Despite hundreds of millions of dollars in reserve, Johnson County Commissioners are planning to raise property taxes by 6.5% next year. According to the proposed budget, commissioners and county staff want a $22.5 million tax increase, on top of last year’s $27 million increase.
The Johnson County general fund, which gets the largest property tax allocation, is projected to have a $220 million ending cash balance that accounts for about 45% of expenditures. That’s about four times the necessary cash reserve. The Library and Parks & Recreation funds would finish next year with $33 million in cash reserves that represent about a quarter of expenditures, or more than double the needed amount. Total cash reserves would exceed $500 million.
Kansas Policy Institute and Sentinel CEO Dave Trabert put the cash reserves in perspective:
“Commissioners and county administrators are effectively saying people must pay higher taxes so the county can hold onto its bloated cash hoard. Cash reserves represent taxes and fees people paid in the past but weren’t spent. The County wouldn’t have to cut a penny from spending to avoid a tax increase; commissioners just need to let go of a small amount of the half billion they have in the bank.”
The City of Overland Park is also looking at a 6% property tax increase for 2026 and is likewise sitting on millions in reserves. Overland Park says it will have $158 million on hand at the end of this year, but still wants to raise property taxes by about $5 million.
Overland Park staff are projecting an increase in property tax revenues from $82.2 million to $87.1 million.
Nor is Overland Park the only city or taxing entity in the county planning to raise taxes and exceed the revenue-neutral rate. Others with large tax hikes include Bonner Springs 9%, De Soto 106%, Edgerton 14%, Fairway 9%, Gardner 7%, Lake Quivira 60%, Mission 24%, Mission Hills 7%, Olathe 6.5%, and Westwood 34%.
Several Johnson County school districts also plan double-digit tax hikes.
‘Truth in Taxation’ requires Johnson County officials to vote on total tax increases
The hearings are required as part of the “Truth in Taxation” legislation passed in 2021 which requires taxing entities to publish a notice if they intend to exceed the “revenue neutral rate,” meaning increasing taxes either by increasing the mill rate or via increase in valuation, hold a public hearing and — most importantly — vote on the actual increase.
Last year, over 60% of all taxing authorities, including 48 counties and 271 cities, did not exceed revenue-neutral and kept property taxes flat.
