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Kansas House Bill HB2396

Kansas 2025-2026 Regular Session

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11 Session of 2025
22 HOUSE BILL No. 2396
33 By Committee on Taxation
44 Requested by Representative A. Smith
55 2-27
66 AN ACT concerning property taxation; relating to property tax revenues of
77 taxing jurisdictions; authorizing the use of a protest petition to limit
88 funding of a taxing jurisdiction by property tax revenues above a
99 certain amount; establishing the acknowledging stewardship of tax
1010 revenue and appropriations (ASTRA) fund and authorizing certain
1111 transfers from the state general fund to qualifying cities and counties;
1212 eliminating the revenue neutral rate requirements by taxing
1313 subdivisions and the taxpayer notification costs fund; amending K.S.A.
1414 2024 Supp. 72-5137, 79-1801 and 79-2929 and repealing the existing
1515 sections; also repealing K.S.A. 2024 Supp. 79-2988 and 79-2989.
1616 Be it enacted by the Legislature of the State of Kansas:
1717 New Section 1. (a) (1) The governing body of any taxing jurisdiction
1818 that approves any appropriation or budget that provides for funding by
1919 property tax revenues in excess of the amount provided in subsection (b)
2020 may have such appropriation or budget subject to a protest petition and a
2121 reduction in the amount of property tax revenues allowed to be levied by
2222 the taxing jurisdiction. A protest petition contesting the increase in
2323 property tax revenues for the taxing jurisdiction may be submitted to the
2424 county clerk within 30 days, or the next business day after if the 30
2525 th
2626 day
2727 falls on a weekend or county holiday, following the date that the governing
2828 body of a taxing jurisdiction certifies to the county clerk the amount of ad
2929 valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
3030 thereto. If a taxing jurisdiction fails to timely certify the amount of ad
3131 valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
3232 thereto, the taxing jurisdiction shall be limited to funding by property tax
3333 revenues at the maximum amount provided in subsection (b).
3434 (2) The county clerk shall notify the county treasurer of all taxing
3535 jurisdictions that approve any appropriation or budget that provides for
3636 funding by property tax revenues in excess of the amount provided in
3737 subsection (b). The county treasurer's office shall post on its website, if
3838 such website exists, and post in the county treasurer's office whether any
3939 protest petitions are available for any taxing jurisdiction within the county.
4040 The county treasurer shall also make available in the county treasurer's
4141 office during business hours a copy of each protest petition with the
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7777 signature page in order to obtain signatures. The requirements set forth in
7878 K.S.A. 25-3602, and amendments thereto, relating to the filing of petitions
7979 at one time all in one group and the petition circulator and signature
8080 requirements shall not apply to protest petitions maintained by a county
8181 treasurer. In the event that a protest petition is signed by at least 10% of
8282 the qualified voters of the votes cast for the office of secretary of state at
8383 the last general election in such taxing jurisdiction, and is filed within 30
8484 days with the county clerk of the county, the taxing jurisdiction shall be
8585 limited to funding by property tax revenues at the maximum amount
8686 provided in subsection (b). Upon the finding that a petition protesting the
8787 increase in funding by property tax revenues was signed by less than the
8888 required number of voters, the taxing jurisdiction shall proceed with the
8989 increases in funding by property tax revenues. The provisions of this
9090 subsection shall not apply in the event the transfer provided in section
9191 2(b), and amendments thereto, is not provided.
9292 (b) A taxing jurisdiction shall be limited in its budget to a total
9393 amount of ad valorem tax to be levied in an amount that is equal to or less
9494 than the total amount of ad valorem tax levied for the preceding tax year,
9595 increased by an amount that is equal to or less than such ad valorem tax
9696 when the following are included:
9797 (1) An increase of not more than the amount of the annual percentage
9898 of consumer price index for all urban consumers in the midwest region as
9999 published by the bureau of labor statistics of the United States department
100100 of labor multiplied by the total amount of ad valorem tax levied for the
101101 preceding tax year; and
102102 (2) increased property tax revenues that, in the current year, are
103103 produced and attributable to the taxation of the construction of any new
104104 structures or improvements or the remodeling or renovation of any
105105 existing structures or improvements on real property, excluding any
106106 ordinary maintenance or repair of any existing structures or improvements
107107 on the property. The director of property valuation shall provide to the
108108 state treasurer any information required under this paragraph.
109109 (c) The provisions of this section shall not apply to the state of
110110 Kansas or a school district.
111111 New Sec. 2. (a) There is hereby created the acknowledging
112112 stewardship of tax revenue and appropriations (ASTRA) fund. All moneys
113113 transferred or credited to such fund under the provisions of this act or any
114114 other law shall be apportioned and distributed in the manner provided
115115 herein.
116116 (b) On July 15 of each year, or as soon thereafter as moneys are
117117 available, $60,000,000 shall be transferred by the director of accounts and
118118 reports from the state general fund to the acknowledging stewardship of
119119 tax revenue and appropriations (ASTRA) fund. All transfers made in
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163163 accordance with the provisions of this section shall be considered to be
164164 demand transfers from the state general fund. Commencing with the
165165 transfer on July 15, 2026, the amount to be transferred pursuant to this
166166 subsection shall be increased by 2% from the prior year's transfer.
167167 (c) The state treasurer shall calculate the apportionment for each
168168 county based on the following: (1) 65% of the amount to be distributed
169169 shall be apportioned on the basis of the population figures of the counties
170170 certified to the secretary of state pursuant to K.S.A. 11-201, and
171171 amendments thereto, on July 1 of the preceding year; and (2) 35% of such
172172 amount shall be apportioned on the basis of the equalized assessed tangible
173173 valuations on the tax rolls of the counties on November 1 of the preceding
174174 year as certified by the director of property valuation. The county and each
175175 city contained therein, if eligible pursuant to subsection (d), shall receive a
176176 proportion of such apportionment based on the ratio of the property taxes
177177 levied of the county and the property taxes levied of any cities located
178178 within the county. The state treasurer shall send notice to every county and
179179 city by August 1 with the maximum amount of ad valorem tax to be levied
180180 to qualify pursuant to section 1(b), and amendments thereto, and the
181181 amount of payment from the acknowledging stewardship of tax revenue
182182 and appropriations (ASTRA) fund. The director of property valuation shall
183183 provide to the state treasurer any information required under this
184184 paragraph.
185185 (d) The director of property valuation shall certify to the state
186186 treasurer on or before November 15, the amount of ad valorem tax to be
187187 levied pursuant to K.S.A. 79-1801, and amendments thereto, whether the
188188 county's or any city's budget provides for a total amount of ad valorem tax
189189 to be levied in an amount that is less than or equal to the amount of ad
190190 valorem tax levied for the preceding year increased by an amount that is
191191 equal to or less than the amount provided in section 1(b), and amendments
192192 thereto.
193193 (e) On or before January 15
194194 th
195195 following the transfer provided in
196196 subsection (b), the state treasurer shall pay the amount specified in
197197 subsection (c) to each eligible county and city. Such funds shall only be
198198 used for services, including, but not limited to, roads and bridges, law
199199 enforcement, elections, public health and safety or any other services
200200 mandated by law
201201 (f) If it is determined a county or city received payment and was not
202202 entitled to the payment, the county or city shall return or remit such
203203 payment to the state treasurer. Upon receipt of each such remittance, the
204204 state treasurer shall deposit the entire amount in the state treasury to the
205205 credit of the state general fund.
206206 (g) Any amounts that are not transferred because a city or county did
207207 not comply with the provisions of this act shall be deposited by the state
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251251 treasurer in the state treasury to the credit of the state general fund.
252252 Sec. 3. K.S.A. 2024 Supp. 72-5137 is hereby amended to read as
253253 follows: 72-5137. On or before October 10 of each school year, the clerk
254254 or superintendent of each school district shall certify under oath to the
255255 state board a report showing the total enrollment of the school district by
256256 grades maintained in the schools of the school district and such other
257257 reports as the state board may require. Each such report shall show
258258 postsecondary education enrollment, career technical education
259259 enrollment, special education enrollment, bilingual education enrollment,
260260 at-risk student enrollment and virtual school enrollment in such detail and
261261 form as is specified by the state board. Upon receipt of such reports, the
262262 state board shall examine the reports and if the state board finds any errors
263263 in any such report, the state board shall consult with the school district
264264 officer furnishing the report and make any necessary corrections in the
265265 report. On or before August 25 of each year, each such clerk or
266266 superintendent shall also certify to the state board a copy of the budget
267267 adopted by the school district, except when a school district must conduct
268268 a public hearing to approve exceeding the revenue neutral rate under
269269 K.S.A. 2024 Supp. 79-2988, and amendments thereto, a copy of such
270270 budget shall be certified to the state board on or before September 20.
271271 Sec. 4. K.S.A. 2024 Supp. 79-1801 is hereby amended to read as
272272 follows: 79-1801. (a) Except as provided by subsection (b), each year the
273273 governing body of any city, the trustees of any township, the board of
274274 education of any school district and the governing bodies of all other
275275 taxing subdivisions shall certify, on or before August 25, to the proper
276276 county clerk the amount of ad valorem tax to be levied. Thereupon, the
277277 county clerk shall place the tax upon the tax roll of the county, in the
278278 manner prescribed by law, and the tax shall be collected by the county
279279 treasurer. The county treasurer shall distribute the proceeds of the taxes
280280 levied by each taxing subdivision in the manner provided by K.S.A. 12-
281281 1678a, and amendments thereto.
282282 (b) Prior to January 1, 2021, if the governing body of a city or county
283283 must conduct an election for an increase in property tax to fund any
284284 appropriation or budget under K.S.A. 25-433a, and amendments thereto,
285285 the governing body of the city or county shall certify, on or before October
286286 1, to the proper county clerk the amount of ad valorem tax to be levied. On
287287 and after January 1, 2021 2025, if the governing body of a taxing
288288 subdivision must conduct a public hearing to approve exceeding the
289289 revenue neutral rate amend its budget pursuant to a successful protest
290290 petition under K.S.A. 2024 Supp. 79-2988 section 1, and amendments
291291 thereto, the governing body of the taxing subdivision shall certify, on or
292292 before October 1, to the proper county clerk the amount of ad valorem tax
293293 to be levied.
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337337 Sec. 5. K.S.A. 2024 Supp. 79-2929 is hereby amended to read as
338338 follows: 79-2929. Prior to the filing of the adopted budget with the county
339339 clerk, the governing body of each taxing or political subdivision or
340340 municipality shall meet for the purpose of answering and hearing
341341 objections of taxpayers relating to the proposed budget and for the purpose
342342 of considering amendments to such proposed budget. The governing body
343343 shall give at least 10 days' notice of the time and place of the meeting by
344344 publication in a weekly or daily newspaper of the county having a general
345345 circulation therein. Such notice shall include the proposed budget and shall
346346 set out all essential items in the budget except such groupings as
347347 designated by the director of accounts and reports on a special publication
348348 form prescribed by the director of accounts and reports and furnished with
349349 the regular budget form. Such form shall also include the revenue neutral
350350 rate as provided in K.S.A. 2024 Supp. 79-2988, and amendments thereto.
351351 The notice of a governing body of any taxing subdivision or municipality
352352 having an annual expenditure of $500 or less shall specify the time and
353353 place of the meeting required by this section but shall not be required to
354354 include the proposed budget of such taxing subdivision or municipality.
355355 Sec. 6. K.S.A. 2024 Supp. 72-5137, 79-1801, 79-2929, 79-2988 and
356356 79-2989 are hereby repealed.
357357 Sec. 7. This act shall take effect and be in force from and after its
358358 publication in the statute book.
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