Updated
Session of 2025
Supplemental note on HOUSE BILL no. 2011
As Amended by House Committee on Taxation
Brief*
HB 2011, as amended, would increase, beginning in tax year 2025, the amount of the appraised value of residential property exempt from the statewide school finance levy from $75,000 to $100,000 and reduce the statewide school finance mill levy.
The mill levy would be reduced from 20 mills to 18.5 mills in tax year 2025. Beginning in tax year 2026, the rate would be equal to the rate that would generate the same revenue as levied in tax year 2025 using the current year’s total assessed valuation, as calculated by the Director of Property Valuation, Department of Revenue.
The bill would also require a transfer to be made from the State General Fund (SGF) to the State School District Finance Fund (SSDFF) in the amount of any reduction of revenue to the SSDFF attributable to the reduction of the mill levy below 20 mills, as certified by the Director of the Budget.
Background
The bill was introduced by the House Committee on Taxation at the request of Representative Adam Smith.
House Committee on Taxation
In the House Committee hearing, proponent testimony was provided by representatives of the Kansas Farm Bureau, Kansas Livestock Association, and National Federation of Independent Business. The proponents generally stated the bill would provide broad-based property tax relief for all Kansans that would be ongoing in future years.
Written-only proponent testimony was provided by representatives of the Kansas Association of Realtors, Kansas Grain and Feed Association, and Kansas Policy Institute.
Written-only opponent testimony was provided by a representative of Kansas Action for Children.
Neutral testimony was provided by representatives of the Kansas Association of School Boards and Kansas National Education Association, who stated the bill would not provide for increases in school funding to account for rising costs of education in future years.
Written-only neutral testimony was provided by representatives of Topeka Public Schools, United School Administrators, and a private citizen.
No other testimony was provided.
The House Committee amended the bill to:
● Require a transfer from the SGF to the SSDFF in the amount of foregone revenue attributable to any mill reduction; and
● Increase the amount of residential property exempt from the school finance levy.
Fiscal Information
According to the Department of Revenue, enactment of the amended bill is anticipated to reduce SGF receipts by:
● $106.6 million in FY 2026;
● $153.0 million in FY 2027;
● $201.6 million in FY 2028;
● $252.5 million in FY 2029; and
● $305.8 million in FY 2030.
Any fiscal effect associated with enactment of the bill is not reflected in The FY 2026 Governor’s Budget Report.
Taxation; property tax; school finance