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Kansas lawmakers have introduced Senate Bill 488, the Kansas Property Tax Freedom Act of 2026, aimed at gradually phasing out property taxes in the state.

The bill would begin reducing property tax levies starting in tax year 2026, cut them further in 2027, and fully eliminate property taxes on real and personal property by 2028, but only if voters approve a constitutional amendment in November 2026.

To replace lost revenue, the plan would create a new purchase-based surcharge called the Kansas fair share purchase surcharge, beginning in 2027. A flat fee would apply to retail transactions, and the money collected would be distributed quarterly to school districts, cities, counties and other local taxing entities.

The bill also sets up a property tax freedom reserve fund to help ensure revenue replacement, and may offer annual “freedom dividend” rebates to resident taxpayers if the reserve fund grows large enough.

SB 488 is currently before the Senate Committee on Assessment and Taxation.