Bill > SB489

This bill establishes a universal homestead exemption from ad valorem property taxes, meaning that beginning January 1, 2028, the first $10,000 of a home's appraised value will be exempt from these taxes, with this exemption amount to be adjusted for inflation every two years starting in 2030. A "homestead" is defined as a dwelling and connected buildings occupied as a residence by the owner, along with the land it sits on, up to specific acreage limits, and an "owner" is someone who holds title and lives in the property as their primary residence on January 1st of the tax year. "Taxing subdivisions" are any local government entities that levy property taxes, such as counties, cities, and school districts. The bill outlines procedures for applying for this exemption, including at the time of property closing or through direct application to the county appraiser, and requires owners to certify that the property is their primary residence and that they are not claiming a similar exemption elsewhere, with penalties for false statements or fraud. Importantly, school districts will be reimbursed by the state for lost revenue due to this exemption, but other taxing subdivisions like counties and cities will not receive reimbursement and are expected to absorb the cost, with the bill amending existing law (K.S.A. 2025 Supp. 79-2988) to ensure that the calculation of a taxing subdivision's "revenue neutral rate"—the tax rate that would generate the same amount of revenue as the previous year—will exclude the reduction in assessed valuation caused by this new homestead exemption, preventing it from being counted as a tax increase that triggers public hearing requirements.

Budget and Finance

Assessment and Taxation (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb489/