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 20, 2023


The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2366 by Representative V. Miller, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2366 is
respectfully submitted to your committee.
HB 2366 would transfer a total of $108.0 million from the State General Fund to the Local
Ad Valorem Tax Reduction Fund (LAVTRF) in FY 2024, FY 2025, FY 2026, and FY 2027. The
bill would transfer a total $54.0 million from the State General Fund to the LAVTRF beginning in
FY 2028 and in each future fiscal 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 -- -- ($108,000,000) ($108,000,000)
Expenditure -- -- -- $108,000,000
FTE Pos. -- -- -- --
HB 2366 would reduce State General Fund revenues by $108.0 million in FY 2024 by
resuming the State General Fund transfer to the LAVTRF. The last State General Fund transfer to
the LAVTRF occurred in FY 2003 and transfers have routinely been suspended in appropriations
bills. The fiscal effect to state revenues during subsequent years would be as follows:
FY 2025 FY 2026 FY 2027 FY 2028
State General Fund ($108,000,000) ($108,000,000) ($108,000,000) ($54,000,000)
The Honorable Adam Smith, Chairperson
Page 2—HB 2366

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 HB 2366 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: Lynn Robinson, Department of Revenue
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties
John Hedges, Office of the State Treasurer


Statutes affected:
As introduced: 79-2959