Property Tax Exemptions

Over 100 Statutory Exemptions Remove Billions in Value from the Tax Rolls

The Scope of Kansas Exemptions

Kansas law provides well over 100 separate statutory property tax exemptions. These exemptions remove property from the tax rolls entirely or reduce the assessed value subject to taxation. Understanding which exemptions apply — and ensuring they are properly claimed — can significantly reduce a taxpayer’s property tax burden.

The Kansas Constitution (Article 11) authorizes the Legislature to exempt categories of property. Many exemptions require a formal application to the county appraiser; others are automatic based on the property’s ownership or use.

Major Exemption Categories

Government Property

Federal, state, county, and city-owned property used for public purposes is fully exempt. Includes courthouses, schools, parks, roads, and government office buildings.

Religious Organizations

Property owned and used primarily for religious worship is exempt. Includes church buildings, parsonages, and religiously affiliated cemeteries meeting statutory requirements.

Educational Institutions

Public and private non-profit schools, colleges, and universities are exempt on property used for educational purposes. Kansas has numerous private college campuses exempt from property tax.

Non-Profit & Charitable Organizations

Kansas exempts property used exclusively for charitable, benevolent, or non-profit purposes. Hospitals, homeless shelters, food banks, and similar organizations may qualify.

Economic Development Incentives

Kansas provides several economic development tools that reduce or eliminate property taxes, including Industrial Revenue Bonds (IRBs), Tax Increment Financing (TIF), and certain enterprise zone provisions.

Homestead Exemption & SAFESR

Kansas provides a Homestead Property Tax Refund (SAFESR) for qualifying elderly and disabled homeowners based on income. This is a refund program, not a formal exemption, but it reduces the effective tax burden.

Commercial and Industrial Machinery & Equipment (CIME)

One of the most significant Kansas property tax exemptions is for Commercial and Industrial Machinery and Equipment, commonly abbreviated as CIME. By eliminating property taxes on qualifying business equipment, this exemption serves as a direct incentive for businesses to relocate or expand operations into Kansas rather than other states. CIME Law is specific to Class 2 subclass 5 and MAY be exempt from Kansas Personal Property taxes.

Commercial and Industrial Machinery & Equipment (CIME) that was acquired by the taxpayer after June 30, 2006, is fully exempt from Kansas personal property taxes. This exemption covers manufacturing equipment, processing machinery, tools used in business operations, and similar assets — and represents a substantial tax benefit for Kansas businesses.

  • CIME acquired after June 30, 2006, is exempt — regardless of the size of the business.
  • CIME acquired before July 1, 2006, may still be subject to property tax as it depreciates on the pre-exemption schedule.
  • Not all personal property is exempt as CIME — vehicles, oil and gas equipment, and other categories are treated separately.
  • The CIME exemption has made Kansas more competitive with surrounding states in attracting and retaining manufacturing and industrial investment.

Exemption Application Requirements

Many exemptions require a formal application with the county appraiser. Failure to apply — or to renew an expiring exemption — can result in previously exempt property returning to the tax rolls. Taxpayers claiming exemptions should verify with their county appraiser that all required filings are current.