Kansas House Bill HB2278

Kansas 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/5/25

Caption

Increasing the extent of property tax exemption from the statewide school levy for residential property.

Summary

HB2278 increases the amount of residential property value exempt from the statewide school levy. Under current law, the exemption applies to the first $75,000 of appraised valuation; the bill raises that amount to $110,000 beginning with taxable year 2026. The measure applies only to property used for residential purposes and is tied specifically to the property tax levied under K.S.A. 72-5142, which is the statewide school levy. The bill also creates an automatic adjustment mechanism starting in taxable year 2027. The exempt amount would be recalculated each year based on the average percentage change in statewide residential valuation over the prior 10 years, with the adjustment never allowed to go below zero. The director of property valuation would be responsible for calculating the annual updated exemption amount. The act takes effect January 1, 2026, and repeals the existing version of the statute it amends.

Impact

HB2278 would reduce the taxable appraised value of residential property for purposes of the statewide school levy, thereby lowering property tax liability for homeowners subject to that levy. It amends K.S.A. 2024 Supp. 79-201x and repeals the existing section, changing the statutory exemption amount from $75,000 to $110,000 and establishing a future indexing formula tied to statewide residential valuation trends. The bill affects residential property owners, local tax administration, and school finance revenue associated with the statewide levy.

Sentiment

The available context suggests generally favorable sentiment toward the bill among its House sponsors, who are listed from a broad coalition of representatives. The bill’s purpose is straightforward and tax-relief oriented, which typically attracts support from lawmakers seeking to reduce homeowner property tax burdens. No committee transcript or vote record is provided, so there is no documented opposition or debate in the supplied materials.

Contention

The main point of potential contention is the fiscal effect of increasing the exemption, since a larger exemption reduces the property tax base for the statewide school levy and may shift revenue impacts elsewhere in the school finance system. Another possible issue is the annual indexing formula, which delegates future calculation to the director of property valuation and ties the exemption to statewide residential valuation changes, potentially creating uncertainty about how quickly the exemption will grow over time. No specific objections are recorded in the provided materials.