Want more property tax revenue? Local Kansas officials must vote, Senate says

Kansas homeowners have long complained of property tax bills that appear to grow year after year. Fueled by rising home values, the increases are a source of rising anger among residents.

The Legislature is moving closer to approving restrictions that would – at least in theory – make it easier for homeowners to fight future hikes.

The Senate on Tuesday unanimously passed a bill to prohibit local governments from growing the total amount of property tax revenue collected each year unless officials vote to do so. Localities would also have to hold a hearing for residents to air their views.

But in a nod to localities, the bill would also repeal a property tax lid they have strongly opposed since it was implemented in 2017. The lid, intended to limit tax hikes, was often undercut by exemptions and workarounds.

The legislation’s bipartisan and unanimous support underscored the growing urgency among lawmakers to respond to public anger over property taxes in an election year. Since before the session began in January, Republican legislators and Democratic Gov. Laura Kelly have been promising action.

Kansas property tax collections have risen more than $1 billion over the past decade and now exceed $5 billion annually. In 2018, the assessed valuation of all property across the state rose 5.19 percent, the largest single-year jump since 2006.

The bill, which heads to the House, by itself doesn’t provide property tax relief or prevent future tax increases. But senators cast it as a transparency measure.

Under the proposal, homeowners would receive notices when city and county governments plan to raise the amount of property tax revenue they collect. A public hearing and vote by elected officials would follow.

“This is all about transparency and being open with your constituents,” said Sen. Caryn Tyson, a Parker Republican and the bill’s lead sponsor.

“This bill, as it’s currently framed, does not prevent tax increases,” said Sen. Vic Miller, a Topeka Democrat. He added that the bill says when you need to approve a tax increase “you simply have to explain it.”

Representatives of local governments expressed concerns over what the measure would mean for cities and counties in practice.

Trey Cocking, deputy director of the League of Kansas Municipalities, said localities would have about 20 fewer days to develop their initial budgets. Currently, local jurisdictions must publish their budget proposal by August 5, but he contends the bill would effectively move that deadline back to July 15.

But Cocking also said he likes the bill’s goal of making clear to residents what’s happening to their taxes.

“The thing is, and I don’t mean this in a bad way, but we would walk through Walmart, we could ask a half-dozen people how to compute a mill levy, and nobody’s going to be able to do that,” Cocking said.

And the legislation eliminates the property tax lid, which he called “bad policy.” The Legislature approved the lid in 2015 to stop city and county budgets from rising faster than the rate of inflation unless the exceptions were approved by election.

“This does control local control, which we like,” Cocking said. “It’s just a matter of clearing up the procedure to make it smooth.”