A new twist on the contentious issue of property taxes is being played out in Paola. A “protest petition” aimed at the USD 368 administration’s idea of producing revenue by implementing a Cost-of-Living Adjustment tax (COLA) on assessed valuations of property is nearing completion. Organizers hope to place the question on the November ballot. If the petition drive fails, the tax will go into effect July 1st as the school board has already approved the measure in a 6-1 vote at a board meeting in March.
COLAs are normally associated with individual income increases; pay raises or Social Security benefit increases, for example, based on increases in the Consumer Price Index (CPI) as beneficiaries seek to outpace inflation. But Kansas law (Statute 72-5159) allows for COLAs to be implemented as revenue producers based on this formula to calculate assessed valuations of property:
(1) Determine the statewide average appraised value of single-family residences for the calendar year preceding the current school year;
(2) multiply the amount determined under subsection (1) by 1.15;
(3) determine the average appraised value of single-family residences in each school district for the calendar year preceding the current school year; and
(4) subtract the amount determined under subsection (2) from the amount determined under subsection (3). If the amount determined for the school district is a positive number and the school district has adopted a local option budget in an amount equal to at least 31% of the total foundation aid for the school district, the school district qualifies for assignment of cost-of-living weighting and may levy a tax on the taxable tangible property of the school district for the purpose of financing the costs that are attributable directly to assignment of the cost-of-living weighting to the enrollment of the school district.
In other words, districts with a higher-than-average statewide assessed property valuation are allowed to impose a COLA tax. In Miami County, only Paola and Louisburg have that designation.
The statute goes on to read that once approved, the COLA must be renewed each year.
Director of Business and Finance Jimmy Hay makes the district’s budgetary case for the COLA, and provided the table below:
“USD 368’s 2024-25 published budget levies $1,443,848 for bond & interest debt service. Those bonds will be paid off and the district will not levy those funds in 2025-26. The cost of living and related local option budget change would generate an estimated $682,568 for the district. The net change is a decrease of -$761,280.
“USD 368 has the 2nd lowest mill rate of any school district in Miami County (https://www.miamicountyks.org/Archive.aspx?AMID=40) and taxes would decrease approximately $761,280 with Cost of Living due to the bond payoff. USD 368 was revenue neutral in 24-25 and would again in 25-26 be under this scenario (actually revenue negative with the tax decrease) as described above and as indicated in the cost of living presentations.”
Interestingly, Hay doesn’t say the district needs more tax revenue; they just want it.
Board Member Samantha Poetter-Parshall cast the lone vote in opposition to the COLA tax proposal:
“There are several reasons I oppose the increase. First, why should we pass it if we don’t need it? Second, when I ran for School Board, I promised not to vote to increase property taxes.
“Most of all, it is completely absurd to call a tax increase a cost-of-living adjustment. It’s government profiting off the unrealized gains of taxpayers under the pretense the property owners’ individual wealth went up, when in fact very few people saw a pay increase at even a fraction of the amount their appraisals increased over the last several years.”
She adds she is satisfied the required number of signatures have been secured to place the issue on the November ballot, and she credits the work of the organizers:
“Courtney Crawford had an attorney draft the language, which was approved. Courtney, along with Kristie Chavez began circulating it. Several others jumped in to help, and they are far above the required number of signatures needed to be a successful petition. It’s something that has never been achieved, and I am beyond grateful they jumped right in to give the people have a voice.”
Once the petition is delivered to the Miami County Clerk, it will be analyzed for signature verification and placed on the November ballot.
