The Legislature closed out the 2026 Veto Session late last week by overriding several vetoes by Gov. Laura Kelly and considering last-minute conference committee reports. Most notably, property taxes were at the top of the priority list. However, only one bill focused on broad-based property tax relief, HB 2043, reached the governor’s desk.
Property tax – Gov. Kelly vetoed HB 2745 April 8, which would have allowed a protest petition to be filed if any taxing jurisdiction wanted to raise property tax revenues by more than the Midwest region consumer price index or 3%, whichever is less. If successful, the local taxing jurisdiction’s budget would have returned to the previous year’s property tax revenue level. The bill also would have reinstated the revenue-neutral budget process and moved the protest petition qualification to 10% of the registered voters in the taxing jurisdiction as of January 1.
Following the veto of HB 2745, a conference committee signed a report for HB 2043. The bill included the framework of HB 2745, but excluded any allowable revenue increase associated with the expiration of property tax abatements, new construction and the payment of bonds. It also moved the protest petition qualification to 10% of voters in the taxing jurisdiction who voted in the last election for secretary of state and exempted K-12 schools from the revenue limitations due to the state-mandated 20-mill levy. The bill passed the Senate 27-13 and the House 87-35. It now awaits action from the governor.
The same conference committee signed a report for SCR 1603. The concurrent resolution would have amended the Kansas Constitution, beginning in tax year 2028, to authorize the Legislature to provide for valuation limitations for any subclass of property. KLA opposed the effort because it would allow the Legislature to place a hard cap on property valuation increases at any level for any subclass of property. This could inequitably shift the local property tax burden, which, on average, comprises about 84% of the mill levy, away from faster-growing subclasses of property like residential to slower-growing subclasses like commercial and agricultural land. The House voted down the CCR for SCR 1603 by a vote of 69-54. The resolution failed because a two-thirds majority of each chamber is required to pass a constitutional amendment. After a motion to reconsider failed, the legislation died.
In a last-minute attempt to push a property tax valuation cap across the finish line, the Senate suspended its rules to allow consideration of HCR 5008. This bill, which was unrelated to property taxes, was amended on the Senate floor to remove its original contents and include language that would have allowed real property to be valued based on the lesser of the property’s fair market value or an average of fair market value over a certain number of years. However, the resolution also contained language similar to SCR 1603 that also would allow the Legislature to enact valuation limits for any classes or subclasses of property. KLA opposed this resolution for the same reason as SCR 1603. The Senate passed HCR 5008 27-12; however, a motion to concur failed in the House 59-62.
Water – The governor signed HB 2114 into law April 9. The bill, originally opposed by KLA, was amended in House and Senate committees to resolve KLA’s multiple concerns. The bill amends numerous statutes pertaining to the regulation of dams and other water structures, including expanding an existing exemption for structures with a Kansas Department of Health and Environment water pollution control permit.
Livestock theft – HB 2413 also was signed by the governor April 9. The bill, supported by KLA, increases the severity level of punishment for livestock theft, specifically horses and cattle, to a level 5, non-person felony. Previously, the severity level of the crime was based on value, with increasing penalties depending on the value of the livestock stolen.