SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2002
As Amended by Senate Committee of the Whole

Brief*
HB 2002, as amended, would amend law related to the
revenue neutral rate hearing notice, require property
valuation notices to include additional information, permit the
use of fee simple appraisals performed by Kansas Certified
Residential Real Property Appraisers in certain valuation
appeals, permit payment under protest appeals by taxpayers
having already appealed their property valuation pursuant to
an equalization appeal, and codify agricultural land adverse
influences for property valuation purposes.
The bill would be in effect upon publication in the
Kansas Register.

Revenue Neutral Rate Hearing Notice and
Reimbursement
The bill would extend for one additional year, through
calendar year 2024, the state reimbursement of printing and
postage costs incurred when county clerks are required to
mail notices of proposed tax increases beyond the revenue-
neutral rate. The bill also would extend the transfer from the
State General Fund to the Taxpayer Notification Costs Fund
to reimburse the printing and postage costs for one additional
year.
The bill also would replace the current provisions
establishing minimum requirements for the contents of the
revenue neutral rate hearing notice with new provisions
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
specifying the heading and opening statement of the notice
and requiring:
● The appraised and assessed value of the
taxpayer’s property for the current and previous
year;
● The amount of property tax of each taxing
subdivision on the property from the previous
year’s tax statement;
● The estimated amount of property tax for the
current year of each taxing subdivision based on
the revenue neutral rate;
● The estimated amount of property tax for the
current year of each taxing subdivision based on
the greater of the revenue neutral rate or the
proposed tax rate provided by the subdivision to
the county clerk, if the subdivision has notified the
clerk of its intent to exceed the revenue neutral
rate;
● The difference between the current year’s
maximum tax and the previous year’s tax, in both
dollars and percent, for each taxing subdivision;
● The date, time, and location of the hearing for each
subdivision intending to exceed the revenue
neutral rate; and
● For each taxing subdivision holding a revenue
neutral rate hearing, the difference between the
current year’s maximum tax and the estimated tax
at the revenue neutral rate.
Property Valuation Notice Information
The bill would require annual property valuation notices
provided by county appraisers to include the appraised and
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assessed value of the property for the current year and two
preceding years.
[Note: Current law requires the notice to include
information for the current year and one preceding year.]

Residential Real Property Valuation Appeals
The bill would permit the use of appraisals performed by
Kansas Certified Residential Real Property Appraisers for the
equalization appeal procedure wherein a taxpayer files a
third-party fee simple appraisal within 60 days after the notice
of informal meeting results or final determination is mailed to
the taxpayer.
[Note: Current law provides for only the use of
appraisals performed by Kansas Certified General Real
Property Appraisers for this appeal procedure.]

Payment Under Protest Prohibition Repeal
The bill would eliminate a provision prohibiting a
taxpayer from appealing the valuation of their property using
the payment under protest appeal procedure if they have
already appealed their valuation pursuant to the equalization
appeal and informal meeting procedure.

Agricultural Land Adverse Influence
The bill would codify the adjustments reducing the
taxable value of agricultural land on the basis of adverse
influences not sufficiently accounted for in the agricultural use
valuation formula that are currently provided for in
administrative guidance from the Property Valuation Division
of the Department of Revenue.
The codified adverse influences would include, but not
be limited to:
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 ● Canopy cover, for which value is reduced from 20
to 50 percent based upon canopy covering of 25 to
100 percent of the impacted land.
● Salinity and alkalinity, for which value is reduced
based upon a taxpayer-provided soil analysis from
a crop consulting service;
● Water table fluctuation, for which value is reduced
based upon the results of a U.S. Department of
Agriculture Natural Resources Conservation
Service review of the water table levels of the
impacted land; and
● Newly constructed drainage and flood control
areas, for which value is reduced based upon the
impact on land use from newly constructed
drainage and flood control areas.
Background
The bill was introduced by Representative Fairchild.

House Committee on Taxation
In the House Committee hearing, proponent testimony
was provided by Representative Fairchild, a representative of
the Kansas Association of Counties, and a former county
commissioner of Linn County. The proponents generally
stated county costs associated with requirements mandated
by the State should be reimbursed by state funds.
Written-only proponent testimony was also provided by
representatives of the City of Overland Park, Kansas
Association of School Boards, Kansas County
Commissioners Association, League of Kansas
Municipalities, and Unified Government of Wyandotte County
and Kansas City, Kansas, as well as county clerks from
Sedgwick and Cowley counties, county commissioners from
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Meade and Stafford counties, the Riley County Board of
Commissioners, a Sedgwick County manager, a city manager
of Manhattan, and the Director of Treasury, Taxation, and
Vehicles of Johnson County.
Written-only neutral testimony was provided by a
representative of the Kansas Policy Institute.
Opponent testimony was provided by a resident of
Douglas County, who stated requiring counties to pay costs
associated with raising taxes above the revenue-neutral rate
provides accountability for imposing such increases.

Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Representative Fairchild, who generally
stated the revenue neutral rate law without the
reimbursement would amount to an unfunded mandate by the
state upon local governments.
Written-only proponent testimony was provided by
representatives of the Kansas Association of Counties,
Kansas Association of School Boards, League of Kansas
Municipalities, Meade County, and the City of Overland Park.
Written-only neutral testimony was provided by a
representative of the Kansas Policy Institute.
No other testimony was provided.
The Senate Committee amended the bill to change the
reimbursement extension from indefinite to one additional
year and to insert provisions:
● Increasing the number of prior years’ data provided
on appraisal notices (similar to provisions
previously contained in HB 2201);

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 ● Modifying the contents of and specifying the form
for the revenue neutral rate hearing notice;
● Permitting the use of fee simple appraisals
performed by Kansas Certified Residential Real
Property Appraisals in residential property
valuation appeals;
● Codifying adverse influences for agricultural land
valuations; and
● Changing the effective date.
Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
insert the provision permitting payment under protest appeals
by taxpayers who have previously appealed their valuation
pursuant to the equalization appeal procedure.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue indicates language relating to the revenue-neutral
rate requirements would have no fiscal effect on state
property tax revenue, but would result in a maximum State
General Fund transfer of $1.3 million in tax year 2024, which
would occur in fiscal year 2025. The Department indicates
future transfers could be higher, as the cost of printing and
postage may increase.
A revised fiscal note on the amended bill was not
immediately available. Any fiscal effect associated with the bill
is not reflected in The FY 2024 Governor’s Budget Report.
Taxation; property tax; appraisals; revenue neutral rate; reimbursement; appraisal
notification; valuation appeals; payment under protest; revenue neutral rate hearing
notice; agricultural land; adverse influence

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Statutes affected:
As introduced: 79-2989
As Amended by Senate Committee: 79-1460, 79-1496, 79-2988, 79-2989
{As Amended by Senate Committee of the Whole}: 79-1460, 79-1496, 79-2005, 79-2988, 79-2989
Enrolled - Law effective July 1, 2023: 12-187, 12-189, 12-192, 74-8927, 19-430, 58-4105, 79-1460, 79-2001, 79-2017, 79-3606
Enrolled: 12-187, 12-189, 12-192, 74-8927, 19-430, 58-4105, 79-1460, 79-2001, 79-2017, 79-3606