Kansas 2023-2024 Regular Session

Kansas Senate Bill SB468

Introduced
2/6/24  
Refer
2/7/24  
Report Pass
3/13/24  

Caption

Prohibiting cities and counties that grant or approve certain property tax exemptions or tax increment financing from exceeding their revenue neutral rates for property tax purposes.

Impact

The implication of SB468 is significant for local governments across the state, as it mandates a more cautious approach when considering property tax exemptions. By enforcing revenue neutrality, local officials will need to closely evaluate the financial impacts of any tax incentives they wish to provide. This legislation could constrain the ability of local administrations to foster economic development through property tax incentives, as well as limit their capacity to adapt to unique local economic conditions or needs.

Summary

Senate Bill 468, commonly referred to as SB468, proposes to establish restrictions on cities and counties in relation to the granting or approving of certain property tax exemptions and tax increment financing. Specifically, the bill seeks to prevent local jurisdictions from exceeding their revenue neutral rates when dealing with property tax purposes. This legislation is positioned as a means of ensuring that local governments maintain fiscal responsibility while balancing the need to support economic development through tax incentive programs.

Contention

Debate surrounding SB468 suggests a divide among lawmakers regarding the authority of local versus state governance in matters of taxation. Supporters of the bill argue that it is essential to maintain a unified approach to property taxation, which can prevent potential abuses of tax exemption policies that might arise from overly generous local incentives. Critics, however, contend that the bill undermines local control and limits the ability of municipalities to respond to local economic needs, citing concerns that such a restriction could hinder economic growth at the community level.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2396

Senate Substitute for HB 2396 by Committee on Assessment and Taxation - Authorizing the use of a protest petition to limit funding of a taxing jurisdiction by property tax revenues exceeding a certain amount, providing for a protest petition notice to be sent to taxpayers and modifying the content requirements of the revenue neutral rate hearing notice.

KS HB2573

Requiring certain libraries that have budgets approved by taxing subdivisions to be subject to the revenue neutral rate independent of the taxing subdivision.

KS SB2901

Ad valorem tax; require counties and municipalities to provide notice and hearing before exceeding revenue-neutral rate.

KS HB2795

Requiring notices required to exceed the revenue neutral rate to be sent on forms provided by the director of accounts and reports, granting taxing subdivisions the option to hold hearings on the same day and at the same location as other taxing subdivisions within a county and excluding the state mandated 20 mills levied by a school district from the revenue neutral rate.

KS HB2125

Senate Substitute for HB 2125 by Committee on Assessment and Taxation - Modifying the deadline for mailing property tax statements to taxpayers and the deadline for governing bodies to certify the amount of property tax to be levied to the county clerk, providing for the county clerk's use of the previous year's budget when a taxing subdivision fails to timely file its budget, modifying the content requirements of the revenue neutral rate hearing notice for property tax purposes, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar years 2025 and 2026, prohibiting a filing fee when a previous appeal remains pending before the board of tax appeals and authorizing the continuation of the 20-mill statewide property tax levy for schools.

KS SB482

Providing that county clerks are not required to send revenue neutral rate notices to property owners of exempt property, modifying and prescribing the contents of the revenue neutral rate hearing notice, permitting a tax levy that generates the same amount of revenue as the previous year when the final assessed valuation decreases compared to the estimated assessed valuation and requiring that the governing body's vote be conducted on the same day as the commencement of the hearing.

KS HB2002

Providing countywide retailers' sales tax authority for Dickinson and Grant counties, providing for a sales tax exemption for area agencies on aging and purchases made by Kansas suicide prevention HQ, inc., providing that the secretary of revenue file a release of warrant in the county where such warrant is docketed, granting authority to the director of property valuation to develop qualifying courses and providing that certain tax notices and statements may be transmitted by electronic means by the county treasurer and county appraiser if consented to by the taxpayer.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS HB2137

Authorizing taxing subdivisions to send notices required to exceed the revenue neutral rate if the county clerk fails to send such notice and providing for reimbursement of printing and postage costs.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

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