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 24, 2025
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 90 by Senator Schmidt
In accordance with KSA 75-3715a, the following fiscal note concerning SB 90 is
respectfully submitted to your committee.
SB 90 would create a local residential property tax exemption for the first $100,000 of
appraised value for owner-occupied homes. The exemption would apply only to local property
levies not attributable to bonds or indebtedness as of July 1, 2025, and only to owner-occupied
residential homes with an appraised valuation of $350,000 or less in tax year 2026. The $350,000
valuation limit would be adjusted annually based on average increases in appraised valuations by
county.
The bill would allow local governments to propose a ballot question to opt out of the
exemption. If approved by two thirds of the local electorate, the local government would be
allowed to fully opt out. If approved by a majority but less than two thirds of the electorate, the
exemption could be reduced by half. Local governments would be required to resubmit this
question to voters each year to remain excluded from the property tax exemption.
The Department of Revenue indicates enactment of the bill would have no fiscal effect on
state property tax revenues. The Department indicates the bill would have no fiscal effect on its
operations.
The League of Kansas Municipalities indicates that the bill would provide a net reduction
to local tax collections that are used in part to finance local governments; however, the League is The Honorable Caryn Tyson, Chairperson
Page 2—SB 90
unable to calculate a precise estimate of this effect. The Kansas Association of Counties indicates
that the bill would have a negligible fiscal effect on county governments.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
John Hedges, Office of the State Treasurer
Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities