Increasing the extent of property tax exemption for residential property from the statewide school levy.
Impact
The enactment of SB97 would amend existing statutes regarding property taxation, particularly K.S.A. 2022 Supp. 79-201x, which governs the exemptions applicable to residential properties. The bill also sets forth a provision for annual adjustments to the exemption amount based on the average percentage change in statewide residential valuation over the preceding decade. This dynamic adjustment mechanism is designed to align the exemption amount with market changes, theoretically helping to maintain the exemption's relevance over time.
Summary
Senate Bill No. 97 aims to increase the exemption threshold for property taxation related to residential properties from the statewide school levy in Kansas. Specifically, the bill increases the exemption from $40,000 to $65,000 of the appraised valuation for taxable years 2022, 2023, and thereafter. This change is intended to provide financial relief to homeowners by reducing the amount of property tax they are required to pay, particularly in a time of rising property values.
Contention
While proponents argue that increasing the property tax exemption will help ease the financial burden on homeowners, critics may contend that it could impact funding for public schools, which rely heavily on property taxes as a funding source. Opposition might arise from concerns that reduced tax revenues could affect the quality of educational services and resources available to students. The balance between providing tax relief to residents and ensuring adequate funding for essential public services is likely to be a central point of debate surrounding this legislation.
Decreasing the rate of ad valorem tax imposed by a school district, increasing the extent of exemption for residential property from the statewide school levy and providing for certain transfers to the state school district finance fund.
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.
Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.
Restricting residential homestead property taxes to not more than the established base of property taxes owed for individuals 65 years of age and older and eliminating the property tax exemption for certain commercial properties used for healthcare when in competition with other non-exempt properties.