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Minutes for HB2396 - Committee on Taxation
Short Title
Authorizing the use of a protest petition to limit funding of a taxing jurisdiction by property tax revenues exceeding a certain amount, establishing the acknowledging stewardship of tax revenue and appropriations (ASTRA) fund; authorizing certain transfers from the state general fund to qualifying cities and counties and eliminating the revenue neutral rate requirements by taxing subdivisions and the taxpayer notification costs fund.
Minutes Content for Tue, Mar 4, 2025
Chairperson Smith opened the hearing for HB2396.
Adam Smith, Office of Revisor of Statutes, provided an overview for HB2396 that authorizes the use of protest petition to limit funding of a taxing jurisdiction by property tax revenues above a certain amount, establishes the Acknowledging Stewardship of Tax Revenue and Appropriations (ASTRA) fund and authorizes certain transfers fro the state general fund to qualifying cities and counties, and eliminates the revenue neutral rate requirements by taxing subdivisions and the taxpayer notification costs fund. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Chairperson Smith seated the chair to Vice Chair Turner.
Representative A. Smith provided an overview of how HB2396 originated and where it came from. The state has many unfunded or underfunded mandates in statute and rules and regulations and the legislature should acknowledge their responsibility to fund the mandates and not place that burden on the local taxes. Any revenue to offset the shortage falls directly on local taxes which is mostly property taxes. He noted most of the mill levy goes towards local government that supports cities, counties, townships, all of the local taxing jurisdictions. HB2396 allows taxpayers a voice at the budget hearings but also gives voters the option to put a stop to excessive tax increases. (Attachment 2) Representative Smith stood for questions from Committee members.
Representative A. Smith resumed the Chair.
Chairperson Smith recognized Eddie Penner, Legislative Research, regarding the fiscal note for HB2396 stating the Division of Budget indicated is waiting to hear back from one or more of the state agencies.
Proponents: (Speaking before the Committee)
Leah Fliter, Kansas Association of School Boards, testified as a proponent for HB2396. Transparency was the goal of the revenue neutral rate statute enacted in 2021 but in the case of school districts, the statutes has caused needless sometimes significant confusion for taxpayers. The notice of the revenue neutral rate for the 20 mill statewide levy for schools increased confusion that school boards can make changes to the local levy. Since 2021, the school boards hold two budget hearings on the same budget during the same board meeting noting the duplication is not required by any other local unit of government. (Attachment 3) Ms Fliter stood for questions from Committee members.
Jim Karleskint, Lobbyist, USA Kansas and Kansas School Superintendents Association, testified as a proponent for HB2396 stating schools were doing this before 2021 when the revenue neutral rate was passed. Over the past three years it has caused confusion among patrons. Removing school districts from the revenue neutral rate, as proposed in HB2396 would resolve the issues of duplication. (Attachment 4) Mr. Karleskint stood for questions from Committee members.
Aaron Mays, Shawnee County Commissioner speaking in behalf of Jay Hall, Kansas Association of Counties, as a proponent for HB2396 stated it is a partnership between the state and local governments. Tax relief was not funded and created a divide between the state of Kansas and local governments. HB2396 allows the state to partner with city and county governments that creates the Acknowledging Stewardship of Tax Revenue and Appropriates (ASTRA) fund. If county government does not exceed the previous year's budget when including growth and inflation, the county would be eligible for a payment from the ASTRA payment.(Attachment 5) Mr. Mays stood for questions from Committee members.
John Donley , Kansas Farm Bureau, testified as a proponent for HB2396 that provides funding to help reduce property tax relief and allows the protest petition of 10.0 percent of the voters in the district or taxing entity oppose and show up to sign a petition. He noted Kansas Farm Bureau fully supports the broad based property tax relief that has been proposed. Mr. Donley stood for questions from Committee members. (Attachment 6)
Written proponent testimony for HB2396 was submitted by the following:
Mike Kelly, Johnson County Board of County Commissioners, (Attachment 7)
Randy Leis, on behalf of Kansas Legislative Policy Group, (Attachment 8)
Daniel Murray, National Federation of Independent Business, (Attachment 9)
Opponent: (Written Only)
Michael Koss, City Attorney, City of Overland Park, Kansas, (Attachment 10)
Neutral: (Speaking before the Committee)
Spencer Duncan, League of Kansas Municipalities, testified as neutral to HB2396 stating they were close to being proponents but would like to have the petition threshold raised to 20.0 percent. and to exempt bond payments as some cities connect mill levies to infrastructure and project bonds.(Attachment 11) Mr. Spencer stood for questions from Committee members.
Written neutral testimony for HB2396 was submitted by Jamie Doss, Saline County Board of County Commissioners, (Attachment 12)
Chairperson Smith closed the hearing for HB2396.
