SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 94
As Recommended by Senate Committee on
Assessment and Taxation
Brief*
SB 94 would eliminate, beginning in tax year 2024, the
statewide mill levies of 1.0 mills for state educational
buildings and 0.5 mills for state institutions buildings and
would create, beginning in fiscal year 2025, revenue transfers
from the State General Fund to the Kansas Educational
Building Fund (EBF) and to the State Institutions Building
Fund (SIBF).
The transfer amounts would be set at $41.8 million to
the EBF and $20.9 million to the SIBF in fiscal year 2025 and
would be scheduled to increase by 2.0 percent in each future
year.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Peck.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Senator Peck, stating the bill would provide
property tax relief for all Kansas property owners and replace
revenue to building funds with SGF transfers. Written-only
proponent testimony was provided by a representative of the
Kansas Association of Realtors.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Opponent testimony was provided by a representative
of the State Board of Regents, stating the bill would reduce
the stability and certainty of the revenue for the EBF and the
transfer amounts would not replace all lost tax revenue.
Written-only opponent testimony was provided by
representatives of the American Council of Engineering
Companies of Kansas, Associated General Contractors of
Kansas, and University Contractors Association of Kansas.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue estimates
enactment of the bill would reduce property and motor vehicle
taxes by $77.1 million in FY 2025, $80.9 million in FY 2026,
and $85.0 million in FY 2027.
The estimated increase in transfers out of the SGF
would be $62.7 million in FY 2025, $64.0 million in FY 2026,
and $65.2 million in FY 2027.
The estimated net loss of revenue to the EBF would be
$9.6 million in FY 2025, $11.3 million in FY 2026, and $13.2
million in FY 2027. The estimated net loss of revenue to the
SIBF would be $4.8 million in FY 2025, $5.7 million in FY
2026, and $6.6 million in FY 2027.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Taxation; property tax; statewide mill levies; transfers; Educational Building Fund;
State Institutions Building Fund.
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