Budget & Taxes (Revenue)

This bill reduces the property tax rate that Kansas school districts can charge on taxable property, lowering it from the current rate to 20 mills for the 2025-2026 and 2026-2027 school years, then gradually decreasing by one mill each year until it reaches 15 mills starting in the 2031-2032 school year. The measure directly affects school districts across Kansas by limiting how much tax revenue they can collect from property owners to fund general operating budgets, maintain public schools, and repay certain redevelopment bonds. Under the new provisions, most tax revenue collected must be sent to the state treasurer and deposited into the state school district finance fund, while districts are prohibited from using certain other tax authority mechanisms. The changes apply to all school districts in Kansas and take effect once the bill is published in the state statute book.

This bill reduces the property tax rate that Kansas school districts can levy on taxable tangible property, lowering it from its current level to 20 mills for the 2025-2026 and 2026-2027 school years, with the rate decreasing by one mill each year until reaching 15 mills starting in the 2031-2032 school year. The tax revenue collected will continue to fund general school district budgets, help cover operating and maintenance costs for public schools, and pay off certain redevelopment project bonds for districts established before 1997. Additionally, the bill prevents school districts from using specific legal procedures related to tax levies, and it directs most tax proceeds to the state treasury for the school district finance fund. This change directly affects school districts across Kansas and their property tax obligations.

HB 2101 prohibits Kansas cities and counties from creating or funding guaranteed income programs using local tax revenue. It specifically bans any program providing regular cash payments to individuals without work requirements (unless required by federal law), and invalidates any such programs adopted before July 1, 2025. The bill defines a "guaranteed income program" as one not mandated by federal law that offers unconditional cash support. This law directly affects local governments by restricting their ability to implement such financial assistance initiatives without state legislative approval.

HB 2396 allows Kansas property taxpayers to challenge proposed property tax increases that exceed a set limit by submitting a protest petition. The limit is based on the previous year's tax revenue plus a small inflation adjustment and specific increases for new construction or bond payments. If 10% of voters from the last presidential election sign the petition within 30 days, the taxing jurisdiction (like a city or county) must reduce the tax increase to the limit. County clerks must notify taxpayers of the proposed increase and protest process, with costs shared by the taxing jurisdictions.