A mill rate limit passed at the last minute by the Kansas Legislature would allow voters a say in how much their property taxes rise.
HB 2043 would provide for the use of a protest petition to stop local governments’ property tax increases in excess of the prior year’s amount adjusted for inflation, up to a maximum adjustment of 3 percent per year.
The bill provides for three major exceptions to the mill rate limit:
- The addition of jurisdictional territory, change in use of real property, expiration of a property tax abatement, and expiration of a tax increment financing district or similar district;
- The construction of new structures or improvements or the remodeling or renovation of existing structures or improvements, excluding ordinary maintenance and repair; and
- The payment of bonds, temporary notes, no-fund warrants, state infrastructure loans, and interest payments not exceeding the amount of taxes levied in support of such payments, and payments made to a public building commission and lease payments, but only to the extent such payments were obligations that existed prior to July 1, 2026.
The protest petition would need to be signed by at least 10 percent of the votes cast in the last Secretary of State election within the individual taxing entity. If that happens, then the proposed budget would be deemed disapproved, and the governing body would be required to file an amended budget with property taxes not exceeding the threshold.
The bill also retains the revenue-neutral rate provisions currently part of state law, and amends the form to include information concerning taxing subdivisions subject to protest petitions. The letter can be signed by registered voters and submitted as a signed protest petition.
According to WIBW in Topeka, Kansas Speaker of the House Dan Hawkins praised the mill rate limit.
“Voters have made clear that they want a seat at the table when it comes to how their tax dollars are spent,” Hawkins said in a statement. “If local governments want to continue driving up property taxes on Kansas families faster than inflation, they should be able to step in and say ‘enough.’ HB 2043 gives taxpayers a chance to stand up and fight back against runaway property taxes. We call on the governor to join the Legislature and the People of Kansas and sign property tax relief into law.”
Kansas Governor Laura Kelly has already vetoed a similar bill — Senate Sub for House Bill 2745.
While HB 2043 passed with veto-proof majorities — the House voted 87-35 in favor, and the Kansas Senate passed the bill 27-13 — the Kansas Legislature has adjourned “Sine Die,” meaning the session is over, and, should Kelly choose to veto the mill rate limit, Republicans have little recourse.
