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

January 28, 2020
REVISED

The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
Statehouse, Room 123-E
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Revised Fiscal Note for SB 263 by Senate Committee on Assessment and
Taxation
In accordance with KSA 75-3715a, the following revised fiscal note concerning SB 263 is
respectfully submitted to your committee.
SB 263 would require that the property tax statement of the classification and appraised
valuation from the county appraiser contain additional information. The statement would be
required to contain the mill levy and total property tax for the next preceding taxable year; an
estimate of the current year property tax based on the current year assessed value and the mill levy
for the next preceding taxable year; and an explanatory statement that the current year property tax
estimate is calculated based on the mill levy for the next preceding taxable year, as the final mill
levy rate for the current year has not yet been computed, and that the actual tax on the property
may vary from the estimate.

Estimated State Fiscal Effect
FY 2020 FY 2020 FY 2021 FY 2021
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- $80,000 $80,000
FTE Pos. -- -- -- --
The Department of Revenue and Board of Tax Appeals indicate SB 263 would have no
fiscal effect on state revenues. The Department of Revenue indicates that the bill would require
approximately $80,000 from the State General Fund in FY 2021 to implement the bill and to
modify the mass appraisal system used by all counties. The required programming for this bill by
itself would be performed by existing staff of the Department of Revenue. In addition, if the
The Honorable Caryn Tyson, Chairperson
Page 2—SB 263

combined effect of implementing this bill and other enacted legislation exceeds the Department’s
programming resources, or if the time for implementing the changes is too short, additional
expenditures for outside contract programmer services beyond the Department’s current budget
may be required. Since the original fiscal note was issued, the Department of Revenue included
an estimate of its administrative costs needed to implement the bill. Any fiscal effect associated
with SB 263 is not reflected in The FY 2021 Governor’s Budget Report.
The Kansas Association of Counties indicates that the bill has the potential to increase costs
for counties by requiring additional information to be included on the annual property tax
statement. This could also result in additional staff time devoted to respond to questions from
taxpayers to clarify that the estimate included on the property tax statement is not the tax bill for
the next tax year. However, the Kansas Association of Counties did not provide a precise estimate
of any increased costs.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Jody Allen, Tax Appeals
Lynn Robinson, Department of Revenue
Jay Hall, Association of Counties


Statutes affected:
As introduced: 79-1460