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 Division of the Budget http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor


February 5, 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 327 by Senator Holland
In accordance with KSA 75-3715a, the following fiscal note concerning SB 327 is
respectfully submitted to your committee.
SB 327 would exclude Social Security payments from the definition of household income
used to determine eligibility of certain seniors and disabled veterans for the Senior or Disabled
Veteran Property Tax Relief Program which would be renamed as the Golden Years Homestead
Property Tax Freeze Program. The bill would increase the maximum appraised value of an eligible
claimant’s home in the base year from $350,000 to $595,000 and provide for future increases to
this amount based upon the ten-year average percentage change in statewide residential valuations
of existing residential real estate. These changes would become effective retroactive to begin in
tax year 2022. The deadline to file claims for tax year 2022 and 2023 would be extended to April
15, 2025.
Estimated State Fiscal Effect
FY 2024 FY 2025 FY 2026
Expenditures
State General Fund -- $136,133 $63,238
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $136,133 $63,238
Revenues
State General Fund -- ($26,010,000) ($17,910,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($26,010,000) ($17,910,000)
FTE Positions -- 1.00 1.00
The Honorable Caryn Tyson, Chairperson
Page 2—SB 327

The Department of Revenue estimates that SB 327 would decrease State General Fund
revenues by $26,010,000 in FY 2025, by $17,910,000 in FY 2026, and by $22,890,000 in FY
2027.
To formulate these estimates, the Department reviewed valuation data from its Division of
Property Valuation and the U.S. Census Bureau. The Department assumes that the median value
of housing units owned by individuals that are 65 years old or older is $150,653, the estimated
median value of property tax in the base year is $2,371, and property taxes will increase by 4.0
percent each year. The Department estimates that removing the 50.0 percent of Social Security
benefits originally included in the definition of household income for the new Homestead Property
Tax Refund Program for seniors and disabled veterans and the higher maximum appraised value
of an eligible claimant’s home in the base year would increase the estimated number of eligible
households by 30,742.
The Department of Revenue indicates that it would require a total $136,133 from the State
General Fund in FY 2025 to implement the bill and to modify the automated tax system. The bill
would require the Department to hire 1.00 new FTE position to answer questions from taxpayers.
The Department estimates that ongoing expenses for salaries and wages for the 1.00 FTE position
and overhead expenses would total $63,238 from the State General Fund in FY 2026. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required. Any fiscal effect associated with SB 327 is not
reflected in The FY 2025 Governor’s Budget Report.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-4508a