March 16, 2021
One of the first priorities of the Senate was to address property tax reform. The bill requires local government to practice “Truth in Taxation” when they desire to use revenues from higher property valuations to increase taxes. This legislation is similar to legislation that has been used in several states, including Utah for over 20 years. The highlights of the bill: Transparency-The bill would establish new notifications and public hearing requirements for taxing subdivisions seeking to increase property taxes above those provided for by their “revenue-neutral rate.” A taxing subdivision would be prohibited from levying taxes exceeding its revenue-neutral rate without first approving a resolution or ordinance in accordance with the procedure provided by the bill. It requires county clerks to notify the public about the intent to exceed the “revenue neutral rate” via publishing such notification on their website as well as via a mailing to each taxpayer impacted. The public hearing would have to he held by September 10th. The governing body of the taxing district would have to vote to exceed the revenue neutral rate by a majority vote. Those entities not complying would be required to refund the property taxes. Regular Maintenance of Property-The bill would prohibit an increase in the appraised value of real property solely as a result of normal repair, replacement, or maintenance of existing structures, equipment, or other improvement on the property. Payment Plans-The bill would authorize county treasurers to accept partial payments and establish payment plans for all property taxes. Current law allows treasurers to accept partial payments for delinquent property taxes. Finally, this bill will eliminate the property tax lid, which currently requires a public vote or certain property tax increases by cities and counties. The process of navigating the property tax lid could be cumbersome and often resulted in no practical benefit to the taxpayer.
The process included with SB13 greatly enhances the ability of Kansas taxpayers to understand what their local government is doing and then object. By requiring local officers to vote to exceed a revenue neutral rate, taxpayers can hold local officials accountable. The House amended the bill to include all local taxing jurisdictions in the state, including school districts. The Senate accepted the amendments, and the bill is now headed to the governor.
The Kansas Senate voted on SB50 which will provide fairness to main street businesses in Kansas that are attempting to compete with out-of-state online retailers. SB50 would mandate the collection and remittance of sales and compensating use tax by most marketplace facilitators beginning July 1, 2021. Entities with an annual gross receipt from sales into Kansas in excess of $100,000 would be subject to the mandate, which also would apply to out-of-state retailers with annual receipts from sales sourced into Kansas in excess of $100,000. In the Wayfair decision, the United States Supreme court made it clear that states needed to have a threshold in order to be in compliance. This will help level the playing field with Kansas businesses that are already collecting sales tax on sales in Kansas.
The Senate Ways and Means committee completed our work on the budget last week and the budget bill is scheduled to be debated on the floor Tuesday.
It is an honor and pleasure to serve the 40th Senate District of Kansas. Please do not hesitate to contact me by e-mail at [email protected]. You may also call me with your questions or concerns. My office number is 785 296-7399, or my cell number is 785- 899-4700.
Rick Billinger, R-Goodland, is state senator of the Kansas 40th Dist.
The 40th Senate District includes Cheyenne, Decatur, Ellis, Gove, Graham, Logan, Norton, Rawlins, Sheridan, Sherman, Thomas, Trego and Wallace counties, and a portion of Phillips County.