Kansas House Bill HB2408

Kansas 2025-2026 Regular Session

• Introduced: 3/14/25
• Refer: 3/14/25
• Report Pass: 2/11/26
• Engrossed: 2/19/26
• Refer: 2/25/26

Caption

Providing that leased ground owned by a county-recognized community land trust shall be considered as a factor in determining fair market value for property tax purposes.

Summary

HB 2408 amends Kansas property tax valuation law to require that restrictions or requirements affecting real estate on leased ground owned by a county-recognized community land trust be considered when determining fair market value. The bill adds this factor to the list of appraisal considerations in K.S.A. 79-503a, alongside existing factors such as location, depreciation, productivity, rental value, zoning restrictions, and low-income housing restrictions under federal tax law. It also preserves the existing rule that sales alone are not the sole criterion of fair market value and continues to exclude 1031 exchange prices from being used as indicators or comparable sales. In practical terms, the bill is aimed at property tax assessments for land trust arrangements, especially where homes sit on leased land owned by a community land trust. By directing assessors to account for the restrictions tied to that leased ground, the measure is intended to better reflect the actual market value of such properties for ad valorem tax purposes. The bill amends and repeals the current version of the fair market value statute so the new land trust factor becomes part of Kansas appraisal law. The overall sentiment appears strongly favorable. The bill was requested on behalf of Habitat for Humanity of the Northern Flint Hills, suggesting support from affordable housing and community land trust advocates, and it passed the House on final action by a unanimous 124-0 vote. No committee transcript was provided, but the voting record indicates broad bipartisan agreement and little visible opposition. The main point of contention, if any, would likely center on how much weight assessors should give to leased-ground restrictions and whether the change could lower taxable valuations for affected properties. That issue would matter most to county appraisers, local taxing jurisdictions, and owners or residents in community land trust developments. However, the available record shows no recorded dissent, so any concerns were not strong enough to produce opposition in the House.

Impact

The bill changes Kansas law governing fair market value determinations for property tax purposes by adding leased ground owned by a county-recognized community land trust to the list of factors appraisers must consider. This affects K.S.A. 2024 Supp. 79-503a and, by extension, the valuation methods used for ad valorem taxation of real property. It may reduce assessed values for some properties on community land trust land, which could affect property tax bills and local tax revenues.

Sentiment

The bill’s sentiment is positive and largely noncontroversial based on the available record. It was advanced on behalf of Habitat for Humanity of the Northern Flint Hills and passed the House 124-0, indicating broad support. The absence of recorded committee debate or dissent suggests the measure was viewed as a targeted technical adjustment to property valuation rules, especially for affordable housing and community land trust properties.

Contention

Any contention would likely involve valuation policy rather than the bill’s purpose: county appraisers and local governments could be concerned that recognizing leased ground restrictions will lower taxable values and reduce revenue, while affordable housing advocates would support the change as a more accurate reflection of market conditions. The bill specifically benefits properties on county-recognized community land trust land, so the practical debate is over how those restrictions should influence assessments and whether the adjustment is limited enough to avoid broader tax impacts. No formal opposition is reflected in the provided vote record.