Revenue and taxation; Oklahoma Revenue and Taxation Act of 2025; effective date.

2025 Regular Session Introduced by Brian Hill

HB 2408 lets assessors factor county-recognized community land trust lease restrictions into property tax valuations, potentially lowering taxes on CLT-leased parcels.

Second Reading referred to Rules

Purpose / Intent

HB 2408 amends Kansas property tax valuation law to explicitly allow assessor appraisals to consider use restrictions that apply to property located on leased ground owned by a county‑recognized community land trust (CLT) when determining fair market value for ad valorem property tax purposes. The intent is to make clear that CLT lease restrictions are a permissible factor in valuation, in parity with other statutory factors such as government‑imposed restrictions and rental restrictions already listed in K.S.A. 79‑503a.

Key provisions

Amends K.S.A. 2024 Supp. 79‑503a (the statutory definition and valuation factors for “fair market value”) by adding subsection (l):

"(l) restrictions or requirements imposed upon the use of real estate on leased ground owned by a county‑recognized community land trust."

The bill replaces/revises the existing statute (the bill text indicates amendment of the section and repeal of the prior version consistent with standard drafting practice).

No operational changes to Department of Revenue processes are proposed beyond allowing assessors to factor CLT lease restrictions into appraisals.

Who is affected

Homeowners and landlords whose property sits on leased ground owned by a county‑recognized community land trust — their taxable fair market value may be reduced or adjusted if appraisers consider CLT lease restrictions to diminish market value.

County appraisers and local assessors — will have explicit statutory authority to include CLT lease restrictions as a valuation factor.

Local taxing jurisdictions (counties, municipalities, school districts, special districts) — potential changes in assessed value could alter property tax collections and revenue distribution.

County‑recognized community land trusts — their lease terms would be treated as a recognized valuation factor.

Fiscal and policy impact

Division of the Budget: fiscal effect on state and local property tax revenues cannot be precisely estimated; likely negligible statewide.

Department of Revenue: no fiscal effect on its operations anticipated.

Kansas Association of Counties and League of Kansas Municipalities: expect a net reduction in local property tax collections in some cases and note the potential for tax burden shifting to other property classes/types if assessed values decline for CLT‑leased parcels.

Procedural / timeline notes

Introduced 02/04/2025; referred to Committee on Taxation.

Public hearing and committee consideration occurred 04/07/2025 (committee substitute considered; testimony taken; bill left pending).

Further committee action would be required for passage (committee report, floor action, concurrence, and enactment).

Notes:
- The bill applies only to “county‑recognized” community land trusts; the bill text does not define criteria for county recognition — that designation would be applied by counties or other statute/policy.

Bill