{As Amended by Senate Committee of the Whole}
As Amended by Senate Committee
Session of 2025
SENATE BILL No. 35
By Committee on Assessment and Taxation
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AN ACT concerning property taxation; relating to tax levies; discontinuing
the state tax levies for the Kansas educational building fund and the
state institutions building fund; providing financing therefor from the
state general fund; amending K.S.A. 76-6b01, 76-6b02, 76-6b04 and
76-6b11 and K.S.A. 2024 Supp. 76-6b05 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 76-6b01 is hereby amended to read as follows: 76-
6b01. (a) There is hereby levied an annual permanent state tax in the year
2025 a state tax of 1 mill upon all tangible property in this state which that
is subject to ad valorem taxation. The tax levy shall be .6 mill in the year
2003 and 1 mill in the year 2004 and each year thereafter until changed by
statute. Such tax levy shall be in addition to all other state tax levies
authorized by law. Such tax levy shall be for the use and benefit of the
state institutions of higher education. The proceeds of such tax levy shall
be apportioned in accordance with this act.
(b) The county treasurer of each county shall make the proceeds of
the tax levy provided for in this section available to the state treasurer
immediately upon collection. When available the state treasurer shall
withdraw from each county the proceeds of the taxes raised by such tax
levy. Upon such withdrawal the state treasurer shall deposit the same in the
state treasury and shall credit the same as provided in K.S.A. 76-6b02, and
amendments thereto.
Sec. 2. K.S.A. 76-6b02 is hereby amended to read as follows: 76-
6b02. (a) All moneys received by the state treasurer under K.S.A. 76-6b01,
and amendments thereto, and pursuant to subsection (c) shall be credited
to the Kansas educational building fund to be used for the construction,
reconstruction, equipment and repair of buildings and grounds at the state
educational institutions under the control and supervision of the state
board of regents and for payment of debt service on revenue bonds issued
to finance such projects, all subject to appropriation by the legislature.
(b) Subject to any restrictions imposed by appropriation acts, the state
board of regents is authorized to pledge funds appropriated to it from the
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Kansas educational building fund or from any other source and transferred
to a special revenue fund of the state board of regents specified by statute
for the payment of debt service on revenue bonds issued for the purposes
set forth in subsection (a). Subject to any restrictions imposed by
appropriation acts, the state board of regents is also authorized to pledge
any funds appropriated to it from the Kansas educational building fund or
from any other source and transferred to a special revenue fund of the state
board of regents specified by statute as a priority for the payment of debt
service on such revenue bonds. Neither the state or the state board of
regents shall have the power to pledge the faith and credit or taxing power
of the state of Kansas for such purposes and any payment by the state
board of regents for such purposes shall be subject to and dependent on
appropriations being made from time to time by the legislature. Any
obligation of the state board of regents for payment of debt service on
revenue bonds and any such revenue bonds issued for the purposes set
forth in subsection (a) shall not be considered a debt or obligation of the
state for the purpose of section 6 of article 11 of the constitution of the
state of Kansas.
(c) On July 1, 2026, or as soon thereafter as moneys are available,
$50,000,000 $56,000,000 shall be transferred by the director of accounts
and reports from the state general fund to the Kansas educational building
fund. On July 1, 2027, and on July 1 each year thereafter, or as soon
thereafter as moneys are available, an amount equal to the amount
pursuant to this subsection for the immediately preceding year plus 2% of
$50,000,000 a percentage of such amount for the preceding year shall be
transferred by the director of accounts and reports from the state general
fund to the Kansas educational building fund. Such percentage shall be
the average percentage change in statewide residential{ taxable}
valuation of all residential real property for the preceding 10 years and
shall not be less than zero. The director of property valuation, in
consultation with the director of legislative research and the director of
the budget, shall determine such percentage and the amount of moneys
that are authorized to be transferred pursuant to this subsection for such
fiscal year. On or before February 1, 2027, and on or before February 1
of each year thereafter, the director of property valuation shall certify
the amount of each transfer to the director of accounts and reports and
transmit a copy of each such certification to the director of legislative
research and the director of the budget. {All transfers made in
accordance with the provisions of this subsection shall be considered to
be demand transfers from the state general fund.}
Sec. 3. K.S.A. 76-6b04 is hereby amended to read as follows: 76-
6b04. (a) There is hereby levied an annual permanent state tax in the year
2025 a state tax of 0.5 mill upon all tangible property in this state which
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that is subject to ad valorem taxation. The tax levy shall be .3 mill in the
year 2003 and .5 mill in the year 2004 and each year thereafter until
changed by statute. The tax levy shall be in addition to all other state tax
levies authorized by law. The tax levy shall be for the use and benefit of
state institutions caring for persons who are mentally ill, retarded, visually
handicapped, with a handicapping hearing loss or tubercular or state
institutions caring for children who are deprived, wayward, miscreant,
delinquent, children in need of care or juvenile offenders and who are in
need of residential care or treatment, or institutions designed primarily to
provide vocational rehabilitation for handicapped persons. As used in this
section, "state institutions" shall include, but not be limited to, those
institutions under the authority of the commissioner of juvenile justice.
The proceeds of such tax levy shall be apportioned in accordance with this
act.
(b) The county treasurer of each county shall make the proceeds of
the tax levy provided for in this section available to the state treasurer
immediately upon collection. When available, the state treasurer shall
withdraw from each county the proceeds of the taxes raised by such tax
levy. Upon such withdrawal the state treasurer shall deposit the same in the
state treasury and shall credit the same as provided in K.S.A. 76-6b05, and
amendments thereto.
Sec. 4. K.S.A. 2024 Supp. 76-6b05 is hereby amended to read as
follows: 76-6b05. (a) All moneys received by the state treasurer under
K.S.A. 76-6b04, and amendments thereto, and pursuant to subsection (e)
shall be credited to the state institutions building fund, which is hereby
created in the state treasury, to be used for the construction, reconstruction,
equipment and repair of buildings and grounds at institutions specified in
K.S.A. 76-6b04, and amendments thereto, and for payment of debt service
on revenue bonds issued to finance such projects, all subject to
appropriation by the legislature.
(b) Subject to any restrictions imposed by appropriation acts, the
juvenile justice authority is authorized to pledge funds appropriated to it
from the state institutions building fund or from any other source and
transferred to a special revenue fund of the juvenile justice authority
specified by statute for the payment of debt service on revenue bonds
issued for the purposes set forth in subsection (a). Subject to any
restrictions imposed by appropriation acts, the juvenile justice authority is
also authorized to pledge any funds appropriated to it from the state
institutions building fund or from any other source and transferred to a
special revenue fund of the juvenile justice authority specified by statute as
a priority for the payment of debt service on such revenue bonds. Neither
the state or the juvenile justice authority shall have the power to pledge the
faith and credit or taxing power of the state of Kansas for such purposes
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and any payment by the juvenile justice authority for such purposes shall
be subject to and dependent on appropriations being made from time to
time by the legislature. Any obligation of the juvenile justice authority for
payment of debt service on revenue bonds and any such revenue bonds
issued for the purposes set forth in subsection (a) shall not be considered a
debt or obligation of the state for the purpose of section 6 of article 11 of
the constitution of the state of Kansas.
(c) Subject to any restrictions imposed by appropriation acts, the
Kansas department for aging and disability services is authorized to pledge
funds appropriated to it from the state institutions building fund or from
any other source and transferred to a special revenue fund of the Kansas
department for aging and disability services specified by statute for the
payment of debt service on revenue bonds issued for a new state security
hospital on the Larned state hospital grounds or any other capital
improvement projects at any other institution or facility of the Kansas
department for aging and disability services. Subject to any restrictions
imposed by appropriation acts, the Kansas department for aging and
disability services is also authorized to pledge any funds appropriated to it
from the state institutions building fund or from any other source and
transferred to a special revenue fund of the Kansas department for aging
and disability services specified by statute as a priority for the payment of
debt service on such revenue bonds. Neither the state or the Kansas
department for aging and disability services shall have the power to pledge
the faith and credit or taxing power of the state of Kansas for such
purposes and any payment by the Kansas department for aging and
disability services for such purposes shall be subject to and dependent on
appropriations being made from time to time by the legislature. Any
obligation of the Kansas department for aging and disability services for
payment of debt service on revenue bonds and any such revenue bonds
issued for a new state security hospital on the Larned state hospital
grounds or any other capital improvement projects at any other institution
or facility of the Kansas department for aging and disability services shall
not be considered a debt or obligation of the state for the purpose of
section 6 of article 11 of the constitution of the state of Kansas.
(d) Subject to any restrictions imposed by appropriation acts, the
director of the Kansas office of veterans services is authorized to pledge
funds appropriated to it from the state institutions building fund or from
any other source and transferred to a special revenue fund of the Kansas
office of veterans services specified by statute for the payment of debt
service on revenue bonds issued for veterans' home HVAC system
replacement. Subject to any restrictions imposed by appropriation acts, the
director of the Kansas office of veterans services is also authorized to
pledge any funds appropriated to it from the state institutions building fund
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or from any other source and transferred to a special revenue fund of the
Kansas office of veterans services specified by statute as a priority for the
payment of debt service on such revenue bonds. Neither the state nor the
director of the Kansas office of veterans services shall have the power to
pledge the faith and credit or taxing power of the state of Kansas for such
purposes and any payment by the Kansas office of veterans services for
such purposes shall be subject to and dependent on appropriations being
made from time to time by the legislature. Any obligation of the Kansas
office of veterans services for payment of debt service on revenue bonds
and any such revenue bonds issued for veterans' home HVAC system
replacement shall not be considered a debt or obligation of the state for the
purpose of section 6 of article 11 of the constitution of the state of Kansas.
(e) On July 1, 2026, or as soon thereafter as moneys are available,
$25,000,000 shall be transferred by the director of accounts and reports
from the state general fund to the state institutions building fund. On July
1, 2027, and on July 1 each year thereafter, or as soon thereafter as
moneys are available, an amount equal to the amount pursuant to this
subsection for the immediately preceding year plus 2% of $25,000,000
shall be transferred by the director of accounts and reports from the state
general fund to the state institutions building fund. {All transfers made in
accordance with the provisions of this subsection shall be considered to
be demand transfers from the state general fund.}
Sec. 5. K.S.A. 76-6b11 is hereby amended to read as follows: 76-
6b11. (a) Except as provided in subsection (e), On July 1 of each year, the
director of accounts and reports shall record a debit to the state treasurer's
receivables for the Kansas educational building fund, the state institutions
building fund and the state general fund and shall record a corresponding
credit to each such fund in an amount equal to 95% of the amount credited
respectively to each such fund during the immediately preceding fiscal
year, except that such amount shall be proportionally adjusted with respect
to any such fund in any fiscal year for any change in the tax levy rate for
any such fund.
(b) All taxes received by the state treasurer under K.S.A. 76-6b01,
and 76-6b04 and section 15 [L. 2003, ch. 146, § 15], and amendments
thereto, and the provisions of section 15 of chapter 146 of the 2003
Session Laws of Kansas during the current fiscal year shall be deposited in
the state treasury to the credit of the Kansas educational building fund, the
state institutions building fund and the state general fund, respectively, and
shall reduce the amount debited and credited to such funds under
subsection (a).
(c) On June 30 of each year, the director of accounts and reports shall
adjust the amounts debited and credited to the state treasurer's receivables
and to the Kansas educational building fund, the state institutions building
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fund and the state general fund pursuant to this section, to reflect the taxes
actually received by the state treasurer and deposited during the fiscal year
in the state treasury to the credit of each such fund.
(d) The director of accounts and reports shall notify the state treasurer
of all amounts debited and credited to the Kansas educational building
fund, the state institutions building fund and the state general fund
pursuant to this section and all reductions and adjustments thereto made
pursuant to this section. The state treasurer shall enter all such amounts
debited and credited and shall make reductions and adjustments thereto on
the books and records kept and maintained for such funds by the state
treasurer in accordance with the notice thereof.
(e) On October 1, 2003, the director of accounts and reports shall
make such adjustments and amendments as may be required to reflect and
account for the property tax imposed by K.S.A. 79-2976 as if such tax had
been in effect on July 1, 2003.The provisions of this section shall expire on
June 30, 2026.
Sec. 6. K.S.A. 76-6b01, 76-6b02, 76-6b04 and 76-6b11 and K.S.A.
2024 Supp. 76-6b05 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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