What is the new Kansas homestead property tax refund for seniors and disabled veterans?

Plain-English summary

Kansas Notice 22-09 explains a new homestead property tax refund program created by 2022 House Bill 2239 (New Section 17), effective for tax year 2022 and after. Sections 46-48 of the bill amend the existing homestead property tax refund act to recognize the new claim.

What it refunds. For tax year 2022 and after, the program pays a refund equal to the amount by which the claimant's residential property tax exceeds the claimant's property tax in the base year. New Section 17(b) defines "base year" as the year in which the individual becomes an eligible claimant (and eligible for this refund), or 2021, whichever is later. In effect, it freezes eligible claimants' property tax at the base-year level by refunding increases above it.

Who is eligible. A claimant must:

• be at least 65 years old or a disabled veteran;
• reside the entire year in a homestead appraised at $350,000 or less (this value limit applies only in the base year); and
• have a household income of $50,000 or less for the year of the claim.

A surviving spouse of an eligible claimant remains eligible unless they remarry.

How to claim. Beginning January 1, 2023, an eligible claimant files Form K-40SVR, Property Tax Relief Claim for Seniors and Disabled Veterans.

No double-dipping. A claimant under New Section 17 cannot also request a refund under the existing homestead property tax refund program or the Selective Assistance for Effective Senior Relief (SAFESR) credit. The $700 limit that applies to the current homestead refund program (K.S.A. 79-4509) does not apply to claims under the new program.

What this means for you

Seniors and disabled veterans who own their home

• If you are 65 or older or a disabled veteran, own a home appraised at $350,000 or less, and have household income of $50,000 or less, you may get back the property tax you pay above your base-year amount.
• File Form K-40SVR starting January 1, 2023 (for tax year 2022).
• You must choose this program or the existing homestead/SAFESR refund -- you cannot claim both. Compare which gives the larger benefit.

Tax preparers

• Confirm the client's base year, age/disabled-veteran status, homestead appraised value (base-year test), and household income before filing Form K-40SVR, and check whether the regular homestead refund or SAFESR would be better.

Common questions

How much is the refund? The amount by which your residential property tax exceeds your property tax in your base year.

Who qualifies? A claimant 65 or older or a disabled veteran, with a homestead appraised at $350,000 or less (base year) and household income of $50,000 or less.

What form do I file? Form K-40SVR, starting January 1, 2023.

Can I also claim the regular homestead refund or SAFESR? No -- claiming this refund bars a claim under those programs for the same year.

Citations and references

• House Bill 2239 (2022), New Section 17 -- created the new homestead property tax refund program.
• K.S.A. 79-4502 -- homestead property tax refund act definitions, amended to recognize the new refund.
• K.S.A. 79-4508 -- homestead refund computation, amended to recognize the new refund.
• K.S.A. 79-4509 -- $700 limitation for the existing homestead program, which does not apply to new-program claims.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 22-09

Original ruling text

Policy and Research
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.gov
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 22-09

      NEW HOMESTEAD PROPERTY TAX REFUND PROGRAM AVAILABLE

                                    (OCTOBER 4, 2022)

   During the 2022 Legislative Session House Bill 2239 was passed and signed into law. New

Section 17 of the Bill creates a new homestead property tax refund program. Sections 46 – 48 of
the Bill amend existing provisions of the homestead property refund tax act to recognize the claim
created by New Section 17.

   New Section 17 provides, for tax year 2022 and all tax years thereafter, for refund claims to

be paid to claimants for the amount by which the claimant's residential property tax exceeds the
amount of the claimant's property tax in the claimant's base year. New Section 17(b) defines
"base year" to be the year in which an individual becomes an eligible claimant and is also eligible
for a claim for a refund under the provisions of New Section 17, or 2021, whichever is later.

  To be eligible, a claimant must be at least 65 years old or a disabled veteran, reside in a

homestead with an appraised value of $350,000 or less for the entire year, and have a household
income of $50,000 or less for the year of the claim. A surviving spouse of an eligible claimant
continues to be eligible unless they remarry. The $350,000 homestead appraised value limitation
only applies to the claimant's base year.

 To claim the refund, beginning January 1, 2023, an eligible claimant may complete and

submit a Kansas Form K-40SVR, Property Tax Relief Claim for Seniors and Disabled Veterans.

   Claimants of refunds under New Section 17 are prohibited from requesting refunds under the

existing homestead property tax refund or selective assistance for effective senior relief (SAFESR)
credit programs.

  The provisions of New Section 17 are specifically made part of the homestead property tax

refund act by New Section 17(f).

   Section 46 of the Bill amends K.S.A. 79-4502, which is part of the homestead property tax

refund act, to recognize the new refund found in New Section 17. Similarly, Section 47 of the
Bill, amends K.S.A. 79-4508 for the same purpose. And Section 49 amends K.S.A. 79-4509 to
provide the $700 limitation for the current homestead refund program, which continues in effect,
and does not apply to claims made under New Section 17.

                               TAXPAYER ASSISTANCE

 Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.gov. If you have questions about this Notice, please contact:

                            Taxpayer Assistance Center
                           Kansas Department of Revenue
                           Scott Office Building, 1st Floor
                                  120 SE 10th Ave
                                   P. O. Box 3506
                              Topeka, KS 66601-3506
                                Phone: 785-368-8222
                                 Fax: 785-291-3614