SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2490
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
Senate Sub. for HB 2490 would provide for expanded
property tax abatement in cases of property destroyed by
disaster, amend law related to administrative procedure of the
State Board of Tax Appeals (BOTA), amend law related to the
list of persons eligible to be county appraisers, prohibit certain
valuation increases, impose new requirements on appraisal
directives, and amend law related to judicial review of
property valuation appeals.

Property Tax Abatement Expansion
The bill would expand the authority of county
commissions to abate property taxes on certain types of
property destroyed or substantially destroyed by natural
disasters.
The bill would broaden the authority to include all
buildings and agricultural improvements listed as real
property for situations wherein such property has been
damaged in a gubernatorial-declared disaster and restoration
costs would equal or exceed 50 percent of pre-damage
market value. Similar authority exists under current law for
counties to abate taxes on damaged residential homestead
property. The provisions of the bill would be retroactive to tax
year 2019.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
BOTA Administration Changes
The bill would change the time in which aggrieved
parties may request a full and complete opinion from BOTA
from 14 days following the receipt of a summary decision
from BOTA to 21 days following service of a summary
decision from BOTA. Service would be defined according to
the Kansas Administrative Procedures Act (KAPA).
The bill would require BOTA to serve orders and notices
via electronic means to parties and their attorneys who have
requested and consented to such electronic service. Any
service by electronic means would be deemed complete upon
transmission.
The bill would extend the time beyond which a member
of BOTA may continue to serve after the expiration of the
member’s term, absent the appointment and confirmation of a
successor, from 90 to 180 days.

County Appraiser List Eligibility
The bill would require the Director of Property Valuation
(Director), Department of Revenue (KDOR), provide notice to
individuals and an opportunity for a hearing under KAPA prior
to removing their names from the eligibility list for certain acts
or omissions.
The bill also would require county commissions to notify
the Director when persons no longer hold the office of county
appraiser, except upon expiration of a four-year term, and
include the reason for separation from employment unless
otherwise precluded by law from doing so. The Director
subsequently would be required to make notations on
eligibility list records of such persons.


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Valuation Increase Upon Appeal
The bill would prohibit BOTA or a county appraiser from
increasing the appraised valuation of property as a result of
an appeal of the valuation of the property or an informal
meeting concerning the property in question.

Appraisal Directives
The bill would remove the authority of the Director to
adopt rules and regulations concerning appropriate standards
for the performance of appraisals for property taxation. [Note:
Current language directing the Director to adopt appraiser
directives on the same topic would be retained.]
The bill would require that appraisals be performed in
compliance with the Uniform Standards of Professional
Appraisal Practice (USPAP). The Director would be permitted
to require compliance with additional standards only to the
extent these standards do not conflict with USPAP.

Judicial Review of Valuation Appeals
Current law allows, at the election of a taxpayer, any
summary decision or full and complete opinion of BOTA
issued after June 30, 2014, to be appealed by filing a petition
for review in district court. Any appeal to the district court
must be a trial de novo that includes an evidentiary hearing
where issues of law and fact are determined anew.
The bill would provide, with regard to any BOTA decision
or opinion properly submitted to the district court relating to
the determination of valuation of residential or commercial
and industrial real property or the classification of property for
assessment purposes, county appraisers would have the duty
to initiate the production of evidence to demonstrate by a
preponderance of evidence the validity and correctness of
such determination.

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Effective Date
The bill would be in effect upon publication in the
Kansas Register.

Background
The bill, as introduced, would have extended the carry-
forward time for net operation losses for Kansas income
taxpayers. The Senate Committee on Assessment and
Taxation (Senate Committee), on May 13, 2020, removed the
contents of the bill; inserted the contents of SB 242 as
amended, SB 262 as amended, SB 264 as amended by the
Senate Committee of the Whole, SB 265, SB 272, SB 297,
and SB 309 as amended by the Senate Committee of the
Whole; and recommended a substitute bill. The background
for each of the included bills is provided below.

SB 242 (Property Tax Abatement Expansion)
The bill was introduced by Senator Holland.
In the Senate Committee hearing, Senator Holland and
representatives of the Kansas Cooperative Council, Kansas
Grain and Feed Association, and Kansas Soybean
Association; a Leavenworth County Commissioner; and a
Leavenworth County resident provided proponent testimony
on the bill. The proponents discussed the damage in multiple
counties in northeast Kansas resulting from the May 2019
tornado and indicated owners of property that no longer
exists had received property tax bills later in the year based
on the valuation on January 1.
The bill as introduced would have expanded the
authority of county commissions to abate taxes on damaged
agricultural improvements. The Senate Committee amended
the bill to broaden its application to all damaged buildings and

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improvements listed as real estate, including public grain
warehouses.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, enactment of the bill
would have no fiscal effect on the agency operations of the
KDOR or the BOTA. Any fiscal effect associated with
enactment of the bill is not reflected in The FY 2021
Governor’s Budget Report.

SB 262 (BOTA Administration Changes, Decision
Timeline)
The bill was introduced by the Senate Committee at the
request of Senator Alley.
In the Senate Committee hearing, a representative of
the Kansas Policy Institute testified in support of the bill,
stating the bill would provide clarity to the time required to
request a full opinion of BOTA. No neutral or opponent
testimony was provided.
The Senate Committee amended the bill to clarify
service would be defined according to KAPA and to change
the number of days to request a full and complete opinion
from 14 to 21.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, BOTA states the bill
would have no fiscal effect.

SB 264 (County Appraiser List Eligibility)
The bill was introduced by the Senate at the request of
Senator Alley.
During the Senate Committee hearing representatives of
the Kansas Chamber, the Kansas Policy Institute, and the

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Renew Kansas Biofuels Association appeared as proponents.
The Kansas Cooperative Council submitted written-only
testimony in support of the bill.
A representative of the Kansas Association of Counties
(KAC) appeared in opposition. Representatives of the KDOR
Division of Property Valuation (PVD) and the Kansas County
Appraisers Association provided neutral testimony.
On February 12, the Senate Committee amended the
bill to add the provision requiring the Director to provide
notice to the person regarding the opportunity to be heard
under the KAPA prior to removing the name of such person
from the eligible county or district appraisers list for certain
acts or omissions.
The Senate Committee of the Whole on February 25
removed a provision in the bill that would have specifically
established termination from the office of county or district
appraiser in one or more counties as one of the acts or
omissions authorizing the Director to remove names from the
eligibility list.
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the KDOR indicates
there would be no impact on state or local property tax
revenues; and additional duties detailed in the legislation
would not be expected to have any significant impact on the
operations of the PVD.

SB 265 (BOTA Administration Changes, Notices)
The bill was introduced by the Senate Committee at the
request of Senator Alley.
In the Senate Committee hearing, a representative of
the Kansas Policy Institute appeared as a proponent, stating
that the bill would be taxpayer-friendly. No neutral or
opponent testimony was provided.
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 According to the fiscal note prepared by the Division of
the Budget on the bill, BOTA indicates the bill would require
$10,000 from the State General Fund in FY 2021 to
implement the bill and contract with a vendor to modify the
existing case management system. Any fiscal effect
associated with enactment of the bill is not reflected in The
FY 2021 Governor’s Budget Report.

SB 272 (Valuation Increase Upon Appeal)
The bill was introduced by the Senate at the request of
Senator Alley.
In the Senate Committee hearing, a representative of
the Kansas Chamber of Commerce testified in support of the
bill. Written-only testimony in support of the bill was offered
by the Kansas Agribusiness Retailers Association, the
Kansas Grain and Feed Association, and the Renew Kansas
Biofuels Association. Representatives of the KAC and the
Kansas County Appraisers Association testified in opposition
to the bill. No neutral testimony was provided.
According to the fiscal note prepared by the Division of
the Budget on the bill, the KDOR indicates enactment of the
bill has the potential to decrease property tax revenues by a
negligible amount. The KAC indicates enactment of the bill
has the potential to reduce the amount of local property tax
revenues. Any fiscal effect associated with enactment of the
bill is not reflected in The FY 2021 Governor’s Budget Report.


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SB 297 (Appraisal Directives)
The bill was introduced by the Senate Committee at the
request of Senator Alley. In the Senate Committee hearing,
the Director and representatives of the Kansas Chamber of
Commerce and Kansas Policy Institute testified in support of
the bill, stating that the bill would ensure property in Kansas is
appraised under the highest standards of appraisal practice.
No other testimony was provided.
The Senate Committee recommended the bill be placed
on the Consent Calendar.
According to the fiscal note prepared by the Division of
the Budget, the KDOR states the bill would have no fiscal
effect.

SB 309 (Judicial Review of Valuation Appeals; BOTA
Administration Changes, BOTA Membership)
The bill was introduced by the Senate at the request of
Senator Miller.
In the Senate Committee hearing, representatives of the
Kansas Chamber, Kansas Cooperative Council, Kansas
Grain and Feed Association, and Kansas Policy Institute
provided proponent testimony. Representatives of the KAC
and Kansas County Appraisers Association provided
opponent testimony.
The Senate Committee of the Whole amended the bill to
insert a provision related to continued service on BOTA.
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Department of
Revenue and the Office of Judicial Administration anticipated
no fiscal effect on their operations.


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Statutes affected:
As introduced: 79-32
Version 2: 19-432, 74-2426, 74-2433, 74-2433f, 79-505, 79-1448, 79-1609, 79-1613, 79-2005