This bill establishes a property tax exemption for certain owner-occupied homes in Kansas, specifically exempting the first $100,000 of appraised value from local government levies. To qualify for this exemption, the appraised value of the home must not exceed $350,000 for the tax year 2026, with adjustments for inflation in subsequent years based on the average increase in appraised valuation by county. However, the exemption does not apply to portions of mill levies related to bonds and indebtedness existing as of July 1, 2025.

Additionally, the bill allows local governments to propose a ballot question to opt out of the property tax exemption. If a local governing body submits a proposition to exclude its levy from the exemption and it receives approval from two-thirds of the electorate, the exemption will not apply to that local government's property tax levy. If it receives a majority but not two-thirds approval, half of the exemption will not apply. Local governing bodies must seek voter approval annually for this exclusion, and they are required to provide notice of the election and the proposition details as specified in existing law.