Kansas Realty Assessors to Ignore Like-Kind Replacement Price

Where a Kansas statute said acquisition price should be one of several determinants of the fair market value of replacement realty, the legislature earlier this year passed an amendment saying such price shouldn’t be considered at all.

The action may have been spurred by a store operator’s complaint about having to pay too much rent to cover his landlord’s property taxes, which were inflated by high appraised valuations of comparable shopping centers acquired in like-kind exchanges.

Section 1031 Like-Kind Exchanges

The issue of whether such I.R.C. §1031 replacement realty can be valued, by a property tax assessor, as of the ...