SESSION OF 2025
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2011
As Amended by House Committee on Taxation
Brief*
HB 2011, as amended, would increase, beginning in tax
year 2025, the amount of the appraised value of residential
property exempt from the statewide school finance levy from
$75,000 to $100,000 and reduce the statewide school finance
mill levy.
The mill levy would be reduced from 20 mills to 18.5
mills in tax year 2025. Beginning in tax year 2026, the rate
would be equal to that rate which would generate the same
revenue as levied in tax year 2025 using the current year’s
total assessed valuation, as calculated by the Director of
Property Valuation.
The bill would also require a transfer to be made from
the State General Fund (SGF) to the State School District
Finance Fund (SSDFF) in the amount of any reduction of
revenue to the SSDFF attributable to the reduction of the mill
levy below 20 mills, as certified by the Director of the Budget.
Background
The bill was introduced by the House Committee on
Taxation at the request of Representative Adam Smith.
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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
https://klrd.gov/ House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by representatives of the Kansas Farm Bureau,
Kansas Livestock Association, and National Federation of
Independent Business. The proponents generally stated the
bill would provide broad-based property tax relief for all
Kansans that would be ongoing in future years.
Written-only proponent testimony was provided by
representatives of the Kansas Association of Realtors,
Kansas Grain and Feed Association, and Kansas Policy
Institute.
Written-only opponent testimony was provided by a
representative of Kansas Action for Children.
Neutral testimony as provided by representatives of the
Kansas Association of School Boards and Kansas National
Education Association, who stated the bill would not provide
for increases in school funding to account for rising costs of
education in future years.
Written-only neutral testimony was provided by
representatives of Topeka Public Schools, United School
Administrators, and a private citizen.
No other testimony was provided.
The House Committee amended the bill to:
●Require a transfer from the SGF to the SSDFF in
the amount of foregone revenue attributable to any
mill reduction; and
●Increase the amount of residential property exempt
from the school finance levy.
2- 2011 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue estimates enactment of the bill would would
decrease revenues to the SSDFF by $67.4 million in FY
2026, $113.8 million in FY 2027, $162.4 million in FY 2028,
$213.3 million in FY 2029, and $266.7 million in FY 2030.
The fiscal note also notes that in order to keep the same
level of funding to school districts, any reduction to SSDFF
revenue would require a corresponding increase to the SGF
appropriation, without which the Base State Aid Per Pupil
would be reduced from the Governor’s recommendation by
$100 to $5,511 in FY 2026 and by $169 to $5,762 in FY 2027.
A revised fiscal note on the amended bill was not
immediately available.
Any fiscal effect associated with HB 2011 is not reflected
in The FY 2026 Governor’s Budget Report.
Taxation; property tax; school finance
3- 2011