Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                          Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                      adam.c.proffitt@ks.gov
Topeka, KS 66612                                Division of the Budget                              http://budget.kansas.gov
Adam Proffitt, Director                                                                            Laura Kelly, Governor

                                                    March 3, 2021


          The Honorable Adam Smith, Chairperson
          House Committee on Taxation
          Statehouse, Room 185A-N
          Topeka, Kansas 66612
          Dear Representative Smith:
                    SUBJECT:      Fiscal Note for HB 2418 by House Committee on Taxation
                  In accordance with KSA 75-3715a, the following fiscal note concerning HB 2418 is
          respectfully submitted to your committee.
                  Under current law, property taxes are required to be paid in full on December 20th of each
          year, or in equal payments on December 20th and on May 10th of the following year. HB 2418
          would allow taxpayers who are 65 years of age or older the option to pay property taxes in four
          equal payments on December 20th, February 10th, April 10th, and May 10th. Interest would be
          charged to any unpaid portion if the amount due is not paid by the date due.
                  The Department of Revenue indicates that HB 2418 would have no fiscal effect on the
          amount of property taxes collected but could affect the timing of when property tax revenues would
          be distributed. The bill would allow individuals 65 years of age or older the option to pay property
          taxes in smaller increments, which could have the potential to increase the amount of property
          taxes collected. The amount of increased property taxes could be offset by lower interest earnings
          from additional payments being made by the date the property taxes are due. The Kansas
          Association of Counties indicates counties may incur additional expenditures if new procedures
          would need to be developed to accommodate the new payment schedule. However, the Kansas
          Association of Counties does not know how many taxpayers would opt in to pay property taxes in
          quarterly payments to make a precise estimate of the fiscal effect associated with HB 2418.


                                                               Sincerely,

                                                               Adam Proffitt
                                                               Director of the Budget
          cc: Craig Neuenswander, Education
              Lynn Robinson, Department of Revenue
              Wendi Stark, League of Municipalities
              Jay Hall, Association of Counties
Statutes affected: 
As introduced: 79-2004, 79-2004a, 79-2968