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Minutes for HB2528 - Committee on Taxation
Short Title
Restricting residential homestead property taxes to not more than the established base year amount for individuals 65 years of age and older.
Minutes Content for Thu, Feb 1, 2024
Mr. Siebers provided a summary of HB2528 that would establish a set amount of property tax owed on residential property for homeowners that are 65 years of age or older. (Attachment 8) Mr. Siebers stood for questions from Committee members.
Ms. Smith, KDOR, provided information on the fiscal note for HB2528 stating KDOR estimates the bill would decrease revenues to two building funds by $510,000 in FY2026, with $340,000 from the Educational Building Fund (EBF) and $170,000 from the State Institutions Building Fund (SIBF). HB2528 would decrease property tax revenues from school districts receive through the state's uniform mill levy by $6,820,000. Ms. Smith stood for questions from Committee members.
Proponents:
Representative Roth, District 79, testified as a proponent for HB2528 stating as a real estate agent he works with people in their 60's and 70's who are having to sell their homes because they cannot afford the property taxes due to living on a fixed income with fixed expenses. He noted every time there is an increase in their property tax, gas station expense or grocery store costs they have to absorb the extra expense. Some have to choose between their medication, groceries, and health insurance. He noted property tax continues to go up and is the number one item people talk with him about requesting property tax relief. Representative Roth stated Kansas is number eight in the nation of people 65 years of age and older moving out of the state due to property taxes. HB2528 would establish a set amount of property tax owed on residential property for homeowners that are 65 years of age or older. No written testimony was submitted. Representative Roth stood for questions from Committee members.
Leslie Anderson, Executive Director, Kansas Association of Area Agencies on Aging & Disabilities (k4ad) testified as a proponent for HB2528 stating older adults historically remain in the family home for numerous years while the value of their home increases. An average of 23.0 percent of Kansans aged 65 and older live alone; and according to a recent survey, three-quarters of older adults prefer to age in place. In 2023 some Kansas counties increased their real estate property tax by 5.0 percent along with increasing motor vehicle taxes by 46.0 percent. The impact of the real estate tax increase for homeowners was due to assessed valuations increasing by 12.0 percent and many county officials use that to raise taxes. Rural homestead property taxes are equally high at fifth in the nation (Attachment 9). Ms. Anderson stood for questions from Committee members.
Representative Johnson, District 38 testified as a proponent for HB2528 by giving his personal experience in selling his home due to high property tax. No written testimony was submitted. Representative Johnson stood for questions from Committee members.
Written only testimony as opponents to HB2528 was submitted by the following:
Michael Austin, American for Prosperity, (Attachment 10)
Shannon Kimball, Kansas Association of School Boards, (Attachment 11)
Chairperson Smith closed the hearing on HB2528.
Chairperson Smith returned to the order of business for bill requests.
Representative Wasinger requested a bill be introduced to establish tax credits for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities and establishing a child tax credit, increasing the adoption tax credit (24-rs-2315). Without objection, the bill was accepted for introduction by the Committee.
Chairperson Smith adjourned the meeting.
