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 seeks to exclude its levy from the exemption, it must submit a proposition to the electorate during a November general election. A two-thirds majority approval from voters will result in the exemption not applying to that local government's levy, while a simple majority will exclude half of the exemption. Local governing bodies are required to ask for this exclusion annually and must provide proper notice of the election and proposition to the electorate.