SPECIAL SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE BILL NO. 4
As Recommended by Senate Committee on
Assessment and Taxation

Brief*
SB 4 would establish new notice and public hearing
requirements for certain taxing subdivisions, prohibit certain
real property valuation increases, and provide a one-time
delay in the deadline for payment of property taxes, enact the
Taxpayer Protection Act, extend certain income and privilege
tax filing and payment deadlines, authorize county treasurers
to establish partial payments and establish payment plans for
all property taxes, and provide for county discretion in
handling de minimis property tax penalty charges.
The bill would be in effect upon publication in the
Kansas Register.

Notice and Public Hearing Requirements
The bill would establish, beginning in 2021, new notice
and public hearing requirements for certain taxing
subdivisions prior to property tax increases above a revenue-
neutral rate. The bill would not apply to school districts or to
any taxing subdivisions receiving less than $5,000 annually in
property taxes.
On or before June 15 of each year, beginning in 2021,
the bill would require county clerks to submit the revenue-
neutral rate to all other taxing subdivisions at the same time
estimated assessed valuation information is provided.
“Revenue-neutral rate” would be defined to mean the tax rate
____________________
*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
for the current tax year that would generate the same
property tax revenue as levied the previous tax year using the
current tax year’s total assessed valuation. The bill would
require the Director of Accounts and Reports to modify
budget information forms to show the revenue-neutral rate.
The taxing subdivisions affected by the bill would be
prohibited from levying rates that exceed the revenue-neutral
rates unless the taxing subdivisions have published notice on
their websites of the proposed intent to exceed such rates
and announcing a public hearing on such action. On or before
July 15, the bill would also require governing bodies to notify
county clerks of their intent to exceed revenue-neutral rates.
County clerks subsequently would be required to notify each
taxpayer with property in taxing subdivisions seeking to
exceed such rates of the public hearings at least 10 days in
advance of the hearings. The bill would require county clerks
to send consolidated notifications for all taxing subdivisions
relevant to a parcel of property via mail unless taxpayers and
county clerks both have consented to service by electronic
means. The bill would require all costs associated with
notification requirements to be borne by taxing subdivisions
seeking to exceed their revenue-neutral rates, with payment
for such costs due to county clerks by December 31.
The bill would require, at public hearings required to be
held on or before September 10, governing bodies to provide
interested taxpayers an opportunity to present oral testimony
within reasonable time limits and without unreasonable
restriction on the number of individuals allowed to make
public comment. At the conclusion of the public hearings, the
bill would require a majority vote of governing bodies
adopting resolutions or ordinances that approve exceeding
the revenue-neutral rates, prior to adoption of proposed
budgets resulting in a tax rate that exceeds the revenue-
neutral rates.
The public hearings could be conducted in conjunction
with other required budget hearings of the taxing
subdivisions. Governing bodies taking such action would be
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required to submit on or before September 20 to each county
clerk the amount of property taxes to be levied. Taxing
subdivisions not complying with the notification and public
hearing requirements outlined in the bill would be required to
refund to taxpayers any over-collected property taxes.
The bill also would repeal, beginning in 2021, the current
property tax lid law applicable to cities and counties (KSA 79-
2925c).

Prohibited Valuation Increases
The bill would prohibit an increase in the appraised
valuation of real property solely as a result of normal repair,
replacement, or maintenance of existing improvements on the
property.

Property Tax Payment Delay
The bill would prohibit interest from accruing on unpaid
property tax for tax year 2019 from May 10, 2020, through
August 10, 2020. The tax would not be considered delinquent
for that time and counties would be required to waive any
costs related to delinquent property tax collection charged to
taxpayers prior to August 11, 2020.
The bill would also delay, for tax year 2019 only, the
preparation of a list of real estate subject to sale due to
delinquent taxes until after August 10, 2020, and the
publication deadline of such list would be delayed until
September 1, 2020. Real estate sales of property as a result
of delinquent taxes in 2020 otherwise scheduled to occur on
the first Tuesday of September would be scheduled to occur
on or before the fourth Monday of October.


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Taxpayer Protection Act
The bill would, on and after January 1, 2021, require
paid tax return preparers to sign any income tax return
prepared by or substantially prepared by the preparer and to
include the preparer’s federal preparer tax identification
number on any such return. Any failure to do so would subject
the preparer to a civil penalty of $50 per return with a
maximum of $25,000 in civil penalties per preparer per year.
Any civil penalties assessed could be appealed pursuant to
the Kansas Administrative Procedure Act. Any penalties
collected would be deposited in the State General Fund.
The bill would authorize the Secretary of Revenue
(Secretary) to enjoin any person from acting as a paid tax
preparer by seeking a temporary or permanent order from a
court of competent jurisdiction enjoining such conduct. Under
the bill, an injunction could be issued by a court if the
preparer has engaged in any of the following conduct:
● Prepared a return that understates the taxpayer’s
liability due to an “unreasonable position,” as that
term is defined in the Internal Revenue Code;
● Prepared a return that understates the taxpayer’s
liability due to “willful or reckless conduct,” as that
term is defined in the Internal Revenue Code;
● Fails to, when required, furnish a signed copy of
the return including the preparer’s federal preparer
tax identification number, retain a copy of the
return, or be diligent in determining eligibility for tax
benefits;
● Negotiates a check issued to the taxpayer by the
Kansas Department of Revenue (KDOR) without
the permission of the taxpayer;


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 ● Engages in any conduct subject to any criminal
penalty provided for in Chapter 79 of the Kansas
Statutes Annotated or amendments thereto;
● Misrepresents the preparer’s education,
experience, or eligibility to practice tax preparation;
● Guarantees the payment of any tax refund or the
allowance of any tax credit; or
● Engages in any other fraudulent or deceptive
conduct that substantially interferes with proper
administration of Kansas tax laws.
The bill would allow the Secretary to seek the assistance
of the Attorney General or the Attorney General’s designee in
pursuing such injunctions, and the Secretary would be
required to publish an annual report concerning such
injunctions on the website of the Kansas Department of
Revenue.
Further, the bill would provide that any person, whether
or not a resident of Kansas, submits to the jurisdiction of the
courts of the State of Kansas for purposes of such injunctions
by engaging in any conduct that could give rise to a cause of
action under the Taxpayer Protection Act. The bill would
provide that legal actions brought under the Act would be
brought in the district court of Shawnee County. The
Secretary would be permitted to enter into consent judgments
with respect to violations of the Act in lieu of actions seeking
injunctions.
Finally, the bill would authorize the Secretary to
promulgate rules and regulations necessary to carry out the
provisions of the Taxpayer Protection Act.

Filing and Payment Extension
The bill would extend, for tax year 2019, the deadline for
filing income and privilege tax returns otherwise due April 15,
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2020, through July 15, 2020, to July 15, 2020. The bill would
also prohibit the imposition of penalty or interest associated
with such returns if the liability is paid on or before July 15,
2020.

Property Tax Payment Plans and Partial Payments
The bill would authorize county treasurers to establish
partial payments and establish payment plans for all property
taxes. Current law grants treasurers authority to accept partial
payment for delinquent property taxes.

County Discretion Concerning De Minimis Property Tax
Penalty Charges
The bill would provide that counties have discretion in
refunding, crediting, or retaining any penalties and interest
charged to taxpayers between May 11, 2020, and the
effective date of the bill that are rendered void by this act up
to the amount of $25.

Background
The bill was introduced by Senators Tyson, Alley,
Baumgardner, Berger, Braun, Goddard, Hilderbrand,
Kerschen, Lynn, Olson, Petersen, Rucker, Thompson, and
Wagle.
On June 3, 2020, the bill was referred to and later
passed by the Senate Committee on Assessment and
Taxation. During the Senate Committee meeting, it was noted
the bill is identical to HB 2702, which was passed the
Legislature at its sine die session and vetoed by the Governor
on June 1, 2020.
Additional background on the conferees and testimony
from HB 2702 from the 2020 regular session may be found in

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the conference committee report for HB 2702, as passed by
the Legislature.
A fiscal note on the bill was not immediately available.


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Statutes affected:
As introduced: 79-1110, 79-3228, 79-3221, 79-3225, 79-1460, 79-1801, 79-2302, 79-2303, 79-2925c, 79-2024