Sedgwick County backs one-year freeze, study request in proposed state sales-tax apportionment bill

Commissioners discussed House Bill 2377 on Feb. 28, 2025, a draft measure to change how state sales tax is apportioned to cities and counties. County staff presented an amended draft that would freeze the portion of the apportionment tied to local property tax levies between 07/01/2025 and 12/31/2026 while asking the state to form a study group to recommend a long-term solution.

The proposed change responds to Sedgwick County’s effort to protect jurisdictions that voluntarily reduce their mill levy from a parallel loss of sales-tax distributions. Tom Singer, assistant (county staff), summarized the amended draft: “The amended draft of the bill right now essentially calls for that freeze for a year.” Singer read the freeze language into the record: the apportionment “shall not change between, 07/01/2025 and 12/31/2026.”

Staff said modeling shows the change would make the county whole but would cause an immediate, sharp redistribution that would “hurt some of our cities” while helping a few. Tanya (staff member) explained the county’s goals: protect governments that lower mill levies from an accompanying sales-tax reduction, and commission a state-level study group to recommend a long-term fix.

Commissioner Howell urged a softer rollout, arguing a multi-year phase-in would hold cities harmless: “I think the 5 year transition is imperative to making this pass,” Howell said, adding that a five-year approach would reduce year‑to‑year swings and allow growing cities to benefit over time. Other commissioners and staff said the five‑year phase-in could complicate passage and that an initial one‑year freeze could create the time needed for a study and subsequent legislative action.

Staff described next steps: the county will seek legislative sponsors and coordination with the Kansas Association of Counties and state legislative leaders. Jason Watkins (referenced staff/legislative contact) will discuss the proposal with legislative leadership, including Adam Smith, to gauge receptivity and to coordinate the study-group request.

No formal vote was taken by the commission at the meeting; commissioners asked staff to proceed with the amended bill language and further outreach to state lawmakers.

The discussion matters because sales-tax apportionment determines annual revenue available to cities and counties across Kansas; changes can shift millions in receipts among jurisdictions depending on population and assessed-value formulas. The county emphasized the freeze is intended as an interim step while stakeholders study a permanent solution.

Looking ahead, staff said if the study group does not identify an acceptable long-term fix, the county could seek a multi-year transition (for example five years) in a subsequent legislative session.