LEGISLATIVE ALERT! URGENT! Your Voice Needed Today! Senate Assessment & Tax Committee Passed 2 Bills Yesterday Impacting Kansas Counties
The Senate Assessment and Taxation Committee passed two bills out of committee yesterday (March 13). Both bills have an impact on Kansas Counties.
SB 311 would impact how commercial property can be appraised. It will be considered under general orders today, March 14, 2024 in the Senate. The original bill would prevent using the sale price or value from a IRS 1031 exchange to determine fair market value. The committee added in language that would prevent using “build-to-suit transactions or sale-leaseback agreements” to determine fair market value or as comparable sales for valuation purposes. This could allow use of “dark store theory” in determining the value of commercial property. This could result in a shift of tax burden from commercial properties to residential and agricultural properties. Kansas Counties please contact your senators as soon as possible, as this will be considered by the Senate today, March 14, 2024.
In addition, the Senate committee approved SB 468, which would require that any county or city that grants any property tax exemptions, revenue bonds or other tax abatements remain at the revenue neutral rate. This bill would remove many of the tax abatement tools used for economic development by local governments. KAC is asking Kansas Counties to contact your local chambers of commerce, as well as any businesses that have been granted abatements in the last few years and ask those entities to contact your senators and tell them to oppose this bill. The bill advanced out of committee on a 6-5 vote, so there is potential opposition already lining up against this bill.
LEGISLATIVE ALERT! Testimony and In-person Attendance Encouraged for Your Kansas County's Preference on 1 of 2 Constitutional Amendments Related to Property Taxes
The House Taxation committee will have hearings on two constitutional amendments related to property taxes on Tuesday, March 19, 2024 at 3:30 PM in Room 346-S.
HCR 5025 would amend Section 1, Article 11 of the Kansas Constitution to change the valuation of residential property to a ten-year rolling average to determine the fair market value.
SCR 1611 would amend Section 1, Article 11 of the Kansas Constitution to limit the increase in valuation on real property in Kansas to 4% per year.
These are two very different proposals on property tax. KAC would encourage members to talk to their House delegation about which of these proposals they prefer, as well as testifying in committee on these two proposals.
