Sedgwick County Addresses Industrial Revenue Bond Exemption Filing Issue Identified in State Audit

(Sedgwick County, Kan.) – Sedgwick County was one of several Kansas local governments recently included as an auditee in the Kansas Legislative Division of Post Audit’s report Reviewing the Reporting Accuracy and Fiscal Effects of Industrial Revenue Bonds, which was presented to the Legislative Post Audit Committee at its meeting on Wednesday, July 8, 2026.

The Sedgwick County Appraiser’s Office discovered in July 2025 that certain documents weren’t provided to the Kansas Board of Tax Appeals (BOTA), as required by statute, and immediately started working toward resolving the issue. The missing submissions include paperwork from approximately 112 Industrial Revenue Bond (IRB) Property Tax Exemptions (IRBX) and 18 Economic Development Exemptions (EDX). Records indicate it was the responsibility of a single former Sedgwick County employee who maintained that responsibility over a 30-year timeline. When selected to be part of the post audit, Sedgwick County informed the Division of Post Audit staff of the issue at the first audit meeting in March 2026.

Because cities in Sedgwick County issued all currently active IRBs and EDXs within the County, their governing bodies and bond legal counsel reviewed and submitted applications for all such IRBXs and EDXs. Those qualified entities would have likely received approval of their tax exemptions by the Board of Tax Appeals (BOTA) had the missing submissions occurred. None of the entities were or are receiving any unwarranted tax exemptions, and taxpayers weren’t impacted.

As stated in the report, Sedgwick County has been and continues to work diligently to resolve and submit the outstanding IRBXs and EDXs applications to BOTA with associated fees. Since its discovery in July 2025, the Sedgwick County Appraiser’s Office has implemented new processes and procedures to ensure accuracy and completeness of IRBXs. The Office has implemented updated communication protocols with the cities that issue IRBs.

The report also shares that “state law (K.S.A. 79-213) and regulations create uncertainty regarding the timing of the application review process and, by extension, the tax status of a property while an IRBX application is pending. Neither state law nor BOTA regulations establishes a deadline for county appraisers to forward IBRX applications to BOTA.”

Sedgwick County will continue working with BOTA and businesses that are affected by the missing submissions. We’re also looking forward to discussions with the legislature and the Kansas Department of Revenue (KDOR) to support the evolution of the IRBX and EDX submission process.

IRBs are a financing mechanism for business growth and expansion and can allow for property tax exemptions to companies investing capital to develop new facilities, add machinery and equipment and create new jobs. Neither the issuing County nor City lends money to the requesting entity, and no taxpayer dollars are risked. IRBs don’t reduce or forgive current tax revenues.

In Kansas, each county has a certified county appraiser responsible for discovery, classification, valuation, exemptions and appeal administration. KDOR’s Property Valuation Division (PVD) provides oversight for and certifies county appraisers. The Sedgwick County Board of County Commissioners is responsible for the budget authority of the Sedgwick County Appraiser’s Office.