Kansas 2023-2024 Regular Session

Kansas Senate Bill SB536

Introduced

3/6/24

Refer

3/7/24

Failed

4/30/24

Caption

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.

Impact

The enactment of SB536 would significantly impact how local governments approach budget preparation and tax levies. By tying the availability of state funds directly to the fiscal practices of local municipalities, the bill effectively incentivizes them to maintain tax levels that do not exceed previous years’ totals. This could lead to a broader strategic shift where local entities are more cautious in their financial planning and may require adjustments in services or infrastructure spending to comply with the new budgetary guidelines. Critics may argue that this adds unnecessary constraints to local budgeting, limiting their flexibility in responding to community needs.

Summary

Senate Bill 536 (SB536) proposed by the Committee on Assessment and Taxation aims to establish a new requirement for political subdivisions in Kansas concerning the local ad valorem tax reduction fund (LAVTRF). The bill mandates that these subdivisions must adopt and certify budgets that remain at or below a revenue-neutral level to qualify for LAVTRF distributions. This means that if they wish to receive funds from this state-level program, they must demonstrate fiscal responsibility in their tax levies, providing a specific framework for budgetary compliance which is intended to uphold fair taxation practices across the state.

Conclusion

In summary, SB536 represents a significant shift in the relationship between state funding and local governmental budgeting practices in Kansas. As it stands, the bill's passage could foster a more structured approach to tax-related fiscal accountability. However, its long-term effects on local governance and funding dynamics will need careful observation if enacted.

Contention

The bill has generated discussions regarding its implications for local governance. Proponents assert that it is a means to ensure responsible fiscal practices and reduce property tax burdens on residents by limiting the ability of local subdivisions to increase taxes unrestrictedly. However, opponents may view it as a legislative overreach, arguing that it undermines local governance autonomy by imposing state-level controls on budgetary matters. The provision that political subdivisions may choose not to participate in LAVTRF distributions adds another layer of complexity, as it raises questions about the extent of state influence over local financial decisions.

Latest KS SB536 Activity

View All Events: KS 2023-2024 Regular Session SB536

Companion Bills

No companion bills found.

Previously Filed As

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 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 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 HJR202

Proposing a constitutional amendment to provide for an exemption from ad valorem taxation of the total market value of real property on which the ad valorem taxes have been prepaid and to establish the prepaid property tax trust fund to provide annual distributions to political subdivisions affected by the exemption.

KS HB299

Relating to a limit on political subdivision expenditures and the adoption of ad valorem tax rates.

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 SB2826

Motor vehicle tags; remove portion of fees deposited to State General Fund, or rededicate to Ad Valorem Tax Reduction Fund.

KS SB2877

Motor vehicle tags; remove portion of fees deposited to State General Fund, or rededicate to Ad Valorem Tax Reduction Fund.

KS SB73

Modifying deadlines for mailing property tax statements to taxpayers and certification of tax levies to the director of property valuation to be earlier than the current deadlines and providing for the county clerk's use of the previous year's budget when a taxing subdivision fails to timely file its budget.

KS SB382

Ad Valorem Taxation; make the state-wide base year homestead exemption mandatory for all political subdivisions

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