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HB 2278

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

2025-2026 Regular Session Introduced by Mike Amyx and 20 co-sponsors

Kansas would raise the residential property tax exemption from 75,000 to 110,000 of appraised value starting 2026, with automatic annual updates based on 10-year residential value

Died in Committee
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Bill Summary · HB 2278

Summary — HB 2278 (Kansas, 2025 session)

Title: Increasing the extent of property tax exemption from the statewide school levy for residential property
Introduced: January 30, 2025
Status: Referred to Committee on Taxation
Effective date (as written): January 1, 2026

Purpose

To increase the portion of a residential property's appraised value that is exempt from the statewide school property tax levy, and to provide an automatic annual adjustment of that exemption amount beginning in tax year 2027.

Key provisions

  • For tax year 2026 (and taxable year 2026 onward), increase the exemption for property used for residential purposes from $75,000 to $110,000 of appraised valuation (amends K.S.A. 2024 Supp. 79‑201x).
  • For tax year 2027 and each year thereafter, the dollar amount of the exemption will be adjusted annually to reflect the average percentage change in statewide residential valuation of all residential real property over the preceding 10 years.
    • The average percentage change cannot be less than zero.
    • The Director of Property Valuation is required to calculate the 10‑year average percentage change and compute the adjusted exemption amount each year.
  • The bill repeals the existing statutory section and replaces it with the amended language (as framed in the introduced version).

Fiscal impact (from Fiscal Note, Division of the Budget / Department of Revenue)

  • Estimated reduction in revenues to the School District Finance Fund:
    • FY 2027: $61.3 million
    • FY 2028: $71.8 million
    • FY 2029: $83.0 million
    • FY 2030: $94.8 million
    • FY 2031: $107.3 million
  • Because the School District Finance Fund helps finance State Foundation Aid, the Division of the Budget notes the State General Fund would need corresponding increases in appropriations for State Foundation Aid each year to maintain the approved Base State Aid Per Pupil under the school finance formula.
  • The fiscal note was prepared Feb 20, 2025; effects are not included in the FY 2026 Governor’s Budget Report.

Who is affected

  • Primary: Residential property owners in Kansas — increased exemption reduces taxable appraised valuation subject to the statewide school levy, lowering school-levy property taxes for owners whose appraised value is within the exemption change.
  • K‑12 public school finance: reduced School District Finance Fund receipts; potential need for higher State General Fund appropriations to meet formula commitments.
  • Local taxing authorities: the statewide school levy revenue base changes may affect distribution and state/local school finance dynamics.

Timeline & procedural notes

  • Bill is in the legislative process (referred to Taxation Committee as of introduction).
  • If enacted as written, the new exemption amount applies beginning with tax year 2026 (effective Jan 1, 2026).
  • Annual automatic adjustments begin with tax year 2027, based on the prior 10‑year residential valuation trend.

Uncertainties / considerations

  • Exact taxpayer savings will vary by individual property appraisals and local mill levies.
  • The overall state budget impact depends on whether the Legislature offsets lost School District Finance Fund revenue with State General Fund appropriations or other measures.

Compiled from official sources — confirm details with the bill’s official record.

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