SESSION OF 2025
SUPPLEMENTAL NOTE ON SENATE BILL NO. 35
As Amended by Senate Committee of the Whole
Brief*
SB 35, as amended, would eliminate, beginning in tax
year 2026, the statewide mill levies of 1.0 mills for state
educational buildings and 0.5 mills for state institutions
buildings and would create, beginning in fiscal year 2027,
demand transfers from the State General Fund (SGF) to the
Kansas Educational Building Fund (EBF) and to the State
Institutions Building Fund (SIBF).
The transfer to the EBF would be $56.0 million in FY
2027 and would be adjusted in future years to reflect the
average percentage change in taxable value of all property in
the state for the preceding 10 years.
The transfer to the SIBF would be $25.0 million in FY
2027 and would increase by 2 percent of $25.0 million in
each future year.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by representatives of Kansas Farm Bureau,
Kansas Livestock Association, and National Federation of
____________________
*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/ Independent Business-Kansas. Proponents stated the bill
would provide broad-based property tax relief for all Kansas
property owners while continuing to meet the maintenance
needs of state-owned facilities. Written-only proponent
testimony was provided by two private citizens and by
representatives of the Kansas Association of Realtors,
Kansas Grain and Feed Association and Renew Kansas
Biofuels Association, and Kansas Policy Institute.
Opponent testimony was provided by a representative
of the University Contractors Association of Kansas, stating
the bill would destabilize the funding for ongoing maintenance
and repair needs of state educational facilities and add an
ongoing expense to the SGF.
Neutral testimony was provided by a representative of
the Kansas Board of Regents. Written-only neutral testimony
was provided by a representative of the American Council of
Engineering Companies of Kansas.
No other testimony was provided.
The Senate Committee amended the bill to increase the
FY 2027 transfer to the EBF from $50.0 million to $56.0
million and to replace a 2 percent growth rate for the EBF
transfer with the provision linking the transfer amount to the
10-year average annual growth rate of residential property
value.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill
to:
●Specify the transfers to be made would be demand
transfers; and
●Specify the transfers would increase based on the
average of taxable valuation of all property.
2- 35 Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill, as introduced, the bill would reduce SGF
revenues by $75.0 million in FY 2027, which would increase
by 2.0 percent each year. The bill is estimated to reduce
property tax revenues to the two funds by $84.2 million in FY
2027, $88.4 million in FY 2028, and $100.5 million in FY
2029, with the increase in FY 2029 attributable to the two-
year lag associated with motor vehicle tax receipts.
A revised fiscal note for the amended bill was not
immediately available.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2026 Governor’s Budget Report.
Taxation; property tax; statewide mill levies; transfers; Educational Building Fund;
State Institutions Building Fund
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