America's Property Tax Advisor

Kansas - Property Tax Relief for
COVID Closures

BY RYAN FREITAS, DALLAS, JUNE 2021

September 2021 Update: Revisions to House Bill 2313 were made prior to Governor Kelly signing it into law. The effective date of the COVID property tax relief was moved to 1/1/22 as the bill initially required counties to withhold 35% of ARPA (American Rescue Plan Act) funding to pay for these refunds. However, new federal regulations regarding the spending of ARPA funds prohibited this.

 

As a result, no COVID relief refunds will be issued for tax years 2020 or 2021 due to a lack of funding. Going forward, this law will only apply to closures and restrictions that take place after 1/1/2022.

 

Kansas companies that had their business operations impacted by the coronavirus pandemic will be eligible for property tax refunds starting next year. House Bill 2313 was signed into law by Governor Laura Kelly.

 

Businesses can apply to their county commissioners board for a reimbursement of the property taxes levied during the shutdown or restriction. The reimbursement will be calculated as a daily amount of the total property taxes levied by the state, county and all other taxing subdivisions multiplied by the number of calendar days the ordered shutdown was in effect.

 

If the owner is the operator of the business that was shut down or restricted, they are entitled to 100% the reimbursement. If the owner is not the operator, they are entitled to 50% of the reimbursement and the operator is entitled to the other 50%. Operators can elect to credit their share of the reimbursement to the owner to cover delinquent rent.

 

Also included in the new law is a two-year extension of the statewide 20-mill property tax levy that raises about $750 million annually for public schools.