Kansas House Bill HB2079

Kansas 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25

Caption

Requiring that comparable sales of residential property occur within the subdivision or township or the closest-located subdivision or township where such property is located for valuing real property.

Summary

HB 2079 amends Kansas property tax valuation law by narrowing how comparable sales may be used to determine the fair market value of residential real property. Under the bill, if sales of residential property are used as a valuation criterion, those comparable sales must come from within the same city subdivision or township where the property is located, or from the closest-located subdivision or township. The bill keeps existing rules that fair market value must be determined using generally accepted appraisal methods and that sales are only one factor among several, not the sole criterion. The bill also retains and restates existing statutory guidance on fair market value, including consideration of location, depreciation, income, rental value, zoning, and other restrictions, while expressly excluding certain federal tax-related transactions from valuation use. In particular, it continues to prohibit using the sale price of property transferred in a federal Internal Revenue Code section 1031 exchange as an indicator of fair market value, as a comparable sale, or as a valid sale in sales ratio studies. The bill would take effect upon publication in the statute book.

Impact

HB 2079 would amend K.S.A. 2024 Supp. 79-503a, the Kansas statute defining fair market value for ad valorem property tax purposes. Its main legal effect is to limit the geographic pool of comparable sales that may be used for residential property valuation, which could affect county appraisers, property owners, and tax appeals by making nearby local sales more important than broader market comparisons. It also preserves existing appraisal standards and the exclusion of 1031 exchange transactions from valuation and sales-ratio analysis.

Sentiment

The available context shows no recorded committee transcript or vote history, so there is no documented public debate or roll-call sentiment to summarize. Based on the bill’s structure and caption, the measure appears to be a targeted property-tax valuation proposal intended to make residential assessments more locally grounded. In the absence of recorded opposition or support, the bill’s sentiment cannot be characterized beyond its apparent policy purpose.

Contention

The likely point of contention is whether restricting comparable sales to the same subdivision or township, or the nearest such area, improves fairness and accuracy or instead narrows the market too much and could distort valuations. Supporters would likely argue that local sales better reflect neighborhood-specific value differences, while opponents may contend that the rule could reduce appraisers’ flexibility, especially in areas with few recent sales, and lead to less reliable assessments. The bill also reinforces the exclusion of 1031 exchange sales from valuation, which may be uncontroversial but is another explicit limitation on appraisal inputs.