Requiring certain libraries that have budgets approved by taxing subdivisions to be subject to the revenue neutral rate independent of the taxing subdivision.
Impact
The implementation of HB 2573 will modify the established practices for setting tax levy rates, leading to a more transparent and stringent process for governing bodies that seek to impose tax rates above the established revenue neutral rate. This change is expected to provide clarity about how tax rates are determined and could influence budgeting priorities among local governments and libraries. Additionally, it introduces requirements for public notifications regarding budget hearings and tax rate changes, aimed at increasing taxpayer awareness and involvement.
Summary
House Bill 2573 introduces amendments concerning property taxation in Kansas, specifically focusing on the revenue neutral rate (RNR). This bill requires that certain libraries, which operate under budgets approved by taxing subdivisions, be subject to the revenue neutral rate independently of those subdivisions. This means that the libraries will have to calculate and present their RNR without being influenced by the taxing subdivision's overall budget which could lead to complexities for both library funding and tax revenues for local communities.
Contention
Debates surrounding HB 2573 may center on the implications of requiring libraries to adhere to independently calculated revenue neutral rates. Supporters argue that this ensures fair budgetary practices and prevents larger taxing subdivisions from overshadowing the specific needs of libraries. However, critics may raise concerns that this approach could complicate funding for libraries, particularly in smaller communities, limiting their ability to secure necessary funding while ensuring all local entities remain compliant with tax regulations.
Requiring notices required to exceed the revenue neutral rate to be sent on forms provided by the director of accounts and reports, granting taxing subdivisions the option to hold hearings on the same day and at the same location as other taxing subdivisions within a county and excluding the state mandated 20 mills levied by a school district from the revenue neutral rate.
Authorizing taxing subdivisions to send notices required to exceed the revenue neutral rate if the county clerk fails to send such notice and providing for reimbursement of printing and postage costs.
Prohibiting cities and counties that grant or approve certain property tax exemptions or tax increment financing from exceeding their revenue neutral rates for property tax purposes.
Senate Substitute for HB 2396 by Committee on Assessment and Taxation - Authorizing the use of a protest petition to limit funding of a taxing jurisdiction by property tax revenues exceeding a certain amount, providing for a protest petition notice to be sent to taxpayers and modifying the content requirements of the revenue neutral rate hearing notice.
Providing that county clerks are not required to send revenue neutral rate notices to property owners of exempt property, modifying and prescribing the contents of the revenue neutral rate hearing notice, permitting a tax levy that generates the same amount of revenue as the previous year when the final assessed valuation decreases compared to the estimated assessed valuation and requiring that the governing body's vote be conducted on the same day as the commencement of the hearing.
Senate Substitute for HB 2125 by Committee on Assessment and Taxation - Modifying the deadline for mailing property tax statements to taxpayers and the deadline for governing bodies to certify the amount of property tax to be levied to the county clerk, providing for the county clerk's use of the previous year's budget when a taxing subdivision fails to timely file its budget, modifying the content requirements of the revenue neutral rate hearing notice for property tax purposes, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar years 2025 and 2026, prohibiting a filing fee when a previous appeal remains pending before the board of tax appeals and authorizing the continuation of the 20-mill statewide property tax levy for schools.
Providing countywide retailers' sales tax authority for Dickinson and Grant counties, providing for a sales tax exemption for area agencies on aging and purchases made by Kansas suicide prevention HQ, inc., providing that the secretary of revenue file a release of warrant in the county where such warrant is docketed, granting authority to the director of property valuation to develop qualifying courses and providing that certain tax notices and statements may be transmitted by electronic means by the county treasurer and county appraiser if consented to by the taxpayer.
Requiring political subdivisions to adopt a budget that remains at or below revenue neutral and use funds to reduce property tax in order to receive local ad valorem tax reduction fund (LAVTRF) distributions.
Property tax classifications consolidated, classification rates modified, definition of referendum market value modified, state general levy on seasonal residential recreational property eliminated, and other property tax provisions modified.