Kansas lawmakers say property tax relief won't have to come at the expense of school funding.
Republicans and Democrats want to cut Kansas property taxes this year. But they can't decide on the best way to do it 69传媒 and some worry that core local services like schools, roads and law enforcement could suffer as a result.
At the June 27, 2024, meeting of the Wyandotte 69传媒 Board of Commissioners, community members in attendance were upset for at least two reasons.
First, the commissioners were late to their own meeting. One commenter said they had waited 45 minutes for the meeting to start.
The second cause for indignation was a proposal to exceed 69传媒渞evenue neutral69传媒 in the following year69传媒檚 budget 69传媒 government-speak for raising property taxes.
Tori Walker, a music teacher, said her home in the Morris neighborhood was affordable when she bought it five years prior. That changed, she said, when the 69传媒渓urking monster69传媒 of property taxes reared its head.
69传媒淎ny extra money I make this summer with little side jobs won69传媒檛 really benefit my family,69传媒 she said. 69传媒淚 won69传媒檛 be able to pay it toward debt, or toward savings, or even maybe to go to the pool or buy school supplies. No, I69传媒檒l be paying it to Wyandotte 69传媒.69传媒
After three hours and dozens of testimonies like Walker69传媒檚, applause rang out when the commission voted unanimously against its proposal to hike property taxes.
And Commissioner Chuck Stites apologized for the delayed start to the meeting.
What would cuts cost?
Required public hearings like this have taken place across the state of Kansas as residential property tax rates have ballooned. Last year69传媒檚 drawn-out battle over a sweeping tax cut package did not include the level of property tax relief many had wanted. This year, lawmakers on both sides of the aisle say they want to fix that.
But although frustration with the unpopular tax is widespread, the appetite for cutting it is not universal. Local governments rely heavily on property taxes to fund schools, emergency services, public utilities and infrastructure projects.
Property taxes make up the lion's share of funding for local services like road maintenance, public schools and law enforcement.
69传媒淥ur primary functions as local government is to keep you safe with our public safety programs and to keep your roads open and your water flowing,69传媒 said Spencer Duncan, a lobbyist for the League of Kansas Municipalities. 69传媒淎nd if we can't do that, then that obviously becomes a real problem.69传媒
Duncan is worried that state lawmakers might try to force cities and counties to lower their tax rates, which could starve local services like fire departments and road crews.
For some, promises of major tax reductions recall not-too-distant memories of budgetary stress during the governorship of Republican Sam Brownback. Tom Barker, a Lawrence homeowner who69传媒檚 worked as a social studies teacher since 2012, associated the signature Brownback tax cuts with growing class sizes and belt-tightening bordering on asphyxiation.
69传媒淭he biggest challenge is just being able to have the time to be able to help kids and really address their needs,69传媒 he said.
Because of staff shortages, Barker said his classes have too many to give each of them the individual attention they might need to keep up.
Not if, but how
The idea of tax cuts has bipartisan support in the Legislature this session. But even lawmakers within each party disagree about the best way to go about it. There are several ways to lower property taxes, each with their own drawbacks.
The Kansas House has proposed lowering the state mill levy, a form of property tax dedicated to funding public schools. Even a modest reduction from 20 mills to 18.5 would result in hundreds of millions of education dollars lost, according to estimates by the state Division of Budget.
On KCUR69传媒檚 Up to Date in January, Republican Senate President Ty Masterson assured that any reductions to revenues for schools would be made up for in the State General Fund.
Barker was not entirely convinced with that argument.
69传媒淲ith the changeover we see in Topeka, how long is that going to last?69传媒 he said. 69传媒淎nd is that going to be something that's going to be removed or changed in one or two years?69传媒
But local and state property tax rates are not the only variable. Some lawmakers want to change how property values are calculated for tax purposes.
69传媒淓ven folks who are in more expensive homes are feeling the pinch of the property tax valuations being out of control,69传媒 said Senator Mike Thompson, a Shawnee Republican, in an interview last fall.
Thompson supported a proposed amendment to the state constitution that would cap property valuation increases at 3% each year. The policy would place an artificial ceiling on how much a property69传媒檚 worth can grow in the eyes of the county appraiser. Proponents hope it would protect property owners from runaway tax increases.
But some experts fear a cap on appraisals could have unwelcome ripple effects. Katherine Loughead, an analyst at the right-leaning think tank the Tax Foundation, said the policy could create dramatic distortions in the housing market.
69传媒淭hat over time shifts more of the property tax burden onto newer and younger homeowners, like first-time homebuyers,69传媒 she said. 69传媒淎nd it can cause older homeowners and those who have owned their homes for a long time to stay in their homes for longer than maybe they even want to.69传媒
Imagine next-door neighbors, one who69传媒檚 been on the block for decades and another who just moved in. Since appraisals are reset at the time of purchase under the proposed policy, the newcomer could end up with a much higher tax bill 69传媒 even though the properties have a similar market value.
For those reasons, House leaders seem hesitant to consider valuation caps. Democratic House Minority Leader Brandon Woodard would rather raise the tax exemption for homes, shielding $100,000 or more of a home69传媒檚 value from tax liability.
69传媒淭here's a way to do this that does not risk our funding to public schools,69传媒 Woodard said.
In her State of the State address, Democratic Gov. Laura Kelly recognized the desire for tax relief. But until the state has a better idea of how last year69传媒檚 cuts will impact the budget going forward, Kelly said she opposes reductions that don69传媒檛 69传媒減ay for themselves.