[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6366844,"mediaKeyId","2159310-9b0416bbede703b8d8aebcb6e85e21df","parentId",2159310,"title","Department of Revenue data shows $11.2 billion in annual tax expenditures; sales-tax exemptions dominated, presenter says","audioSeconds",1457,"startMs",1304000,"endMs",2761000,"viewUrl","/Search/View?dp=1&key=2159310-9b0416bbede703b8d8aebcb6e85e21df&start=1304&end=2761","thumbnailUrl","https://assets.pipeline.soar.com/2159310-9b0416bbede703b8d8aebcb6e85e21df/thumbnail_1304000.jpg","articleUrl","/articles/6366844/Kansas/Department-of-Revenue-data-shows-112-billion-in-annual-tax-expenditures-sales-tax-exemptions-dominated-presenter-says","mediaUrl","https://secure.pipeline.soar.com/6366844-82161a3f188420342a79f77abcdf61e2/orig.mp4?Expires=1771191085&Signature=GySgWVR4kH21vppncDT1lqtN69i0q1f~8J3Nw98Q5KQhXJLZwrusGuXgeb9T4CY0rwzscWhl2Z-MGQ1w8w0KN8IrSSH3sVjXENWoodG3MTUKLdK1eQ6~iScIc~-6ecLNCG76kGWS6FvMR4Q6bagaQO1NxWXCVYmUharEf0lMx6mOaGQ-3FO0LCyCLtpydv86NDCnlU6mQNXzXX1wpMG2~olzF4Q1KnEoBz58eBKducMefDCY05UqVmKv1GZI-vSUyJuxMbHft2IMTCzTkhzyox7188OKaUfuKxANZnzMdP9TgEj0fh~P6SMm0567U373p7DOQebcY1o5SC3PlRShHg__&Key-Pair-Id=KUT5TJCACFTXG","author","Committee on Assessment and Taxation, KS ","date","2025-01-28T00:00:00Z","article","Eddie, a staff presenter at the Senate Assessment and Taxation Committee’s Oct. 12 meeting, walked members through four Department of Revenue documents that together summarize statewide tax expenditures and exemptions across sales, income and property taxes.

Eddie told the committee that the state’s published tax-expenditure report lists about $11,200,000,000 in annual tax expenditures and that the sales-tax exemptions line item totals roughly $8,700,000,000, a figure he described as a statistical and conceptual total rather than an immediately actionable policy pot of money.

He explained the Department of Revenue groups sales-tax exemptions into several categories in the report: legal exemptions (about $150 million), conceptual exemptions that preserve the retail-sales-tax structure (the largest category), public-policy consumer exemptions (including a food exemption estimated at roughly $460 million for FY2024), governmental purchases (about $1.7 billion, much of that for state and local government purchases reported in K.S.A. 79-3606(b)), health-care related exemptions (prescription drugs about $110 million) and other categories such as agricultural exemptions and service exemptions.

Eddie emphasized that many figures in the report are marked confidential under state law when fewer than five taxpayers are involved and that some subsections show zero taxpayers and thus are reported as unused rather than confidential. He also noted that the report’s groupings are conceptual and that repealing many exemptions could transform the state’s retail tax system into a value-added tax in practice, a significant structural change with broad consequences.

On property-tax exemptions, Eddie summarized a Property Valuation Division memo and the statistical report, noting several categories. He said industrial revenue bond (IRB) exemptions and constitutional economic-development exemptions account for part of the exempted appraised value (IRB appraised value statewide reported near $2.6 billion in the table he cited; the economic-development exemptions rose from about $263 million to $311 million in appraised value between reporting years). He said a broader set of uniformly applicable statutory property exemptions totaled about $38.7 billion in appraised valuation in 2022, a figure that excludes some personal property values that are not required to be listed.

Committee members asked procedural questions. Senator Schallenberger asked whether a county can create a personal-property exemption on its own; Eddie replied that such exemptions typically arise under the constitutional economic-development provision or IRBs and that counties generally cannot unilaterally adopt personal-property exemptions outside statutory authority. On whether efforts to bring uniformity to sales-tax exemptions had advanced, Eddie said there had been discussion in prior sessions but no clear bill outcome and offered to research prior drafts and the subject-index report.

Eddie said the Department of Revenue can provide NAICS-code–based estimates for proposals such as taxing services but that such estimates would be approximate because statutory language and existing exemptions affect the scope of taxation.

The committee received the briefing and scheduled additional hearings and bill work on tax credits and exemptions at subsequent sessions.

","mediaType","Video","parentTitle","Senate Committee on Assessment and Taxation 01/28/2025","oneSentenceSummary","A committee briefing summarized the Department of Revenue’s tax-expenditure data, noting about $11.2 billion in annual tax expenditures, sales-tax exemptions of $8.7 billion (a conceptual total), and large, growing consumer and governmental exemptions.","taxTitle","Assessment and Taxation, Standing, Senate, Committees, Legislative, Kansas","taxId",20419,"location","Kansas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6366848,"Kansas Constitution, statutes limit how property is valued and exempted, presenter tells committee",1305,71000,1376000,"/Search/View?dp=1&key=2159310-9b0416bbede703b8d8aebcb6e85e21df&start=71&end=1376","https://assets.pipeline.soar.com/2159310-9b0416bbede703b8d8aebcb6e85e21df/thumbnail_71000.jpg","/articles/6366848/Kansas/Kansas-Constitution-statutes-limit-how-property-is-valued-and-exempted-presenter-tells-committee","https://secure.pipeline.soar.com/6366848-3c51a78639ec0f998781ddef07e80f19/orig.mp4?Expires=1771191085&Signature=PQOXJbKvUHSeM~llZb7zEDgzmuWkBozFu3V8BWWvgL9PM4NuhIEo55-O7CubfuBWcFYh0S3rzUlPLLIMn2vC1CuNk-Q434qttoRSrU68Vpca2qSDWhJPEqydcPLQ4lPEp2cW5pP5Yra0C3HDY-DaXwxEsJQq-lyNOTgxD9Qx4h0k1s4Ty~1BisxFg86Ue7KShnBRIbQAjV9fSdnAN~Ik0Owbmj8f2ciHSX9-2SxhdqiqYE75bDLxthZZdwqFd8LWw6y0E2hW3XPh2Fswm~71lXnAqTitc6LNFiLh9~HiXEmzkSGfvdkC09VR2NCqqEfwhF8JXJLMSI~8ss2973qp7Q__&Key-Pair-Id=KUT5TJCACFTXG","Amelia, a staff presenter to the Senate Assessment and Taxation Committee, told members on Oct. 12 that the Kansas Constitution’s Article 11 establishes both the framework and limits for property taxes, including valuation, classification and exemptions.

The presentation focused on Section 1 of Article 11 and related provisions, and urged committee members to remember that “the legislature shall provide for a uniform and equal basis of valuation and rate of taxation of all property subject to taxation,” a constitutional requirement Amelia read and discussed.

Amelia explained that the constitutional uniformity and equality mandate covers both the basis of valuation and the rate of taxation and that the legislature has implemented that mandate by setting fair market value as the general valuation standard and by prescribing a uniform valuation date: January 1. She summarized the statutory definition of fair market value and noted the three standard appraisal approaches—cost, sales-comparison and income-capitalization—used to reach that valuation.

She cautioned that the constitution provides specific exceptions to strict uniformity, including classifications that allow different valuation bases for certain categories such as land devoted to agricultural use, some motor vehicles and commercial machinery and equipment. She noted that the agricultural-use valuation method is authorized by Section 12 of Article 11 and implemented in statute.

Amelia discussed recent case law that has tested statutory deviations from fair market value. She cited a Kansas Supreme Court decision striking part of a 2014 statutory provision that would have permitted a maintained valuation for a property for two years after a reduced valuation, explaining the court found that approach could result in groups of property not being valued at fair market value and therefore deemed that portion unconstitutional.

The presenter also reviewed constitutional provisions that authorize classifications and fixed assessment rates for different property types (for example, residential real property and agricultural land) adopted by amendment in the 1980s. She summarized the constitutional exemptions for property used exclusively for state, local or specified nonprofit purposes, and described a separate constitutional provision that allows cities and counties to grant exemptions for economic development subject to legislative limits.

Amelia closed by reminding the committee that while the power to tax is a legislative function, the courts have repeatedly held the legislature’s authority is constrained by Article 11’s uniformity, valuation and exemption requirements.

Amelia stood for questions after the presentation; committee members then moved on to a separate presentation on tax expenditures.

","A committee briefing reviewed how Article 11 of the Kansas Constitution and state statutes constrain property tax valuation, classification and exemptions, and how courts have interpreted those limits.","actionData","errors"]

Article not found

Department of Revenue data shows $11.2 billion in annual tax expenditures; sales-tax exemptions dominated, presenter says

Kansas Constitution, statutes limit how property is valued and exempted, presenter tells committee