Leavenworth County proposes income tax to reduce property tax burden

The Leavenworth County Board of County Commissioners (BOCC) convened on February 26, 2025, to discuss significant legislative developments, particularly Senate Bill 108, which proposes a shift from property tax to income tax to alleviate the financial burden on property owners in the county.

The meeting began with a presentation on Senate Bill 108, a revised version of House Bill 79 from previous years. The bill aims to convert 1% of income tax collected from individuals working in Leavenworth County into property tax relief. This initiative is designed to distribute the tax burden more equitably among the county's workforce, which includes hundreds of thousands of individuals, rather than relying solely on the approximately 33,000 property taxpayers.

Commissioners expressed support for the bill, emphasizing its potential to significantly reduce property taxes. For instance, a household currently paying around $3,000 in property taxes could see their tax bill halved to $1,500 by contributing an additional $80 in income tax. The proposal mandates that if the income tax is not utilized for property tax relief, the county would forfeit the funds, addressing concerns that this could lead to an increased overall tax burden.

The discussion also highlighted the unique financial situation in Leavenworth County, which is noted for having a high income tax revenue but a significant portion of its residents exempt from property taxes. This disparity has led to calls for a more balanced approach to taxation, ensuring that the financial responsibilities are shared more broadly.

Commissioners raised questions about the specifics of the bill, including the voting process. It was clarified that the proposal would require voter approval, allowing the 33,000 property taxpayers to decide whether to implement the income tax shift. This aspect was seen as a positive feature, as it empowers local residents to have a say in their tax structure.

Concerns were voiced regarding the potential for future increases in the income tax rate. One commissioner suggested that additional legislation, similar to Missouri's Hancock Amendment, should accompany the bill to prevent local governments from exceeding inflation rates without voter consent.

The meeting concluded with a consensus on the importance of advocating for Senate Bill 108, with plans for commissioners to testify in support of the legislation. The board recognized the need for a fairer tax system that alleviates the financial pressure on property owners while ensuring that the county's budget remains sustainable. The next steps involve preparing for the upcoming hearing on the bill, where further discussions and testimonies will take place.