Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 14, 2024
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 484 by Senate Committee on Ways and Means
In accordance with KSA 75-3715a, the following fiscal note concerning SB 484 is
respectfully submitted to your committee.
SB 484 would exempt the following personal property from property taxes beginning in
tax year 2025:
1. Any off-road vehicle that is not operated upon any highway, including all-terrain
vehicles, recreational off-highway vehicles, golf carts, off-road motorcycles, and
snowmobiles;
2. Any motorized bicycle, electric-assisted bicycle, electric-assisted scooter, electric
personal assistive mobility device, and motorized wheelchair;
3. Any trailer having a gross weight of 2,000 pounds or less that is used exclusively
for personal use and not for the production of income;
4. Any marine equipment, including watercraft trailers designed to launch, retrieve,
transport, and store watercraft, and watercraft motors designed to operate watercraft
on the water; and
5. Any watercraft.
Passage of SB 484 would decrease property tax revenues by adding several new property
tax exemptions. The state funds directly affected by this bill are the two building funds, the
Educational Building Fund (EBF) and the State Institutions Building Fund (SIBF). The
Department of Revenue estimates this bill would decrease revenues to these two funds by $186,702
in tax year 2025, with $124,468 from the EBF and $62,234 from the SIBF. Less property tax
revenue would also affect state expenditures for aid to school districts. To the extent that less
property tax revenue would be available from the state’s uniform mill levy to fund expenditures
for school districts, the state would be required to provide an additional $2,489,352 in state aid
from the State General Fund through the school finance formula. Local governments that levy a The Honorable Caryn Tyson, Chairperson
Page 2—SB 484
property tax would also receive less revenue; however, the amount of reduced property tax
revenues was not estimated. The bill would have similar results in future years. The Department
of revenue indicates the bill would have no fiscal effect on its operations. Any fiscal effect
associated with SB 484 is not reflected in The FY 2025 Governor’s Budget Report.
The Kansas Association of Counties and the League of Kansas Municipalities indicate that
the bill would reduce the amount of local property tax collections that are used in part to finance
local governments. However, they do not have data to be able to provide an accurate estimate of
the amount of lower property tax collections to make a precise estimate of the fiscal effect on local
governments. The fiscal effect would vary by location, though not necessarily proportionally.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities
Lynn Robinson, Department of Revenue