“Kansans deserve real property tax relief, and they deserve the truth about how such relief can be accomplished,” Governor Laura Kelly said. “To date, the Legislature – led by a Republican supermajority – has provided only lip service on this topic and has failed to deliver on the campaign promises and talking points they have been repeating for two years. Today, I’m laying out a fiscally responsible property tax relief plan that I invite the Legislature to debate and take action on to finally give Kansans some real relief.” 

The truth about property taxes is that the overwhelming majority of property taxes are levied at the local level – by cities, counties, and school districts. The revenues that these taxes generate are designed to contribute to an improved quality of life for its citizens, like paying for police and firefighters, maintaining reliable roads, and providing access to high-quality public schools. However, increased valuations and rising costs have placed an undue burden on property owners across the state.   

Action must be taken to encourage local governments to keep their costs down, while not sacrificing the services that its citizens deserve. But the State is not excused from being a part of the solution and providing relief for the portion of property taxes for which it is responsible. 

To identify a real and lasting solution, Governor Kelly is introducing a multi-pronged approach to drive property tax reform in Kansas. She encourages the Legislature to follow her lead and to debate and vote on this property tax reform package in the closing days of the 2026 legislative session. 

Governor Kelly’s plan is divided into three parts: 1) immediate property tax relief for vehicle owners, 2) incentivizing local governments to permanently bend their cost curves, and 3) requiring the state to have skin in the game for its share of property taxes. 

The first leg of the plan is for the Legislature to adopt Senate Bill 378, which was introduced by Senator Ethan Corson during the 2026 legislative session. This bill would provide for a one-time $250 vehicle tax credit for all vehicle owners in the state when they register their vehicle. The cost to cover this credit would be paid for by using surplus funds sitting in the budget stabilization fund. This policy would give immediate relief to Kansans in Fiscal Year 2027, while the other components of the package take shape. By limiting this to a one-time event, it will not jeopardize the fidelity of the budget stabilization fund. 

The second leg of the plan is to create a fund to be distributed to cities and counties that demonstrate an ability to manage their budgets responsibly. The state would make an annual deposit into this fund, beginning with $60.0 million in the first year, and growing the deposit by 2 percent each year. Cities and counties that keep their annual budget growth at a reasonable level – recommended to be no greater than 3 percent - would be eligible to claim a portion of this fund, to assist them in paying for needed services. The distribution formula would take into account each city/county’s population and total assessed value, ensuring that rural and urban areas have equitable access to these funds.   

The third leg of the plan is for the state to have some skin in the game and to provide tax relief for the 20 mills that are levied to assist the state in paying for its share of public education. Current law exempts the first $75,000 of every home’s appraised value from this 20-mill tax. The Governor’s proposal would increase the exemption level to $150,000. By doubling the current exemption, this would provide meaningful tax relief to over 700,000 Kansas homeowners every year. This proposal would safeguard funding for public education by creating a demand transfer from the State General Fund into the School District Finance Fund to ensure that public schools continue to receive their full constitutional funding. 

The Governor urges the Legislature to give serious consideration to this comprehensive property tax package, while it has time to act. It is time for Kansans to hear the truth from their elected officials, and to have their elected officials deliver realistic results for them.