Session of 2025
HOUSE BILL No. 2396
By Committee on Taxation
Requested by Representative A. Smith
2-27
AN ACT concerning property taxation; relating to property tax revenues of
taxing jurisdictions; authorizing the use of a protest petition to limit
funding of a taxing jurisdiction by property tax revenues above a
certain amount; establishing the acknowledging stewardship of tax
revenue and appropriations (ASTRA) fund and authorizing certain
transfers from the state general fund to qualifying cities and counties;
eliminating the revenue neutral rate requirements by taxing
subdivisions and the taxpayer notification costs fund; amending K.S.A.
2024 Supp. 72-5137, 79-1801 and 79-2929 and repealing the existing
sections; also repealing K.S.A. 2024 Supp. 79-2988 and 79-2989.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) (1) The governing body of any taxing jurisdiction
that approves any appropriation or budget that provides for funding by
property tax revenues in excess of the amount provided in subsection (b)
may have such appropriation or budget subject to a protest petition and a
reduction in the amount of property tax revenues allowed to be levied by
the taxing jurisdiction. A protest petition contesting the increase in
property tax revenues for the taxing jurisdiction may be submitted to the
county clerk within 30 days, or the next business day after if the 30
th
day
falls on a weekend or county holiday, following the date that the governing
body of a taxing jurisdiction certifies to the county clerk the amount of ad
valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
thereto. If a taxing jurisdiction fails to timely certify the amount of ad
valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
thereto, the taxing jurisdiction shall be limited to funding by property tax
revenues at the maximum amount provided in subsection (b).
(2) The county clerk shall notify the county treasurer of all taxing
jurisdictions that approve any appropriation or budget that provides for
funding by property tax revenues in excess of the amount provided in
subsection (b). The county treasurer's office shall post on its website, if
such website exists, and post in the county treasurer's office whether any
protest petitions are available for any taxing jurisdiction within the county.
The county treasurer shall also make available in the county treasurer's
office during business hours a copy of each protest petition with the
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signature page in order to obtain signatures. The requirements set forth in
K.S.A. 25-3602, and amendments thereto, relating to the filing of petitions
at one time all in one group and the petition circulator and signature
requirements shall not apply to protest petitions maintained by a county
treasurer. In the event that a protest petition is signed by at least 10% of
the qualified voters of the votes cast for the office of secretary of state at
the last general election in such taxing jurisdiction, and is filed within 30
days with the county clerk of the county, the taxing jurisdiction shall be
limited to funding by property tax revenues at the maximum amount
provided in subsection (b). Upon the finding that a petition protesting the
increase in funding by property tax revenues was signed by less than the
required number of voters, the taxing jurisdiction shall proceed with the
increases in funding by property tax revenues. The provisions of this
subsection shall not apply in the event the transfer provided in section
2(b), and amendments thereto, is not provided.
(b) A taxing jurisdiction shall be limited in its budget to a total
amount of ad valorem tax to be levied in an amount that is equal to or less
than the total amount of ad valorem tax levied for the preceding tax year,
increased by an amount that is equal to or less than such ad valorem tax
when the following are included:
(1) An increase of not more than the amount of the annual percentage
of consumer price index for all urban consumers in the midwest region as
published by the bureau of labor statistics of the United States department
of labor multiplied by the total amount of ad valorem tax levied for the
preceding tax year; and
(2) increased property tax revenues that, in the current year, are
produced and attributable to the taxation of the construction of any new
structures or improvements or the remodeling or renovation of any
existing structures or improvements on real property, excluding any
ordinary maintenance or repair of any existing structures or improvements
on the property. The director of property valuation shall provide to the
state treasurer any information required under this paragraph.
(c) The provisions of this section shall not apply to the state of
Kansas or a school district.
New Sec. 2. (a) There is hereby created the acknowledging
stewardship of tax revenue and appropriations (ASTRA) fund. All moneys
transferred or credited to such fund under the provisions of this act or any
other law shall be apportioned and distributed in the manner provided
herein.
(b) On July 15 of each year, or as soon thereafter as moneys are
available, $60,000,000 shall be transferred by the director of accounts and
reports from the state general fund to the acknowledging stewardship of
tax revenue and appropriations (ASTRA) fund. All transfers made in
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accordance with the provisions of this section shall be considered to be
demand transfers from the state general fund. Commencing with the
transfer on July 15, 2026, the amount to be transferred pursuant to this
subsection shall be increased by 2% from the prior year's transfer.
(c) The state treasurer shall calculate the apportionment for each
county based on the following: (1) 65% of the amount to be distributed
shall be apportioned on the basis of the population figures of the counties
certified to the secretary of state pursuant to K.S.A. 11-201, and
amendments thereto, on July 1 of the preceding year; and (2) 35% of such
amount shall be apportioned on the basis of the equalized assessed tangible
valuations on the tax rolls of the counties on November 1 of the preceding
year as certified by the director of property valuation. The county and each
city contained therein, if eligible pursuant to subsection (d), shall receive a
proportion of such apportionment based on the ratio of the property taxes
levied of the county and the property taxes levied of any cities located
within the county. The state treasurer shall send notice to every county and
city by August 1 with the maximum amount of ad valorem tax to be levied
to qualify pursuant to section 1(b), and amendments thereto, and the
amount of payment from the acknowledging stewardship of tax revenue
and appropriations (ASTRA) fund. The director of property valuation shall
provide to the state treasurer any information required under this
paragraph.
(d) The director of property valuation shall certify to the state
treasurer on or before November 15, the amount of ad valorem tax to be
levied pursuant to K.S.A. 79-1801, and amendments thereto, whether the
county's or any city's budget provides for a total amount of ad valorem tax
to be levied in an amount that is less than or equal to the amount of ad
valorem tax levied for the preceding year increased by an amount that is
equal to or less than the amount provided in section 1(b), and amendments
thereto.
(e) On or before January 15
th
following the transfer provided in
subsection (b), the state treasurer shall pay the amount specified in
subsection (c) to each eligible county and city. Such funds shall only be
used for services, including, but not limited to, roads and bridges, law
enforcement, elections, public health and safety or any other services
mandated by law
(f) If it is determined a county or city received payment and was not
entitled to the payment, the county or city shall return or remit such
payment to the state treasurer. Upon receipt of each such remittance, the
state treasurer shall deposit the entire amount in the state treasury to the
credit of the state general fund.
(g) Any amounts that are not transferred because a city or county did
not comply with the provisions of this act shall be deposited by the state
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treasurer in the state treasury to the credit of the state general fund.
Sec. 3. K.S.A. 2024 Supp. 72-5137 is hereby amended to read as
follows: 72-5137. On or before October 10 of each school year, the clerk
or superintendent of each school district shall certify under oath to the
state board a report showing the total enrollment of the school district by
grades maintained in the schools of the school district and such other
reports as the state board may require. Each such report shall show
postsecondary education enrollment, career technical education
enrollment, special education enrollment, bilingual education enrollment,
at-risk student enrollment and virtual school enrollment in such detail and
form as is specified by the state board. Upon receipt of such reports, the
state board shall examine the reports and if the state board finds any errors
in any such report, the state board shall consult with the school district
officer furnishing the report and make any necessary corrections in the
report. On or before August 25 of each year, each such clerk or
superintendent shall also certify to the state board a copy of the budget
adopted by the school district, except when a school district must conduct
a public hearing to approve exceeding the revenue neutral rate under
K.S.A. 2024 Supp. 79-2988, and amendments thereto, a copy of such
budget shall be certified to the state board on or before September 20.
Sec. 4. 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, 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 2025, if the governing body of a taxing
subdivision must conduct a public hearing to approve exceeding the
revenue neutral rate amend its budget pursuant to a successful protest
petition under K.S.A. 2024 Supp. 79-2988 section 1, 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. 5. K.S.A. 2024 Supp. 79-2929 is hereby amended to read as
follows: 79-2929. Prior to the filing of the adopted budget with the county
clerk, the governing body of each taxing or political subdivision or
municipality shall meet for the purpose of answering and hearing
objections of taxpayers relating to the proposed budget and for the purpose
of considering amendments to such proposed budget. The governing body
shall give at least 10 days' notice of the time and place of the meeting by
publication in a weekly or daily newspaper of the county having a general
circulation therein. Such notice shall include the proposed budget and shall
set out all essential items in the budget except such groupings as
designated by the director of accounts and reports on a special publication
form prescribed by the director of accounts and reports and furnished with
the regular budget form. Such form shall also include the revenue neutral
rate as provided in K.S.A. 2024 Supp. 79-2988, and amendments thereto.
The notice of a governing body of any taxing subdivision or municipality
having an annual expenditure of $500 or less shall specify the time and
place of the meeting required by this section but shall not be required to
include the proposed budget of such taxing subdivision or municipality.
Sec. 6. K.S.A. 2024 Supp. 72-5137, 79-1801, 79-2929, 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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