On the last day of the regular session, the Kansas Legislature passed HB 2745, a mill rate limit that allows voters to sign a protest petition to stop local government entities from increasing property taxes beyond the rate of inflation.
82% of voters say they want a mill rate limit, but the bill barely made it through both chambers, with all Democrats except Senators David Haley and Patrick Schmidt and many Republicans in both chambers voting ‘no’ because they think it is not fair to cities, counties, and school districts. The House vote was 63-59, and the Senate vote was 22-18.
Most of the contention focused on two issues. The House voted (for the third time) to eliminate revenue-neutral and allow a protest petition to keep the tax increase at the limit. The stated limit is 3%, but new construction and tax increases for some spending are exempt, making the effective limit more like 5%.
The Senate modified the bill to reinstate revenue-neutral and allow a protest petition to stop increases above inflation, with no exceptions. A successful protest petition would result in no property tax increase. The Senate bill also applies to school districts, whereas they were exempted in the House version.
Opponents in both chambers say local governments should be allowed larger increases because local officials better understand what spending is necessary.
Legislators who voted for the mill rate limit said taxpayers need a way to stop excessive and unaffordable tax increases.
Since 1997, property taxes for education increased by 224%, which is more than double the combined rates of inflation and population growth. Property taxes for other local government operations jumped by 272%.
The House and Senate will reconvene on April 9 to deal with an expected veto by Governor Kelly. The House needs 21 more votes to override a veto, and 5 Senators need to flip for an override to succeed.
