SENATE BILL No. 35
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 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, $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 a percentage of such amount for the preceding year shall be SENATE BILL No. 35—page 2
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 taxable valuation
of all 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 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 SENATE BILL No. 35—page 3
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 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 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 SENATE BILL No. 35—page 4
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 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. SENATE BILL No. 35—page 5
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
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SENATE adopted
Conference Committee Report ________________
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President of the Senate.
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Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
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Speaker of the House.
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Chief Clerk of the House.
APPROVED _____________________________
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Governor.