SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2254
As Amended by Senate Committee on
Assessment and Taxation

Brief*
HB 2254, as amended, would provide for classification
of land used for agritourism and codify agricultural land
adverse influences.

Agritourism Land Classification
The bill would specify, beginning in tax year 2021, that
land devoted to agricultural use would include land and
buildings utilized as part of a registered agritourism activity at
a registered agritourism location by a registered agritourism
operator.
The selling of merchandise associated with the
registered agritourism activity by the agritourism operator
would not change the classification of the land or buildings as
a result of such sales.

Agricultural Land Adverse Influence
The bill would codify the adjustments reducing the
taxable value of agricultural land on the basis of adverse
influences not sufficiently accounted for in the agricultural use
valuation formula that are currently provided for in
administrative guidance from the Property Valuation Division
of the Department of Revenue.

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*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
 The codified adverse influences would include, but not
be limited to:
● Canopy cover, for which value is reduced from 20
to 50 percent based upon canopy covering of 25 to
100 percent of the impacted land;
● Salinity and alkalinity, for which value is reduced
based upon a taxpayer-provided soil analysis from
a crop consulting service;
● Water table fluctuation, for which value is reduced
based upon the results of a U.S. Department of
Agriculture Natural Resources Conservation
Service review of the water table levels of the
impacted land; and
● Newly constructed drainage and flood control
areas, for which value is reduced based upon the
impact on land use from newly constructed
drainage and flood control areas.
Background
The bill was introduced by Representative Neelly.

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Neelly and representatives
of Kansas Farm Bureau and Z&M Twisted Winery. The
proponents generally stated agritourism businesses are
generally agricultural in nature and should not have their
property classified as commercial due to retail transactions
associated with agritourism activities.
Written-only neutral testimony was provided by a
representative of the Department of Commerce.

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 The House Committee amended the bill to specify the
provision would begin in tax year 2023 and to clarify the
permissible sales without resulting in reclassification of land
would be those associated with the registered agritourism
activity.

House Committee of the Whole
The House Committee of the Whole amended the bill to
make the provision retroactive to tax year 2021.

Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of Kansas Farm Bureau, KC
Wine Co and Pumpkin Patch, Serendipity Farm and Vine,
and Z&M Twisted Vines. The proponents generally stated the
bill would provide clarification on what is agricultural or
commercial use when agritourism is involved.
Written-only proponent testimony was provided by
representatives of Irvine's Just Beyond Paradise, Kansas
Specialty Crop Growers Association, and Somerset Ridge
Vineyard & Winery.
Neutral testimony was provided by a representative of
the Kansas Department of Commerce. The testimony
generally stated that it is confusing as to what is commercial
and agricultural use in agritourism.
Written-only opponent testimony was provided by a
representative of Kansas Association of Counties.
The Senate Committee amended the bill to describe and
codify adverse influences on agricultural property.


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Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue indicates enactment of the bill would reduce state
and local property tax receipts by an indeterminate, but likely
negligible, amount. Any fiscal effect associated with
enactment of the bill is not reflected in The FY 2025
Governor’s Budget Report.
Taxation; property tax; classification; agriculture; agritourism


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Statutes affected:
As introduced: 79-1476
As Amended by House Committee: 79-1476
{As Amended by House Committee of the Whole}: 79-1476
As Amended by Senate Committee: 79-1476