Title: Topeka’s Tax Base Problem: Why the Capital Carries More Than Its Share

Opening: Topeka is Kansas’s capital. That status brings prestige, jobs, and visitors—and a large volume of property that never appears on the tax rolls.

The exemption reality
Under Kansas law, property used exclusively by the state is exempt. So are qualifying hospital and charitable properties. Stormont Vail Health, a major nonprofit system with substantial assets, owns multiple parcels that qualify. The practical effect is a smaller taxable base that still funds local services used by everyone, including state agencies and large nonprofits.

What other capitals do
Vermont, Connecticut, and Massachusetts have statutory PILOT programs that send money back to communities hosting state property. Montpelier receives meaningful annual payments. Kansas has no comparable requirement. Federal PILOT payments for federal land exist but are minimal in Shawnee County.

How the remaining dollars have been used
Public reporting on Hotel Topeka shows a multi-year investment in the $14–17 million range, operating losses, and a sale that recovers only a fraction of the outlay in the near term. Lauren’s Bay has featured large unpaid balances and repeated incentive discussions. Go Topeka, funded by the half-cent sales tax through JEDO, has faced years of questions about its relationship to the Chamber and the transparency of its spending.

What would change the picture
A state PILOT program modeled on Vermont or Connecticut would share the cost of hosting the capital. Greater public tracking of exempt value, incentive outcomes, and project returns would make trade-offs clearer. Basic infrastructure still needs funding.

Closing: Other capitals have already decided the host city should not carry the entire burden. Topeka can ask the same question.