SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2313
As Amended by Senate Committee of the Whole

Brief*
Senate Sub. for HB 2313, as amended, would enact the
COVID-19 Retail Storefront Property Tax Relief Act, provide
for property tax reimbursements in the event of shutdowns or
capacity limitations due to disaster emergency declarations,
extend the 20-mill statewide school finance levy, expand the
motor vehicle property tax exemption for National Guard
members, modify pro tempore membership provisions for the
Board of Tax Appeals (BOTA), require the Legislative Division
of Post Audit to study the impact of governmental and non-
profit organizations competing with for-profit businesses,
enact the Golden Years Homestead Property Tax Freeze Act,
and sunset the Selective Assistance for Effective Senior
Relief tax credit.

COVID-19 Retail Storefront Property Tax Relief Act
The bill would enact the Retail Storefront Property Tax
Relief Act (Act) to provide for claims for refunds to be paid for
tax years 2020 and 2021 for certain claimants that were
operationally shut down or restricted at their retail storefront
by a COVID-19-related order or action imposed by the State,
a local unit of government, or a local health officer.


____________________
*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
Refund Amounts
The refund would be equal to 33 percent of the sum of
the COVID-19 ordered shutdown days gross rebate amount
and the COVID-19 ordered restricted operations days gross
rebate amount, as those terms are defined by the bill.
Refunds would be limited to $7,500 per tax year.
The COVID-19 ordered shutdown days gross rebate
amount would be the amount of property taxes accrued or 15
percent of gross rent actually paid in cash for the tax year,
divided by 3 for businesses shutdown for 91 or more days,
divided by 4 for businesses shutdown for 61 to 90 days,
divided by 6 for businesses shutdown for 31 to 60 days, and
divided by 12 for businesses shutdown for 1 to 30 days.
The COVID-19 ordered restricted operations days gross
rebate amount would be the amount of property taxes
accrued or 15 percent of gross rent actually paid in cash for
the tax year, divided an amount ranging from 2 to 16,
depending on the number of ordered restricted operation
days.
Eligible Claimants
Claimants would be required to be for-profit businesses
in operation as of July 1, 2019, and March 1, 2020, and filing
a 2019 tax return with annual revenues between $10,000 and
$2,500,000 in 2019, with less gross revenue in 2020 or 2021
than in 2019. Businesses would not be permitted to be
claimants if they received more than a total of $150,000 in
prior COVID-19-related local, state, or federal funding, or any
combination thereof.
Claimants would not be permitted to be grocery stores,
pharmacies, hardware stores or home improvement
businesses, retail liquor stores, manufacturers and food
processors, schools from pre-kindergarten through post-
secondary, hospitals and healthcare providers (not including

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dentists), property management and real estate services,
professional services, agricultural and aquaculture producers,
hosts or operators of vacation or short-term rental units,
passive businesses, financial businesses primarily engaged
in the business of lending, cable companies, telephone
companies, utilities, and energy production, generation, and
distribution companies.
Only one claimant per retail storefront would be
permitted to receive a refund per tax year. “Retail storefront”
would be defined to be real property where the claimant
conducts retail sales through customers’ physical, on-site
presence and may consist as part of a multi-purpose or multi-
retail storefront building.
Additional Provisions
The Act would require claims to be filed with the
Department of Revenue on or before April 15, 2022, in order
to be paid or allowed. The Act would direct the Director of
Taxation to make available suitable forms for filing claims and
would authorize the Secretary of Revenue to adopt rules and
regulations necessary for the administration of the Act.
The Act would require claimants to provide reasonable
proof of eligibility for a refund to the Director of Taxation,
including information concerning taxes levied and rent paid.
The Act would permit the amount of any claim to be applied to
outstanding tax liability owed by the claimant and would
require a refund amount to be paid to a county treasurer to be
applied to property taxes owed in the event a claimant has
delinquent property taxes for tax year 2020 or 2021.
Delinquent property taxes for any tax year prior to 2020 would
disallow a claimant from being eligible for a refund.
The Act would provide for the disallowance of any claims
filed with fraudulent intent or upon a finding that the claimant
received title to the retail storefront for the purpose of
applying for a refund. Filing a claim with fraudulent intent

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would be a class B misdemeanor and any claim paid upon a
fraudulent filing would bear interest at a rate of 1 percent per
month until the claim was repaid or recovered.
The provisions of the Act would be subject to informal
conference and appeals to the State Board of Tax Appeals.
Each county would be required to pay the State an
amount equal to 33 percent of the amount of refund claims
paid pursuant to the Act for property located in such county.

Disaster Emergency Declarations Property Tax
Reimbursements
Beginning January 1, 2022, the bill would provide for
reimbursements from the county general fund to the owner of
any building maintaining a business on the property that was
shut down or limited in any capacity pursuant to a declared
disaster emergency. The reimbursement would be 1/365 of
the amount of taxes levied for every day the business is
shutdown and 1/365 the amount of taxes levied multiplied by
the percentage capacity limitation for every day the business
is required to operate at a limited capacity.
If the State or any political subdivision of the State, other
than the county, issued the order shutting down or limiting the
capacity of the business, such governmental entity would be
required to reimburse the county for the cost of the
reimbursement.
If the business on the property is not operated by the
owner of the property, the property owner and the business
operator would each be entitled to 50 percent of the
reimbursement. The business operator would be permitted to
assign the operator’s share to the property owner as credit
against any delinquent rent owed to the property owner.


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Statewide School Finance Tax Levy
The bill would re-authorize the 20-mill property tax levy
for school years 2021-2022 and 2022-2023.
The bill would continue the exemption of residential
property up to $20,000 of its appraised valuation from the 20-
mill property tax levy for taxable years 2021 and 2022.

National Guard Motor Vehicle Property Tax Exemption
The bill would extend a vehicle property tax exemption
for up to two motor vehicles to all current members in good
standing of the Kansas Army National Guard, Kansas Air
National Guard, or U.S. military reserve forces stationed in
Kansas, beginning in tax year 2022. Under current law,
members of the Kansas Army National Guard, Kansas Air
National Guard, or Kansas reserve forces of the U.S. military
receive the exemption only when stationed or assigned in
Kansas under authority of Title 10 or 32 of the U.S. Code.

Board of Tax Appeals Pro Tempore Membership
The bill would provide that a pro tempore member of
BOTA may be appointed when there is any vacancy on the
Board. Current law requires two vacancies prior to the
appointment of a pro tempore member.

Legislative Division of Post Audit Study
The bill would require the Legislative Post Audit
Committee to direct the Legislative Division of Post Audit to
conduct a study of the impact of non-profit organizations and
governmental entities competing against for-profit businesses
during calendar year 2021 and submit a final study report to
the Legislature on or before January 15, 2022.

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Golden Years Homestead Property Tax Freeze Act
The bill would establish a new property tax circuit
breaker refund program beginning in tax year 2020 that would
provide refunds of a portion of property taxes paid on
qualifying residential homestead property equivalent to the
total property tax increase over the base year. For taxpayers
qualifying at the time of enactment, tax year 2019 liability
would be deemed as the base year. For all other taxpayers,
the base year would be the first year in which they are eligible
to claim the refund provided by the refund program. The
refund would be the amount of property tax in excess of the
base year amount. The maximum amount of any refund
under the program would be $5,000.
To qualify for the refund program, the bill would require a
taxpayer to have a household income of less than $75,000
and be 65 years of age or older or a disabled veteran. The
household income threshold would be annually adjusted
according to the federal cost-of-living adjustment provided for
in Section 1(f)(3) of the Internal Revenue Code.
The bill would require the value of the qualifying
residential homestead property to be less than $495,000.
Qualifying taxpayers would be ineligible to claim a refund if
they are seeking to claim the existing Homestead Property
Tax Refund. The bill would allow surviving spouses of
qualified individuals to continue in the refund program unless
they subsequently remarry. The bill would require refund
program claims to be filed by April 15 for refund amounts
determined by the previous property tax year’s liability.
Under the bill, “disabled veterans” would include Kansas
residents honorably discharged from active service in any
branch of the armed forces of the United States or the
Kansas National Guard who have been determined to have a
50 percent permanent disability sustained while on active
duty.

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 Beginning with the second year of the program, the
Director of Taxation would be required to send county clerks
electronic records by October 1 of each year containing
names of eligible claimants who have received refunds under
the refund program for the prior year.
The bill would authorize the Director of Taxation to apply
refunds to any state tax liability of the qualified individual or
other member of the household. Remaining refunds would
first be applied to any delinquent property taxes on the
homestead and then to any current property tax liability.
The bill would grant the Secretary of Revenue authority
to adopt rules and regulations necessary for administration of
the refund program.

Selective Assistance for Effective Senior Relief Sunset
The bill would sunset the Selective Assistance for
Effective Senior Relief tax credit at the end of tax year 2020.

Background
The bill was introduced by the House Committee on
Veterans and Military at the request of the Enlisted
Association of the National Guard of Kansas and referred to
the House Committee on Taxation.

HB 2313
House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by a representative of the Enlisted Association
of the National Guard of Kansas, who stated it is unfair to
provide active duty military or guard reserve members with an

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exemption while excluding other Kansas airmen and soldiers,
given that all of them help protect Kansas.
No other testimony was provided.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by two representatives of the Enlisted
Association of the National Guard of Kansas, who stated the
exemption is most appropriately provided to all current
National Guard members.
No other testimony was provided.
The Senate Committee amended the bill to include the
COVID-19 Retail Storefront Property Tax Relief Act and
provisions related to disaster emergency declarations
property tax reimbursements (similar to provisions in SB 149),
the statewide school finance tax levy (SB 277), BOTA pro
tempore membership, and the Legislative Division of Post
Audit.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
insert the Golden Years Homestead Property Tax Freeze Act
and the sunset of the Selective Assistance for Effective
Senior Relief tax credit. The Golden Years Homestead
Property Tax Freeze Act had been introduced in SB 76.
In the Senate Committee hearing on SB 76, proponent
testimony was offered by Senators Holland, Peck, and
Pittman, a representative of the Kansas Association of
Counties, and a private citizen. Written-only proponent
testimony was offered by Senator Petersen, a representative
of the Kansas Association of Realtors, and two private
citizens. Proponents stated the bill would make property tax
bills more affordable for senior citizens.
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 Opponent testimony was offered by a representative of
the Kansas Chamber of Commerce, stating the bill would
mask the true cost of property taxes and result in property tax
shifts.
Written-only neutral testimony was offered by a
representative of the Kansas Policy Institute.

SB 149
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Representative
Corbet.
Senate Committee on Assessment and Taxation
At the Senate Committee hearing on the bill, proponent
testimony was provided by representatives of the Kansas
Chamber of Commerce and the Kansas Restaurant and
Hospitality Association. Written-only proponent testimony
was provided by Representative Corbet and a private citizen.
Proponents stated the bill would reimburse business owners
for property taxes attributable to times when the businesses
were shutdown due to governmental orders.
Opponent testimony was provided by a representative
of the Kansas Association of Counties. Written-only
opponent testimony was provided by a representative of the
Kansas Legislative Policy Group. Opponents stated the bill
would place an undue burden on county budgets.
Written-only neutral testimony was provided by a
representative of the League of Kansas Municipalities.

SB 277
The bill was introduced by the Senate Committee on
Ways and Means at the request of Senator McGinn.
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Senate Committee on Assessment and Taxation
At the Senate Committee hearing on the bill,
proponents included Representative Jennings and
representatives of United School Administrators of Kansas,
USD 204 Bonner Springs, USD 252 Southern Lyon County,
and USD 232 De Soto. Written-only proponent testimony
was provided by representatives of the Kansas Association of
School Boards and the Kansas State Board of Education.
Proponents stated the statewide mill levy was necessary to
finance schools and also requested certain date changes
related to SB 13.
Neutral testimony was provided by a representative of
the League of Kansas Municipalities.

Fiscal Information

COVID-19 Retail Storefront Property Tax Relief Act
According to information provided by the Department of
Revenue on April 27, 2021, claims associated with the Act are
anticipated to total $44.3 million for tax year 2020, with the
State General Fund being responsible for $29.7 million and
county governments being responsible for $14.6 million. For
tax year 2021, claims are anticipated to total $24.8 million,
with the SGF being responsible for $16.6 million and county
governments being responsible for $8.2 million.

Disaster Emergency Declarations Property Tax
Reimbursements
According to information provided by the Department of
Revenue on April 27, 2021, the Department is unable to
estimate the impact of future emergency declarations.


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Statewide School Finance Mill Levy
According to the fiscal note prepared by the Division of
the Budget on SB 277, revenues from the 20-mill statewide
property tax are estimated to be $752.4 million in FY 2022
and $770.6 million FY 2023. Enactment of the bill is reflected
in The FY 2022 Governor’s Budget Report.

National Guard Motor Vehicle Property Tax Exemption
According to the fiscal note prepared by the Division of
the Budget on HB 2313 as introduced, the Department of
Revenue indicates enactment of the bill could reduce state
revenues by as much as $27,288 for FY 2022, with $18,192
from the Educational Building Fund and $9,096 from the
State Institutions Building Fund, and would also decrease
revenues to local governments that levy property tax by an
amount not calculated by the Department. The bill would
require $720 for Department administrative costs from the
State General Fund for FY 2022. Any fiscal effect associated
with HB 2313 as introduced is not reflected in The FY 2022
Governor’s Budget Report.

Golden Years Homestead Property Tax Freeze Act and
Selective Assistance for Effective Senior Relief Sunset
According to information provided by the Department of
Revenue on March 4, 2021, the Department estimates the
enactment of these two provisions will reduce state revenues
by $1.03 million in FY 2