Session of 2025
Senate Substitute for HOUSE BILL No. 2125
By Committee on Assessment and Taxation
3-13
AN ACT concerning property taxation; relating to tax levies and tax
statements; modifying the deadline for mailing tax statements to
taxpayers to be earlier than the current deadline; modifying 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; relating to the revenue neutral rate; modifying the content
requirements of the revenue neutral rate hearing notice; extending
reimbursement from the taxpayer notification costs fund for printing
and postage costs for county clerks for calendar years 2025 and 2026;
amending K.S.A. 2024 Supp. 79-1801, 79-2001, 79-2930, 79-2988 and
79-2989 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 79-1801 is hereby amended to read as
follows: 79-1801. (a) Except as provided by subsection (b), Each year the
governing body of any city, the trustees of any township, the board of
education of any school district and the governing bodies of all other
taxing subdivisions shall certify, on or before August 25 October 1, to the
proper county clerk the amount of ad valorem tax to be levied. Thereupon,
the county clerk shall place the tax upon the tax roll of the county, in the
manner prescribed by law, and the tax shall be collected by the county
treasurer. The county treasurer shall distribute the proceeds of the taxes
levied by each taxing subdivision in the manner provided by K.S.A. 12-
1678a, and amendments thereto.
(b) Prior to January 1, 2021, if the governing body of a city or county
must conduct an election for an increase in property tax to fund any
appropriation or budget under K.S.A. 25-433a, and amendments thereto,
the governing body of the city or county shall certify, on or before October
1, to the proper county clerk the amount of ad valorem tax to be levied. On
and after January 1, 2021, if the governing body of a taxing subdivision
must conduct a public hearing to approve exceeding the revenue neutral
rate under K.S.A. 2024 Supp. 79-2988, and amendments thereto, the
governing body of the taxing subdivision shall certify, on or before
October 1, to the proper county clerk the amount of ad valorem tax to be
levied.
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Sec. 2. K.S.A. 2024 Supp. 79-2001 is hereby amended to read as
follows: 79-2001. (a) As soon as the county treasurer receives the tax roll
of the county, the treasurer shall enter in a column opposite the description
of each tract or parcel of land the amount of unpaid taxes and the date of
unredeemed sales, if any, for previous years on such land. The treasurer
shall cause a notice to be published in the official county paper once each
week for three consecutive weeks, stating in the notice the amount of taxes
charged for state, county, township, school, city or other purposes for that
year, on each $1,000 of valuation.
(b) Each year after receipt of the tax roll from the county clerk and
before December 15 1, the treasurer shall mail to each taxpayer, as shown
by the rolls, a tax statement which indicates the taxing unit, assessed value
of real and personal property, the mill levy and tax due. In addition, with
respect to land devoted to agricultural use, such statement shall indicate
the acreage and description of each parcel of such land. The tax statement
shall also indicate separately each parcel of real property which is
separately classified for property tax purposes. The county appraiser shall
provide the information necessary for the county treasurer to comply with
the provisions of this section. The tax statement also may include the
intangible tax due the county. All items may be on one statement or may
be shown on separate statements and may be on a form prescribed by the
county treasurer. The statement shall be mailed to the last known address
of the taxpayer or to a designee authorized by the taxpayer to accept the
tax statement, if the designee has an interest in receiving the statement.
When any statement is returned to the county treasurer for failure to find
the addressee, the treasurer shall make a diligent effort to find a
forwarding address of the taxpayer and mail the statement to the new
address. All tax statements mailed pursuant to this section shall be mailed
by first-class mail. The requirement for mailing a tax statement shall
extend only to the initial statement required to be mailed in each year and
to any follow-up required by this section. Alternatively, the county
treasurer may transmit the tax statement to the taxpayer by electronic
means if such taxpayer consented to service by electronic means.
(c) After receipt of the tax roll from the county clerk and before
December 15 1, the treasurer shall mail to each taxpayer, as shown by the
tax rolls, a tax information form which indicates the taxing unit, assessed
value of real property for the current and next preceding taxable year, the
mill levy for the current and next preceding taxable year and, in the case of
unified school districts, the mill levy required by K.S.A. 72-5142, and
amendments thereto, shall be separately indicated, the tax due and an
itemization of each taxing unit's mill levy for the current and next
preceding taxable year and the percentage change in the amount of
revenue produced therefrom, if any. In addition, with respect to land
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devoted to agricultural use, such form shall indicate the acreage and
description of each parcel of such land. The tax information form shall
also indicate separately each parcel of real property which is separately
classified for property tax purposes. The county appraiser shall provide the
information necessary for the county treasurer to comply with the
provisions of this section. The tax information form may be separate from
the tax statement or a part of the tax statement. The tax information form
shall be in a format prescribed by the director of property valuation. The
tax information form shall be mailed to the last known address of the
taxpayer. When a tax information form is returned to the county treasurer
for failure to find the addressee, the treasurer shall make a diligent effort to
find a forwarding address of the taxpayer and mail the tax information
form to the new address. All tax information forms mailed pursuant to this
section shall be mailed by first class mail. Alternatively, the county
treasurer may transmit the tax information forms to the taxpayer by
electronic means if such taxpayer consented to service by electronic
means.
Sec. 3. K.S.A. 2024 Supp. 79-2930 is hereby amended to read as
follows: 79-2930. (a) Two copies of the budget certificate giving the
amount of ad valorem tax to be levied and the total amount of the adopted
budget of expenditures by fund, along with itemized budget forms for each
and every fund and proof of publication of the notice of budget hearing
containing the budget summary shall be presented to the county clerk
within the time prescribed by K.S.A. 79-1801, and amendments thereto.
All such budget information shall be filed electronically with the county
clerk. Where action has been taken under any statute to increase the
amount of tax to be levied authorized by law, a statement showing the
increased amount or tax levy rate voted, or a copy of the charter resolution
or ordinance making the change, shall be attached to the budget each year
the change is in effect. If any taxing subdivision does not present or file
such budget information with the county clerk by 5:00 p.m. on October 1,
then the county clerk shall use the previous year's budget information and
amount of ad valorem tax to be levied of such taxing subdivision.
(b) The county clerk shall make any reductions to the ad valorem tax
to be levied, compute the tax levy rates based on the final equalized
assessed valuation, and enter such on the budget certificate before attesting
the budget, except that with regard to levies made under K.S.A. 75-2551,
and amendments thereto, such levies shall be based upon the certified
preliminary abstract of property values submitted to the director of
property valuation pursuant to K.S.A. 79-1604, and amendments thereto.
Beginning in 2022, On or before December 31 each year, a copy of all
budgets for taxing subdivisions of the county, properly attested, shall be
filed with the director of accounts and reports, along with a copy of the tax
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levy rate summary. All such budget information shall be filed
electronically with the director of accounts and reports.
(c) Each fund of the adopted budget certified to the county clerk in no
event shall exceed the amount of ad valorem tax to be levied and the
proposed expenditures of such fund in the proposed budget as originally
published. The governing body of each taxing subdivision shall not certify
an amount of ad valorem taxes to be levied that is in excess of any tax levy
rate or amount limitations or any aggregate tax levy limitations. The
governing bodies, in fixing the amount may take into consideration and
make allowance for the taxes which may not be paid, except that such
allowance, however, shall not exceed by more than 5% the percentage of
delinquency for the preceding tax year.
Sec. 4. K.S.A. 2024 Supp. 79-2988 is hereby amended to read as
follows: 79-2988. (a) On or before June 15 each year, the county clerk
shall calculate the revenue neutral rate for each taxing subdivision and
include such revenue neutral rate on the notice of the estimated assessed
valuation provided to each taxing subdivision for budget purposes, except
that for tax year 2024, the deadline shall be extended to July 1, 2024. The
director of accounts and reports shall modify the prescribed budget
information form to show the revenue neutral rate.
(b) Except as otherwise provided in this section, no tax rate in excess
of the revenue neutral rate shall be levied by the governing body of any
taxing subdivision unless a resolution or ordinance has been approved by
the governing body according to the following procedure:
(1) At least 10 days in advance of the public hearing, the governing
body shall publish notice of its proposed intent to exceed the revenue
neutral rate by publishing notice:
(A) On the website of the governing body, if the governing body
maintains a website; and
(B) in a weekly or daily newspaper of the county having a general
circulation therein. The notice shall include, but not be limited to, its
proposed tax rate, its revenue neutral rate and the date, time and location
of the public hearing.
(2) On or before July 20, the governing body shall notify the county
clerk of its proposed intent to exceed the revenue neutral rate and provide
the date, time and location of the public hearing and its proposed tax rate.
For all tax years commencing after December 31, 2021, the county clerk
shall notify each taxpayer with property in the taxing subdivision, by mail
directed to the taxpayer's last known address, of the proposed intent to
exceed the revenue neutral rate at least 10 days in advance of the public
hearing. Alternatively, the county clerk may transmit the notice to the
taxpayer by electronic means at least 10 days in advance of the public
hearing, if such taxpayer and county clerk have consented in writing to
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service by electronic means. The county clerk is not required to send a
notice to a property owner of property that is exempt from ad valorem
taxation. The county clerk shall consolidate the required information for
all taxing subdivisions relevant to the taxpayer's property on one notice.
The notice shall be in a format prescribed by the director of accounts and
reports. The notice shall include, but not be limited to:
(A) The following heading:
"NOTICE OF PROPOSED PROPERTY TAX INCREASE AND
PUBLIC HEARINGS
[Current year] [County name] County Revenue Neutral Rate Notice
This is NOT a bill. Do not remit payment.";
(B) the following statement:
"This notice contains estimates of the tax on your property and
proposed property tax increases. THE ACTUAL TAX ON YOUR
PROPERTY MAY INCREASE OR DECREASE FROM THESE
ESTIMATES. Governing bodies of taxing subdivisions must vote in order
to exceed the Revenue Neutral Rate to increase the total property taxes
collected. Governing bodies will vote at public hearings at the dates, times
and locations listed. Taxpayers may attend and comment at the hearings.
Property tax statements will be issued after mill rates are finalized and
taxes are calculated.";
(C) the appraised value and assessed value of the taxpayer's property
for the current year and the previous year;
(D) the tax rate and amount of property tax of each taxing
subdivision on the taxpayer's property from the previous year's tax
statement in a column titled: "[Previous year] Tax";
(E) the revenue neutral rate and estimated amount of property tax for
the current year of each taxing subdivision on the taxpayer's property
based on the revenue neutral rate of each taxing subdivision in a column
titled: "[Current year] Tax at Revenue Neutral Rate";
(F) the estimated amount of property tax for the current year of each
taxing subdivision on the taxpayer's property based on either: (i) The
revenue neutral rate for a taxing subdivision that does not intend to exceed
its revenue neutral rate; or (ii) the proposed tax rate provided by the taxing
subdivision, if the taxing subdivision notified the county clerk of its
proposed intent to exceed its revenue neutral rate, and such rate used in
the calculation, in a column titled: "[Current year] Maximum Proposed
Tax";
(G) the difference between the amount of the current year's maximum
proposed tax and the previous year's tax, reflected in dollars and a
percentage, for each taxing subdivision in a column titled: "[Current year]
Maximum Proposed Tax Exceeding [Previous year] Tax";
(H) the date, time and location of the public hearing of each taxing
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subdivision that notified the county clerk of its proposed intent to exceed
its revenue neutral rate in a column titled: "Date, Time and Location of
Public Hearing"; and
(I) for each taxing subdivision public hearing listed pursuant to
subparagraph (H), the difference between the current year's maximum
proposed tax and the estimated amount of property tax based on the
revenue neutral rate of such taxing subdivision in a column titled:
"[Current year] Maximum Proposed Tax Exceeding Tax at Revenue
Neutral Rate".
Although the state of Kansas is not a taxing subdivision for purposes of
this section, the notice shall include the previous year's tax amount and the
estimate of the tax for the current year on the taxpayer's property based on
the statutory mill levies.
(3) The public hearing to consider exceeding the revenue neutral rate
shall be held not sooner than August 20 and not later than September 20.
The governing body shall provide interested taxpayers desiring to be heard
an opportunity to present oral testimony within reasonable time limits and
without unreasonable restriction on the number of individuals allowed to
make public comment. The public hearing may be conducted in
conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
and amendments thereto, if the governing body otherwise complies with
all requirements of this section. Nothing in this section shall be construed
to prohibit additional public hearings that provide additional opportunities
to present testimony or public comment prior to the public hearing
required by this section.
(4) A majority vote of the governing body, by the adoption of a
resolution or ordinance to approve exceeding the revenue neutral rate,
shall be required prior to adoption of a proposed budget that will result in a
tax rate in excess of the revenue neutral rate. Such vote of the governing
body shall be conducted at the public hearing and on the same day as the
commencement of the public hearing after the governing body has heard
from interested taxpayers and shall be a roll call vote. If the governing
body approves exceeding the revenue neutral rate, the governing body
shall not adopt a budget that results in a tax rate in excess of its proposed
tax rate as stated in the notice provided pursuant to this section. A copy of
the resolution or ordinance to approve exceeding the revenue neutral rate
and a certified copy of any roll call vote reporting, at a minimum, the
name and vote of each member of the governing body related to exceeding
the revenue neutral rate, whether approved or not, shall be included with
the adopted budget, budget certificate and other budget forms filed with
the county clerk and the director of accounts and reports and shall be
published on the website of the department of administration.
(c) (1) Any governing body subject to the provisions of this section
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43 S Sub HB 2125 7
that does not comply with subsection (b) shall refund to taxpayers any
property taxes over-collected based on the amount of the levy that was in
excess of the revenue neutral rate.
(2) Any taxpayer of the taxing subdivision that is the subject of the
complaint or such taxpayer's duly authorized representative may file a
complaint with the state board of tax appeals by filing a written complaint,
on a form prescribed by the board, that contains the facts that the
complaining party believes show that a governing body of a taxing
subdivision did not comply with the provisions of subsection (b) and that a
reduction or refund of taxes is appropriate. The complaining party shall
provide a copy of such complaint to the governing body of the taxing
subdivision making the levy that is the subject of the complaint.
Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
shall be charged by the executive director of the state board of tax appeals
for a complaint filed pursuant to this paragraph. The governing body of the
taxing subdivision making the levy that is the subject of the complaint
shall be a party to the proceeding. Notice of any summary proceeding or
hearing shall be served upon such governing body, the county clerk, the
director of accounts and reports and the complaining party. It shall be the
duty of the governing body to initiate the production of evidence to
demonstrate, by a preponderance of the evidence, the validity of such levy.
If upon a summary proceeding or hearing, it shall be made to appear to the
satisfaction of the board that the governing body of the taxing subdivision
did not comply with subsection (b), the state board of tax appeals shall
order such governing body to refund to taxpayers the amount of property
taxes over collected or reduce the taxes levied, if uncollected. The
provisions of this paragraph shall not be construed as prohibiting any other
remedies available under the law.
(d) On and after January 1, 2022, in the event that the tax levied by a
school district pursuant to K.S.A. 72-5142, and amendments thereto,
increases the property tax revenue generated for the purpose of calculating
the revenue neutral rate from the previous tax year and such amount of
increase in revenue generated from such tax levied is the only reason that
the school district would exceed the total property tax revenue from the
prior year, the school district shall be deemed to not have exceeded the
revenue neutral rate in levying a tax rate in excess of the revenue neutral
rate to take into account the increase in revenue from only such tax levied.
(e) (1) Notwithstanding any other provision of law to the contrary, if
the governing body of a taxing subdivision must conduct a public hearing
to approve exceeding the revenue neutral rate under this section, the
governing body of the taxing subdivision shall certify, on or before
October 1, to the proper county clerk the amount of ad valorem tax to be
levied.
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(2) If a governing body of a taxing subdivision did not comply with
the provisions of subsection (b) and certifies to the county clerk an amount
of ad valorem tax to be levied that would result in a tax rate in excess of its
revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
levied to the amount resulting from such taxing subdivision's revenue
neutral rate.
(f) As used in this section:
(1) "Taxing subdivision" means any political subdivision of the state
that levies an ad valorem tax on property.
(2) "Revenue neutral rate" means the tax rate for the current tax year
that would generate the same property tax revenue as levied the previous
tax year using the current tax year's total assessed valuation. To calculate
the revenue neutral rate, the county clerk shall divide the property tax
revenue for such taxing subdivision levied for the previous tax year by the
total of all taxable assessed valuation in such taxing subdivision for the
current tax year, and then multiply the quotient by 1,000 to express the rate
in mills. The revenue neutral rate shall be expressed to the third decimal
place.
(g) In the event that a county clerk incurred costs of printing and
postage that were not reimbursed pursuant to K.S.A. 2024 Supp. 79-2989,
and amendments thereto, such county clerk may seek reimbursement from
all taxing subdivisions required to send the notice. Such costs shall be
shared proportionately by all taxing subdivisions that were included on the
same notice based on the total property tax levied by each taxing
subdivision. Payment of such costs shall be due to the county clerk by
December 31.
(h) The department of administration or the director of accounts and
reports shall make copies of adopted budgets, budget certificates, other
budget documents and revenue neutral rate documents available to the
public on the department of administration's website on a permanently
accessible web page that may be accessed via a conspicuous link to that
web page placed on the front page of the department's website. The
department of administration or the director of accounts and reports shall
also make the following information for each tax year available on such
website:
(1) A list of taxing subdivisions by county;
(2) whether each taxing subdivision conducted a hearing to consider
exceeding its revenue neutral rate;
(3) the revenue neutral rate of each taxing subdivision;
(4) the tax rate resulting from the adopted budget of each taxing
subdivision; and
(5) the percent change between the revenue neutral rate and the tax
rate for each taxing subdivision.
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43 S Sub HB 2125 9
(i) Notwithstanding any provisions to the contrary, in the event any
governing body does not comply with the provisions of subsection (b)
because such governing body did not intend to exceed its revenue neutral
rate but the final taxable assessed valuation of such taxing subdivision
used to calculate the actual tax levy is less than the estimated assessed
valuation used to calculate the revenue neutral rate, such governing body
shall be permitted to levy a tax rate that generates the same amount of
property tax revenue as levied the previous year or less.
Sec. 5. K.S.A. 2024 Supp. 79-2989 is hereby amended to read as
follows: 79-2989. (a) For calendar years 2023 and 2024, 2025 and 2026 if
a county clerk has printing or postage costs pursuant to K.S.A. 2024 Supp.
79-2988, and amendments thereto, the county clerk shall notify and
provide documentation of such costs to the secretary of revenue. The
secretary of revenue shall certify the amount of moneys attributable to
such costs and shall transmit a copy of such certification to the director of
accounts and reports. Upon such receipt of such certification, the director
of accounts and reports shall transfer an amount of moneys equal to such
certified amount from the state general fund to the taxpayer notification
costs fund of the department of revenue. The secretary of revenue shall
transmit a copy of each such certification to the director of legislative
research and the director of the budget.
(b) There is hereby established in the state treasury the taxpayer
notification costs fund that shall be administered by the secretary of
revenue. All expenditures from the taxpayer notification costs fund shall
be for the purpose of paying county printing and postage costs pursuant to
K.S.A. 2024 Supp. 79-2988, and amendments thereto. All expenditures
from such fund shall be made in accordance with appropriations acts upon
warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of revenue or the secretary's designee.
Sec. 6. K.S.A. 2024 Supp. 79-1801, 79-2001, 79-2930, 79-2988 and
79-2989 are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
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