Division of the Budget
Docking State Office Building
Phone: (785) 296-2436
915 SW Harrison Street, Suite 310
Topeka, KS 66612
http://budget.kansas.gov
Adam C. Proffitt, Director
Laura Kelly, Governor
Division of the Budget
February 9, 2026
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT:
Fiscal Note for SB 397 by Senator Warren, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning SB 397 is
respectfully submitted to your committee.
Under current law, a homeowner loses eligibility for a homestead property tax refund claim
if the appraised valuation of the homestead subsequently exceeds $350,000. SB 397 would allow
a homeowner to participate in the homestead property tax refund program if the appraised
valuation of the homestead exceeds $350,000, if the homeowner previously received a homestead
property tax refund on a homestead that had an appraised valuation not exceeding $350,000. This
homestead valuation provision would also be applied to the Selective Assistance For Effective
Senior Relief (SAFESR) tax credit but would not apply to the Kansas property tax relief claim for
seniors and disabled veterans. These changes would become effective beginning in tax year 2026.
Estimated State Fiscal Effect
FY 2026
FY 2027
FY 2028
Expenditures
State General Fund
--
$64,280
--
Fee Fund(s)
--
--
--
Federal Fund
--
--
--
Total Expenditures
--
$64,280
--
Revenues
State General Fund
--
($90,000)
($95,000)
Fee Fund(s)
--
--
--
Federal Fund
--
--
--
Total Revenues
--
($90,000)
($95,000)
FTE Positions
--
--
--
The Honorable Caryn Tyson, Chairperson
Page 2
—
SB 397
The Department of Revenue estimates that SB 397 would decrease State General Fund
revenues by $90,000 in FY 2027. The Department
’s
Property Valuation Division reviewed
appraised valuations of homesteads participating in the homestead property tax refund program
and the SAFESR tax credit program. As a result of allowing certain homesteads to exceed the
$350,000 limit in appraised valuation in FY 2027, an additional $35,000 in homestead property
tax refunds would be claimed and an additional $55,000 in SAFESR tax credits would be claimed.
The fiscal effect on State General Fund revenues during subsequent years would be as follows:
FY 2028
FY 2029
FY 2030
FY 2031
Homestead
($35,700)
($36,400)
($37,200)
($37,900)
SAFESR
(57,800)
(60,700)
(63,800)
(67,000)
($93,500)
($97,100)
($101,000)
($104,900)
The Department indicates that the bill would require $64,280 from the State General Fund
in FY 2027 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required.
Any fiscal effect associated with SB 397 is not
reflected in
The FY 2027
Governor’s Budget Report
.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Jay Hall, Kansas Association of Counties