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 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 453 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 453 is
respectfully submitted to your committee.
Under current law, persons who are 65 years of age and older or a disabled veteran of any
age, meeting certain household income and homestead valuation requirements can participate in
the Senior or Disabled Veteran Property Tax Relief Program. SB 453 would remove the age
qualification, which would allow all persons meeting the household income and homestead
valuation to participate in this program. The bill would exclude Social Security payments from
the definition of household income. The bill would increase the maximum appraised value of an
eligible claimant’s home in the base year from $350,000 to $500,000 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. The bill would increase the maximum
amount of household income for which taxpayers would be eligible for this refund option from
$50,000 to $80,000; however, there would be no household income limitation for disabled
veterans. These changes would become effective retroactive to begin in tax year 2022. The
deadline to file claims for tax year 2022 and tax year 2023 would be extended to April 15, 2025.
Estimated State Fiscal Effect
FY 2024 FY 2025 FY 2026
Expenditures
State General Fund -- $194,166 $122,531
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $194,166 $122,531
Revenues
State General Fund -- ($235,200,000) ($144,900,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($235,200,000) ($144,900,000)
FTE Positions -- 2.00 2.00
The Honorable Caryn Tyson, Chairperson
Page 2—SB 453

The Department of Revenue estimates that SB 453 would decrease State General Fund
revenues by $235.2 million in FY 2025, by $144.9 million in FY 2026, and by $175.8 million 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 is $195,014, the estimated median value of property tax in
the base year is $2,325, and property taxes will increase by 5.21 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 Senior or Disabled Veteran Property Tax
Relief Program, increasing the maximum appraised value of an eligible claimant’s home in the
base year, increasing the household income threshold, removing the age limit, and making these
program changes retroactive to tax year 2022 and tax year 2023 would increase the estimated
number of eligible households by 192,399. The estimate for FY 2025 includes the fiscal effect of
taxpayers amending their tax returns from tax year 2022 and tax year 2023.
The Department of Revenue indicates that it would require a total $194,166 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 2.00 new FTE positions to answer questions from taxpayers.
The Department estimates that ongoing expenses for salaries and wages for the 2.00 new FTE
positions and overhead expenses would total $122,531 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 453 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: 79-4502, 79-4508a