This bill amends K.S.A. 2024 Supp. 79-503a to include leased ground owned by a county-recognized community land trust as a factor in determining the fair market value of real property. The definition of "fair market value" is clarified to indicate that it is the amount a well-informed buyer is justified in paying and a well-informed seller is justified in accepting in an open and competitive market. The bill also specifies that the assessment-sales ratio study cannot be used as an appraisal for appraisal purposes, and it prohibits the sale price in a federal internal revenue code section 1031 exchange from being considered an indicator of fair market value.

Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 79-503a. The amendments include the removal of certain phrases, such as "which" and "by way of exclusion," and the addition of new criteria for determining fair market value, specifically mentioning restrictions or requirements imposed on real estate leased to low-income individuals and families, as well as those on leased ground owned by a county-recognized community land trust. The bill aims to ensure that these factors are adequately considered in property tax assessments.

Statutes affected:
As introduced: 79-503a, 79-1485