Mandy
In response to rising living costs, the Kansas Legislature is set to discuss a new initiative aimed at offering property tax relief in the upcoming session.
One of the key proposals is the Cap Assessed Value Protection Amendment Bill, which targets the annual increase of assessed property values.
What Is Assessed Value?
It’s essential to differentiate between assessed value and appraised value. Appraised value refers to the fair market value of a property determined by a county appraiser, while assessed value is a fraction of that appraised value, typically around 11%. Property taxes are based on the assessed value, not the appraised one.
The Key Proposal
The Cap Assessed Value Protection Amendment Bill proposes a limit on the annual increase of a property’s assessed value. If the bill is passed, the increase would be capped at 3% per year, regardless of how much the appraised value rises.
This would provide property tax relief, particularly for homeowners facing steep property tax hikes.
For example, if your property’s appraised value jumps by 20%, the assessed value would be restricted to a 3% increase based on the new appraised figure. Furthermore, the amendment would reset assessed valuations to their 2022 levels to provide immediate relief.
The Rationale Behind the Proposal
Republican Senator Kenny Titus, representing Kansas District 18, emphasized that the continuous increase in property tax assessments has become a financial burden for many residents, especially for retirees on fixed incomes.
He explained that constant property tax hikes make it harder for people to manage their budgets, leading to a significant loss in real income and creating an added strain on homeowners’ ability to remain in their homes.
Constitutional Amendment Process
As a constitutional amendment, the bill requires a two-thirds majority vote in both the Kansas House of Representatives and the Kansas Senate before it can move forward. Once approved by the Legislature, the bill would be put to a statewide vote.
The Cap Assessed Value Protection Amendment Bill seeks to protect homeowners from unsustainable increases in property tax assessments.
By limiting the annual increase to 3%, it aims to provide much-needed relief to Kansas residents, particularly those on fixed incomes. The bill’s passage would require broad legislative support and a subsequent statewide vote, making it an issue to watch closely in the coming months.