June 6, 2022
After much debate from both sides, House Bill 2239 was signed into law on April 25, 2022 by the Kansas Governor. It is a bi-partisan approach, which, amongst a whole host of tax exemptions and cuts, achieves reduced property taxes.
This is great news for the residents of Kansas, who can expect wide-scale changes to the property, sales, and income tax liabilities.
Why Was HB 2239 Introduced?
HB2239 was introduced as an attempt to mitigate the effects of the COVID pandemic by targeting inflation. With a budget surplus larger than any of the preceding decades, state funds are available to relieve the burdens of property taxes as well as remove state-level sales tax on goods.
Additionally, with the climate crisis impacting the farming community to an ever-increasing extent, tax exemptions have been pursued as an avenue to reduce the cost of agricultural land repairs due to natural disasters.
How Does This Affect Citizens of Kansas? What Are The Benefits?
Here are just a few highlights that Kansas residents can look forward to as a result of HB2239 which was signed by the Kansas Governor:
- The bill provides homestead property tax refunds to qualifying individuals. This is based on the increased property tax over the base year property tax value.
- Agritourism activities, as well as zoos, can benefit from a reclassification of land used for agricultural purposes.
- Land that is devoted to agricultural use that is currently subject to the federal grassland conservation reserve program will be reclassified as grassland.
- A property tax exemption is being established for antique utility trailer owners.
- An allowance is now made for the proration of value if qualifying personal property is bought or sold before September 1 of any tax year.
- The extent of the exemption for the residential property school levy is increased.
- Buildings and improvements that have been totally or substantially destroyed by natural disasters will qualify for an abatement or property tax credit.
- Qualifying expenses related to fencing and reconstruction and repair or replacement of fences damaged or destroyed by natural disasters such as tornados, fire, and floods will benefit from a sales tax exemption.
- The income tax credit for rural opportunity zones as well as eligibility for the loan repayment program has been extended by the Kansas Governor
For additional details on HB2239 and how it may provide you with some financial relief, visit the Kansas Legislature website.