Housing (Property Taxes)

This bill proposes to amend the Kansas Constitution to completely ban the state and all local governments from levying any property taxes. The measure would directly affect all property owners in Kansas by eliminating the legal authority to collect these taxes on real estate, personal property, and other taxable assets. If passed by the legislature and approved by voters, it would remove the existing system that currently classifies and assesses different types of property at specific percentages of their value.

HB 2641, the Kansas Property Rights Protection Act, requires state and local governments to pay landowners compensation when government actions (like approving projects or enacting land-use rules) reduce property value. It mandates 110% compensation for temporary impacts (e.g., construction delays) and 150% for permanent value loss (including a buyout option if value drops over 10%). Governments must pay within 90 days or face daily penalties, and can later seek reimbursement from developers responsible for the project. The law excludes actions solely for public health/safety (e.g., nuisance abatement) but covers most development projects like wind farms or data centers.

SB 280 requires local taxing entities (like cities, counties, or school districts) to obtain majority voter approval via a special election before raising total property taxes by more than the annual inflation rate, as measured by the U.S. Bureau of Labor Statistics' consumer price index. It excludes new construction taxes from the calculation of the tax levy limit and does not apply to certain statutorily fixed mill rates. The law takes effect January 1, 2026, mandating voter consent for tax increases beyond inflation for all other property tax levies. This directly affects local governments seeking to raise revenue above inflation and property owners whose taxes could be impacted by such increases.