Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 24, 2021


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
Statehouse, Room 123-E
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 222 by Senate Committee on Ways and Means
In accordance with KSA 75-3715a, the following fiscal note concerning SB 222 is
respectfully submitted to your committee.
SB 222 would not allow a hypothetical leased fee to be used in the determination of fair
market value of any property for property tax purposes. The definition of fair market value would
not apply to land devoted to agricultural use.
The Department of Revenue and Board of Tax Appeals indicate SB 222 would have no
fiscal effect on state revenues or expenditures. The Kansas Association of Counties indicates that
the bill would eliminate the use of the hypothetical lease fee or “dark store theory” as a basis for
determining fair market value. Elimination of the “dark store theory” has the potential to balance
valuations across commercial properties by not artificially lowering the value of certain property.
The Association indicates that this bill could eliminate certain valuation appeals that are based
solely on this theory, which could reduce the amount of county government resources dedicated
to the property tax appeal process.


Sincerely,

Adam Proffitt
Director of the Budget
cc: Jody Allen, Tax Appeals
Lynn Robinson, Department of Revenue
Wendi Stark, League of Municipalities
Jay Hall, Association of Counties
Craig Neuenswander, Education


Statutes affected:
As introduced: 79-503a