Housing (Property Taxes)

HB 2394 establishes a new "tax use value" method for calculating property taxes in Kansas. It affects residential properties (including multi-family and mobile home communities), commercial/industrial properties, and mobile homes used for residential purposes. The bill requires these properties to be taxed based on the lower of either their current fair market value or an average of their fair market values over the previous 1-6 years (with a 50% threshold for new renovations), starting in 2026. This change modifies how property values are determined for tax assessment, but does not alter the existing tax rates (e.g., 11.5% for residential properties).

HB 2408 modifies Kansas property tax law to require tax assessors to consider restrictions on properties leased by county-recognized community land trusts when determining fair market value for tax purposes. This directly affects affordable housing properties owned by such trusts, which lease land to low-income residents under federal Section 42 housing programs. The bill adds a specific provision (section l) to the definition of fair market value, mandating that lease restrictions on these properties be factored into tax assessments. This change aims to lower taxable value for these properties, potentially reducing tax burdens on affordable housing providers. The policy is a concrete adjustment to tax valuation standards, not a new tax or subsidy.