The bill establishes the Veterans' Valor Property Tax Relief Act, which provides an income tax credit or refund for eligible individuals who are military veterans with specific disabilities. The act allows a credit against the Kansas income tax liability for tax year 2026 and subsequent years, amounting to 50% of the property and ad valorem taxes paid on the taxpayer's principal residence. This credit is available only to those who have not received a homestead property tax refund or a credit for senior relief for the same property in the same tax year. Additionally, if the credit exceeds the taxpayer's income tax liability, the excess will be refunded.

The bill also includes a discontinuation of the sales tax exemption for certain purchases made by qualifying military veterans and repeals K.S.A. 2025 Supp. 79-3606h. It defines "taxpayer" as a resident veteran who has been honorably discharged and rated with a 100% permanent and total service-connected disability or a total disability rating based on unemployability. The Secretary of Revenue is tasked with adopting rules and regulations for the filing of supporting documents for the credit claimed.

Statutes affected:
As Further Amended by House Committee: 79-3606h