Kansas Senate committee report advances bill to remove 1.5 mills in state-collected property tax, shift funding to general fund

Senate leaders in the committee of the whole advanced Senate Bill 35 on Jan. 28, 2025, a proposal that would eliminate the state's 1.5-mill property tax and replace that revenue with transfers from the state general fund.

The bill, as explained on the floor by Senator Barbara Tyson (Senator from Linn), would remove the 1.5 mills that the state collects in property tax — "the 1 mil is currently for regents and the half mil is for state buildings," Tyson said — and create a formula to replace that revenue from the general fund.

The bill's fiscal effects and mechanics were a central focus. Tyson told senators the committee adjusted the fiscal calculation for the regents from a simple annual increase to a 10-year average; she later offered and won an amendment to base that 10-year average on all property rather than only residential property. Tyson said, "This money would be made up…