF RV)

KS HB2140

Revenue and taxation; Ad Valorem Tax Code; definitions; classifications of property; valuation procedures; effective date.

KS SB8

Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.

Similar Bills

No similar bills found.