Modifying the definition of household income for the homestead property tax refund act, providing for one homestead property tax refund claim form and providing an eligibility exception for claimants who are required to live away from the homestead by reason of health or other hardship, increasing the homestead appraised value thresholds for certain homestead refund claim provisions, extending the period of time to file homestead claims and providing for an increase in the maximum refund allowed, providing that a person shall not lose eligibility for a homestead property tax refund claim or the SAFESR tax credit if the appraised valuation of the homestead subsequently exceeds the applicable threshold after qualifying in a previous tax year and modifying the household income threshold, providing a cost-of-living adjustment for purposes of the SAFESR tax credit and prohibiting tax sales of residential property for certain qualifying individuals for taxes owed on residential property.

2025-2026 Regular Session

Kansas bill expands homestead property tax refund eligibility by protecting prior qualifiers whose home values exceed $350,000, allowing health-related away-from-home exceptions, and standardizing income calculations.

Died on House Calendar

#taxation

Legislative bill overview

SB 402 modifies Kansas homestead property tax refund eligibility by redefining household income calculations, allowing a single unified refund claim form, and protecting claimants from losing benefits if their home value exceeds $350,000 after initially qualifying. The bill also creates an exception for those required to live away from their homestead due to health or hardship, and establishes a constant income threshold for the SAFESR tax credit.

Why is this important

Homestead property tax refunds are critical affordability tools for lower-income homeowners, seniors, and disabled residents. These changes could expand access to tax relief by removing the barrier of property appreciation and accommodating people with temporary relocation needs, while streamlining the application process. However, the changes may also increase state expenditures on tax credits and refunds.

Potential points of contention

Property value cap removal: Allowing homeowners to retain benefits after property values exceed $350,000 could benefit some while potentially extending assistance to higher-wealth households than originally intended, raising equity questions about program targeting

Household income definition: Modifications to how household income is calculated could either expand or restrict eligibility depending on what income sources are included or excluded, affecting different demographic groups differently

Administrative costs and state revenue: Consolidating into one claim form and broadening eligibility may increase program participation and state expenditure, requiring offsetting revenue or budget adjustments