Kansas 2025-2026 Regular Session

Kansas House Bill HB2396

Introduced
2/27/25  
Refer
2/27/25  
Report Pass
3/6/25  
Engrossed
3/10/25  
Refer
3/11/25  

Caption

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.

Impact

The implementation of HB 2396 will have significant ramifications on state tax laws, especially concerning the revenue generation processes of cities and counties. By allowing voters to challenge tax increases via protest petitions, the bill seeks to instigate a more democratic approach to budget approvals, providing residents a path to dispute local tax hikes. Additionally, the bill establishes the Acknowledging Stewardship of Tax Revenue and Appropriations (ASTRA) fund, which will allocate state funds to qualifying municipalities based on population and property valuation metrics. This could better distribute state financial resources to support local services.

Summary

House Bill 2396 addresses property taxation by introducing mechanisms for local taxing jurisdictions to be held accountable for increasing their property tax revenues beyond certain limits. The bill allows for the establishment of protest petitions that can limit how much funding such jurisdictions receive when property tax revenues exceed a designated threshold. This change aims to empower voters by giving them a direct say in how much tax they are willing to support through local budgets, thus promoting fiscal responsibility at the local government level.

Contention

While proponents of HB 2396 argue that the measure enhances local government accountability and allows citizens to have a greater role in tax-related decisions, critics express concerns that it may hinder necessary funding for local projects. If local governments are unable to increase tax revenues without going through lengthy protest processes, they may find it challenging to fund essential services such as public safety, infrastructure improvements, and education. This contention centers around the balance between fiscal oversight by the public and the ability of local governments to effectively manage their budgets.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2317

Senate Substitute for HB 2317 by Committee on Assessment and Taxation - Providing a sales tax exemption for sales of over-the-counter drugs.

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 HB2026

Senate Substitute for HB 2026 by Committee on Assessment and Taxation - Requiring political subdivisions to adopt a budget that remains at or below revenue neutral and use funds to reduce property tax in order to receive local ad valorem tax reduction fund (LAVTRF) distributions, providing for one annual transfer to the fund, eliminating the county and city revenue sharing fund and discontinuing certain transfers to the special city and county highway fund.

KS HB2819

Senate Substitute for HB 2819 by Committee on Assessment and Taxation - Providing a sales tax exemption for exploration place, inc.

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 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 HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS HB2096

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, increasing the tax credit amount for household and dependent care expenses, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing a property tax rebate for certain business property operated in competition with property owned or operated by a governmental entity, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

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 HB2201

Senate Substitute for HB 2201 by Committee on Assessment and Taxation - Decreasing the corporate income tax rate and eliminating certain unused tax credits.

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