MARC JACOBS
Hutch Post
A Kansas Senate bill that would eventually eliminate property taxes in the state is scheduled for a public hearing on Tuesday.
The Kansas Senate Committee on Federal and State Affairs will hold a hearing on Senate Bill 488 at 9:30 a.m. on March 10. The measure is titled the Kansas Property Tax Freedom Act of 2026.
The proposal would phase out property taxes over several years. Under the bill, local governments would be limited to 50% of their 2025 mill levy in tax year 2026 and 25% of the 2025 levy in 2027. Beginning in 2028, property taxes on real and personal property would be prohibited under the plan.
To replace lost revenue, the legislation would establish a “Kansas fair share purchase surcharge” beginning Jan. 1, 2027. Purchases of $20 or more would carry a flat $1.60 surcharge, while purchases under $20 would be charged 7.6% of the purchase price.
Revenue from the surcharge would be distributed primarily to local governments and schools, with 48% allocated to school districts and 35% to counties, cities and other local taxing entities. Additional funds would support the state general fund and a reserve fund intended to stabilize revenue and potentially provide taxpayer rebates if the balance exceeds $500 million.
The bill also outlines exemptions from the surcharge, including groceries eligible for SNAP, prescription drugs, motor fuel, utilities, child care services and K-12 tuition.
Even if approved by lawmakers, the plan would only take effect if Kansas voters pass a constitutional amendment prohibiting property taxes during a statewide election.