Kansas 2023-2024 Regular Session

Kansas House Bill HB2026

Introduced
1/12/23  
Refer
1/12/23  
Report Pass
2/8/23  
Engrossed
3/13/23  
Refer
3/14/23  
Report Pass
3/26/24  

Caption

Senate Substitute for HB 2026 by Committee on Assessment and Taxation - Requiring political subdivisions to adopt a budget that remains at or below revenue neutral and use funds to reduce property tax in order to receive local ad valorem tax reduction fund (LAVTRF) distributions, providing for one annual transfer to the fund, eliminating the county and city revenue sharing fund and discontinuing certain transfers to the special city and county highway fund.

Impact

The enactment of HB 2026 is expected to have a significant impact on how local governments manage their finances. By tying the access to LAVTRF distributions to revenue-neutral budgeting, the bill could potentially curtail excessive local spending and encourage tax reduction measures. This approach may lead to a more equitable tax environment across different jurisdictions, as it compels local governments to be more accountable for their tax rates and budget allocations.

Summary

House Bill 2026 is a tax-related bill that mandates political subdivisions to adopt budgets that remain at or below a revenue-neutral level. This control over local budgets aims to ensure that funds are utilized to reduce property taxes. The bill stipulates that local entities must adhere to this requirement in order to qualify for distributions from the local ad valorem tax reduction fund (LAVTRF). By instituting these conditions, the bill seeks to promote fiscal responsibility among local governments.

Contention

While proponents argue that HB 2026 will foster prudent financial management and provide tax relief for property owners, some critics express concerns regarding its implications for local control. Detractors worry that this mandate could limit the ability of local governments to respond to their specific needs, undermining their flexibility to allocate resources as they see fit. Additionally, there may be challenges in adhering to the revenue-neutral requirement, particularly in times of economic strain when local revenues may fluctuate significantly.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2396

Senate Substitute for HB 2396 by Committee on Assessment and Taxation - Authorizing the use of a protest petition to limit funding of a taxing jurisdiction by property tax revenues exceeding a certain amount, providing for a protest petition notice to be sent to taxpayers and modifying the content requirements of the revenue neutral rate hearing notice.

KS HB2745

Senate Substitute for HB 2745 by Committee on Assessment and Taxation - Providing a protest petition to contest certain increases in property tax revenues and continuing reimbursements from the taxpayer notification costs fund for an additional five years.

KS HB2292

Providing for food sales tax revenue replacement for STAR bond districts established prior to December 31, 2022, establishing the STAR bonds food sales tax revenue replacement fund, providing for transfers from the state general fund to such revenue replacement fund and transfers from such revenue replacement fund in the amount of food sales tax revenues lost to the applicable cities or counties and extending the sunset date of the STAR bonds financing act to July 1, 2031.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS SB33

House Substitute for Substitute for SB 33 by Committee on Taxation - Providing that countywide retailers' sales tax is apportioned based on total assessed valuations of the county and cities within the county rather than property taxes levied.

KS HB2125

Senate Substitute for HB 2125 by Committee on Assessment and Taxation - Modifying the deadline for mailing property tax statements to taxpayers and the deadline for governing bodies to certify the amount of property tax to be levied to the county clerk, providing for the county clerk's use of the previous year's budget when a taxing subdivision fails to timely file its budget, modifying the content requirements of the revenue neutral rate hearing notice for property tax purposes, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar years 2025 and 2026, prohibiting a filing fee when a previous appeal remains pending before the board of tax appeals and authorizing the continuation of the 20-mill statewide property tax levy for schools.

KS SB488

Enacting the Kansas property tax freedom act of 2026, providing for the phased elimination of property taxation and for revenue replacement grants to taxing subdivisions, establishing the Kansas fair share purchase surcharge and providing such revenue to taxing subdivisions, the state general fund and the new property tax freedom reserve fund and providing for freedom dividend rebates.

KS HB2298

Transferring $1,000,000,000 from the budget stabilization fund to the liability reduction fund of KPERS, using a portion of the interest earnings of the liability reduction fund to provide a 2% COLA for retirants who have been retired for more than 5 years, transferring annually certain amounts from the state general fund to the budget stabilization fund and establishing requirements for the expenditure or transfer of moneys from the budget stabilization fund.

KS HB539

Local highway system funding; revenue-sharing funds, funding cycle.

KS SB35

Discontinuing the state property tax levies for the Kansas educational building fund and the state institutions building fund and providing for financing therefor from the state general fund.

Similar Bills

No similar bills found.