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.
Impact
This legislation impacts the way property taxation is conducted by ensuring greater transparency and engagement from the public regarding tax levies. By calling for a specific format for notification and consolidating hearings, it aims to keep taxpayers better informed and involved in decisions that affect their financial obligations. The exclusion of the 20 mills levied by school districts from the revenue neutral rate calculation indicates an effort to clarify how certain tax revenues are treated within the broader context of property tax regulation, potentially alleviating some concerns about sudden tax hikes due to rising property values.
Summary
House Bill 2795 introduces significant changes to property taxation processes within the state of Kansas. The bill establishes a uniform procedure for calculating revenue neutral rates, which are essential in determining the tax rates for various taxing subdivisions. It mandates that notices, detailing the proposed intent to exceed these revenue neutral rates, be provided to taxpayers and requires public hearings regarding such proposals. The bill also allows multiple taxing subdivisions within a county to hold hearings on the same day and location, streamlining the process for taxpayers who may be affected by multiple tax levies.
Conclusion
As this bill progresses, it will likely undergo scrutiny from various interest groups, including taxpayer advocacy organizations, local government associations, and education advocates. The balance between improving taxpayer transparency and safeguarding the interests of local government operations will be central to discussions around HB 2795.
Contention
Notable areas of contention surrounding HB 2795 likely include the implications of mandatory notices and public hearings on local governments' administrative burdens. Some stakeholders may argue that the requirements could lead to increased operational costs or complications, especially for smaller taxing subdivisions that might lack adequate resources. Furthermore, the exclusion of school district levies from revenue neutral calculations may spark debate over fiscal equity, as it could affect funding distribution to educational institutions depending on local property tax revenues.
Requiring certain libraries that have budgets approved by taxing subdivisions to be subject to the revenue neutral rate independent of the taxing subdivision.
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.
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.
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 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.
Abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, discontinuing certain transfers to the special city and county highway fund and decreasing rate of ad valorem tax imposed by a school district.
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.