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Minutes for HB2615 - Committee on Taxation
Short Title
Replacing the BOTA small claims appeal process with a mediation process for certain tax appeals.
Minutes Content for Tue, Mar 10, 2020
Chairperson Johnson opened the hearing and recognized Adam Siebers, Assistant Revisor, who provided an overview on HB2615. He noted the bill creates a mediation process for the State Board of Tax Appeals in place of the small claims and expedited hearing division (Attachment 1).
In response to questions regarding the fiscal note for HB2615, Jody Allen, Kansas Board of Tax Appeals stated using certified mediators who are attorneys can run from $150. to $300. an hour. She noted another concern is how to get a number of certified mediators to conduct the hearings due to 80% of tax appeals are filed in the month of May and June. There is anticipation the hearings will run longer than the small claims hearings that last approximately thirty minutes. Ms Allen commented the Board's legal staff hears approximately 50% of the small claim appeals and the remainder are heard by contracted hearing officers. Currently, the Board of Tax Appeals uses hearing officers with experience in tax and some have been county appraisers or county commissioners. The hearing officers are paid $60.00 an hour. There is no fee for residential tax appeals for a small claims division or regular division and there is a sliding fee scale for commercial properties under $3.0 million and the fee is $100. She noted the State Board of Tax Appeals budget is probably 60% filing fees and 40% General Fund.
Proponent:
Representative Croft, 8th District, testified for HB2615 stating people were concerned with their home valuation and the process they go through when appealing their property tax. He commented one of the recommendations was mediation that is a 5-step structured process. Representative Croft stated in his research regarding mediation, 85% to 90% of the time there is a successful solution out of the mediation process (Attachment 2). Representative Croft answered questions from Committee members.
Opponents:
Jay Hall, Kansas Association of Counties testified for HB2615 stating they are opposed to this bill because some of the steps seem to be repetitive. He commented it is the hope to settle the disputed issues to be achieved through the informal process. Mr. Hall noted the mediator is to be well trained because the success of the mediation really comes down to having a good mediator to work with the two parties as opposed to placing a person in that role. Many taxpayers can go through the informal process locally representing themselves and this would minimize the taxpayer's expense (Attachment 3). Mr. Hall answered questions from Committee members.
Sean Robertson, Kansas County Appraisers Association, testified for HB2615 stating the mediation step is redundant, unnecessary and inappropriate. Most disputed facts about the property are discussed and resolved at the informal appeal level. The proposed mediation process in HB2615 only allows for discussion and negotiation (Attachment 4).
Chairperson Johnson thanked the conferees for their testimony and closed the hearing for HB2615.
