Most property in the state of Kansas is valued based upon its fair market value each January 1 for property Tax purposes. However, the following property type is NOT valued by Market Value but rather by its Use Value. Land devoted to agricultural use is valued based upon its agricultural income and productivity pursuant to art 11 S 1 of the Kansas Constitution and the methodology prescribed by K.S.A 79-1476.
K.S.A 79-1476 States:
“County Appraisers shall classify such land according to its current usage and apply the value applicable to such class of land according to the valuation schedule as prepared and adopted by the director of Property of Valuation.”
The use value appraisal of agricultural land was first implemented in 1989.
Highly simplified, the process consists of estimating the landlord net income (LNI) for each class of land in every county based on median production levels, and capitalizing that income using a statutorily prescribed capitalization rate to determine a per acre value. The law requires the use of an 8-year average of net income with the most recent data being two years old.
The county appraiser then applies those values to irrigated land, dryland, range land or pasture based on soil types grouped by its productivity.
It is the County Appraisers Responsibility to verify with all landowners the correct acreage and usage of all agriculture land within the County. The county maintains this by mailing out questionnaires on a 2-year cycle. They also make onsite field inspections and utilize the usage of aerial photography from year to year.