Monday, January 11, 2021

Kansas's Rising Property Rates!!!!!!!!!!!!!!!!

 KANSAS CITIES, COUNTIES DECEPTIVELY CLAIM TO HOLD THE LINE ON RAISING PROPERTY TAXES

 Kansas Policy Institute urges lawmakers to revisit transparency legislation vetoed by Governor Kelly last year FOR IMMEDIATE RELEASE Jan. 8 - In its 2021 budget report, Douglas County says, "Acknowledging that COVID-19 has had a significant economic impact for many, the mill levy remains flat…." But a 4.8% property tax hike in this year's budget is not mentioned. “Taxpayers deserve better. Douglas County points out their mill levy remains flat. But that doesn’t mean they aren’t raising property taxes. This is the epitome of the Kansas property tax honesty gap. Local officials speak only of mill rate changes but ignore the backdoor increase from valuation changes on property,” Says Dave Trabert, CEO of Kansas Policy Institute. The Johnson County budget book touts a 1.7% reduction in the mill rate, but there's a 4.3% property tax increase within in the 445-page document. Kansas Policy Institute calls this disparity the property tax honesty gap. “This is a 6% honesty gap. Elected officials are pretending taxes are going down 1.7% when it's really a 4.3% increase. And these are not isolated incidents,” Trabert says. 

Local officials all across Kansas are telling voters they are 'holding the line' on property taxes. But KPI’s analysis of 50 of the largest cities and counties show an average property tax increase of almost 4% coming this year. Which is four times the inflation rate. “Kansans are struggling to make ends meet more than ever right now. We need local elected officials to commit to transparency.” 

The adjacent table lists the most egregious examples, starting with the city of Overland Park at 8.8%. The city of Lenexa is a close second, at 8.3%. Six other local units are imposing more than a 5% increase, including Prairie Village (6%), Leavenworth County (6.4%), Miami County (5.9%), Pittsburg and Wichita (5.4%), and Olathe (5.1%) Truth in Taxation legislation closes the honesty gap Last year, the Kansas Legislature overwhelmingly passed Truth in Taxation legislation to close the honesty gap. 

But city and county officials opposed it, so Governor Kelly saved them from having to be honest and vetoed the bill on the last day of the session, with no opportunity to override. Utah and Tennessee have had Truth in Taxation laws in effect for more than three decades, which have proven to keep taxes lower. For example, Utah's effective property tax rate dropped by 7.5% between 2000 and 2018, while the tax rate increased by 22% in Kansas. Under the Kansas bill, local elected officials must vote on the entire property tax increase they impose, regardless of whether the increase results from valuation changes or mill rate changes. Each year, mill rates would be automatically reduced to a 'revenue-neutral' level that produces the same property tax revenue to each city and county as they collected the year before. “If they want to raise the revenue-neutral mill rate, they must notify taxpayers of their intent and hold public Truth in Taxation hearings to accept taxpayer input. Afterward, they must vote on the entire tax increase they decide to impose. This is one of the most important issues Kansans are facing right now. They want to be heard. Our legislatures and Governor need to listen,” 

Trabert says. Kanas Policy Institute is calling for the Legislature to take the Truth in Taxation legislation up again this year and put it on Governor Kelly's desk early in the session with plenty of time to override her inevitable veto


#ms @MS @Advocate

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