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Session of 2025
HOUSE BILL No. 2394
By Committee on Taxation
Requested by Representative A. Smith
2-27
AN ACT concerning property taxation; relating to valuation of residential
real property, real property used for commercial and industrial purposes
and mobile homes used for residential purposes; establishing the tax
use value; amending K.S.A. 79-1439 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. Real property used for residential purposes, including
multi-family residential real property, and real property necessary to
accommodate a residential community of mobile or manufactured homes,
including the real property upon which such homes are located, separated
into each segregated residential portion, mobile homes used for residential
purposes and real property used for commercial and industrial purposes
and buildings and other improvements located upon land devoted to
agricultural use shall be valued at its fair market value pursuant to K.S.A.
79-501, and amendments thereto, in order to determine the tax use value of
such property. The county clerk of such county where the property resides
shall determine the tax use value to be used pursuant to K.S.A. 79-1439,
and amendments thereto, for such properties. The tax use value shall
consist of the lower amount of either the:
(a) Fair market value; or
(b) an average of fair market values as determined as follows:
(1) (A) For tax year 2026, the tax use value of all property shall be its
fair market value for the tax year.
(B) For applicable property subject to the provision of this section,
any new structures or improvements or the remodeling or renovation of
any existing structures or improvements on real property, excluding any
ordinary maintenance or repair of any existing structures or improvements
on the property that increase the appraised value by 50% or more
compared to the prior year's appraised value, shall also be valued at fair
market value for the tax year in which such construction, improvements,
remodeling, renovation or improvements occur as its tax use value;
(2) for the year following the first year in which paragraph (1)
applies, the property's average of fair market values shall be an average of
the current tax year fair market value and the prior tax year's fair market
value;
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(3) for the year following the year in which paragraph (2) applies, the
property's average of fair market values shall be an average of the current
tax year fair market value and the prior two tax years' fair market value;
(4) for the year following the year in which paragraph (3) applies, the
property's average of fair market values shall be an average of the current
tax year fair market value and the prior three tax years' fair market value;
(5) for the year following the year in which paragraph (4) applies, the
property's average of fair market values shall be an average of the current
tax year fair market value and the prior four tax years' fair market value;
(6) for the year following the year in which paragraph (5) applies, the
property's average of fair market values shall be an average of the current
tax year fair market value and the prior five tax years' fair market value;
and
(7) for the year following the year in which paragraph (6) applies, the
property's average of fair market values shall be an average of the current
tax year fair market value and the prior six tax years' fair market value.
Sec. 2. K.S.A. 79-1439 is hereby amended to read as follows: 79-
1439. (a) All real and tangible personal property which that is subject to
general ad valorem taxation shall be appraised uniformly and equally as to
class and, unless otherwise specified herein, shall be appraised at its fair
market value, as defined in K.S.A. 79-503a, and amendments thereto.
(b) Property shall be classified into the following classes and assessed
at the percentage of value prescribed therefor:
(1) Real property shall be assessed as to subclass at the following
percentages of value:
(A) (i) Real property used for residential purposes , including multi-
family residential real property , and real property necessary to
accommodate a residential community of mobile or manufactured homes ,
including the real property upon which such homes are located, shall be
valued at the tax use value pursuant to section 1, and amendments thereto,
and assessed at 11.5%; and
(ii) residential real property used partially for day care home purposes
if such home has been registered or licensed pursuant to K.S.A. 65-501 et
seq., and amendments thereto, and real property used for bed and breakfast
purposes, at 11.5%. As used in this paragraph, "bed and breakfast" means a
property with five or fewer bedrooms available for overnight guests who
stay for not more than 28 consecutive days for which there is compliance
with all zoning or other applicable ordinances or laws which pertain
pertaining to facilities which that lodge and feed guests;
(B) land devoted to agricultural use valued pursuant to K.S.A. 79-
1476, and amendments thereto, at 30%;
(C) vacant lots, at 12%;
(D) real property which that is owned and operated by a not-for-profit
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organization not subject to federal income taxation pursuant to section 501
of the federal internal revenue code and included herein pursuant to K.S.A.
79-1439a, and amendments thereto, at 12%;
(E) public utility real property, except railroad property , which shall
be assessed at the average rate that all other commercial and industrial
property is properties are assessed, at 33%. As used in this paragraph,
"public utility" shall have the meaning ascribed thereto by means the same
as defined in K.S.A. 79-5a01, and amendments thereto;
(F) real property used for commercial and industrial purposes and
buildings and other improvements located upon land devoted to
agricultural use, shall be valued at the tax use value pursuant to section 1,
and amendments thereto, and assessed at 25%; and
(G) all other urban and rural real property not otherwise specifically
subclassed, at 30%.
(2) Personal property shall be classified into the following classes and
assessed at the percentage of value prescribed therefor:
(A) Mobile homes used for residential purposes shall be valued at the
tax use value pursuant to section 1, and amendments thereto, and
assessed at 11.5%;
(B) mineral leasehold interests, at 30%, except oil leasehold interests
from which the average daily production from which is five barrels or less,
and natural gas leasehold interests, from which the average daily
production from which is 100 mcf or less, which shall be assessed at 25% ,
at 30%;
(C) public utility tangible personal property including inventories
thereof, at 33%, except railroad personal property , including inventories
thereof, which shall be assessed at the average rate that all other
commercial and industrial property is assessed , at 33% . As used in this
paragraph, "public utility" shall have the meaning ascribed thereto by
means the same as defined in K.S.A. 79-5a01, and amendments thereto;
(D) all categories of motor vehicles listed and taxed pursuant to
K.S.A. 79-306d, and amendments thereto, and, prior to January 1, 2014,
over-the-road motor vehicles defined pursuant to K.S.A. 79-6a01, and
amendments thereto, at 30%;
(E) commercial and industrial machinery and equipment, including
rolling equipment defined pursuant to K.S.A. 79-6a01, and amendments
thereto, which, if its economic life is seven years or more, shall be valued
at its retail cost when new less seven-year straight-line depreciation, or
which, if its economic life is less than seven years, shall be valued at its
retail cost when new less straight-line depreciation over its economic life,
except that, the value so obtained for such property , as long as it is being
used, shall not be less than 20% of the retail cost when new of such
property and assessed at 25%; and
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(F) all other tangible personal property not otherwise specifically
classified, at 30%.
Sec. 3. K.S.A. 79-1439 is hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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