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.
This bill lowers the property tax rate that Kansas school districts can charge on taxable property. It directly affects school districts, property owners, and the state school finance fund. The new law sets a 20-mill tax rate for the 2025-2026 and 2026-2027 school years, reduces it to 19 mills for 2027-2028, and then adjusts the rate annually to maintain the same revenue level as 2027-2028 while ensuring it never falls below 15 mills. Revenue collected under this tax must be sent to the state treasurer and deposited into the state school district finance fund, except for amounts used to pay bond debt on redevelopment projects. The bill also prohibits school districts from using certain tax increase procedures while this rate structure is in effect.
SB 536 changes how Kansas taxpayers can benefit from the High Performance Tax Credit Program by converting the existing income tax credit into a direct rebate payment. The bill applies to businesses investing in qualified facilities located outside of metropolitan counties and establishes specific rebate amounts based on the number of jobs created and the size of the investment. Under the new rules, businesses in nonmetropolitan regions receive $2,500 per job plus $1,000 for every $100,000 invested, while other qualifying businesses receive $1,500 per job plus the same investment bonus. The legislation also sets a maximum cap on the rebate amount and ends eligibility for new investments starting January 1, 2027.
This bill introduces two new taxes on large wind farms and solar facilities in Kansas, targeting those with a capacity of at least 5,000 kilowatts. The first tax is a $4 annual fee per kilowatt of capacity, while the second is a $0.001 per kilowatt-hour tax on electricity produced, both payable by the year 2027. Revenue from these taxes will be placed in a new state fund designated for property tax relief, which will then be transferred to support school district financing. The legislation also amends existing school tax laws to allow for a reduction in the statewide property tax levy for schools using these funds.
HB 2784 lowers the property tax rate for Kansas school districts from 20 mills to 19 mills for the 2026-2027 school year. It directly affects school districts by reducing their local property tax revenue and requires the state to transfer funds from the general fund and budget stabilization fund to the state school district finance fund to offset this loss. The bill amends tax laws to automatically calculate and transfer the revenue difference based on the rate decrease, ensuring school districts maintain funding levels. This change applies specifically to the 2026-2027 school year as defined in the bill.
SB 488 proposes phasing out property taxes in Kansas over three years: limiting mill levies to 50% of 2025 levels in 2026, 25% in 2027, and eliminating them entirely for all property starting in 2028. To offset lost revenue for local governments, it creates a new "Kansas fair share purchase surcharge" on retail transactions (7.6% for purchases under $20 or $1.60 flat for $20+), with the collected funds distributed to school districts, counties, cities, and other taxing subdivisions via revenue replacement grants. The bill requires voter approval of a constitutional amendment in 2026 for the tax changes to take effect. It also establishes a "property tax freedom reserve fund" to manage these transition funds and provides for "freedom dividend rebates" to residents.
HB 2714 reduces Kansas' gallonage tax on domestically produced beer and cereal malt beverages from $0.18 to $0.06 per gallon. This change applies specifically to products manufactured and packaged within the United States, while imported products remain subject to the higher $0.18 rate. The bill amends Kansas Statute 41-501 to establish this reduced tax rate for eligible domestic producers. It directly affects brewers, manufacturers, and distributors of U.S.-made beer and cereal malt beverages within Kansas.
SB 521 creates tax credits for Kansas businesses that provide or support child care for their employees. Businesses can claim credits of 30-75% of expenses for paying for employee child care, establishing on-site facilities (50% in the first year), collaborating with other employers, or contributing to third parties improving child care access (50-75% depending on whether they serve families using subsidies). Credits are capped at $100,000 annually per business and require licensed child care providers. The bill, effective January 2027, repeals the previous tax credit provision and limits total annual credits to $3 million statewide.
HB 2745 requires Kansas counties and cities to obtain voter approval before increasing property taxes above a set limit, directly affecting local governments seeking tax hikes beyond this threshold. It establishes a property tax relief fund and provides funding transfers to jurisdictions that keep tax increases within the new limit. The bill also creates a new property tax limit for budget planning and allows voters to challenge proposed increases by signing a petition with at least 10% of eligible voters within 30 days, which would force the local government to revert to the previous tax level.
HB 2757 repeals multiple existing Kansas income tax credits, including those for agritourism liability insurance, alternative fuel, disabled access, and aviation-related employment. It extends the tax credit for angel investors (investors in early-stage businesses) and modifies the high-performance tax credit program to offer expanded options for rural businesses, including adjusted wage requirements. The bill directly affects businesses and investors who previously claimed these credits, particularly agritourism operators, angel investors, and qualifying rural employers. Key changes include eliminating 10+ specific credits while extending benefits for angel investors and providing new flexibility for rural business tax credit usage.
