The proposed bill establishes a universal homestead exemption from ad valorem property taxes in Kansas, effective January 1, 2028. This exemption will apply to the first $10,000 of appraised valuation of any homestead, defined as the owner's primary residence and connected buildings, subject to specific acreage limits. The bill outlines the process for claiming the exemption, which includes a declaration form to be signed at property sales after July 1, 2027, and requires homeowners to notify the county appraiser of any changes in eligibility. Additionally, the bill mandates state reimbursement to school districts for revenue lost due to the exemption, while other taxing subdivisions will not receive such reimbursement.

The legislation also introduces amendments to existing property tax laws, including provisions for taxpayer refunds if governing bodies fail to comply with revenue neutral rate requirements. Taxpayers can file complaints with the state board of tax appeals without a fee, and the governing body must justify its tax levy. The bill clarifies that school districts can exceed the revenue neutral rate under certain conditions and outlines responsibilities for public hearings and tax certification. It also requires the department of administration to make budget and tax rate documents publicly accessible online. Starting January 1, 2028, certain exemptions will not be considered when calculating the revenue neutral rate, ensuring a more transparent and accountable property tax system.

Statutes affected:
As introduced: 79-2988