House Bill 2396 targets property tax reforms in Kansas hearing today

Harvey County officials are gearing up for significant changes in property tax management following a recent discussion about House Bill 2396 during the March 4, 2025, Commission meeting. This bill, which is set for a hearing today in the House Tax Committee, aims to overhaul the current property tax revenue process.

The proposed legislation seeks to eliminate the revenue neutral process, which currently requires municipalities to stick to the same tax levy as the previous year. Instead, it introduces a new budgeting framework that allows local governments to adopt budgets based on the municipal consumer price index plus any new property valuations. However, if a municipality wishes to exceed this budget limit, a 30-day protest period will be initiated, requiring signatures from 10% of the total votes cast in the last Secretary of State election—approximately 1,270 signatures in Harvey County.

Additionally, the bill proposes the establishment of a state fund, reminiscent of the former Local Ad Valorem Tax Reduction Fund (LAVTR). This fund would initially allocate $60 million, with a 2% annual increase, to support counties and cities that meet the new budgeting criteria. The distribution of these funds would be based on population and assessed property values, providing a potential revenue source to help local governments manage their budgets effectively.

The bill's design aims to hold the state accountable for funding, as failure to do so would revert budgeting practices to previous norms, allowing municipalities to budget without the new constraints. Local officials have actively participated in shaping this legislation, collaborating with the chair of the House Tax Committee and other organizations to refine the bill and address practical concerns regarding the petition process.

As the hearing approaches, the implications of House Bill 2396 could reshape property tax management in Harvey County, potentially easing the financial burden on residents while ensuring local governments have the necessary resources to operate effectively.