BACKGROUND ON THE ISSUE:
During the 2014 Legislative Session, Kansas REALTORS® will again push legislation to provide relief to Kansas families, farmers and small business owners from the crushing property tax burdens imposed by Kansas local governments.
From 1997 to 2012, the total property tax burden on Kansas property owners has more than doubled by increasing nearly 132%. The burden on Kansas property owners is growing by an average of 8.8% per year, which is 12 times faster than population and 3.5 times faster than inflation over the same time period.
If the Kansas Legislature does nothing to slow the growth of the property tax burden on Kansas property owners, then property taxes are expected to more than double again by 2020. Can you afford a 171% increase in your property taxes over the next decade?
HIGH PROPERTY TAXES STIFLE KANSAS ECONOMIC GROWTH:
Huge annual increases in local property taxes reduce the resources that Kansas farmers and small business owners can use to expand their operations, hire new employees and make capital investments in the Kansas economy. The crushing property tax burden also harms Kansas families that are struggling to make ends meet.
Kansas has one of the worst property tax burdens on businesses in the entire nation. In fact, Kansas ranks nearly dead last in the property tax burden on businesses – 47th for mature businesses and 48th for new businesses. According to a recent study, Kansas had one of the highest effective property tax rates in the nation on commercial properties! How can Kansas produce increased economic growth with a property tax burden that is so uncompetitive compared to other states?
THE FACTS:
- The property tax burden on Kansas families and businesses is growing by around 8.8% per year. The growth in the property tax burden is 12 times greater than population growth and 3.5 times greater than inflation.
- Kansas has one of the worst property tax burdens on businesses in the nation. Kansas ranks nearly dead last – 47th and 48th for mature and new businesses.
- Local governments are resistant to the passage of REAL property tax reforms that will provide relief to Kansans and increase the transparency and fairness of our property tax system.
- This is not a recent problem. Property taxes have increased exponentially since the repeal of the property tax lid by local governments in 1999.
KEY OBJECTIVES:
- Pass legislation to ensure that local governments are transparent when they pass “sneaky” tax increases by increasing assessed valuations rather than increasing mill levy rates.
- Pass legislation to make the property tax appeals process more fair for property owners by “leveling the playing field” between property owners and county appraisers.
