Providing for a universal homestead exemption from ad valorem property taxation.

Session of 2026
SENATE BILL No. 489
By Committee on Assessment and Taxation
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AN ACT concerning property taxation; relating to exemptions; providing
for a universal homestead exemption from ad valorem taxation;
providing for state reimbursement to school districts; amending K.S.A.
2025 Supp. 79-2988 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. As used in this act:
(a) "Act" means the provisions of sections 1 through 8, and
amendments thereto.
(b) "Homestead" means the dwelling and any connected buildings
occupied as a residence by the owner, together with the land upon which
such buildings are located, not exceeding one acre within the corporate
limits of a city and 160 acres outside the corporate limits of a city.
(c) "Owner" means a person who holds legal or equitable title to a
homestead and occupies such homestead as the person's primary residence
on January 1 of the tax year.
(d) "Taxing subdivision" means any political subdivision of the state
that levies ad valorem property taxes, including, but not limited to,
counties, cities, townships, school districts, community colleges and
special districts.
New Sec. 2. (a) Beginning on January 1, 2028, the first $10,000 of
appraised valuation of any homestead shall be exempt from all ad valorem
property taxes levied by any taxing subdivision of this state.
(b) The exemption under this section shall be applied before the
assessment percentage under K.S.A. 79-1439, and amendments thereto, is
applied.
(c) No owner shall receive more than one exemption under this
section in any tax year. An owner holding title to more than one homestead
shall designate in writing to the county appraiser which property shall
receive the exemption. In the absence of a timely designation, the
exemption shall be applied to the property with the highest appraised
valuation.
(d) The exemption under this section shall be in addition to and not in
lieu of:
(1) The residential property tax exemption from the statewide school
finance levy under K.S.A. 79-201x, and amendments thereto;
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(2) the homestead property tax refund under K.S.A. 79-4501 et seq.,
and amendments thereto; and
(3) any other exemption or refund to which the owner may be entitled
under Kansas law.
(e) The exemption established by this section is hereby found and
declared to have a public purpose and to promote the general welfare of
the citizens of Kansas by providing property tax relief to homeowners,
encouraging homeownership and promoting residential stability.
New Sec. 3. (a) Application at closing. For any sale or transfer of
residential real property occurring on or after July 1, 2027, the closing
agent shall present to the buyer a homestead exemption declaration form
prescribed by the director of property valuation. If the buyer signs the
declaration, the closing agent shall transmit the signed declaration to the
county appraiser within 14 days of closing. Upon receipt of a valid
declaration, the county appraiser shall apply the exemption beginning with
the next tax year.
(b) Required certifications. The homestead exemption declaration
form shall require the applicant to certify under penalty of perjury that:
(1) The property is or will be the applicant's primary residence;
(2) the applicant does not claim a homestead exemption, primary
residence exemption or similar property tax benefit based on primary
residence or domicile on any other property in Kansas;
(3) the applicant does not claim a homestead exemption, primary
residence exemption or similar property tax benefit based on primary
residence or domicile on any property in any other state, territory or
jurisdiction; and
(4) the applicant will notify the county appraiser within 30 days if any
of the foregoing certifications cease to be true.
(c) Primary residence defined. For purposes of this act, "primary
residence" means the dwelling where the owner actually resides for the
majority of the calendar year and that the owner considers to be the
owner's true, fixed and permanent home to which the owner intends to
return after any absence. An owner may have only one primary residence
at any time. In determining primary residence, the county appraiser may
consider factors, including, but not limited to, the address listed on the
owner's driver's license or state identification, voter registration and
vehicle registration, the address used for federal and state income tax
returns and the location where the owner's spouse and dependents, if any,
reside.
(d) Alternative application. An owner who did not complete a
declaration at closing or who owned the property prior to July 1, 2027,
may file an application for the exemption directly with the county
appraiser on a form prescribed by the director of property valuation. Such
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application shall include the certifications required by subsection (b) and
shall be filed on or before April 1 of the tax year for which the exemption
is first claimed.
(e) Automatic renewal. Once the exemption has been granted, such
exemption shall automatically continue for subsequent tax years without
additional application, unless:
(1) The property is sold or transferred;
(2) the owner ceases to occupy the property as a primary residence;
(3) the owner claims a homestead exemption or similar benefit in
another state or jurisdiction; or
(4) the owner otherwise becomes ineligible.
(f) Notice of change. An owner receiving the exemption shall notify
the county appraiser in writing within 30 days if the owner:
(1) Ceases to occupy the property as a primary residence without
selling or transferring the property;
(2) converts the property to rental or other non-homestead use;
(3) establishes a primary residence in another state or jurisdiction; or
(4) claims a homestead exemption or similar benefit on a property in
another state or jurisdiction. Upon sale or transfer of property receiving the
exemption, the closing agent shall notify the county appraiser of the sale or
transfer within 14 days of closing, and the exemption shall automatically
terminate as of the date of transfer. No separate notice from the seller shall
be required for a sale or transfer.
(g) Closing agent duties. As used in this section, "closing agent"
means any title insurance company, title insurance agent, attorney or other
person responsible for conducting the closing of a real estate transaction.
The director of property valuation shall make the homestead exemption
declaration form available to closing agents in both paper and electronic
format. Closing agents shall not charge any separate fee for presenting the
declaration form or transmitting such declaration form to the county
appraiser.
(h) Verification and information sharing. The county appraiser may
verify eligibility for the exemption and may request documentation,
including proof of ownership and primary residence. The director of
property valuation is authorized to enter into agreements with other states
for the purpose of sharing information to identify persons who have
claimed homestead exemptions or similar benefits in multiple states. The
county appraiser may deny or revoke an exemption if the owner fails to
provide the requested documentation within 30 days, such documentation
does not support eligibility or the owner is found to have claimed a similar
exemption in another state.
New Sec. 4. (a) School district reimbursement. School districts shall
be reimbursed from the state general fund for revenues forgone as a result
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of the exemption established in section 2, and amendments thereto, in the
same manner and to the same extent as reimbursement is provided for the
exemption under K.S.A. 79-201x, and amendments thereto.
(b) Other taxing subdivisions. Counties, cities, townships, community
colleges and other taxing subdivisions, excluding school districts, shall not
be reimbursed for revenues forgone as a result of the exemption
established in section 2, and amendments thereto.
(c) Certification. On or before December 1 of each year, each county
clerk shall certify to the state department of education, for each school
district within the county:
(1) The number of homesteads receiving the exemption;
(2) the aggregate exemption amount for all such homesteads;
(3) the mill levy of the school district for the current tax year; and
(4) the revenue forgone by the school district, calculated as the
aggregate exemption amount multiplied by the assessment ratio under
K.S.A. 79-1439, and amendments thereto, multiplied by the school district
mill levy.
(d) Legislative intent. It is the intent of the legislature that counties,
cities and other nonschool taxing subdivisions absorb the cost of the
exemption established in section 2, and amendments thereto. The
legislature finds that significant increases in property valuations in recent
years have resulted in substantial revenue growth for such taxing
subdivisions and such subdivisions can accommodate this exemption
without reduction in services or increase in mill levies.
New Sec. 5. (a) Beginning on January 1, 2030, and every two years
thereafter, the director of property valuation shall adjust the exemption
amount under section 2, and amendments thereto, based on the percentage
change in the statewide average appraised value of residential property
during the preceding two-year period.
(b) Any adjustment under subsection (a) shall be rounded to the
nearest $500. In no event shall the exemption amount be reduced below
$10,000.
(c) The director of property valuation shall publish the adjusted
exemption amount on or before October 1 of each adjustment year to take
effect on the following January 1.
New Sec. 6. (a) Civil penalties. Any person who knowingly makes a
false statement or certification on an application or declaration for the
exemption under section 2, and amendments thereto, or knowingly fails to
notify the county appraiser of a change in eligibility as required by section
3(f), and amendments thereto, shall be liable for:
(1) All taxes that would have been due without the exemption, plus
interest at the rate prescribed by K.S.A. 79-2968, and amendments thereto;
(2) a civil penalty equal to 25% of the taxes improperly avoided; and
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(3) reasonable costs of collection, including attorney fees.
(b) Multi-state exemption fraud. Any person who claims the
exemption under section 2, and amendments thereto, while simultaneously
claiming a homestead exemption, primary residence exemption or similar
property tax benefit based on primary residence or domicile in another
state, territory or jurisdiction shall be liable for:
(1) All taxes that would have been due without the exemption, for
each year that the exemption was improperly claimed, plus interest;
(2) a civil penalty equal to 50% of the taxes improperly avoided; and
(3) reasonable costs of collection, including attorney fees.
(c) Statute of limitations. The county appraiser may assess back taxes,
interest and penalties under this section for a period of not to exceed five
years from the date that the exemption was improperly claimed.
(d) Criminal penalties. In addition to civil penalties, any person who
knowingly makes a false certification under penalty of perjury on an
application or declaration for the exemption under section 2, and
amendments thereto, may be prosecuted for perjury under K.S.A. 21-5903,
and amendments thereto.
New Sec. 7. The director of property valuation shall:
(a) Prescribe forms and procedures for the administration of this act;
(b) provide training and guidance to county appraisers regarding the
homestead exemption;
(c) adopt rules and regulations necessary for the implementation of
this act; and
(d) report annually to the legislature on the implementation and fiscal
impact of this act, including the number of homesteads receiving the
exemption, the total reimbursement amounts and any recommended
changes.
New Sec. 8. If any provision of this act or the application thereof to
any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this act which can be given effect
without the invalid provision or application, and to this end, the provisions
of this act are severable.
Sec. 9. K.S.A. 2025 Supp. 79-2988 is hereby amended to read as
follows: 79-2988. (a) On or before June 15 each year, the county clerk
shall calculate the revenue neutral rate for each taxing subdivision and
include such revenue neutral rate on the notice of the estimated assessed
valuation provided to each taxing subdivision for budget purposes, except
that for tax year 2024, the deadline shall be extended to July 1, 2024. The
director of accounts and reports shall modify the prescribed budget
information form to show the revenue neutral rate.
(b) Except as otherwise provided in this section, no tax rate in excess
of the revenue neutral rate shall be levied by the governing body of any
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taxing subdivision unless a resolution or ordinance has been approved by
the governing body according to the following procedure:
(1) At least 10 days in advance of the public hearing, the governing
body shall publish notice of its proposed intent to exceed the revenue
neutral rate by publishing notice:
(A) On the website of the governing body, if the governing body
maintains a website; and
(B) in a weekly or daily newspaper of the county having a general
circulation therein. The notice shall include, but not be limited to, its
proposed tax rate, its revenue neutral rate and the date, time and location
of the public hearing.
(2) On or before July 20, the governing body shall notify the county
clerk of its proposed intent to exceed the revenue neutral rate and provide
the date, time and location of the public hearing and its proposed tax rate.
For all tax years commencing after December 31, 2021, the county clerk
shall notify each taxpayer with property in the taxing subdivision, by mail
directed to the taxpayer's last known address, of the proposed intent to
exceed the revenue neutral rate at least 10 days in advance of the public
hearing. Alternatively, the county clerk may transmit the notice to the
taxpayer by electronic means at least 10 days in advance of the public
hearing, if such taxpayer and county clerk have consented in writing to
service by electronic means. The county clerk is not required to send a
notice to a property owner of property that is exempt from ad valorem
taxation. The county clerk shall consolidate the required information for
all taxing subdivisions relevant to the taxpayer's property on one notice.
The notice shall be in a format prescribed by the director of accounts and
reports. The notice shall include, but not be limited to:
(A) The following heading:
"NOTICE OF PROPOSED PROPERTY TAX INCREASE AND
PUBLIC HEARINGS
[Current year] [County name] County Revenue Neutral Rate Notice
This is NOT a bill. Do not remit payment.";
(B) the following statement:
"This notice contains estimates of the tax on your property and
proposed property tax increases. THE ACTUAL TAX ON YOUR
PROPERTY MAY INCREASE OR DECREASE FROM THESE
ESTIMATES. Governing bodies of taxing subdivisions must vote in order
to exceed the Revenue Neutral Rate to increase the total property taxes
collected. Governing bodies will vote at public hearings at the dates, times
and locations listed. Taxpayers may attend and comment at the hearings.
Property tax statements will be issued after mill rates are finalized and
taxes are calculated.";
(C) the appraised value and assessed value of the taxpayer's property
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for the current year and the previous year;
(D) the mill levy and amount of property tax of each taxing
subdivision on the taxpayer's property from the previous year's tax
statement in a column titled: "[Previous year] Tax";
(E) the revenue neutral rate in mills and estimated amount of property
tax for the current year of each taxing subdivision on the taxpayer's
property based on the revenue neutral rate of each taxing subdivision in a
column titled: "[Current year] Tax at Revenue Neutral Rate";
(F) the estimated amount of property tax for the current year of each
taxing subdivision on the taxpayer's property based on either: (i) The
revenue neutral rate for a taxing subdivision that does not intend to exceed
its revenue neutral rate; or (ii) the proposed tax rate provided by the taxing
subdivision, if the taxing subdivision notified the county clerk of its
proposed intent to exceed its revenue neutral rate, and such mill levy used
in the calculation, in a column titled: "[Current year] Proposed Tax";
(G) the difference between the amount of the current year's proposed
tax and the previous year's tax, reflected in dollars and a percentage, for
each taxing subdivision in a column titled: "[Current year] Proposed Tax
Exceeding [Previous year] Tax"; and
(H) the date, time and location of the public hearing of each taxing
subdivision that notified the county clerk of its proposed intent to exceed
its revenue neutral rate in a column titled: "Date, Time and Location of
Public Hearing".
The columns described in subparagraphs (D) through (G) shall include
a total of the amounts at the end of each column. For each taxing
subdivision, the notice shall include the total amount of revenue from the
property tax levy for the previous year, the proposed total amount of
revenue from the property tax levy for the current year and the difference
or change between such amounts, reflected in dollars and a percentage.
Although the state of Kansas is not a taxing subdivision for purposes of
this section, the notice shall include the previous year's tax amount and the
estimate of the tax for the current year on the taxpayer's property based on
the statutory mill levies.
(3) The public hearing to consider exceeding the revenue neutral rate
shall be held not sooner than August 20 and not later than September 20.
The governing body shall provide interested taxpayers desiring to be heard
an opportunity to present oral testimony within reasonable time limits and
without unreasonable restriction on the number of individuals allowed to
make public comment. The public hearing may be conducted in
conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
and amendments thereto, if the governing body otherwise complies with
all requirements of this section. Nothing in this section shall be construed
to prohibit additional public hearings that provide additional opportunities
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to present testimony or public comment prior to the public hearing
required by this section.
(4) A majority vote of the governing body, by the adoption of a
resolution or ordinance to approve exceeding the revenue neutral rate,
shall be required prior to adoption of a proposed budget that will result in a
tax rate in excess of the revenue neutral rate. Such vote of the governing
body shall be conducted at the public hearing and on the same day as the
commencement of the public hearing after the governing body has heard
from interested taxpayers and shall be a roll call vote. If the governing
body approves exceeding the revenue neutral rate, the governing body
shall not adopt a budget that results in a tax rate in excess of its proposed
tax rate as stated in the notice provided pursuant to this section. A copy of
the resolution or ordinance to approve exceeding the revenue neutral rate
and a certified copy of any roll call vote reporting, at a minimum, the
name and vote of each member of the governing body related to exceeding
the revenue neutral rate, whether approved or not, shall be included with
the adopted budget, budget certificate and other budget forms filed with
the county clerk and the director of accounts and reports and shall be
published on the website of the department of administration.
(c) (1) Any governing body subject to the provisions of this section
that does not comply with subsection (b) shall refund to taxpayers any
property taxes over-collected based on the amount of the levy that was in
excess of the revenue neutral rate.
(2) Any taxpayer of the taxing subdivision that is the subject of the
complaint or such taxpayer's duly authorized representative may file a
complaint with the state board of tax appeals by filing a written complaint,
on a form prescribed by the board, that contains the facts that the
complaining party believes show that a governing body of a taxing
subdivision did not comply with the provisions of subsection (b) and that a
reduction or refund of taxes is appropriate. The complaining party shall
provide a copy of such complaint to the governing body of the taxing
subdivision making the levy that is the subject of the complaint.
Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
shall be charged by the executive director of the state board of tax appeals
for a complaint filed pursuant to this paragraph. The governing body of the
taxing subdivision making the levy that is the subject of the complaint
shall be a party to the proceeding. Notice of any summary proceeding or
hearing shall be served upon such governing body, the county clerk, the
director of accounts and reports and the complaining party. It shall be the
duty of the governing body to initiate the production of evidence to
demonstrate, by a preponderance of the evidence, the validity of such levy.
If upon a summary proceeding or hearing, it shall be made to appear to the
satisfaction of the board that the governing body of the taxing subdivision
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did not comply with subsection (b), the state board of tax appeals shall
order such governing body to refund to taxpayers the amount of property
taxes over collected or reduce the taxes levied, if uncollected. The
provisions of this paragraph shall not be construed as prohibiting any other
remedies available under the law.
(d) On and after January 1, 2022, in the event that the tax levied by a
school district pursuant to K.S.A. 72-5142, and amendments thereto,
increases the property tax revenue generated for the purpose of calculating
the revenue neutral rate from the previous tax year and such amount of
increase in revenue generated from such tax levied is the only reason that
the school district would exceed the total property tax revenue from the
prior year, the school district shall be deemed to not have exceeded the
revenue neutral rate in levying a tax rate in excess of the revenue neutral
rate to take into account the increase in revenue from only such tax levied.
(e) (1) Notwithstanding any other provision of law to the contrary, if
the governing body of a taxing subdivision must conduct a public hearing
to approve exceeding the revenue neutral rate under this section, the
governing body of the taxing subdivision shall certify, on or before
October 1, to the proper county clerk the amount of ad valorem tax to be
levied.
(2) If a governing body of a taxing subdivision did not comply with
the provisions of subsection (b) and certifies to the county clerk an amount
of ad valorem tax to be levied that would result in a tax rate in excess of its
revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
levied to the amount resulting from such taxing subdivision's revenue
neutral rate.
(f) As used in this section:
(1) "Taxing subdivision" means any political subdivision of the state
that levies an ad valorem tax on property.
(2) "Revenue neutral rate" means the tax rate for the current tax year
that would generate the same property tax revenue as levied the previous
tax year using the current tax year's total assessed valuation. To calculate
the revenue neutral rate, the county clerk shall divide the property tax
revenue for such taxing subdivision levied for the previous tax year by the
total of all taxable assessed valuation in such taxing subdivision for the
current tax year, and then multiply the quotient by 1,000 to express the rate
in mills. The revenue neutral rate shall be expressed to the third decimal
place.
(g) In the event that a county clerk incurred costs of printing and
postage that were not reimbursed pursuant to K.S.A. 2025 Supp. 79-2989,
and amendments thereto, such county clerk may seek reimbursement from
all taxing subdivisions required to send the notice. Such costs shall be
shared proportionately by all taxing subdivisions that were included on the
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same notice based on the total property tax levied by each taxing
subdivision. Payment of such costs shall be due to the county clerk by
December 31.
(h) The department of administration or the director of accounts and
reports shall make copies of adopted budgets, budget certificates, other
budget documents and revenue neutral rate documents available to the
public on the department of administration's website on a permanently
accessible web page that may be accessed via a conspicuous link to that
web page placed on the front page of the department's website. The
department of administration or the director of accounts and reports shall
also make the following information for each tax year available on such
website:
(1) A list of taxing subdivisions by county;
(2) whether each taxing subdivision conducted a hearing to consider
exceeding its revenue neutral rate;
(3) the revenue neutral rate of each taxing subdivision;
(4) the tax rate resulting from the adopted budget of each taxing
subdivision; and
(5) the percent change between the revenue neutral rate and the tax
rate for each taxing subdivision.
(i) Notwithstanding any provisions to the contrary, in the event any
governing body does not comply with the provisions of subsection (b)
because such governing body did not intend to exceed its revenue neutral
rate but the final taxable assessed valuation of such taxing subdivision
used to calculate the actual tax levy is less than the estimated assessed
valuation used to calculate the revenue neutral rate, such governing body
shall be permitted to levy a tax rate that generates the same amount of
property tax revenue as levied the previous year or less.
(j) On and after January 1, 2028, f or purposes of calculating the
revenue neutral rate under this section, the county clerk shall compute an
adjusted total assessed valuation that excludes reductions in assessed
valuation attributable to the universal homestead exemption under section
2, and amendments thereto. A taxing subdivision shall not be deemed to
have exceeded the revenue neutral rate solely as a result of the exemption
established under section 2, and amendments thereto.
Sec. 10. K.S.A. 2025 Supp. 79-2988 is hereby repealed.
Sec. 11. This act shall take effect and be in force from and after its
publication in the statute book.
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