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My Two Cents of Common Sense
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 "Northwest Kansas holds some truly inspiring scenery, contains a wealth of Old West history, possesses some of the finest educational institutions, promotes an entrepreneurial spirit, and is home to some of the most hard-working, genuine people I've ever met!" ~ Adam Smith |
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1970 RD 3 Weskan, KS 67762
785-821-2568 (Cell)
300 SW 10th St, Suite 512N Topeka, KS 66612
785-296-0715 (Office)
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Governor signs first bill
On Wednesday, Governor Jeff Colyer signed SB 262, which authorizes the construction of a statue honoring President Dwight D. Eisenhower. The bill signing took place in Abilene, Kansas, the hometown and resting place of President Eisenhower. Later this year, this statue will be permanently displayed in the northwestern quadrant of the Capitol grounds. The statue itself is a replica of the statue displayed in the U.S. Capitol rotunda.
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Property Tax Hearing Scheduled
A hearing has been scheduled for March 6th and 7th regarding HB 2740, a bill proposing an increase in the statewide property tax mill levy for K-12 education. A two-day hearing is rare and only reserved for important issues where it is anticipated that many citizens will be attending to provide testimony. This is the first two-day hearing in the Taxation committee, and perhaps the entire legislature, this year.
Typically the days are split as the committee chair will allow one day each for proponents in favor of the bill and opponents against the bill. I’ve got a sneaking suspicion that both days will be devoted to opponents on this particular bill. Proponent testimony should only take a couple minutes, if there any at all. I haven’t heard a wisp of support for this measure from even the deepest nook or cranny of the Capitol.
A little history first. The fixed statewide property tax levy began in 1992. Before that, the levy fluctuated by district from 9.123 to 93.677 in 1991 (and years prior) and generated a little over $14.5M. The average levy in '91 was 58 mills. When first implemented in '92, the statewide levy was set at 32 mills. It increased to 35 mills in 1994 and stayed there through 199h6. In 1998, the statewide levy was dropped and fixed at the current 20 mills, with the first $20,000 of valuation on residential homes exempted in an effort to lower the property tax burden on families. With the implementation of the statewide property tax levy in '92, the additional local option budget was also adopted. This allowed school districts to impose a supplemental district-wide property tax levy up to a limited cap, and then required a vote of the constituents of that specific school district to increase to the full maximum levy allowed.
In 1998 when the levy was set at 20 mills, the statewide assessed valuation was just under $19 billion. Total statewide tax, including supplementals and local option, was $1.9 billion. Property assessed valuations and K12 education related property taxes have increased steadily over the past 20 years at an average of 3.35% and 4.27% respectively. Fast-forward to 2017 and valuation was just under $35 billion and the total taxes for school districts were about $4.5 billion. As you can see from the graph, the increase has been fairly steady and smooth with only a few bumps, but no drastic jumps up or down. However, this graph will look extremely unpleasant if HB 2740 passes.
In HB 2740, the statewide property tax is proposed to increase through a phase-in process over a period of three years. This year, of course, is the current 20 mills. Next year, it would increase to 26.76 mills – a 33.8% increase. The following year it would go to 32.82 mills, and then top out in the third year at 38.43 mills – nearly double the current levy! This bill also makes NO provisions for reducing or eliminating the local option budget taxes or increasing the $20,000 residential exemption amount. The proposed increase would be entirely new tax with no provisions for any relief!
Again, I have not heard any rumors of any support for this proposal in the Capitol and certainly not around northwest Kansas. I traveled the district last week for town hall meetings and it was very apparent that everyone, including myself, was completely opposed to this bill.
You may ask why it is even being considered if it has no support? As we have witnessed in past years, sometimes very questionable legislation gets passed in the dead of night in a desperate attempt to push a last-second bill through the process. It is imperative that we hold this hearing to make sure every single legislator up here knows that this will not fly. By having this official record of testimony, we can immediately point to overwhelming opposition to this bill’s idea, and more effectively protect Kansans from a crippling property tax increase. This would affect homes, businesses, land, vehicles, and every form of taxable property.
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