The proposed bill significantly alters property taxation in Kansas by requiring voter approval for any increase in property tax revenues for the following year. Taxing jurisdictions must submit a request to electors that details the maximum amount of ad valorem tax and the percentage increase it represents. If the voters approve the request, the jurisdiction can levy the specified amount but cannot exceed it. The bill also establishes a property tax relief fund, which will receive annual transfers from the state general fund, and outlines how these funds will be distributed to counties that comply with certain property tax limits.

Additionally, the bill amends existing laws related to property tax calculations and notifications, repealing the "revenue neutral rate" concept and replacing it with a property tax limit that allows for a maximum increase of 3% from the previous year's levies. It mandates that counties not eligible for the property tax relief fund must notify the director of property valuation to receive their share. The bill also introduces a new term, "property tax limit," and requires the county clerk to reduce any ad valorem tax that exceeds this limit. Furthermore, it establishes a taxpayer notification costs fund to reimburse county clerks for expenses related to notifying taxpayers about property tax levies. Overall, the legislation aims to enhance taxpayer control over property tax increases while providing financial support to compliant counties.

Statutes affected:
As introduced: 72-5137, 79-2988, 79-2929, 79-2989