Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 16, 2023


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 196 by Senator Pittman
In accordance with KSA 75-3715a, the following fiscal note concerning SB 196 is
respectfully submitted to your committee.
SB 196 would reinstate the statutory transfer from the State General Fund to the Local Ad
Valorem Tax Reduction Fund (LAVTRF) beginning in FY 2024. The LAVTRF transfer would
be based on 3.63 percent of the State General Fund portion of retail sales and compensating use
taxes collected in the previous calendar year. Under current law, the State General Fund transfer
to the LAVTRF is set to resume in FY 2025 with a total transfer amount of $54.0 million.

Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- ($118,900,000) ($118,900,000)
Expenditure -- -- -- $118,900,000
FTE Pos. -- -- -- --
SB 196 would reduce State General Fund revenues by $118.9 million in FY 2024 by
resuming the State General Fund transfer to the LAVTRF. The Department estimates that $53.4
million would be transferred from the State General Fund to the LAVTRF on July 15, 2023, and
$65.5 million would be transferred from the State General Fund to the LAVTRF on January 15,
2024. Transfers from the State General Fund to the LAVTRF in future fiscal years would be
calculated based on actual retail sales and compensating use taxes tax collected in the previous
The Honorable Caryn Tyson, Chairperson
Page 2—SB 196

calendar year. The last State General Fund transfer to the LAVTRF occurred in FY 2003 and
transfers have routinely been suspended in appropriations bills.
The Department of Revenue’s Property Valuation Division would be required to calculate
and report current assessed values and distribution, as well as update related documents. The
Department indicates that these costs are estimated to be negligible and could be absorbed within
existing resources.
The State Treasurer indicates the bill would require it to implement minor computer
programming changes in order to apportion and pay amounts to counties based on population and
assessed valuation. The State Treasurer indicates that the programming costs are estimated to be
negligible and could be absorbed within existing resources. The amounts transferred to the
LAVTRF would also be required to be included as expenditures in the State Treasurer’s budget
beginning in FY 2024. Any fiscal effect associated with SB 196 is not reflected in The FY 2024
Governor’s Budget Report.
The League of Kansas Municipalities and the Kansas Association of Counties indicate that
the bill would provide additional resources to local governments for property tax relief.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities
John Hedges, Office of the State Treasurer
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 79-2959