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HB 2014

Providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers.

2025-2026 Regular Session

HB 2014 would exempt a broad set of personal property (watercraft, trailers, off-road and mobility devices) from ad valorem property taxes starting in 2026.

Died in Committee
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Bill Summary · HB 2014

Summary — HB 2014 (2025 session)

Title: Providing property tax exemptions for certain personal property including watercraft, marine equipment, off‑road vehicles, motorized bicycles and certain trailers
Status: Introduced January 22, 2025; referred to House Committee on Taxation

Purpose / intent

HB 2014 creates new state law exemptions from ad valorem (property) taxation for a range of personal property items commonly used for recreation or personal mobility. The intent is to remove these specified classes of personal property from local and state property tax rolls beginning with tax year 2026.

Key provisions

  • New exemption (new Section 1): the following personal property is exempt from all property (ad valorem) taxes for taxable years commencing after December 31, 2025 (i.e., tax year 2026 and after):
    • Off‑road vehicles that are not operated on highways — includes all‑terrain vehicles (ATVs), recreational off‑highway vehicles, golf carts, off‑road motorcycles, and snowmobiles (terms referenced to K.S.A. 8‑126).
    • Motorized bicycle; electric‑assisted bicycle; electric‑assisted scooter; electric personal assistive mobility device; and motorized wheelchair (defined by reference to K.S.A. 8‑126).
    • Trailers with a gross weight of 15,000 pounds or less used exclusively for personal use and not for the production of income.
    • Marine equipment: watercraft trailers designed to launch/retrieve/transport/store watercraft, and watercraft motors designed to operate watercraft on the water.
    • Watercraft.
  • Definitions: the bill defines “marine equipment,” “off‑road motorcycle,” and “off‑road vehicle” (with cross‑references to K.S.A. 8‑126 for many terms).
  • Statutory changes: the bill amends K.S.A. 79‑213 (procedures for exemption requests and State Board of Tax Appeals processing) and K.S.A. 79‑5501, and repeals the existing sections as described in the bill.

Who would be affected

  • Directly affected: owners of the specified personal property (recreational off‑road vehicles, small trailers used only personally, watercraft and related equipment, motorized/electric personal mobility devices).
  • Fiscally affected: local taxing jurisdictions (counties, cities, local governments) that levy property tax would collect less revenue; public school funding and certain state funds tied to property tax collections would be affected.
  • Agencies: Department of Revenue (administration/process) — bill noted to have no operational fiscal effect.

Fiscal impact (from Kansas Division of the Budget fiscal note)

  • Estimated decrease in revenues to two state building funds in tax year 2026: total $189,749
    • Educational Building Fund (EBF): −$126,499
    • State Institutions Building Fund (SIBF): −$63,250
  • School finance effect: because less property tax revenue would be available from the state’s uniform mill levy, the State General Fund would be required to increase state aid to school districts by an estimated $2,529,984 in tax year 2026 (through the school finance formula).
  • Local governments: will receive reduced property tax revenue, but the Department of Revenue did not estimate a statewide total; impacts will vary by locality.
  • The Division of the Budget expects similar fiscal results in future years. These changes were not reflected in the FY 2026 Governor’s Budget Report.

Timeline / procedural status

  • Effective date for exemption: taxable years commencing after December 31, 2025 (applies beginning with tax year 2026).
  • Legislative status at time of summary: introduced January 22, 2025, and referred to the House Committee on Taxation.

Notes / caveats

  • Many defined terms are incorporated by reference to existing motor vehicle statutes (K.S.A. 8‑126); practical application may depend on those statutory definitions and on county-level assessment practices.
  • Procedural changes to exemption application processing (amendments to K.S.A. 79‑213) could affect how taxpayers and county appraisers handle exemption requests, appeals and refunds; the bill text retains substantial portions of existing statutory procedure but makes conforming changes.
  • Local revenue impacts are location‑specific; counties and municipalities may see uneven effects depending on concentrations of exempt property.

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

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