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Restaurant and retail owners tell lawmakers rising appraisals hurt business recruitment and retention
Summary
Business leaders including Eric Estes said rising commercial appraisals and inconsistent county practices have increased operating costs, pushed businesses to locate out of state and forced some local closures; they urged the committee to consider caps or other protections for commercial taxpayers.
Eric Estes, chief executive of QLine and several franchise operations, told the committee that businesses across Kansas face inconsistent commercial valuations that raise operating costs and can affect location decisions.
Estes said county appraisers sometimes treat identical assets differently across counties and that many valuation disputes are handled by junior appraisers rather than experienced appraisers. He described cases where comparable selection, square‑footage measurement and classification (for example distinguishing real estate from business equipment) led to very different tax bills for similar properties in neighboring counties.
Estes said higher property tax bills materially affect business decisions. He cited an owner who chose to build 30 new restaurants outside Kansas after comparing expected tax costs, and another operator who closed a store after receiving tax bills he said equalled the store’s annual profit. “He closed it and I asked him for permission to use his name. He said I could use the name of his brand — 5 Guys Burgers and Fries. He closed it because he got a tax bill of 68,000 on his 5 Guys and 20,000 on his Rita's,” Estes said.
He urged the committee to consider caps or other structural changes, expand training for appraisers, and improve appeals access and transparency for small businesses.
