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Minutes for SCR1611 - Committee on Taxation
Short Title
Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property.
Minutes Content for Tue, Mar 19, 2024
Chairperson Smith opened the hearing for SCR1611.
Adam Siebers provided an overview for SCR1611 stating the resolution is a proposition to amend Section 1 of Article 11 of the Kansas Constitution relating to property taxation. (Attachment 1)
Proponents:
Senator Caryn Tyson, 12th District, testified as a proponent for SCR1611 that is a proposed amendment to the Constitution which limits the increase on the taxable value of your property to a percentage increase each year. Exceptions would apply to changes, additions, improvements, or a sale of the property. (Attachment 2) Senator Tyson stood for questions from Committee members.
Mike Stieben, Leavenworth County Commissioner, testified as a proponent for SCR1611 to allow ways to reduce property taxes and limit valuation spikes under the current property tax valuation and appraisal system. Mr. Stieben noted a task force in his district had been formed to identify ways to reduce property taxes both on the local level and on the state level. The task force voted to support SCR1611 the 4.0 percent cap on property taxes which was approved in the Kansas Senate last year and is awaiting a vote in the Kansas House of Representatives. The task force is hopeful the legislators will approved SCR1611 and advance the constitutional amendment to the voters so they can weigh in on support for the 4.0 percent. (Attachment 3) Mr. Stieben stood for questions from Committee members.
Written testimony was submitted by the following as proponents for SCR1611:
Lanell Griffin, Kansas Citizen, (Attachment 4)
Ganon Evans, Kansas Policy Institute, (Attachment 5)
Jeff Culbertson, Leavenworth County Commissioner, (Attachment 6)
Opponents:
Jim Howell, Commissioner, Sedgwick County, testified via WebEx on behalf of the Sedgwick County Board of County Commissioners as an opponent for SCR1611 because it creates inequity in the collection of property taxes while not addressing the underlying issue which is the increased reliance of local government in Kansas on property tax revenue. (Attachment 7) Mr. Howell stood for questions from Committee members.
Aaron Popelka, Kansas Livestock Association, testified as an opponent for SCR1611 noting the Kansas Livestock Association generally supports providing property tax relief, but opposes SCR1611 because it would invalidate the current use-value appraisal method used to appraise agricultural land and inequitably shift the tax burden among different classes of property. (Attachment 8) Mr. Popelka stood for questions from Committee members.
Leah Fliter, Kansas Association of School Boards, testified as an opponent for SCR1611 stating the testimony is based on our member-affirmed policy that states: We oppose arbitrary limits on taxes and valuations because of the long-term impact on revenues for schools and other public services. We urge caution and due deliberation in the consideration of tax policy. (Attachment 9) Ms. Fliter stood for questions from Committee members.
Mark Tomb, on behalf of the Kansas Association of Realtors, testified as an opponent for SCR1611 noting realtors believe that real estate is burdened with an excessive share of the constantly increasing cost of state and local government. The Kansas Association of Realtors realize the importance of many programs funded through property tax revenues, but believe tax revenues should be equitably collected from a variety of sources and encourage taxing jurisdictions to consider the negative impact to the housing market associated with any potential increase in property tax rates. (Attachment 10) Mr. Tomb stood for questions from Committee members.
Spencer Duncan, League of Kansas Municipalities, testified as an opponent for SCR1611 stating the cities of Kansas believe in finding a balance between fair taxation that does not burden citizens and ensuring basic services are paid for to protect the health and safety of Kansans. The property taxation system is complex with many factors including valuations and their correlation to taxing. The Kansas property tax system needs reform that does not come piecemeal, but takes into account each entity, its roles and how a change to one impacts the others. SCR1611 is not that approach and presents more concerns than solutions. (Attachment 11) Mr. Duncan stood for questions from Committee members.
Written testimony was submitted by the following in opposition to SCR1611:
Mike Taylor, Kansas County Commissioners Board, (Attachment 12)
Randy Leis, Meade County Commissioner, (Attachment 13)
Timothy Graham, Kansas National Education Association, (Attachment 14)
Kim Frodin, RMA, Scott County Appraiser, (Attachment 15)
Ryan Janzen, Equitable Solutions, LLC, (Attachment 16)
Michael Koss, City Attorney, Overland Park, Kansas, (Attachment 17)
Neutral:
David Harper, Kansas Department of Revenue, testified as neutral to SCR1611 that allows submission to the qualified electors of the state for their approval or rejection of amendments to Section 1, Article 11 of the Kansas Constitution, limiting annual real property valuation increases to 4.0 percent per year, except under certain circumstances as defined in the resolution. (Attachment 18) Mr. Harper stood for questions from Committee members.
Jay Hall, Kansas Association of Counties, testified as neutral to SCR1611 that would place a 4.0 percent cap on valuation increases for property for tax valuation purposes. The major benefit for taxpayers is knowing the value of their property would not increase more than 4.0 percent in any given year. This could be a benefit for counties as they would be able to anticipate what many properties would be valued for the next year, provided ownership has not changed. (Attachment 19) Mr. Hall stood for questions from Committee members.
Chairperson Smith closed the hearing for SCR1611.
