Upcoming adjustments to personal property taxes

Kansas Tax Changes for Off-Road Vehicles and More

Starting in 2026, Kansans who own off-road vehicles, small trailers, and boats will notice a decrease in their personal property tax bills due to a new exemption established under House Bill 2231. While this may be a welcomed financial break for many, it’s important to keep in mind that tax reductions can come with their own set of challenges.

After all, these taxes support local services.

According to Allen County Assessor Daniel Luke, this change will exempt what the state refers to as “all other tangible personal property.” This includes off-road vehicles like ATVs, UTVs, golf carts, snowmobiles, off-road motorcycles, and even electric bikes.

“I think most people probably think of ATVs first,” Luke mentioned.

Additionally, marine equipment such as boats will also benefit from this exemption.

Another significant exemption pertains to personal trailers weighing 15,000 pounds or less. Luke pointed out that heavier trailers, mostly used for commercial purposes, will still be taxed. “Those heavier ones won’t be included in the exemption,” he noted.

In 2025, this new law is expected to decrease Allen County’s revenue gap by approximately $84,000, affecting local city, township, and county governments.

“This revenue has to be replaced somehow,” Luke explained, suggesting that local governments may need to adjust tax rates (or mill levies) to compensate for the lost income. Currently, Allen County collects 59,559 mills.

“So, exempting these properties essentially just shifts the tax burden around,” he stated.

The housing bill 2231 also includes various tax relief provisions such as an additional $2,320 personal exemption for heads of household and a similar increase for disabled veterans, starting in 2024. Changes to corporate taxes in the bill are anticipated to take effect after 2026, potentially altering how income taxes are computed for companies operating in several states.

The county assessor’s office will directly notify impacted taxpayers, and Luke mentioned plans to send letters to private property owners informing them of the new exemption. The office will also distribute a survey to owners of larger trailers to clarify tax obligations and ensure no ineligible items are inadvertently included.

Furthermore, a recent adjustment has lowered penalties for not filing personal property forms—from 50% to a maximum of 12.5%. “I thought it was a positive move to reduce the penalty,” Luke expressed. Unless there are changes, residents will no longer need to file annual returns for their personal property.

While the exemption will indeed lessen taxes for many, Luke acknowledges the ongoing challenge of balancing revenue needs without putting too heavy a burden on any singular group.