Kansas Senate Bill SB476

Kansas 2025-2026 Regular Session

• Introduced: 2/4/26
• Refer: 2/5/26

Caption

Exempting certain property used for thrift store purposes by a church or religious organization from property tax.

Summary

SB 476 amends Kansas property tax exemption law to add a specific exemption for property used as a thrift store by a church or religious organization. Under the bill, real and tangible personal property used for thrift store purposes would be treated as used exclusively for religious or charitable purposes if the property and thrift store are owned and exclusively operated by the same church or religious organization as part of its religious or charitable mission. The thrift store must either provide items without charge to individuals in need or sell items and use the proceeds for the organization’s religious or charitable mission. The bill fits within K.S.A. 79-201, which lists categories of property exempt from ad valorem taxation, and it would amend that statute directly while repealing the existing version. In practical terms, the measure would expand the scope of property tax exemptions available to qualifying faith-based organizations that run thrift stores, potentially reducing local property tax revenue on eligible property while lowering operating costs for those organizations.

Impact

SB 476 would change Kansas property tax law by clarifying that certain thrift store property owned and operated by a church or religious organization qualifies for exemption as religious or charitable property. The affected statute is K.S.A. 79-201, the state’s main property tax exemption provision, and the bill would add a new rule within the second exemption category for property used exclusively for religious or charitable purposes. The change would primarily affect churches, religious nonprofits, and local taxing jurisdictions that would no longer collect property taxes on qualifying thrift store property.

Sentiment

The available context suggests the bill is narrowly focused and likely intended to support charitable and faith-based service operations. The caption frames the measure as a targeted exemption for church-run thrift stores, and there is no recorded committee testimony or vote history in the provided materials indicating opposition or amendment activity. Overall, the bill appears to have a favorable or at least noncontroversial policy posture based on its limited scope and charitable framing.

Contention

The main point of potential contention is whether thrift store operations should be treated as sufficiently religious or charitable to justify a property tax exemption, especially when the stores sell donated goods rather than distribute items free of charge. Another possible issue is the fiscal effect on local governments and school districts that rely on property tax revenue. The bill attempts to limit the exemption by requiring common ownership and exclusive operation by the same church or religious organization and by tying the store’s proceeds to the organization’s mission, which suggests an effort to address concerns about commercial or unrelated retail activity.