SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2063
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
Senate Sub. for HB 2063 would eliminate the statewide
1 mill levy for the Kansas Educational Building Fund (EBF)
and the 0.5 mill levy for the State Institutions Building Fund
(SIBF) beginning in tax year 2020 (proceeds of which are
received primarily in FY 2021).
The bill would create annual demand transfers of $38.3
million from the SGF to the EBF and $19.2 million from the
SGF to the SIBF, beginning in FY 2021.

Background
The bill, as introduced, related to a property tax lid
exemption in the case of dissolved taxing entities [Note: these
provisions were enacted in 2019 HB 2188]. The Senate
Committee on Assessment and Taxation, on February 24,
2020, removed the contents of the bill, inserted the contents
of SB 466, and created a substitute bill. The background of
SB 466 is provided below.

SB 466 Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Tyson.
____________________
*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
 In the Senate Committee hearing on the bill, a
representative of the Kansas Policy Institute and two private
citizens testified in support of the bill. The proponents stated
the bill would provide guaranteed property tax relief.
Representatives of the Kansas Board of Regents and the
Associated General Contractors of Kansas testified in
opposition to the bill. They stated the dedicated revenue
streams of the 1 and 0.5 mill levies are better for
maintenance projects than transfers from the SGF.
The fiscal note on the bill prepared by the Division of the
Budget on SB 466 indicates the bill would reduce SGF
revenues by $57.5 million in FY 2021 and in all future years
by creating the transfers to the EBF and SIBF. Additionally,
the bill is estimated to reduce revenue to the state building
funds by $6.8 million in FY 2021 and by greater amounts in
future years as revenues from the 1 and 0.5 mill levies are
estimated to increase with property valuations each year. Any
fiscal effect associated with the bill is not reflected in The FY
2021 Governor’s Budget Report.


2- 2063


Statutes affected:
As introduced: 79-2925c
S Sub: 76-6b01, 76-6b02, 76-6b04, 76-6b05, 76-6b11