House Status:
Senate Status:
Senate Status:
Minutes for HB2424 - Committee on Taxation
Short Title
Property tax lid; exception for certain employee benefits.
Minutes Content for Tue, May 9, 2017
Vice Chairperson Phillips opened the meeting and recognized Scott Wells, Assistant Revisor.
Mr. Wells provided an overview on HB2424 which would allow any city or county to increase property tax for the purpose of increasing employer contributions for Social Security, Workers Compensation, Unemployment Insurance, health care costs, retirement and pension programs without approval of voters.
Proponents:
Erik Sartorius, Executive Director League of Kansas Municipalities testified as a proponent for HB2424. He noted several of the League members think the tax lid is not good policy and if it continues, employee benefits should be exempt. The health care plans have had increases of 15 to 30 percent annually. (Attachment 1)
Mr Sartorius stood for questions from the Committee.
Bernie Koch, Harvey County Council of Governments testified as a proponent for HB2424 noting the Council opposed the tax lid when it was enacted. If a total repeal is not feasible, the Council supports changes such as HB2424. (Attachment 2)
Thomas A. Brown, Mayor of McPherson, Kansas testified as a proponent for H2424. He noted several changes were made to the property tax lid last year. Missing from those reforms is an exemption for employee benefit costs. (Attachment 3)
Mr. Brown stood for questions from the Committee.
Randall Allen, Kansas Association of Counties testified as a proponent to HB2424. (Attachment 4)
In response to a question from Representative Corbert, Mr. Allen will provide information for average county increase on taxes.
Written testimony was submitted by the following as a proponent to HB2424.
Cindy Volanti, Riley County Clerk's Office (Attachment 5)
Shane Krull, Miami County (Attachment 6)
Jackson County Commission (Attachment 7)
Franklin County Commissioners (Attachment 8)
Darlene Lucas, Finney County (Attachment 9)
Larry Jones, Kansas Legislative Policy Group (Attachment 10)
Ed Eilert, Johnson County (Attachment 11)
Coffey County Commissioners (Attachment 12)
Doug Gerber, City of Topeka (Attachment 13)
Crystal Wade, Chautauqua County Treasurer (Attachment 14)
Mitzi Hesser, Kiowa County Health Department (Attachment 15)
Nickolaus J. Hernandez, City Manager, City of Arkansas City (Attachment 16)
Josh Shaw, City of Augusta (Attachment 17)
Casie Risley, Caldwell, Kansas (Attachment 18)
Kerry Rozman, City Clerk, Clay Center, Kansas (Attachment 19)
Kendal Francis, City Manager, Coffeyville, Kansas (Attachment 20)
Michael Ohrt, City of Fredonia (Attachment 21)
Larry Paine, City of Hillsboro (Attachment 22)
Robert Conger, City of Kechi (Attachment 23)
Clair Donnelly, CIty of Maize (Attachment 24)
Kiel Mangus, City of Manhattan (Attachment 25)
Richard T. Boeshaar, City of Mission Hills (Attachment 26)
City of Overland Park (Attachment 27)
Brenda Chance, City of Phillipsburg (Attachment 28)
Jon Quinday, City of Russell (Attachment 29)
Jason Gage, City of Salina (Attachment 30)
Nolan Sunderman, City of Shawnee (Attachment 31)
Taggart Wall, City of Sterling (Attachment 32)
Ken Evans, City of Wichita (Attachment 33)
Opponents:
Patrick Vogelsberg, Kansas Association of Realtors testified as an opponent to HB2424 noting this bill is unnecessary. HB2424 would add 6 new exemptions to the existing 15 exemptions placed by the Kansas Legislature in 2015 and 2016. (Attachment 34)
Mr. Vogelsberg stood for questions from the Committee.
Aaron Popelka, Kansas Livestock Association testified as an opponent to HB2424. He stated they are opposed to any changes to weaken the property tax lid. (Attachment 35)
Mr. Popelka stood for questions from the Committee.
Eric Stafford, the Kansas Chamber testified as an opponent to HB2424 noting the bill creates unnecessary loopholes to local units of government to be able to expand and not be responsible with their spending. (Attachment 36)
In response to a question from Representative Hawkins, Mr. Stafford stated the Chamber polled 300 businesses across the State in December, 2015. Out of the individuals polled, 75 to 80 percent support the property tax lid by public vote requirement.
Hearing closed on HB2424.
Meeting adjourned at 5:45 p.m.
Next meeting scheduled for May 10, 2017.
