Taxing Ag Land in Kansas

  August 28, 2023

Whether the result of urban sprawl, energy production siting, or some other non-ag use, the amount of land available for farming is decreasing each year. Land no longer used for agricultural purposes yet still taxed on its potential agricultural income/productivity is an issue. According to the USDA, the total land used for farming in the U.S. decreased from 896.6 million acres in 2020 to 895.3 million in 2021.

The Kansas constitution recognizes the scarcity of land by setting apart Ag Land as the only subclass of real property that is taxed “upon the basis of its agricultural income or agricultural productivity,” often referred to as use value appraisal. All other subclasses of real property are taxed at their market value. The goal of this is to better insulate agricultural landowners from market influences outside of agriculture, which could push property taxes on agricultural land to levels unaffordable for those who wish to farm the land.

In Kansas Statutes, Chapter 79–Taxation, Article 14–Property Valuation, Equalizing Assessment, Appraisers and Assessment of Property, K.S.A. 79-1476, Kansas law provides a relatively broad definition. In general, The challenge for appraisers is that even if some tiny fraction (i.e., one acre) of a land unit is used for agricultural uses (grazing, haying, farming, timber), the entire unit can continue to be classified as agricultural land. Appraisers, though, do have the authority to split the original unit into separate “hunting/non ag,” and “ag” units. But this too could potentially be thwarted if the landowner simply cut a few trees and sold the wood, or swathed and baled a few acres on the “hunting side.” It doesn’t have to be a lot of agricultural activity, just enough.

To explore further, contact our team for more information in Kansas ag land.