The Kansas Senate yesterday passed a constitutional amendment that, if approved by the House, would allow voters to decide whether taxable real estate valuation increases should be capped at 3% annually.
The vote was 28-11, with two Democrats (Patrick Schmidt and David Haley) voting for the bill and five Republicans (Tory Marie Blew, Bill Clifford, Mike Fagg, Stephen Owens, and Ron Ryckman) opposed. Senator Mary Ware (D-Wichita) was absent and did not vote.
SCR 1603 applies to all real estate and mobile homes, which are considered personal property under Kansas law. The limit would not apply when:
- The property includes new construction or improvements have been made;
- The class or subclass of the property changes for assessment rate purposes;
- The property becomes disqualified from exemption;
- The property is first listed as escaped or omitted property or
- The legal description of the parcel changes, except the valuation of all property affected by a legal description change would not be permitted to exceed 3 percent of the total valuation of the affected property of the previous year.
The Kansas Legislative Research Department also says the benefits of the valuation limitation would remain in place when title to the property is transferred, changed, or conveyed to another person unless the Legislature enacts provisions providing for exceptions.
For tax year 2026, the concurrent resolution provides for the final taxable appraised value to increase by 3 percent, or a lesser amount provided by law, relative to the 2022 appraised value of the property, unless one of the exceptions provided for by the concurrent resolution applies to the property.
Proposed valuation limit prompted by large tax and valuation hikes
Proponents of the valuation limit say it’s needed because taxpayers, especially homeowners, have been hit with excessive increases in valuations and property taxes.
In 1997, residential property owners paid 39% of all property taxes, but they now pay 55% of the total burden, mostly due to valuation increases.
In just the last three years, the average increase on existing homes is more than 30%, with some increases above 50%. Local elected officials shave the tax rate by about 1% and claim not to have increased taxes despite knowing that they will collect a lot more property tax due to their actions.
Opponents say the valuation limit will cause fairness issues. For example, someone who buys a home will be taxed on the current market value of the home, while their neighbor who has lived in a similar house for many years will pay less. There is also a fear that the prices on real estate will be distorted, although no data was presented showing that that occurred in the more than 25 states that already have various forms of valuation limits.
The valuation limit would not reduce property taxes, but it will likely result in smaller tax increases.
Valuation limit may die in the House of Representatives
A statewide public opinion poll conducted by SurveyUSA on behalf of the Sentinel’s owner, Kansas Policy Institute, shows 64% of Kansans want a valuation limit, and only 18% are opposed.
There is even more support for limiting tax collections to 3% for each governmental entity with voter approval; 87% support a tax limit, with only 9% opposed.
Still, Kansans may not get the substantive tax relief they need and want this year because House Speaker Dan Hawkins says he doesn’t have the 84 votes needed to pass a constitutional amendment, and he won’t make legislators vote on the bill unless he knows it will pass.
