MARC JACOBS
Hutch Post
The Kansas House on Friday passed two bills that could provide property tax relief to Kansans.
The first bill, HR 2396 limits the property tax revenue increases. It limits the increase for jurisdictions based upon previous year inflation, new construction and some bond payments. It also creates a fund to provide payments to cities and counties that comply with the set funding limit.
The created ASTRA fund, if used to its full extent, could result in approximately $70-75-millon of property tax relief yearly according to House Tax Chair Adam Smith. This is $130 million more of total property tax yearly each year. When paired with HCR 5011 which levels out the predictability of valuation spikes.
The bill also allows the revenue-neutral rate increase provisions and allows voters to protest the budget exceeding the limit. If successful, the budge would be limited to the previous years level.
HCR 5011 if passes would make it so property values would be based on the lesser of the fair market value or the average fair market value. Conditions of the bill state that the legislature needs to determine the number of years to determine the average fair market value.
HB 2396 passed 115-6 and HCR 5011 passed 117-4. Both bills now head to the Kansas Senate.