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KS SB488

Bill

Status

Introduced

2/5/2026

Primary Sponsor

Federal and State Affairs

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Phases out all property taxes in Kansas over two years: mill levies capped at 50% of 2025 levels in 2026, 25% in 2027, and fully eliminated starting in 2028 (contingent on voters approving a constitutional amendment in November 2026)

  • Creates a new "Kansas fair share purchase surcharge" on retail purchases beginning January 1, 2027: $1.60 flat fee on purchases of $20 or more, or 7.6% on purchases under $20

  • Exempts from the surcharge: SNAP-eligible groceries, prescription drugs and medical devices, motor fuel, rent/mortgage payments, utilities, child care, K-12 tuition, and items purchased for resale

  • Distributes surcharge revenue quarterly: 48% to school districts, 35% to counties/cities/townships, 12% to state general fund, and 5% to a new property tax freedom reserve fund

  • Establishes "freedom dividend" rebates to Kansas resident taxpayers when the reserve fund balance exceeds $500 million, with the excess divided equally among all qualified individual filers

Legislative Description

Enacting the Kansas property tax freedom act of 2026, providing for the phased elimination of property taxation and for revenue replacement grants to taxing subdivisions, establishing the Kansas fair share purchase surcharge and providing such revenue to taxing subdivisions, the state general fund and the new property tax freedom reserve fund and providing for freedom dividend rebates.

Last Action

Senate Hearing: Tuesday, March 10, 2026, 9:30 AM Room 548-S

3/10/2026

Committee Referrals

Assessment and Taxation2/6/2026

Full Bill Text

No bill text available