The 2016 Legislative Session is off and running. Even though it will take several weeks before major action begins, KAR is making progress on our priority Kansas REALTOR® legislative issues. Please continue reading for an update on how KAR is promoting and protecting Kansas REALTORS® through political action and advocacy during the 2016 Legislative Session.
1. Opposing Attempts to Increase the Tax Burden on Kansas Property Owners
WHAT’S HAPPENING:
- While state tax revenues have grown over the previous year, revenues are significantly under the amount of money that the state previously estimated it would take in this year.
- If the Kansas Legislature attempts to increase taxes, they may try to make further reductions to the ability of state income taxpayers to claim the mortgage interest and property tax deductions on their state income tax returns. Eliminating these two very important deductions would lead to a tax increase on Kansas homeowners.
WHAT WE ARE ASKING LAWMAKERS TO DO:
- KAR will push the Kansas Legislature to do no harm to the recovering real estate market by opposing attempts to reopen the state income tax reform debate.
PROGRESS ON THIS ISSUE:
- The Kansas Legislature will need to take action sometime in the next few months to close a projected budget deficit for fiscal year 2017 (starts on July 1, 2016). We will be monitoring any discussions on the budget to defeat any effort to increase income tax revenues by making further reductions to the ability of Kansas homeowners to claim their mortgage interest and property tax deductions.
2. Reducing the Property Tax Burden on Kansas Property Owners
WHAT’S HAPPENING:
- Over the last 17 years, the property tax burden on Kansans has increased by three times the rate of inflation. In 2015, the Kansas Legislature gave voters the right to vote when cities and counties increase property taxes by more than the rate of inflation over the previous year.
WHAT WE ARE ASKING LAWMAKERS TO DO:
- Unfortunately, the public vote requirement on property tax increases is not currently scheduled to go into effect until January 1, 2018, which gives cities and counties a free pass to increase property taxes over the next two years without a public vote.
- KAR will push the Kansas Legislature to move up the effective date of the public vote requirement on property tax increases to this year.
PROGRESS ON THIS ISSUE:
- Please click here to send an email to your legislators in support of the public vote requirement on property tax increases. The Senate Taxation Committee will have a hearing on the bill (Senate Bill 316) sometime within the next few weeks.
3. Protecting Consumer Choice in the Housing Market by Banning Price Control Mandates
WHAT’S HAPPENING:
- Advocacy groups are pushing local governments to adopt “inclusionary zoning” requirements, which would establish sales price limits on a percentage of all new housing units constructed in new housing developments. These “price controls” act as a tax on new housing units and can lead to a significant decrease in the number of housing units built and an increase in the cost of market-rate housing for middle-class Kansas families.
WHAT WE ARE ASKING LAWMAKERS TO DO:
- KAR will ask the Kansas Legislature to protect consumer choice in the real estate market and promote affordable housing for middle-class Kansas families by passing legislation to prohibit cities and counties from adopting or enforcing price control mandates on privately-owned property.
PROGRESS ON THIS ISSUE:
- KAR will be launching an all-member Call for Action on the issue sometime in mid-February. Legislation will be introduced in the Kansas Senate next week to prohibit the adoption or enforcement of price control mandates by cities and counties. The Senate Commerce Committee will have a hearing on the bill sometime within the next few weeks.
