Tax panel advances bill to reduce statewide school mill levy to 18.5 mills with state backfill; two amendments adopted

The Kansas House Committee on Taxation on an unspecified date advanced House Bill 20-11, which would reduce the statewide ad valorem school tax levy from 20 mills to 18.5 mills and require the state to transfer funds to make school districts whole for the reduction.

The bill, introduced to the panel for consideration, would set the statewide rate at 18.5 mills and then adjust the mill levy prospectively so that the rate levied would equal the rate that generates the legislatively determined revenue, with state general-fund transfers to the state school district finance fund to cover any shortfall. "That amount would be transferred from the state general fund to the state school district finance fund," the reviser summarized when explaining the statutory cross‑references being brought into the bill (KSA 72-51-33a and related language), describing the backfill mechanism.

Why it matters: The measure changes a long-standing statutory levy that appears on local property tax bills but is set by the Legislature. Committee members pressed staff on the bill's fiscal impact and how the statutory changes would be implemented, emphasizing effects on homeowners, businesses and long‑term state costs.

Committee debate focused on the mechanics of the backfill and the bill's fiscal effects. The reviser explained the proposal would use the same method that state law now uses to backfill revenue lost from changes to certain exemptions: the Property Valuation Division would estimate revenues that 20 mills would have produced and calculate the difference to be transferred from the state general fund to the state school finance fund. The reviser said growth in assessed valuation and new construction would increase the bill’s cost in later years because the statute as drafted further reduces the rate as those valuation increases occur.

Members discussed the bill's fiscal note. Committee members cited a first-year state cost of about $60.7 million and noted the impact grows in later years (committee discussion referenced growth to roughly $266 million by year five). Representative Corbett and others asked whether typical homeowners would see meaningful relief from the initial 1.5‑mill drop; members and staff noted that the levy applies to all taxable property, including commercial property, and that the statewide statutory levy is set by the Legislature rather than local units of government.

Two amendments were offered and adopted before the committee voted on the bill:

- The Smith Amendment: offered by Representative Smith to clarify legislative intent that revenue lost because the statewide mill levy is reduced is to be backfilled by state transfers, using language drawn from the special-session statute (KSA 72-51-33a). The amendment was seconded and approved by voice vote; two members—Representative Sanders and Representative Chuck Smith—asked to have their affirmative votes recorded. (Voice vote; two recorded affirmative votes.)

- The Sawyer Amendment: offered by Representative Sawyer, it raises the residential property tax exemption to $100,000 (the committee previously raised it to $75,000). Speaker Sawyer said, "This would raise it to a hundred thousand. That would provide some additional property tax relief to nearly every homeowner in the state." The amendment carried on a voice vote. Committee discussion and the fiscal note presented by staff showed the amendment’s first‑year fiscal effect estimated at about $42.8 million, rising to about $44 million by 2030 under a 20‑mill baseline; staff noted the actual first‑year impact would likely be lower (about 85% of that amount) because the bill’s revenue‑neutral provisions would lower the levy prospectively.

After amendments, Representative Hoysel moved that the committee pass HB 20-11 favorably as amended; Representative Butler seconded. The committee approved the bill by voice vote; Representative Sanders and Representative Chuck Smith had their affirmative votes recorded.

The committee record shows the bill as advanced from committee with the two adopted amendments. The reviser and research staff said further calculations and rate projections would be available from Department of Revenue/Property Valuation Division staff at a later time if the Legislature needs more detailed year‑by‑year mill estimates.

The committee returned the bill to the calendar as "passed favorably as amended," and recorded two individual affirmative votes by request. No floor or final enactment occurred in this meeting record.

Votes at a glance: Smith Amendment — adopted (voice vote; two recorded yes: Rep. Sanders, Rep. Chuck Smith). Sawyer Amendment — adopted (voice vote). HB 20-11 as amended — passed favorably out of committee (voice vote; two recorded yes: Rep. Sanders, Rep. Chuck Smith).