Committee on Taxation hears divided testimony on bill to cap property-tax revenue growth and create $60M relief fund

Summary

Lawmakers heard hours of testimony on House Bill 27-45, which would require voter approval for most property-tax revenue increases above 3% and create a $60 million state-funded property tax relief fund; proponents framed it as taxpayer protection, while cities warned it would disrupt budgeting, bonding and services.

The House Committee on Taxation held a hearing on House Bill 27-45, a proposal to require voter approval before most local taxing jurisdictions may increase property-tax revenues more than 3% from the prior year and to establish a state-funded property tax relief fund seeded at $60,000,000.

The bill’s reviser summarized the measure as replacing most elements of the revenue-neutral-rate framework with a 3% property-tax revenue limit, excluding revenues from new construction and voter-approved bond issuances, and continuing a taxpayer-notification-cost fund slated to expire. Kathleen Smith of the Department of Revenue testified that the fiscal note estimates a demand transfer from the State General Fund to the relief fund of roughly $60,000,000 in fiscal 2027, $61,200,000 in fiscal 2028 and $62,400,000 in fiscal 2029.

Proponents told the committee the proposal would provide stability and transparency for households and align with organizational policy. Leah Fleiter of the Kansas…

Committee on Taxation hears divided testimony on bill to cap property-tax revenue growth and create $60M relief fund

Summary

Subscribe to keep reading