Yes, the headline is correct. The Kansas House of Representatives today effectively voted to increase your property tax by again trying to eliminate the Truth in Taxation / revenue-neutral law.
The accountability and transparency in revenue-neutral prompted more than 2,300 taxing authorities to not increase property tax this year, with mill rates at or below revenue-neutral. The House also added a provision to give up to $60 million to taxing authorities that increase property tax by inflation or less, plus property tax collections on new construction, home remodeling, and a few other categories. Effectively, cities and counties can raise property tax by as much as 4% (given current inflation rates) and get a reward from taxpayers. Almost 500 other taxing authorities are raising property tax by less than 4% this year, so many are likely also to tax more.
The House argument that revenue-neutral isn’t working doesn’t hold water. Wyandotte County, Riley County, Ford County, and 44 others will not increase property taxes in 2025. More than 200 cities, including Kansas City, Salina, Hutchinson, Leavenworth, Emporia, Louisburg, Liberal, Abilene, Junction City, and Spring Hill, will also not exceed revenue-neutral this year. There is even a growing list of school districts opting not to exceed revenue-neutral where they have the discretion to do so.
Residents of these jurisdictions can look forward to tax increases if the House gets its way.
But that’s not all.
The House used a parliamentary maneuver to strip the contents of SB 35 and substitute language from HB 2396 that eliminates revenue-neutral. Ironically, SB 35, which passed the Senate on a 38-2 vote, would eliminate 1.5 mills of tax collected by the state and save taxpayers about $76 million.
House motivation is a moving target
Initially, the main argument from the House of Representatives was that revenue-neutral isn’t working. Their story changed during the Senate Tax Committee hearing on HB 2396 (the House’s attempt to eliminate revenue-neutral). Senators were told that revenue-neutral is hard to understand and not fair to local governments because property tax mandated by the State is not subject to revenue-neutral. The Senate Tax Committee reinstated revenue-neutral but the full Senate has not yet voted on the revised bill.
Regardless of the House’s motivation, cities, counties, and school districts are thrilled at the prospect of eliminating revenue-neutral and getting a bonus for raising taxes. Government wins and taxpayers lose.
Here’s hoping the Senate will stand up for taxpayers and derail the House effort.
