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Session of 2025
HOUSE BILL No. 2079
By Committee on Taxation
Requested by Representative Bryce on behalf of Representative Roth
1-23
AN ACT concerning property taxation; relating to the valuation of real
property; requiring that comparable residential sales occur within the
subdivision or township or the closest-located subdivision or township
where such property is located; amending K.S.A. 2024 Supp. 79-503a
and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 79-503a is hereby amended to read as
follows: 79-503a. "Fair market value" means the amount in terms of
money that a well informed buyer is justified in paying and a well
informed seller is justified in accepting for property in an open and
competitive market, assuming that the parties are acting without undue
compulsion. In the determination of fair market value of any real property
which is subject to any special assessment, such value shall not be
determined by adding the present value of the special assessment to the
sales price. For the purposes of this definition it will be assumed that
consummation of a sale occurs as of January 1.
Sales in and of themselves shall not be the sole criteria of fair market
value but shall be used in connection with cost, income and other factors
including but not by way of exclusion:
(a) The proper classification of lands and improvements;
(b) the size thereof;
(c) the effect of location on value;
(d) depreciation, including physical deterioration or functional,
economic or social obsolescence;
(e) cost of reproduction of improvements;
(f) productivity taking into account all restrictions imposed by the
state or federal government and local governing bodies, including, but not
limited to, restrictions on property rented or leased to low income
individuals and families as authorized by section 42 of the federal internal
revenue code of 1986, as amended;
(g) earning capacity as indicated by lease price, by capitalization of
net income or by absorption or sell-out period;
(h) rental or reasonable rental values or rental values restricted by the
state or federal government or local governing bodies, including, but not
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HB 2079 2
limited to, restrictions on property rented or leased to low income
individuals and families, as authorized by section 42 of the federal internal
revenue code of 1986, as amended;
(i) sale value on open market with due allowance to abnormal
inflationary factors influencing such values;
(j) restrictions or requirements imposed upon the use of real estate by
the state or federal government or local governing bodies, including
zoning and planning boards or commissions, and including, but not limited
to, restrictions or requirements imposed upon the use of real estate rented
or leased to low income individuals and families, as authorized by section
42 of the federal internal revenue code of 1986, as amended; and
(k) comparison with values of other property of known or recognized
value. The assessment-sales ratio study shall not be used as an appraisal
for appraisal purposes.
In the event that sales of real property used for residential purposes are
used as a criteria in determining fair market value, comparison sales shall
only be used to the extent that such comparative sales occurred within the
subdivision of a city or the township, or the closest- located subdivision or
township, where such property is located.
The appraisal process utilized in the valuation of all real and tangible
personal property for ad valorem tax purposes shall conform to generally
accepted appraisal procedures and standards which are consistent with the
definition of fair market value unless otherwise specified by law.
The sale price or value at which a property sells or transfers ownership
in a federal internal revenue code section 1031 exchange shall not be
considered an indicator of fair market value nor as a factor in arriving at
fair market value. Federal internal revenue code section 1031 exchange
transactions shall not be used as comparable sales for valuation purposes
nor as valid sales for purposes of sales ratio studies conducted pursuant to
K.S.A. 79-1485 et seq., and amendments thereto.
Sec. 2. K.S.A. 2024 Supp. 79-503a is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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