Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor

March 4, 2019


The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
Statehouse, Room 123-E
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 151 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 151 is
respectfully submitted to your committee.
Under current law, the first $20,000 of assessed value of residential personal property is
exempt from the 20-mill property tax levy that is used for financing State Foundation Aid in the
state’s school finance formula. This law is in effect for taxable years 2017 and 2018. SB 151
would increase the exemption to the first $40,000 of assessed value of residential personal property
for taxable years 2019 and 2020.
According to the Department of Revenue Division of Property Valuation, increasing the
residential property exemption from $20,000 to $40,000 would decrease revenues generated from
20-mill school levy by approximately $46.0 million in FY 2020 and approximately the same each
consecutive year. In order to have the same amount of state aid distributed to schools through the
school finance formula, the enactment of SB 151 would require a corresponding increase in the
State General Fund appropriation for State Foundation Aid of $46.0 million. State Foundation Aid
included in The FY 2020 Governor’s Budget assumes the $20,000 exemption would continue
through FY 2024.

Sincerely,

Larry L. Campbell
Director of the Budget

cc: Lynn Robinson, Department of Revenue
Dale Dennis, Education


Statutes affected:
As introduced: 79-201x, 72-5142