Kansas 2023-2024 Regular Session

Kansas House Bill HB2815 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2024
2	2	HOUSE BILL No. 2815
3	3	By Committee on Taxation
4	4	Requested by Representative Francis
5	5	2-28
6	6	AN ACT concerning taxation; abolishing the local ad valorem tax
7	7	reduction fund and the county and city revenue sharing fund;
8	8	discontinuing certain transfers to the special city and county highway
9	9	fund; decreasing the rate of ad valorem tax imposed by a school
10	10	district; amending K.S.A. 65-163j, 65-3306, 65-3327, 75-2556 and 79-
11	11	1479 and K.S.A. 2023 Supp. 72-5142, 74-8768 and 79-2988 and
12	12	repealing the existing sections; also repealing K.S.A. 19-2694, 79-
13	13	2960, 79-2961, 79-2962, 79-2965, 79-2966 and 79-2967 and K.S.A.
14	14	2023 Supp. 79-2959, 79-2964 and 79-3425i.
15	15	WHEREAS, Revenues generated from the statewide school property
16	16	tax levy would remain consistent rather than automatically increasing as a
17	17	result of property valuation increases; and
18	18	WHEREAS, The Legislature provides direct appropriations from the
19	19	state general fund to pay for the cost of education.
20	20	Now, therefore:
21	21	Be it enacted by the Legislature of the State of Kansas:
22	22	New Section 1. On July 1, 2024, the director of accounts and reports
23	23	shall transfer all moneys in the local ad valorem tax reduction fund to the
24	24	state general fund. On July 1, 2024, all liabilities of the local ad valorem
25	25	tax reduction fund are hereby transferred to and imposed on the state
26	26	general fund, and the local ad valorem tax reduction fund is hereby
27	27	abolished.
28	28	New Sec. 2. On July 1, 2024, the director of accounts and reports
29	29	shall transfer all moneys in the county and city revenue sharing fund to the
30	30	state general fund. On July 1, 2024, all liabilities of the county and city
31	31	revenue sharing fund are hereby transferred to and imposed on the state
32	32	general fund, and the county and city revenue sharing fund is hereby
33	33	abolished.
34	34	Sec. 3. K.S.A. 65-163j is hereby amended to read as follows: 65-163j.
35	35	(a) The dedicated source of revenue for repayment of a loan to a
36	36	municipality may include service charges, connection fees, special
37	37	assessments, property taxes, grants or any other source of revenue lawfully
38	38	available to the municipality for such purpose. In order to ensure
39	39	repayment by municipalities of the amounts of loans provided under this
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75	75	act, the secretary, after consultation with the governing body of any
76	76	municipality which that receives a loan, may adopt charges to be levied
77	77	against individuals and entities served by the project. Any such charges
78	78	shall remain in effect until the total amount of the loan, and any interest
79	79	thereon, has been repaid. The charges shall, insofar as is practicable, be
80	80	equitably assessed and may be in the form of a surcharge to the existing
81	81	charges of the municipality. The governing body of any municipality
82	82	which that receives a loan under this act shall collect any charges
83	83	established by the secretary and shall pay the moneys collected therefrom
84	84	to the secretary in accordance with procedures established by the secretary.
85	85	(b) Upon the failure of a municipality to meet the repayment terms
86	86	and conditions of the agreement, the secretary may order the treasurer of
87	87	the county in which the municipality is located to pay to the secretary such
88	88	portion of the municipality's share of the local ad valorem tax reduction
89	89	fund as may be necessary to meet the terms of the agreement,
90	90	notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, and
91	91	amendments thereto. Upon the issuance of such an order, the municipality
92	92	shall not be required to make the tax levy reductions otherwise required by
93	93	K.S.A. 79-2960 and 79-2961, and amendments thereto.
94	94	(c) Municipalities which that are provided with loans under this act
95	95	shall maintain project accounts in accordance with generally accepted
96	96	government accounting standards.
97	97	(d)(c) Any loans received by a municipality under the provisions of
98	98	this act shall be construed to be bonds for the purposes of K.S.A. 10-1116
99	99	and 79-5028, and amendments thereto, and the amount of such loans shall
100	100	not be included within any limitation on the bonded indebtedness of the
101	101	municipality.
102	102	Sec. 4. K.S.A. 65-3306 is hereby amended to read as follows: 65-
103	103	3306. The secretary's annual request for appropriations to the water
104	104	pollution control account shall be based on an estimate of the fiscal needs
105	105	for the ensuing budget year, less any amounts received by the secretary
106	106	from any public or private grants or contributions and moneys in such
107	107	account shall be used solely for the purposes provided for by this act.
108	108	Moneys allocated to a municipality shall be encumbered as an expenditure
109	109	of this account upon the formal letting of a contract for the improvement
110	110	notwithstanding the date on which when actual payment is made of the
111	111	state financial assistance. Any municipality may contribute moneys to the
112	112	state water pollution control account. If there are no uncommitted or
113	113	unencumbered moneys in the water pollution control account, any
114	114	municipality applying for any water pollution control project as defined in
115	115	K.S.A. 65-3302, and amendments thereto, shall as a condition of such
116	116	application certify in writing to the secretary that a contribution in the
117	117	amount of twenty-five percent (25%) of the eligible cost of such project
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161	161	will be made to the water pollution control account by such municipality
162	162	prior to formal letting of a construction contract. Upon receipt by the
163	163	secretary, each such contribution shall be retained in a subaccount of the
164	164	water pollution control account for use solely in the project for which the
165	165	municipality has made application.
166	166	Notwithstanding the provisions of K.S.A. 79-2960 and 79-2961, any
167	167	municipality applying for such a water pollution control project may make
168	168	such contribution from all or such part of its share of the local ad valorem
169	169	tax reduction fund as may be necessary for such purpose, and to the extent
170	170	such fund is pledged and used for such purpose the municipality shall not
171	171	be required to make the tax levy reductions otherwise required by K.S.A.
172	172	79-2960 and 79-2961. Taxes levied by any municipality by reason of its
173	173	failure to make such reduction in its levies shall not be subject to or be
174	174	considered in computing the aggregate limitation upon the levy of taxes by
175	175	such municipality under the provisions of K.S.A. 79-5003.
176	176	Sec. 5. K.S.A. 65-3327 is hereby amended to read as follows: 65-
177	177	3327. (a) The dedicated source of revenue for repayment of the loans may
178	178	include service charges, connection fees, special assessments, property
179	179	taxes, grants or any other source of revenue lawfully available to the
180	180	municipality for such purpose. In order to ensure repayment by
181	181	municipalities of the amounts of loans provided under K.S.A. 65-3321
182	182	through 65-3329, and amendments thereto, the secretary, after consultation
183	183	with the governing body of any municipality which receives a loan, may
184	184	adopt charges to be levied against users of the project. Any such charges
185	185	shall remain in effect until the total amount of the loan, and any interest
186	186	thereon, has been repaid. The charges shall, insofar as is practicable, be
187	187	equitably assessed and may be in the form of a surcharge to the existing
188	188	charges of the municipality. The governing body of any municipality
189	189	which receives a loan under K.S.A. 65-3321 through 65-3329, and
190	190	amendments thereto, shall collect any charges established by the secretary
191	191	and shall pay the moneys collected therefrom to the secretary in
192	192	accordance with procedures established by the secretary.
193	193	(b) Upon the failure of a municipality to meet the repayment terms
194	194	and conditions of the agreement, the secretary may order the treasurer of
195	195	the county in which the municipality is located to pay to the secretary such
196	196	portion of the municipality's share of the local ad valorem tax reduction
197	197	fund as may be necessary to meet the terms of the agreement,
198	198	notwithstanding the provisions of K.S.A. 79-2960 and 79-2961 and
199	199	amendments thereto. Upon the issuance of such an order, the municipality
200	200	shall not be required to make the tax levy reductions otherwise required by
201	201	K.S.A. 79-2960 and 79-2961 and amendments thereto.
202	202	(c) Municipalities which that are provided with loans under K.S.A.
203	203	65-3321 through 65-3329, and amendments thereto, shall maintain project
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247	247	accounts in accordance with generally accepted government accounting
248	248	standards.
249	249	(d)(c) Municipalities which that receive a grant and an allowance
250	250	under the federal act with respect to project costs for which a loan was
251	251	provided under K.S.A. 65-3321 through 65-3329, and amendments
252	252	thereto, shall promptly repay such loan to the extent of the allowance
253	253	received under the federal act.
254	254	(e)(d) Any loans received by a municipality under the provisions of
255	255	K.S.A. 65-3321 through 65-3329, and amendments thereto, shall be
256	256	construed to be bonds for the purposes of K.S.A. 10-1116 and 79-5028,
257	257	and amendments thereto, and the amount of such loans shall not be
258	258	included within any limitation on the bonded indebtedness of the
259	259	municipality.
260	260	Sec. 6. K.S.A. 2023 Supp. 72-5142 is hereby amended to read as
261	261	follows: 72-5142. (a) The board of education of each school district shall
262	262	levy an ad valorem tax upon the taxable tangible property of the school
263	263	district in the school years specified in subsection (b) for the purpose of:
264	264	(1) Financing that portion of the school district's general fund budget
265	265	that is not financed from any other source provided by law;
266	266	(2) paying a portion of the costs of operating and maintaining public
267	267	schools in partial fulfillment of the constitutional obligation of the
268	268	legislature to finance the educational interests of the state; and
269	269	(3) with respect to any redevelopment school district established prior
270	270	to July 1, 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
271	271	paying a portion of the principal and interest on bonds issued by cities
272	272	under authority of K.S.A. 12-1774, and amendments thereto, for the
273	273	financing of redevelopment projects upon property located within the
274	274	school district.
275	275	(b) The tax required under subsection (a) shall be levied at a rate of:
276	276	(1) 20 mills in the school years 2023-2024 and year 2024-2025;
277	277	(2) 18 mills in the school year 2025-2026; and
278	278	(3) for the school year 2026-2027, and all school years thereafter, the
279	279	rate of tax to be levied shall equal the tax rate for the current school year
280	280	that would generate the same property tax revenue as levied for the 2025-
281	281	2026 school year using the current tax year's total assessed valuation. The
282	282	director of property valuation shall calculate the tax rate for this annual
283	283	adjustment.
284	284	(c) The proceeds from the tax levied by a district under authority of
285	285	this section, except the proceeds of such tax levied for the purpose
286	286	described in subsection (a)(3), shall be remitted to the state treasurer in
287	287	accordance with the provisions of K.S.A. 75-4215, and amendments
288	288	thereto. Upon receipt of each such remittance, the state treasurer shall
289	289	deposit the entire amount in the state treasury to the credit of the state
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333	333	school district finance fund.
334	334	(d) No school district shall proceed under K.S.A. 79-1964, 79-1964a
335	335	or 79-1964b, and amendments thereto.
336	336	Sec. 7. K.S.A. 2023 Supp. 74-8768 is hereby amended to read as
337	337	follows: 74-8768. (a) There is hereby created the expanded lottery act
338	338	revenues fund in the state treasury. All expenditures and transfers from
339	339	such fund shall be made in accordance with appropriation acts. All moneys
340	340	credited to such fund shall be expended or transferred only for the
341	341	purposes of reduction of state debt, state infrastructure improvements, the
342	342	university engineering initiative act, reduction of local ad valorem tax in
343	343	the same manner as provided for allocation of amounts in the local ad
344	344	valorem tax reduction fund and reduction of the unfunded actuarial
345	345	liability of the system attributable to the state of Kansas and participating
346	346	employers under K.S.A. 74-4931, and amendments thereto, by the Kansas
347	347	public employees retirement system.
348	348	(b) On July 1, 2021, July 1, 2022, July 1, 2023, July 1, 2024, July 1,
349	349	2025, July 1, 2026, July 1, 2027, July 1, 2028, July 1, 2029, July 1, 2030,
350	350	and July 1, 2031, or as soon thereafter such date as moneys are available,
351	351	the first $10,500,000 credited to the expanded lottery act revenues fund
352	352	shall be transferred by the director of accounts and reports from the
353	353	expanded lottery act revenues fund in one or more substantially equal
354	354	amounts, to each of the following: The Kan-grow engineering fund – KU,
355	355	Kan-grow engineering fund – KSU and Kan-grow engineering fund –
356	356	WSU. Each such special revenue fund shall receive $3,500,000 annually in
357	357	each of such years. Commencing in fiscal year 2014, after such transfer
358	358	has been made, 50% of the remaining moneys credited to the fund shall be
359	359	transferred on a quarterly basis by the director of accounts and reports
360	360	from the fund to the Kansas public employees retirement system fund to
361	361	be applied to reduce the unfunded actuarial liability of the system
362	362	attributable to the state of Kansas and participating employers under
363	363	K.S.A. 74-4931 et seq., and amendments thereto, until the system as a
364	364	whole attains an 80% funding ratio as certified by the board of trustees of
365	365	the Kansas public employees retirement system.
366	366	Sec. 8. K.S.A. 75-2556 is hereby amended to read as follows: 75-
367	367	2556. (a) The state librarian shall determine the amount of the grant-in-aid
368	368	each eligible local public library is to receive based on the latest
369	369	population census figures as certified by the division of the budget.
370	370	(b) Except as provided by subsection (d), no local public library shall
371	371	be eligible for any state grants-in-aid if the total amount of the following
372	372	paragraphs is less than the total amount produced from such sources for
373	373	the same library for the previous year, based on the information contained
374	374	in the official annual budgets of municipalities that are filed with the
375	375	division of accounts and reports in accordance with K.S.A. 79-2930, and
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419	419	amendments thereto:
420	420	(1) The amount produced by the local ad valorem tax levies for the
421	421	current year expenses for such library;
422	422	(2) the amount of moneys received from the local ad valorem tax
423	423	reduction fund for current year expenses for such library;
424	424	(3) the amount of moneys received from taxes levied upon motor
425	425	vehicles under the provisions of K.S.A. 79-5101 et seq., and amendments
426	426	thereto, for current year expenses for such library; and
427	427	(4)(3) the amount of moneys received in the current year from
428	428	collections of unpaid local ad valorem tax levies for prior year expenses
429	429	for such library.
430	430	(c) Local public library districts in which the assessed valuation
431	431	decreases shall remain eligible for state grants-in-aid so long as the ad
432	432	valorem tax mill rate for the support of such library has not been reduced
433	433	below the mill rate imposed for such purpose for the previous year.
434	434	(d) If a local public library fails to qualify for eligibility for any state
435	435	grants-in-aid under subsection (b), the state librarian shall have the power
436	436	to continue the eligibility of a local public library for any state grants-in-
437	437	aid if the state librarian, after evaluation of all the circumstances,
438	438	determines that the legislative intent for maintenance of local tax levy
439	439	support for the on-going operations of the library is being met by the
440	440	library district.
441	441	(e) The distribution so determined shall be apportioned and paid on
442	442	February 15 of each year.
443	443	Sec. 9. K.S.A. 79-1479 is hereby amended to read as follows: 79-
444	444	1479. (a) On or before January 15, 1992, and quarterly thereafter, the
445	445	county or district appraiser shall submit to the director of property
446	446	valuation a progress report indicating actions taken during the preceding
447	447	quarter calendar year to implement the appraisal of property in the county
448	448	or district. Whenever the director of property valuation shall determine
449	449	that any county has failed, neglected or refused to properly provide for the
450	450	appraisal of property or the updating of the appraisals on an annual basis in
451	451	substantial compliance with the provisions of law and the guidelines and
452	452	timetables prescribed by the director, the director shall file with the state
453	453	board of tax appeals a complaint stating the facts upon which the director
454	454	has made the determination of noncompliance as provided by K.S.A. 79-
455	455	1413a, and amendments thereto. If, as a result of such proceeding, the state
456	456	board of tax appeals finds that the county is not in substantial compliance
457	457	with the provisions of law and the guidelines and timetables of the director
458	458	of property valuation providing for the appraisal of all property in the
459	459	county or the updating of the appraisals on an annual basis, it shall order
460	460	the immediate assumption of the duties of the office of county appraiser by
461	461	the director of the division of property valuation until such time as the
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505	505	director of property valuation determines that the county is in substantial
506	506	compliance with the provisions of law. In addition, the board shall order
507	507	the state treasurer to withhold all or a portion of the county's entitlement to
508	508	moneys from either or both of the local ad valorem tax reduction fund and
509	509	the city and county revenue sharing fund for the year following the year in
510	510	which the order is issued. Upon service of any such order on the board of
511	511	county commissioners, the appraiser shall immediately deliver to the
512	512	director of property valuation, or the director's designee, all books, records
513	513	and papers pertaining to the appraiser's office.
514	514	Any county for which the director of the division of property valuation
515	515	is ordered by the state board of tax appeals to assume the responsibility
516	516	and duties of the office of county appraiser shall reimburse the state for the
517	517	actual costs incurred by the director of the division of property valuation in
518	518	the assumption and carrying out of such responsibility and duties,
519	519	including any contracting costs in the event it is necessary for the director
520	520	of property valuation to contract with private appraisal firms to carry out
521	521	such responsibilities and duties.
522	522	(b) On or before June 1 of each year, the director of property
523	523	valuation shall review the appraisal of property in each county or district
524	524	to determine if property within the county or district is being appraised or
525	525	valued in accordance with the requirements of law. If the director
526	526	determines the property in any county or district is not being appraised in
527	527	accordance with the requirements of law, the director of property valuation
528	528	shall notify the county or district appraiser and the board of county
529	529	commissioners of any county or counties affected that the county has 30
530	530	days within which to submit to the director a plan for bringing the
531	531	appraisal of property within the county into compliance.
532	532	If a plan is submitted and approved by the director the county or district
533	533	shall proceed to implement the plan as submitted. The director shall
534	534	continue to monitor the program to insure that the plan is implemented as
535	535	submitted. If no plan is submitted or if the director does not approve the
536	536	plan, the director shall petition the state board of tax appeals for a review
537	537	of the plan or, if no plan is submitted, for authority for the division of
538	538	property valuation to assume control of the appraisal program of the
539	539	county and to proceed to bring the same into compliance with the
540	540	requirements of law.
541	541	If the state board of tax appeals approves the plan, the county or district
542	542	appraiser shall proceed to implement the plan as submitted. If no plan has
543	543	been submitted or the plan submitted is not approved, the board shall fix a
544	544	time within which the county may submit a plan or an amended plan for
545	545	approval. If no plan is submitted and approved within the time prescribed
546	546	by the board, the board shall order the division of property valuation to
547	547	assume control of the appraisal program of the county and shall certify its
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591	591	order to the state treasurer who shall withhold distributions of the county's
592	592	share of moneys from the county and city revenue sharing fund and the
593	593	local ad valorem tax reduction fund and credit the same to the general fund
594	594	of the state for the year following the year in which the board's order is
595	595	made. The director of property valuation shall certify the amount of the
596	596	cost incurred by the division in bringing the program in compliance to the
597	597	state board of tax appeals. The board shall order the county commissioners
598	598	to reimburse the state for such costs.
599	599	(c) The state board of tax appeals shall within 60 days after the
600	600	publication of the Kansas assessment/sales ratio study review such
601	601	publication to determine county compliance with K.S.A. 79-1439, and
602	602	amendments thereto. If in the determination of the board one or more
603	603	counties are not in substantial compliance and the director of property
604	604	valuation has not acted under subsection (b), the board shall order the
605	605	director of property valuation to take such corrective action as is necessary
606	606	or to show cause for noncompliance.
607	607	Sec. 10. K.S.A. 2023 Supp. 79-2988 is hereby amended to read as
608	608	follows: 79-2988. (a) On or before June 15 each year, the county clerk
609	609	shall calculate the revenue neutral rate for each taxing subdivision and
610	610	include such revenue neutral rate on the notice of the estimated assessed
611	611	valuation provided to each taxing subdivision for budget purposes. The
612	612	director of accounts and reports shall modify the prescribed budget
613	613	information form to show the revenue neutral rate.
614	614	(b) No tax rate in excess of the revenue neutral rate shall be levied by
615	615	the governing body of any taxing subdivision unless a resolution or
616	616	ordinance has been approved by the governing body according to the
617	617	following procedure:
618	618	(1) At least 10 days in advance of the public hearing, the governing
619	619	body shall publish notice of its proposed intent to exceed the revenue
620	620	neutral rate by publishing notice:
621	621	(A) On the website of the governing body, if the governing body
622	622	maintains a website; and
623	623	(B) in a weekly or daily newspaper of the county having a general
624	624	circulation therein. The notice shall include, but not be limited to, its
625	625	proposed tax rate, its revenue neutral rate and the date, time and location
626	626	of the public hearing.
627	627	(2) On or before July 20, the governing body shall notify the county
628	628	clerk of its proposed intent to exceed the revenue neutral rate and provide
629	629	the date, time and location of the public hearing and its proposed tax rate.
630	630	For all tax years commencing after December 31, 2021, the county clerk
631	631	shall notify each taxpayer with property in the taxing subdivision, by mail
632	632	directed to the taxpayer's last known address, of the proposed intent to
633	633	exceed the revenue neutral rate at least 10 days in advance of the public
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677	677	hearing. Alternatively, the county clerk may transmit the notice to the
678	678	taxpayer by electronic means at least 10 days in advance of the public
679	679	hearing, if such taxpayer and county clerk have consented in writing to
680	680	service by electronic means. The county clerk shall consolidate the
681	681	required information for all taxing subdivisions relevant to the taxpayer's
682	682	property on one notice. The notice shall be in a format prescribed by the
683	683	director of accounts and reports. The notice shall include, but not be
684	684	limited to:
685	685	(A) The revenue neutral rate of each taxing subdivision relevant to
686	686	the taxpayer's property;
687	687	(B) the proposed property tax revenue needed to fund the proposed
688	688	budget of the taxing subdivision, if the taxing subdivision notified the
689	689	county clerk of its proposed intent to exceed its revenue neutral rate;
690	690	(C) the proposed tax rate based upon the proposed budget and the
691	691	current year's total assessed valuation of the taxing subdivision, if the
692	692	taxing subdivision notified the county clerk of its proposed intent to
693	693	exceed its revenue neutral rate;
694	694	(D) the percentage by which the proposed tax rate exceeds the
695	695	revenue neutral rate;
696	696	(E) the tax rate and property tax of each taxing subdivision on the
697	697	taxpayer's property from the previous year's tax statement;
698	698	(F) the appraised value and assessed value of the taxpayer's property
699	699	for the current year;
700	700	(G) the estimates of the tax for the current tax year on the taxpayer's
701	701	property based on the revenue neutral rate of each taxing subdivision and
702	702	any proposed tax rates that exceed the revenue neutral rates;
703	703	(H) the difference between the estimates of tax based on the proposed
704	704	tax rate and the revenue neutral rate on the taxpayer's property described in
705	705	subparagraph (G) for any taxing subdivision that has a proposed tax rate
706	706	that exceeds its revenue neutral rate; and
707	707	(I) the date, time and location of the public hearing of the taxing
708	708	subdivision, if the taxing subdivision notified the county clerk of its
709	709	proposed intent to exceed its revenue neutral rate.
710	710	Although the state of Kansas is not a taxing subdivision for purposes of
711	711	this section, the notice shall include a statement of the statutory mill levies
712	712	imposed by the state and the estimate of the tax for the current year on the
713	713	taxpayer's property based on such levies.
714	714	(3) The public hearing to consider exceeding the revenue neutral rate
715	715	shall be held not sooner than August 20 and not later than September 20.
716	716	The governing body shall provide interested taxpayers desiring to be heard
717	717	an opportunity to present oral testimony within reasonable time limits and
718	718	without unreasonable restriction on the number of individuals allowed to
719	719	make public comment. The public hearing may be conducted in
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763	763	conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
764	764	and amendments thereto, if the governing body otherwise complies with
765	765	all requirements of this section. Nothing in this section shall be construed
766	766	to prohibit additional public hearings that provide additional opportunities
767	767	to present testimony or public comment prior to the public hearing
768	768	required by this section.
769	769	(4) A majority vote of the governing body, by the adoption of a
770	770	resolution or ordinance to approve exceeding the revenue neutral rate,
771	771	shall be required prior to adoption of a proposed budget that will result in a
772	772	tax rate in excess of the revenue neutral rate. Such vote of the governing
773	773	body shall be conducted at the public hearing after the governing body has
774	774	heard from interested taxpayers and shall be a roll call vote. If the
775	775	governing body approves exceeding the revenue neutral rate, the
776	776	governing body shall not adopt a budget that results in a tax rate in excess
777	777	of its proposed tax rate as stated in the notice provided pursuant to this
778	778	section. A copy of the resolution or ordinance to approve exceeding the
779	779	revenue neutral rate and a certified copy of any roll call vote reporting, at a
780	780	minimum, the name and vote of each member of the governing body
781	781	related to exceeding the revenue neutral rate, whether approved or not,
782	782	shall be included with the adopted budget, budget certificate and other
783	783	budget forms filed with the county clerk and the director of accounts and
784	784	reports and shall be published on the website of the department of
785	785	administration.
786	786	(c) (1) Any governing body subject to the provisions of this section
787	787	that does not comply with subsection (b) shall refund to taxpayers any
788	788	property taxes over-collected based on the amount of the levy that was in
789	789	excess of the revenue neutral rate.
790	790	(2) Any taxpayer of the taxing subdivision that is the subject of the
791	791	complaint or such taxpayer's duly authorized representative may file a
792	792	complaint with the state board of tax appeals by filing a written complaint,
793	793	on a form prescribed by the board, that contains the facts that the
794	794	complaining party believes show that a governing body of a taxing
795	795	subdivision did not comply with the provisions of subsection (b) and that a
796	796	reduction or refund of taxes is appropriate. The complaining party shall
797	797	provide a copy of such complaint to the governing body of the taxing
798	798	subdivision making the levy that is the subject of the complaint.
799	799	Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
800	800	shall be charged by the executive director of the state board of tax appeals
801	801	for a complaint filed pursuant to this paragraph. The governing body of the
802	802	taxing subdivision making the levy that is the subject of the complaint
803	803	shall be a party to the proceeding. Notice of any summary proceeding or
804	804	hearing shall be served upon such governing body, the county clerk, the
805	805	director of accounts and reports and the complaining party. It shall be the
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849	849	duty of the governing body to initiate the production of evidence to
850	850	demonstrate, by a preponderance of the evidence, the validity of such levy.
851	851	If upon a summary proceeding or hearing, it shall be made to appear to the
852	852	satisfaction of the board that the governing body of the taxing subdivision
853	853	did not comply with subsection (b), the state board of tax appeals shall
854	854	order such governing body to refund to taxpayers the amount of property
855	855	taxes over collected or reduce the taxes levied, if uncollected. The
856	856	provisions of this paragraph shall not be construed as prohibiting any other
857	857	remedies available under the law.
858	858	(d) On and after January 1, 2022, in the event that the 20 mills tax
859	859	levied by a school district pursuant to K.S.A. 72-5142, and amendments
860	860	thereto, increases the property tax revenue generated for the purpose of
861	861	calculating the revenue neutral rate from the previous tax year and such
862	862	amount of increase in revenue generated from the 20 mills such tax levied
863	863	is the only reason that the school district would exceed the total property
864	864	tax revenue from the prior year, the school district shall be deemed to not
865	865	have exceeded the revenue neutral rate in levying a tax rate in excess of
866	866	the revenue neutral rate to take into account the increase in revenue from
867	867	only the 20 mills such tax levied.
868	868	(e) (1) Notwithstanding any other provision of law to the contrary, if
869	869	the governing body of a taxing subdivision must conduct a public hearing
870	870	to approve exceeding the revenue neutral rate under this section, the
871	871	governing body of the taxing subdivision shall certify, on or before
872	872	October 1, to the proper county clerk the amount of ad valorem tax to be
873	873	levied.
874	874	(2) If a governing body of a taxing subdivision did not comply with
875	875	the provisions of subsection (b) and certifies to the county clerk an amount
876	876	of ad valorem tax to be levied that would result in a tax rate in excess of its
877	877	revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
878	878	levied to the amount resulting from such taxing subdivision's revenue
879	879	neutral rate.
880	880	(f) As used in this section:
881	881	(1) "Taxing subdivision" means any political subdivision of the state
882	882	that levies an ad valorem tax on property.
883	883	(2) "Revenue neutral rate" means the tax rate for the current tax year
884	884	that would generate the same property tax revenue as levied the previous
885	885	tax year using the current tax year's total assessed valuation. To calculate
886	886	the revenue neutral rate, the county clerk shall divide the property tax
887	887	revenue for such taxing subdivision levied for the previous tax year by the
888	888	total of all taxable assessed valuation in such taxing subdivision for the
889	889	current tax year, and then multiply the quotient by 1,000 to express the rate
890	890	in mills. The revenue neutral rate shall be expressed to the third decimal
891	891	place.
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935	935	(g) In the event that a county clerk incurred costs of printing and
936	936	postage that were not reimbursed pursuant to K.S.A. 2023 Supp. 79-2989,
937	937	and amendments thereto, such county clerk may seek reimbursement from
938	938	all taxing subdivisions required to send the notice. Such costs shall be
939	939	shared proportionately by all taxing subdivisions that were included on the
940	940	same notice based on the total property tax levied by each taxing
941	941	subdivision. Payment of such costs shall be due to the county clerk by
942	942	December 31.
943	943	(h) The department of administration or the director of accounts and
944	944	reports shall make copies of adopted budgets, budget certificates, other
945	945	budget documents and revenue neutral rate documents available to the
946	946	public on the department of administration's website on a permanently
947	947	accessible web page that may be accessed via a conspicuous link to that
948	948	web page placed on the front page of the department's website. The
949	949	department of administration or the director of accounts and reports shall
950	950	also make the following information for each tax year available on such
951	951	website:
952	952	(1) A list of taxing subdivisions by county;
953	953	(2) whether each taxing subdivision conducted a hearing to consider
954	954	exceeding its revenue neutral rate;
955	955	(3) the revenue neutral rate of each taxing subdivision;
956	956	(4) the tax rate resulting from the adopted budget of each taxing
957	957	subdivision; and
958	958	(5) the percent change between the revenue neutral rate and the tax
959	959	rate for each taxing subdivision.
960	960	Sec. 11. K.S.A. 19-2694, 65-163j, 65-3306, 65-3327, 75-2556, 79-
961	961	1479, 79-2960, 79-2961, 79-2962, 79-2965, 79-2966 and 79-2967 and
962	962	K.S.A. 2023 Supp. 72-5142, 74-8768, 79-2959, 79-2964, 79-2988 and 79-
963	963	3425i are hereby repealed.
964	964	Sec. 12. This act shall take effect and be in force from and after its
965	965	publication in the statute book.
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