Establishing the property tax use value for residential real property, real property used for commercial and industrial purposes and mobile homes used for residential purposes.
Impact
If implemented, the bill would significantly impact how residential properties, including multi-family and mobile homes, and commercial properties are valued for tax purposes in Kansas. It stipulates that the tax use value will be calculated based on either the fair market value or an average of fair market values determined over a period of years. This could lead to changes in tax liabilities for property owners, ultimately impacting revenue flows into local and state coffers. By setting a clear structure for valuation, the bill is positioned to bring more transparency and predictability to property assessments.
Summary
House Bill 2394 aims to amend the current property taxation laws in Kansas by establishing a new framework for the valuation of residential real property, commercial and industrial properties, as well as mobile homes used for residential purposes. The primary intent of the bill is to define the 'tax use value' of properties, which will determine how these properties are assessed for tax purposes. Notably, this bill seeks to ensure that the tax use value is based on fair market values, allowing for a more consistent approach to property taxation across various categories of property.
Contention
During discussions on HB2394, there were concerns about how the new valuation methods would affect different property owners. Proponents argue that the bill will standardize valuations and potentially lower property taxes for certain categories, while critics fear that it may inadvertently raise taxes on lower-income homeowners and renters by shifting the tax burden. The balance between fair tax collection and maintaining affordable housing is a contentious point, indicating broader implications for community housing dynamics and local economies.
Amending the definition of land devoted to agricultural use for property tax purposes to include properties used as part of registered agritourism activities.
Proposing to amend the constitution of the state of Kansas to decrease the assessed value for real property used for residential purposes to 10 1/2% for 2025 and 9 1/2% for 2026 and each year thereafter.
Proposing to amend the Constitution of the State of Kansas to decrease by 1/2% a year for five years from 111/2% to 9% the assessed value for real property used for residential purposes.
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.
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.
Increasing the extent of property tax exemption from the statewide school levy for residential property to $65,000 of such property's appraised valuation.