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Minutes for HB2729 - Committee on Taxation
Short Title
Establishing a property tax exemption for 50% of the first $200,000 in assessed value of homesteads of individuals 65 years of age and older and establishing the property tax refund fund.
Minutes Content for Tue, Mar 15, 2022
Chairperson Smith opened the hearing for HB2729.
Adam Siebers, Assistant Revisor, provided an overview for HB2729 that provides for a property tax exemption in the amount of 50.0 percent of the first $200,000 on the property's appraised value if the property is owned and used as a homestead of individual or individuals 65 years of age or older and the property is used as a residence for ten consecutive years. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2729 stating the bill would decrease the State General Fund revenues by $119.3 million for FY2024, $124.1 million for FY2025 and $129.0 million for FY2026. She noted to formulate the estimate, the department looked at housing data from the U.S. Census Bureau and estimated approximately 110,648 homesteads would qualify for the property exemption in tax year 2023. Individuals would still be able to participate in the Homestead Property Tax Refund or Selective Assistance for Effective Senior Relief (SAFESR) tax credit. Ms. Smith stood for questions from Committee members.
Proponents:
Representative Mason, House District 73, testified as a proponent for HB2729 noting the bill is modeled after Colorado's program for property tax relief for seniors. The exemption would provide a 50.0 percent reduction to the first $200,000 of appraised value of a senior's home. To qualify, a homeowner must be 65 years of age or older and lived in the house for ten consecutive years as their primary residence. (Attachment 2) Representative Mason stood for questions from Committee members.
Mark Tomb, Kansas Association of Realtors, testified as a proponent for HB2729 noting property tax is one of the most disliked taxes in Kansas. Mr. Tomb referred to the Kansas Association of Realtors Legislative Policy Statement which states that realtors believe that real estate is burdened with an excessive share of the constantly increasing cost of state and local government. The policy statement recognizes there are important things funded through property tax revenues but it is the belief that tax revenues should be equitably collected from a variety of sources and encourage taxing jurisdictions to consider the negative impact to the housing market with potential increases to property taxes. He noted the Kansas Board of Realtors supports HB2729 but suggested to reduce or eliminate that the property owner must live on the property for 10 consecutive years. (Attachment 3) Mr. Tomb stood for questions from Committee members.
Chairperson Smith closed the hearing for HB2729.
