Issue Engagement: Taxes
In an effort to enhance engagement on issues that face the farmers and ranchers of Kansas Farm Bureau, the KFB board of directors has implemented an issue engagement project. Approximately once a month, a new topic will be covered by a board member, and our goal is to receive feedback from you, our members.
After reviewing the information, members will have an opportunity to provide input, ask questions and further engage on these issues. Your input will go directly to KFB's board of directors.
Farm Bureau, at both the national and state level, continues to monitor and engage on taxation. The Trump Administration and the Congress appear committed to tax reform. A number of proposals are being offered, one of which is the repeal of estate (or death taxes), which AFBF Policy supports. Along with this, Farm Bureau believes that full, Stepped Up Basis as of the time of death, should be included in any tax reform legislation. These provisions are very important when faced with transitioning farms or businesses to the next generation. The lowering of effective tax rates, expense deductibility, specifically, interest and depreciation, and tax treatment for capital expenditures, are additional tax policy issues which Farm Bureau continues to follow closely as these reform proposals continue to come into focus.
Kansas Farm Bureau Policy supports the “three-legged stool” approach to taxes at the state level, this being an equitable balance between income, property and sales taxes. As we have seen over the past several years, when one of the legs of this stool is eliminated, pressure is added to the other two. This balanced approach is vitally important in our state’s tax policy.
KFB has been and will continue to be actively engaged in the preservation of the Use Value Appraisal method for taxation of agricultural land. This formula taxes agricultural land based upon the income producing ability of the land, considering a wide array of factors. The 8-year rolling average of income creates a stable revenue stream for the county and local governmental entities, including our local school districts, from year to year. Rest assured that Kansas Farm Bureau will continue to stay abreast of any proposed changes to this system and will reach out to you, our members if necessary, to engage your representatives on this issue.
In summary, Farm Bureau recognizes the importance of tax policy as it affects our membership. Staff, your Board and you, the members, will continue to remain informed and involved in these issues. Please take a few minutes to respond to the discussion questions included in this issue engagement segment.
Division of Property Valuation, Data by County: https://www.ksrevenue.org/PVDMap.html
Commonly Asked Questions about Agricultural Land Value in Kansas: https://www.ksrevenue.org/pdf/agqanda.pdf