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As Amended by Senate Committee
Session of 2025
Senate Substitute for HOUSE BILL No. 2396
By Committee on Assessment and Taxation
3-19
AN ACT concerning property taxation; relating to property tax revenues of
taxing jurisdictions; authorizing the use of a protest petition to limit
funding of a taxing jurisdiction by property tax revenues above a
certain amount; providing for a protest petition notice to be sent to
taxpayers; establishing the protest petition notification costs fund;
relating to the revenue neutral rate; modifying the content requirements
of the revenue neutral rate hearing notice limiting certain increases in
property tax revenues unless approved by a majority of qualified
electors at an election called and held thereon; continuing
reimbursements from the taxpayer notification costs fund for an
additional five years ; amending K.S.A. 2024 Supp. 79-1801 and 79-
2988 2025 Supp. 79-2989 and repealing the existing sections section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) The governing body of any taxing subdivision
shall not approve any budget that provides for funding by property tax
revenues in an amount exceeding the amount of property tax levied for
the previous tax year as adjusted to reflect the increase in the average of
the consumer price index for all urban consumers in the midwest region
as published by the bureau of labor statistics of the United States
department of labor for the previous calendar year, except by not more
than 3%, unless the governing body first makes a proposal to approve
such budget with the adoption of a resolution and such resolution is
submitted to and approved by a majority of the qualified electors of the
taxing subdivision voting at an election called and held thereon. In
addition to other provisions, the resolution shall include the proposed
amount of property tax revenue for the current tax year and the amount
of property tax levied for the previous tax year.
(b) The election shall be noticed, called and held in the manner
provided in K.S.A. 10-120, and amendments thereto, and held at the next
regularly scheduled election held in August.
(c) If a resolution proposing to approve a budget funded with
property tax revenues in excess of the previous tax year as adjusted
pursuant to subsection (a) is not approved by a majority of the qualified
electors of the taxing subdivision voting at an election called and held
thereon pursuant to this section, then the governing body shall not
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S Sub HB 2396—Am. by SC 2
approve a budget that provides for funding by property tax revenues in
an amount that exceeds the amount of property tax levied for the
previous tax year.
Sec. 2. K.S.A. 2025 Supp. 79-2989 is hereby amended to read as
follows: 79-2989. (a) For calendar years 2024, 2025 and 2026 through
2031, if a county clerk has printing or postage costs pursuant to K.S.A.
2025 Supp. 79-2988, and amendments thereto, the county clerk shall
notify and provide documentation of such costs to the secretary of
revenue. The secretary of revenue shall certify the amount of moneys
attributable to such costs and shall transmit a copy of such certification
to the director of accounts and reports. Upon such receipt of such
certification, the director of accounts and reports shall transfer an
amount of moneys equal to such certified amount from the state general
fund to the taxpayer notification costs fund of the department of
revenue. The secretary of revenue shall transmit a copy of each such
certification to the director of legislative research and the director of the
budget.
(b) There is hereby established in the state treasury the taxpayer
notification costs fund that shall be administered by the secretary of
revenue. All expenditures from the taxpayer notification costs fund shall
be for the purpose of paying county printing and postage costs pursuant
to K.S.A. 2025 Supp. 79-2988, and amendments thereto. All expenditures
from such fund shall be made in accordance with appropriations acts
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of revenue or the secretary's
designee.
New Section 1. (a) (1) The governing body of any taxing jurisdiction
that approves any appropriation or budget that provides for funding by
property tax revenues in excess of the amount provided in subsection (b)
may have such appropriation or budget subject to a protest petition and a
reduction in the amount of property tax revenues allowed to be levied by
the taxing jurisdiction. A protest petition contesting the increase in
property tax revenues for the taxing jurisdiction may be submitted to the
county clerk within 30 days, or the next business day after if the 30 th day
falls on a weekend or county holiday, following the date that the governing
body of a taxing jurisdiction certifies to the county clerk the amount of ad
valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
thereto. If a taxing jurisdiction fails to timely certify the amount of ad
valorem tax to be levied pursuant to K.S.A. 79-1801, and amendments
thereto, the taxing jurisdiction shall be limited to funding by property tax
revenues at the maximum amount provided in subsection (b).
(2) The county clerk shall notify the county treasurer of all taxing
jurisdictions that approve any appropriation or budget that provides for
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funding by property tax revenues in excess of the amount provided in
subsection (b). The county treasurer's office shall post on the county
website and social media, if such website or social media exists, and post
in the county treasurer's office whether any protest petitions are available
for any taxing jurisdiction within the county. The county treasurer shall
also make available in the county treasurer's office during business hours a
copy of each protest petition with the signature page in order to obtain
signatures. The requirements set forth in K.S.A. 25-3602, and amendments
thereto, relating to the filing of petitions at one time all in one group and
the petition circulator and signature requirements shall not apply to protest
petitions maintained by a county treasurer. The director of accounts and
reports shall design, revise and publish on the website of the department of
administration a standard protest petition form pursuant to the provisions
of this section and K.S.A. 25-3602, and amendments thereto. In the event
that a protest petition is signed by at least 10% of the qualified voters of
the votes cast for the office of president of the United States at the last
general election in such taxing jurisdiction, and is filed within 30 days
with the county clerk of the county, the taxing jurisdiction shall be limited
to funding by property tax revenues at the maximum amount provided in
subsection (b). Upon the finding that a petition protesting the increase in
funding by property tax revenues was signed by less than the required
number of voters, the taxing jurisdiction shall proceed with the increases
in funding by property tax revenues.
(b) A taxing jurisdiction shall be limited in its budget to a total
amount of ad valorem tax to be levied in an amount that is equal to or less
than the total amount of ad valorem tax levied for the preceding tax year,
increased by an amount that is equal to or less than such ad valorem tax
when the following are included:
(1) An increase of not more than the amount of the annual percentage
of consumer price index for all urban consumers in the midwest region as
published by the bureau of labor statistics of the United States department
of labor or 3%, whichever is less, multiplied by the total amount of ad
valorem tax levied for the preceding tax year;
(2) increased property tax revenues that, in the current year, are
produced and attributable to the taxation of the construction of any new
structures or improvements or the remodeling or renovation of any
existing structures or improvements on real property, excluding any
ordinary maintenance or repair of any existing structures or improvements
on the property. The director of property valuation shall provide to the
state treasurer any information required under this paragraph; and
(3) increased property tax revenues that are dedicated to paying off a
bond issuance that was approved by a vote of the electors at an election
held on and after July 1, 2025.
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(c) The provisions of this section shall not apply to the state of
Kansas or a school district.
(d) (1) The county clerk shall provide a protest petition notice to each
taxpayer with property in taxing jurisdictions that approve any
appropriation or budget that provides for funding by property tax revenues
in excess of the amount provided in subsection (b). The county clerk shall
transmit the notice to each taxpayer by mail directed to the taxpayer's last
known address or by electronic means if such taxpayer and county clerk
have consented in writing to service by electronic means. The notice shall
be in a format prescribed by the director of accounts and reports. The
notice shall include, at a minimum:
(A) An explanation of the protest petition process and requirements,
including, but not limited to, the deadline for signatures, the physical
locations of protest petitions, any website addresses where the protest
petition form is available, a telephone number to call to request a protest
petition form be mailed to a person who is unable to access a location in
person and the effect of a successful protest petition;
(B) the appraised value and assessed value of the taxpayer's property
for the current year and the previous year;
(C) the tax rate and amount of property tax of all taxing jurisdictions
related to the taxpayer's property from the previous year's tax statement;
(D) the proposed tax rate and estimated amount of property tax of all
taxing jurisdictions related to the taxpayer's property for the current year;
and
(E) a clear and conspicuous identification of the taxing jurisdictions
that approved any appropriation or budget that is subject to a protest
petition pursuant to this section.
(2) In the event that a county clerk incurred costs of printing and
postage that were not reimbursed pursuant to paragraph (3), such county
clerk may seek reimbursement from all taxing jurisdictions with an
appropriation or budget that is subject to a protest petition. Such costs shall
be shared proportionately by all such taxing jurisdictions that were
included on the same notice based on the total property tax levied by each
taxing jurisdiction. Payment of such costs shall be due to the county clerk
by December 31 of the year in which such costs were incurred.
(3) (A) For calendar years 2025 and 2026, if a county clerk has
printing or postage costs pursuant to paragraph (1), the county clerk shall
notify and provide documentation of such costs to the secretary of
revenue. The secretary of revenue shall certify the amount of moneys
attributable to such costs and transmit a copy of such certification to the
director of accounts and reports. Upon such receipt of such certification,
the director of accounts and reports shall transfer an amount of moneys
equal to such certified amount from the state general fund to the protest
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petition notification costs fund of the department of revenue. The secretary
of revenue shall transmit a copy of each such certification to the director of
legislative research and the director of the budget.
(B) There is hereby established in the state treasury the protest
petition notification costs fund that shall be administered by the secretary
of revenue. All expenditures from the protest petition notification costs
fund shall be for the purpose of paying county printing and postage costs
pursuant to paragraph (1). All expenditures from such fund shall be made
in accordance with appropriations acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
secretary of revenue or the secretary's designee.
Sec. 2. K.S.A. 2024 Supp. 79-1801 is hereby amended to read as
follows: 79-1801. (a) Except as provided by subsection (b), each year the
governing body of any city, the trustees of any township, the board of
education of any school district and the governing bodies of all other
taxing subdivisions shall certify, on or before August 25, to the proper
county clerk the amount of ad valorem tax to be levied. Thereupon, the
county clerk shall place the tax upon the tax roll of the county, in the
manner prescribed by law, and the tax shall be collected by the county
treasurer. The county treasurer shall distribute the proceeds of the taxes
levied by each taxing subdivision in the manner provided by K.S.A. 12-
1678a, and amendments thereto.
(b) Prior to January 1, 2021, if the governing body of a city or county
must conduct an election for an increase in property tax to fund any
appropriation or budget under K.S.A. 25-433a, and amendments thereto,
the governing body of the city or county shall certify, on or before October
1, to the proper county clerk the amount of ad valorem tax to be levied. On
and after January 1, 2021 2025 , if the governing body of a taxing
subdivision must conduct a public hearing to approve exceeding the
revenue neutral rate under K.S.A. 2024 Supp. 79-2988, and amendments
thereto, or amend such governing body's budget pursuant to a successful
protest petition under section 1, and amendments thereto, the governing
body of the taxing subdivision shall certify, on or before October 1, to the
proper county clerk the amount of ad valorem tax to be levied.
Sec. 3. K.S.A. 2024 Supp. 79-2988 is hereby amended to read as
follows: 79-2988. (a) On or before June 15 each year, the county clerk
shall calculate the revenue neutral rate for each taxing subdivision and
include such revenue neutral rate on the notice of the estimated assessed
valuation provided to each taxing subdivision for budget purposes, except
that for tax year 2024, the deadline shall be extended to July 1, 2024. The
director of accounts and reports shall modify the prescribed budget
information form to show the revenue neutral rate.
(b) Except as otherwise provided in this section, no tax rate in excess
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of the revenue neutral rate shall be levied by the governing body of any
taxing subdivision unless a resolution or ordinance has been approved by
the governing body according to the following procedure:
(1) At least 10 days in advance of the public hearing, the governing
body shall publish notice of its proposed intent to exceed the revenue
neutral rate by publishing notice:
(A) On the website of the governing body, if the governing body
maintains a website; and
(B) in a weekly or daily newspaper of the county having a general
circulation therein. The notice shall include, but not be limited to, its
proposed tax rate, its revenue neutral rate and the date, time and location
of the public hearing.
(2) On or before July 20 , the governing body shall notify the county
clerk of its proposed intent to exceed the revenue neutral rate and provide
the date, time and location of the public hearing and its proposed tax rate.
F or all tax years commencing after December 31, 2021, the county clerk
shall notify each taxpayer with property in the taxing subdivision, by mail
directed to the taxpayer's last known address, of the proposed intent to
exceed the revenue neutral rate at least 10 days in advance of the public
hearing. Alternatively, the county clerk may transmit the notice to the
taxpayer by electronic means at least 10 days in advance of the public
hearing, if such taxpayer and county clerk have consented in writing to
service by electronic means. The county clerk is not required to send a
notice to a property owner of property that is exempt from ad valorem
taxation. The county clerk shall consolidate the required information for
all taxing subdivisions relevant to the taxpayer's property on one notice.
The notice shall be in a format prescribed by the director of accounts and
reports. The notice shall include, but not be limited to:
(A) The following heading:
"NOTICE OF PROPOSED PROPERTY TAX INCREASE AND
PUBLIC HEARINGS
[Current year] [County name] County Revenue Neutral Rate Notice
This is NOT a bill. Do not remit payment.";
(B) the following statement:
"This notice contains estimates of the tax on your property and
proposed property tax increases. THE ACTUAL TAX ON YOUR
PROPERTY MAY INCREASE OR DECREASE FROM THESE
ESTIMATES. Governing bodies of taxing subdivisions must vote in order
to exceed the Revenue Neutral Rate to increase the total property taxes
collected. Governing bodies will vote at public hearings at the dates, times
and locations listed. Taxpayers may attend and comment at the hearings.
Property tax statements will be issued after mill rates are finalized and
taxes are calculated.";
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(C) the appraised value and assessed value of the taxpayer's property
for the current year and the previous year;
(D) the tax rate and amount of property tax of each taxing
subdivision on the taxpayer's property from the previous year's tax
statement in a column titled: "[Previous year] Tax";
(E) the revenue neutral rate and estimated amount of property tax for
the current year of each taxing subdivision on the taxpayer's property
based on the revenue neutral rate of each taxing subdivision in a column
titled: "[Current year] Tax at Revenue Neutral Rate";
(F) the estimated amount of property tax for the current year of each
taxing subdivision on the taxpayer's property based on either: (i) The
revenue neutral rate for a taxing subdivision that does not intend to exceed
its revenue neutral rate; or (ii) the proposed tax rate provided by the taxing
subdivision, if the taxing subdivision notified the county clerk of its
proposed intent to exceed its revenue neutral rate , and such rate used in
the calculation, in a column titled: "[Current year] Maximum Proposed
Tax";
(G) the difference between the amount of the current year's maximum
proposed tax and the previous year's tax, reflected in dollars and a
percentage, for each taxing subdivision in a column titled: "[Current year]
Maximum Proposed Tax Exceeding [Previous year] Tax";
(H) the date, time and location of the public hearing of each taxing
subdivision that notified the county clerk of its proposed intent to exceed
its revenue neutral rate in a column titled: "Date, Time and Location of
Public Hearing"; and
(I) for each taxing subdivision public hearing listed pursuant to
subparagraph (H), the difference between the current year's maximum
proposed tax and the estimated amount of property tax based on the
revenue neutral rate of such taxing subdivision in a column titled:
"[Current year] Maximum Proposed Tax Exceeding Tax at Revenue
Neutral Rate".
The columns described in subparagraphs (D) through (G) shall include
a total of the amounts at the end of each column. Although the state of
Kansas is not a taxing subdivision for purposes of this section, the notice
shall include the previous year's tax amount and the estimate of the tax for
the current year on the taxpayer's property based on the statutory mill
levies.
(3) The public hearing to consider exceeding the revenue neutral rate
shall be held not sooner than August 20 and not later than September 20.
The governing body shall provide interested taxpayers desiring to be heard
an opportunity to present oral testimony within reasonable time limits and
without unreasonable restriction on the number of individuals allowed to
make public comment. The public hearing may be conducted in
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S Sub HB 2396—Am. by SC 8
conjunction with the proposed budget hearing pursuant to K.S.A. 79-2929,
and amendments thereto, if the governing body otherwise complies with
all requirements of this section. Nothing in this section shall be construed
to prohibit additional public hearings that provide additional opportunities
to present testimony or public comment prior to the public hearing
required by this section.
(4) A majority vote of the governing body, by the adoption of a
resolution or ordinance to approve exceeding the revenue neutral rate,
shall be required prior to adoption of a proposed budget that will result in a
tax rate in excess of the revenue neutral rate. Such vote of the governing
body shall be conducted at the public hearing and on the same day as the
commencement of the public hearing after the governing body has heard
from interested taxpayers and shall be a roll call vote. If the governing
body approves exceeding the revenue neutral rate, the governing body
shall not adopt a budget that results in a tax rate in excess of its proposed
tax rate as stated in the notice provided pursuant to this section. A copy of
the resolution or ordinance to approve exceeding the revenue neutral rate
and a certified copy of any roll call vote reporting, at a minimum, the
name and vote of each member of the governing body related to exceeding
the revenue neutral rate, whether approved or not, shall be included with
the adopted budget, budget certificate and other budget forms filed with
the county clerk and the director of accounts and reports and shall be
published on the website of the department of administration.
(c) (1) Any governing body subject to the provisions of this section
that does not comply with subsection (b) shall refund to taxpayers any
property taxes over-collected based on the amount of the levy that was in
excess of the revenue neutral rate.
(2) Any taxpayer of the taxing subdivision that is the subject of the
complaint or such taxpayer's duly authorized representative may file a
complaint with the state board of tax appeals by filing a written complaint,
on a form prescribed by the board, that contains the facts that the
complaining party believes show that a governing body of a taxing
subdivision did not comply with the provisions of subsection (b) and that a
reduction or refund of taxes is appropriate. The complaining party shall
provide a copy of such complaint to the governing body of the taxing
subdivision making the levy that is the subject of the complaint.
Notwithstanding K.S.A. 74-2438a, and amendments thereto, no filing fee
shall be charged by the executive director of the state board of tax appeals
for a complaint filed pursuant to this paragraph. The governing body of the
taxing subdivision making the levy that is the subject of the complaint
shall be a party to the proceeding. Notice of any summary proceeding or
hearing shall be served upon such governing body, the county clerk, the
director of accounts and reports and the complaining party. It shall be the
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duty of the governing body to initiate the production of evidence to
demonstrate, by a preponderance of the evidence, the validity of such levy.
If upon a summary proceeding or hearing, it shall be made to appear to the
satisfaction of the board that the governing body of the taxing subdivision
did not comply with subsection (b), the state board of tax appeals shall
order such governing body to refund to taxpayers the amount of property
taxes over collected or reduce the taxes levied, if uncollected. The
provisions of this paragraph shall not be construed as prohibiting any other
remedies available under the law.
(d) On and after January 1, 2022, in the event that the tax levied by a
school district pursuant to K.S.A. 72-5142, and amendments thereto,
increases the property tax revenue generated for the purpose of calculating
the revenue neutral rate from the previous tax year and such amount of
increase in revenue generated from such tax levied is the only reason that
the school district would exceed the total property tax revenue from the
prior year, the school district shall be deemed to not have exceeded the
revenue neutral rate in levying a tax rate in excess of the revenue neutral
rate to take into account the increase in revenue from only such tax levied.
(e) (1) Notwithstanding any other provision of law to the contrary, if
the governing body of a taxing subdivision must conduct a public hearing
to approve exceeding the revenue neutral rate under this section, the
governing body of the taxing subdivision shall certify, on or before
October 1, to the proper county clerk the amount of ad valorem tax to be
levied.
(2) If a governing body of a taxing subdivision did not comply with
the provisions of subsection (b) and certifies to the county clerk an amount
of ad valorem tax to be levied that would result in a tax rate in excess of its
revenue neutral rate, the county clerk shall reduce the ad valorem tax to be
levied to the amount resulting from such taxing subdivision's revenue
neutral rate.
(f) As used in this section:
(1) "Taxing subdivision" means any political subdivision of the state
that levies an ad valorem tax on property.
(2) "Revenue neutral rate" means the tax rate for the current tax year
that would generate the same property tax revenue as levied the previous
tax year using the current tax year's total assessed valuation. To calculate
the revenue neutral rate, the county clerk shall divide the property tax
revenue for such taxing subdivision levied for the previous tax year by the
total of all taxable assessed valuation in such taxing subdivision for the
current tax year, and then multiply the quotient by 1,000 to express the rate
in mills. The revenue neutral rate shall be expressed to the third decimal
place.
(g) In the event that a county clerk incurred costs of printing and
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S Sub HB 2396—Am. by SC 10
postage that were not reimbursed pursuant to K.S.A. 2024 Supp. 79-2989,
and amendments thereto, such county clerk may seek reimbursement from
all taxing subdivisions required to send the notice. Such costs shall be
shared proportionately by all taxing subdivisions that were included on the
same notice based on the total property tax levied by each taxing
subdivision. Payment of such costs shall be due to the county clerk by
December 31.
(h) The department of administration or the director of accounts and
reports shall make copies of adopted budgets, budget certificates, other
budget documents and revenue neutral rate documents available to the
public on the department of administration's website on a permanently
accessible web page that may be accessed via a conspicuous link to that
web page placed on the front page of the department's website. The
department of administration or the director of accounts and reports shall
also make the following information for each tax year available on such
website:
(1) A list of taxing subdivisions by county;
(2) whether each taxing subdivision conducted a hearing to consider
exceeding its revenue neutral rate;
(3) the revenue neutral rate of each taxing subdivision;
(4) the tax rate resulting from the adopted budget of each taxing
subdivision; and
(5) the percent change between the revenue neutral rate and the tax
rate for each taxing subdivision.
(i) Notwithstanding any provisions to the contrary, in the event any
governing body does not comply with the provisions of subsection (b)
because such governing body did not intend to exceed its revenue neutral
rate but the final taxable assessed valuation of such taxing subdivision
used to calculate the actual tax levy is less than the estimated assessed
valuation used to calculate the revenue neutral rate, such governing body
shall be permitted to levy a tax rate that generates the same amount of
property tax revenue as levied the previous year or less.
Sec. 4. 3. K.S.A. 2024 Supp. 79-1801 and 79-2988 are 2025 Supp.
79-2989 is hereby repealed.
Sec. 5. 4. This act shall take effect and be in force from and after its
publication in the statute book Kansas register.
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