After failing to follow the Senate in passing its version of a constitutional amendment limiting property tax assessments, the Kansas House approved HB 2043, which proposes a protest petition in an attempt to curb a proposed spending increase exceeding the lesser of a particular Consumer Price Index (CPI) specific to the Midwest, or 3% above the previous year. The bill sent to Governor Kelly preserves the revenue-neutral provision of the five-year-old Truth in Taxation law, hailed by fiscal conservatives for its effect in holding down spending increases by counties, cities, and school districts.
While the new measure keeps revenue-neutral, it excludes tax revenue increases from retiring property tax abatements, for bond payments, and for new construction from the spending limitation. School districts are exempt.
The protest petition would involve signatures from 10% of registered voters who voted in the last election for secretary of state, and who oppose spending increases exceeding the CPI or 3% limit. Once the signatures are validated by the county clerk, the proposed budget is defeated, without the public hearing or vote by the government body as mandated by revenue-neutral.
Senate Tax Committee Chair Caryn Tyson is unenthusiastic about the measure, but says it represents the best option left to address rising property taxes:
“The revenue limit in CCR 2043 is lenient due to school exemptions and high reset provisions if a petition is successful. While CCR 2043 plus revenue-neutral notices may slow property tax increases, a stronger solution was needed. A constitutional amendment capping assessment value increases at 3%, which passed the Senate to allow a public vote but failed the House’s 2/3 threshold, would better protect property owners.”
If Governor Kelly vetoes the proposal, the Legislature will be unable to mount an override effort as it has adjourned for the year, unless enough legislators sign a petition to call a special session.
