The Kansas Senate has passed out a local property tax lid bill. The bill number for the property tax bill is House Bill 2088. The bill is now in a House – Senate conference committee and is expected to be worked when the legislature returns on April 27, 2016. The following is what is in the bill as it was passed by the Senate. 1) The effective date of the bill is January 1, 2017.
2) Spending cannot exceed the Consumer Price Index for all Urban Consumers. 3) A budget that goes above the allowed tax lid would require approval by local voters. 4) There is an exemption for spending on “judgements or settlements of legal actions against the city or county and costs directly related to such judgements and settlements. 5) There is an exemption for expenditures that are specifically mandated by the federal or state law. 6) There is an exemption for property taxes levied by a subordinate government, such as a library district. 7) Bond and interest payments are exempt. 8) Exempt from the lid is “The construction of any new structures or improvements or the remodeling or renovation of any existing structures or improvements to real property. 9) Also exempt are expenses related to a federal, state or local disaster or emergency. As stated this bill is still in a conference committee and will probably be changes during the negotiation of the bill.