HB2011 - Decreasing the rate of ad valorem tax imposed by a school district, increasing the extent of exemption for residential property from the statewide school levy and provide for certain transfers to the state school district finance fund.

Mr. Siebers provided an overview for HB2011 that would decrease the rate of ad valorem tax imposed by a school district from 20 mills to 18 mills.  He noted HB2011 was a bill that was passed out of the House Taxation committee  last year.

Chairperson Smith noted HB2011 was passed out of Committee last year and was sitting below the line on General Orders.  HB2011 was pulled back for reconsideration in order to lower the fiscal note and make some changes regarding the implementation dates due to being a year later. Chairperson Smith explained the amendment will  keep the mill levy at 20 mills for 2026 and will implement an increase from $75,000 up to $100,000 for 2026.  Starting 2027,  assessed valuation increases will slowly begin to go down from the 20 mill levy so not to impose a tax increase on the residential properties.  

Chairperson Smith moved, seconded by Representative Sawyer, to amend HB2011.(Attachment 7)

Mr. Penner, noted the Kansas Department of Revenue provided the estimated fiscal impact of the amendment in terms of revenues to the State School District Finance Fund, would reduce revenues by $38.7 million in FY27, $64.0 million in FY28, $83.6 million in FY29, $108.3 million FY30 and $134.8 million in FY31. The estimated 20 mill levy will remain for the first year then drop to 19.56 mills, 19.13  mills, 18.71 mills. and 18.31 mills.  

Committee discussion ensued.

Chairperson Smith closed on his amendment for HB2011. Motion carried.

Representative Sawyer moved, seconded by Representative Long, the Committee recommends HB2011 favorable for passage as amended, Motion carried.