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Minutes for HCR5011 - Committee on Taxation
Short Title
Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to provide that valuations of residential property shall be determined based on the lesser of the fair market value or the average fair market value of the residential portion.
Minutes Content for Thu, Feb 13, 2025
Chairperson Smith opened the hearing for HCR5011.
Adam Siebers provided an overview for HCR5011 that is a proposition to amend Section 1 of Article II of the Kansas Constitution relating to property taxation. The resolution proposes that the valuation of real property used for residential purposes would be determined based on the lesser of either the fair market value or the average fair market value of the residential portion. (Attachment 6) Mr. Siebers stood for questions from Committee members.
In response to a question regarding implementation date, Mr. Siebers stated procedurally HCR5011 would be on the November, 2025 ballot for voters if approved by the 2025 Legislature session. If passed by the voters in November,2025, it would give the 2026 Legislative session the ability to implement an enactment that would go into effect January, 2027 to coincide with the changes that would be made with the enactment of the Constitutional amendment. This coincides with potential proposed statutory changes that need to be made.
Chairperson Smith provided information on the Supplemental Note for HCR5011. (Attachment 7)
Proponents:
Dave Trabert, Kansas Policy Institute, testified as a proponent for HCR5011 that would stop the rate of tax increase on residential property. The Kansas Department of Revenue data indicates more than a 30.0 percent increase on existing homes over the last three years, allowing many local elected officials to dramatically and unnecessarily raise property tax. (Attachment 8) Mr. Trabert stood for questions from Committee members.
Aaron D. Mays, Shawnee County Commissioner, testified as a proponent for HCR5011 that proposes a sensible and much needed amendment to Article 11, Section 1 of the Kansas Constitution, offering a more equitable and predictable valuation system for homeowners. (Attachment 9)
Written only proponent testimony for HCR5011 was submitted by Mark Tomb, Kansas Association of Realtors. (Attachment 10)
Neutral:
Eric Stafford, Kansas Chamber, testified as neutral for HCR5011 that would negatively impact classifications outside of residential property through a shift in the tax burden. (Attachment 11) Mr. Stafford stood for questions from Committee members.
Martha Smith, Kansas Manufactured Housing Association, testified as neutral for HCR5011 that does not include fair market value for personal property manufactured homes and request the House Taxation Committee to consider including tangible personal property manufactured homes used for residential purposes so that all housing is treated the same. (Attachment 12) Ms. Smith stood for questions from Committee members.
Shannon Kimball, Kansas Association of School Boards, testified as neutral for HCR5011 questions whether the proposed language's use of "fair market value" is meant to be substantially different from the current set of standards used to set assessed valuations, and to what extent the changing standard will negatively impact the collection of property tax to support public education over the long term. (Attachment 13) Mr. Kimball stood for question from Committee members.
Aaron Popelka, Kansas Livestock Association, testified as neutral for HCR5011 and concerned about the implementation of this resolution if approved by the voters. Implementing legislation should ease into a rolling average to avoid short-term liability shifts onto agriculture land, commercial property, oil and gas, and other subclasses of real and personal property. (Attachment 14) Mr. Popelka stood for questions from Committee members.
Jim Howell, Sedgwick County Board of Commissioners, testified as neutral for HCR5011 and noted the real problem is spending too much and the proposal doesn't address this problem. Voters should be put back in control of the size and scope of Government. (Attachment 15) Mr. Howell stood for questions from Committee members.
Wilie Dove and Mike Stieben, Commissioners, County of Leavenworth, testified as neutral for HCR5011 noting following need of twenty-six others states, a valuation cap would build more stability, continuity, and predictability into the Kansas economy. (Attachment 16) Mr. Dove and Mr. Stieben stood for questions from Committee members.
Written only Neutral testimony for HCR5011 was submitted by the following:
John Donley, Kansas Farm Bureau, (Attachment 17)
Randy Stookey, Kansas Grain and Feed Association and Renew Kansas Biofuels Association, (Attachment 18)
Jay Hall, Kansas Association of Counties, (Attachment 19)
Representative Brett Fairchild, 113th District, (Attachment 20)
Nathan Kessler, Kansas Action for Children, (Attachment 21)
Spencer Duncan, League of Kansas Municipalities, (Attachment 22)
Sean Robertson, Kansas County Appraisers Association, (Attachment 23)
Opponent:
Jennifer Williams, Spring Hill, Kansas, testified as an opponent for HCR5011 that legislators should take a serious look at the budget in order to cut expenses, reign in excessive and wasteful administrative salaries at all levels, and find new methods of reaching budgetary needs, instead of putting homes, livelihoods, and property rights at risk of runaway inflation and unchecked spending that is forcing young families out of their originally approved and planned mortgage budgets and retirees on fixed incomes out of their lifetime homes. (Attachment 24) (Attachment 25)
Chairperson Smith closed the hearing for HCR5011 and adjourned the meeting.
