No systemic change was adopted to the current Kansas property tax regime that is based upon “comparable market value”. This approach allows yearly spikes in taxes tied to increased valuations which under current law can increase taxes at unlimited rates.

All of this in the face of the public outcry that many Kansans are being squeezed out of their homes. I have personally had constituents tell me as a County Commissioner that if something is not done their families will likely have to leave the state.

Business climate

One of the key issues with the current property tax system is it creates economic instability.

If an individual or a business cannot plan their budget and expenses for the foreseeable future, it is difficult to conduct business. The current Kansas property tax system makes it impossible to know for the next three to five years what the aggregate tax amounts will be much less the rates.

26 states have caps

Twenty-six states already have implemented some version of a cap or tax circuit breaker on valuation increases.

Under the cap, tax increases due solely to valuation increases would be limited to 3-4%.

Legislative failures

In Topeka this session, a Constitutional Amendment was offered, SCR 1603, which contained a 3% cap. Changing property tax appraisal and valuation requires an amendment because it is currently in the Kansas Constitution. Both Commissioner Willie Dove and I testified before legislative committees in support of the amendment.

The amendment was adopted by a 2/3 majority in the Kansas Senate and then seemed to hit a brick wall when Speaker of the House Hawkins indicated he was unwilling to bring it to the floor for a vote.

Meanwhile the House rolled out an alternative Constitutional Amendment HCR 5011, which would have based tax rates on a rolling average on valuation increases for an unspecified number of years.

Once again, I testified before the House tax committee along with Commissioner Dove in support of the rolling average but stated that the cap would be better because of an actual limitation being put in place.

In the end after much legislative back-and-forth and a vote in the House, no amendment was passed and the current system will remain in place. No systemic change was made by the legislature to our spiking property tax system. That is becoming a monster and a burden to many residents.

What they did approve

The Legislature did approve eliminating the state 1.5 mill property tax that was used to fund the Kansas School for the Deaf and Kansas School for the Blind and other state education buildings. This cut amounts to about $30 per year in property tax reduction on a home valued at $150,000 or around a $60 per year reduction on a home valued at $350,000.

Local governments can help

Local governments, including Leavenworth County, soon will begin budget season. Local governments can contribute to reducing local property taxes by being prudent, making careful budget decisions and reducing levies. It is imperative that you and your neighbors engage with the process so your local government leaders act on your behalf.

However, local governments cannot control the valuation system, which allows home values to continue to skyrocket based only on the comparable sales. A local government could reduce the actual mill rate, which should result in a tax reduction, but if your home value increases by thousands in a single year an individual could still be hit by a big tax increase based upon the new “value.”

Next year

Next year will be an election year in Kansas, hopefully when the Legislature reconvenes, they will reconsider their failure to act on property taxes. Please become part of the process. Too often voters fail to remember their tax concerns in the voting booth.

Kansans deserve better.