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Session of 2026
HOUSE BILL No. 2457
By Committee on Taxation
Requested by Representative Bryce on behalf of Representatives Helwig and Roth
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AN ACT concerning property taxation; relating to residential property;
restricting homestead taxes to not more than the established base year
amount of property taxes owed for individuals 65 years of age and
older; relating to commercial property; eliminating the property tax
exemption for certain properties used for healthcare when in
competition with comparable uses by non-exempt properties; amending
K.S.A. 79-201 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) Notwithstanding any other law to the contrary,
upon filing of an application with the county treasurer, the property or ad
valorem taxes levied and collected on any homestead property owned and
actually and regularly occupied and used predominantly as a residence by
an individual or individuals that qualify pursuant to subsection (b), or
surviving spouse thereof, shall not exceed the base year amount of
property taxes owed. If the property or ad valorem taxes that are levied are
less than the amount established as the base year amount, the lesser
amount shall be levied and collected and such amount shall be used as the
base year amount for successive years.
(b) To qualify pursuant to subsection (a), a homestead property owner
shall:
(1) Have actually and regularly occupied and used this homestead
predominantly as a residence for the prior taxable year; and
(2) be 65 years of age or older immediately preceding January 1 of
the taxable year that the exemption is sought.
(c) All moneys received from taxes levied upon homestead property
provided by this section shall be allocated and distributed to the
appropriate taxing subdivisions pursuant to the proportion of the
cumulative tax levies for such property.
(d) In administering this section, the division of property valuation
shall make available suitable forms with instructions for claimants. Copies
of such forms shall also be made available to all county clerks and county
treasurers in sufficient numbers to supply claimants residing in their
respective counties. It shall be the duty of the county clerk to assist any
claimant seeking assistance in the filing of a claim under the provisions of
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this act. Claimants shall submit the application to the county treasurer, who
shall grant or deny the application. Applications shall be received before
April 1 for the calendar year.
(e) As used in this section, "base year" means:
(1) The taxable year that a homestead property owner turns 65 years
of age; or
(2) 2026 for individuals that turned 65 years of age prior to 2027.
(f) The provisions of this section shall apply to all taxable years
commencing after December 31, 2026.
New Sec. 2. (a) Any property exempt or eligible to be exempt from
property or ad valorem taxes levied under the laws of the state of Kansas
pursuant to K.S.A. 79-201, and amendments thereto, shall not be exempt
from property or ad valorem taxes if:
(1) Such property is owned and used by a corporation that is exempt
from federal income taxation pursuant to section 501(c)(3) of the internal
revenue code of 1986;
(2) the property is used for the purpose of providing healthcare
services; and
(3) another provider of comparable medical services provides such
services within the county or an adjacent county of the property subject to
property or ad valorem taxes.
(b) The county appraiser, upon complaint or investigation, shall
determine if any exempt property qualifies pursuant to subsection (a) and
is no longer eligible for property or ad valorem tax exemption provided by
K.S.A. 79-201, and amendments thereto, for the next tax year.
(c) Appeals to any decision rendered by the county appraiser pursuant
to subsection (b) shall be made to the board of county commissioners. The
board of county commissioners of the county in which the property is
located shall render a decision on any appeal and such decision shall be
final.
Sec. 3. K.S.A. 79-201 is hereby amended to read as follows: 79-201.
The following described property, to the extent herein specified, shall be
and is hereby exempt from all property or ad valorem taxes levied under
the laws of the state of Kansas:
First. All buildings used exclusively as places of public worship and all
buildings used exclusively by school districts and school district interlocal
cooperatives organized under the laws of this state, with the furniture and
books therein contained and used exclusively for the accommodation of
religious meetings or for school district or school district interlocal
cooperative purposes, whichever is applicable, together with the grounds
owned thereby if not leased or otherwise used for the realization of profit,
except that: (a) (1) Any school building, or portion thereof, together with
the grounds upon which the building is located, shall be considered to be
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used exclusively by the school district for the purposes of this section
when leased by the school district to any political or taxing subdivision of
the state, including a school district interlocal cooperative, or to any
association, organization or nonprofit corporation entitled to tax exemption
with respect to such property; and (2) any school building, together with
the grounds upon which the building is located, shall be considered to be
used exclusively by a school district interlocal cooperative for the
purposes of this section when being acquired pursuant to a lease-purchase
agreement; and (b) any building, or portion thereof, used as a place of
worship, together with the grounds upon which the building is located,
shall be considered to be used exclusively for the religious purposes of this
section when used as a not-for-profit day care center for children which is
licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto, or
when used to house an area where the congregation of a church society
and others may purchase tracts, books and other items relating to the
promulgation of the church society's religious doctrines.
Second. All real property, and all tangible personal property, actually
and regularly used exclusively for literary, educational, scientific,
religious, benevolent or charitable purposes, including property used
exclusively for such purposes by more than one agency or organization for
one or more of such exempt purposes. Except with regard to real property
which is owned by a religious organization, is to be used exclusively for
religious purposes and is not used for a nonexempt purpose prior to its
exclusive use for religious purposes which property shall be deemed to be
actually and regularly used exclusively for religious purposes for the
purposes of this paragraph, this exemption shall not apply to such property,
not actually used or occupied for the purposes set forth herein, nor to such
property held or used as an investment even though the income or rentals
received therefrom is used wholly for such literary, educational, scientific,
religious, benevolent or charitable purposes. In the event any such
property which has been exempted pursuant to the preceding sentence is
not used for religious purposes prior to its conveyance which results in its
use for nonreligious purposes, there shall be a recoupment of property
taxes in an amount equal to the tax which would have been levied upon
such property except for such exemption for all taxable years for which
such exemption was in effect. Such recoupment tax shall become due and
payable in such year as provided by K.S.A. 79-2004, and amendments
thereto. A lien for such taxes shall attach to the real property subject to the
same on November 1 in the year such taxes become due and all such taxes
remaining due and unpaid after the date prescribed for the payment thereof
shall be collected in the manner provided by law for the collection of
delinquent taxes. Moneys collected from the recoupment tax hereunder
shall be credited by the county treasurer to the several taxing subdivisions
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within which such real property is located in the proportion that the total
tangible property tax levies made in the preceding year for each such
taxing subdivision bear to the total of all such levies made in that year by
all such taxing subdivisions. Such moneys shall be credited to the general
fund of the taxing subdivision or if such taxing subdivision is making no
property tax levy for the support of a general fund such moneys may be
credited to any other tangible property tax fund of general application of
such subdivision. This exemption shall not be deemed inapplicable to
property which would otherwise be exempt pursuant to this paragraph
because an agency or organization: (a) Is reimbursed for the provision of
services accomplishing the purposes enumerated in this paragraph based
upon the ability to pay by the recipient of such services; or (b) is
reimbursed for the actual expense of using such property for purposes
enumerated in this paragraph; or (c) uses such property for a nonexempt
purpose which is minimal in scope and insubstantial in nature if such use
is incidental to the exempt purposes of this paragraph; or (d) charges a
reasonable fee for admission to cultural or educational activities or permits
the use of its property for such activities by a related agency or
organization, if any such activity is in furtherance of the purposes of this
paragraph; or (e) is applying for an exemption pursuant to this paragraph
for a motor vehicle that is being leased for a period of at least one year.
Third. All moneys and credits belonging exclusively to universities,
colleges, academies or other public schools of any kind, or to religious,
literary, scientific or benevolent and charitable institutions or associations,
appropriated solely to sustain such institutions or associations, not
exceeding in amount or in income arising therefrom the limit prescribed by
the charter of such institution or association.
Fourth. The reserve or emergency funds of fraternal benefit societies
authorized to do business under the laws of the state of Kansas.
Fifth. All buildings of private nonprofit universities or colleges which
are owned and operated by such universities and colleges as student union
buildings, presidents' homes and student dormitories.
Sixth. All real and tangible personal property actually and regularly
used exclusively by the alumni association associated by its articles of
incorporation with any public or nonprofit Kansas college or university
approved by the Kansas board of regents to confer academic degrees or
with any community college approved by its board of trustees to grant
certificates of completion of courses or curriculum, to provide
accommodations and services to such college or university or to the
alumni, staff or faculty thereof.
Seventh. All parsonages owned by a church society and actually and
regularly occupied and used predominantly as a residence by a minister or
other clergyman of such church society who is actually and regularly
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engaged in conducting the services and religious ministrations of such
society, and the land upon which such parsonage is located to the extent
necessary for the accommodation of such parsonage.
Eighth. All real property, all buildings located on such property and all
personal property contained therein, actually and regularly used
exclusively by any individually chartered organization of honorably
discharged military veterans of the United States armed forces or auxiliary
of any such organization, which is exempt from federal income taxation
pursuant to section 501(c)(19) of the federal internal revenue code of
1986, for clubhouse, place of meeting or memorial hall purposes, and real
property to the extent of not more than two acres, and all buildings located
on such property, actually and regularly used exclusively by any such
veterans' organization or its auxiliary as a memorial park.
Ninth. All real property and tangible personal property actually and
regularly used by a community service organization for the predominant
purpose of providing humanitarian services, which is owned and operated
by a corporation organized not for profit under the laws of the state of
Kansas or by a corporation organized not for profit under the laws of
another state and duly admitted to engage in business in this state as a
foreign not-for-profit corporation if: (a) The directors of such corporation
serve without pay for such services; (b) the corporation is operated in a
manner which does not result in the accrual of distributable profits,
realization of private gain resulting from the payment of compensation in
excess of a reasonable allowance for salary or other compensation for
services rendered or the realization of any other form of private gain; (c)
no officer, director or member of such corporation has any pecuniary
interest in the property for which exemption is claimed; (d) the corporation
is organized for the purpose of providing humanitarian services; (e) the
actual use of property for which an exemption is claimed must be
substantially and predominantly related to the purpose of providing
humanitarian services, except that, the use of such property for a
nonexempt purpose which is minimal in scope and insubstantial in nature
shall not result in the loss of exemption if such use is incidental to the
purpose of providing humanitarian services by the corporation; (f) the
corporation is exempt from federal income taxation pursuant to section
501(c)(3) of the internal revenue code of 1986; and (g) contributions to the
corporation are deductible under the Kansas income tax act. As used in this
clause, "humanitarian services" means the conduct of activities which
substantially and predominantly meet a demonstrated community need and
which improve the physical, mental, social, cultural or spiritual welfare of
others or the relief, comfort or assistance of persons in distress or any
combination thereof including, but not limited to, health and recreation
services, child care, individual and family counseling, employment and
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training programs for handicapped persons and meals or feeding programs.
Notwithstanding any other provision of this clause, motor vehicles shall
not be exempt hereunder unless such vehicles are exclusively used for the
purposes described therein, except that the use of any such vehicle for the
purpose of participating in a coordinated transit district in accordance with
the provisions of K.S.A. 75-5032 through 75-5037, and amendments
thereto, or K.S.A. 75-5051 through 75-5058, and amendments thereto,
shall be deemed as exclusive use.
Tenth. For all taxable years commencing after December 31, 1986, any
building, and the land upon which such building is located to the extent
necessary for the accommodation of such building, owned by a church or
nonprofit religious society or order which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986, and actually and regularly occupied and used exclusively for
residential and religious purposes by a community of persons who are
bound by vows to a religious life and who conduct or assist in the conduct
of religious services and actually and regularly engage in religious,
benevolent, charitable or educational ministrations or the performance of
health care services.
Eleventh. For all taxable years commencing after December 31, 1998,
all property actually and regularly used predominantly to produce and
generate electricity utilizing renewable energy resources or technologies
when the applicant for such property, on or before December 31, 2016, has
filed an application for exemption pursuant to this subsection or has
received a conditional use permit to produce and generate electricity on the
property from the county in which the property is located. Any exemption
granted under the provisions of this subsection for such property when the
applicant, after December 31, 2016, has filed such application or filed such
application and received a conditional use permit, shall be in effect for the
10 taxable years immediately following the taxable year in which
construction or installation of such property is completed. For purposes of
this section, "renewable energy resources or technologies" shall include
wind, solar, photovoltaic, biomass, hydropower, geothermal and landfill
gas resources or technologies.
Twelfth. For all taxable years commencing after December 31, 2001, all
personal property actually and regularly used predominantly to collect,
refine or treat landfill gas or to transport landfill gas from a landfill to a
transmission pipeline, and the landfill gas produced therefrom.
The provisions of this section, except as otherwise more specifically
provided herein or by section 2, and amendments thereto, shall apply to all
taxable years commencing after December 31, 2009 2026.
Sec. 4. K.S.A. 79-201 is hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its
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publication in the statute book.1