Permitting county appraisers to request lease agreements from taxpayers when valuing property for property tax purposes.

2025-2026 Regular Session

County appraisers could request lease terms from taxpayers to inform property valuations, potentially improving accuracy for leased or income-producing properties.

Died in Committee

#taxation

Summary of HB 2782 (2025-2026) — Kansas

Purpose and intent

HB 2782 proposes to authorize county appraisers in Kansas to request lease agreements from taxpayers when valuing property for property tax purposes. The bill seeks to incorporate lease terms into the valuation process to determine current market value more accurately, particularly for properties where leasing arrangements influence income or use rights that affect assessed value.

Key provisions and changes

Authority granted to appraisers: County appraisers would be empowered to request lease agreements from property taxpayers as part of the property valuation process for property tax assessment.

Use of lease information: Lease terms (e.g., rent per square foot, duration, escalation clauses, tenant/owner rights, and other covenants) could be used to inform and refine the appraiser’s determination of fair market value.

Impact on valuation methodology: Incorporation of lease data could alter methodologies for valuing certain types of property, especially income-producing properties or properties with significant leasing commitments that influence value.

Documentation requirements: Taxpayers would be expected to provide lease documents to the appraiser upon request, facilitating a more precise valuation.

Scope: The provision applies to property valued for ad valorem property taxes within Kansas at the county level, aligning with existing property tax administration processes.

Who would be affected

Property owners and taxpayers: Those subject to Kansas property tax who have lease arrangements attached to their property, particularly owners of income-producing real estate or properties with long-term leases.

County appraisers: Local property tax assessors would gain explicit authority to request lease documents to guide valuation decisions.

Tax administration process: The procedure for valuing properties could become more information-driven, potentially affecting assessment timelines and determinations.

Procedural and timeline aspects

Introduction and referral: Introduced February 17, 2026, and referred to the House Committee on Taxation on February 18, 2026.

Committee action: Died in committee on April 10, 2026, meaning it did not advance to the full House for debate or a vote.

Status: The bill did not become law; the legislative path halted at the committee stage.

Potential impact and considerations

Accuracy of valuations: If enacted, the bill could improve accuracy for properties where lease terms materially affect value, reducing reliance on unrelated or generic comparables.

Administrative burden: Taxpayers may need to locate and provide lease documents, which could pose time or administrative challenges for some properties.

Equity and consistency: Clearer guidelines on when lease information is required could promote consistency across counties, though specifics would be determined by implementing rules and practice.

Political and policy context: With the bill dying in committee, current law remains unchanged, and any future proposal would need to reemerge through the legislative process.