The 2020 Kansas Legislative Session started this week in Topeka. As with most opening weeks of a session, the pace could be characterized as somewhat slow. There were certainly exceptions, tax committees in both chambers introduced a number of bills impacting the appraisal process and other tax issues that we will be monitoring throughout the session. On Wednesday, Governor Laura Kelly gave her second State of the State address to a joint session of the Legislature. On Thursday, budget committees began getting briefed on the Governor’s FY 2021 budget proposal that spends $19.7 billion from all sources, and as written is balanced. The budget proposal provides money for Medicaid expansion, state employee pay raises, property tax relief and injects money back into the state transportation plan while relying on money from savings due to restructuring the unfunded long term liabilities of the Kansas Public Employees Retirement System (KPERS). That restructuring received a cold reception from legislative leaders again this year after failing to gain any traction last session.
Most legislators left town Thursday night before winter weather approached on Friday where a pro forma session was conducted as a method to exchange messages between chambers and refer items to committees with no possibility for debate.
REALTORS® Legislative
Priorities
Legislative leaders in both the House and the Senate have indicated a
willingness to again push for a broad package of tax proposals. Tax legislation
is expected to include REALTORS® number one legislative priority of removing
the restriction under current law that prevents Kansas individual income
taxpayers from itemizing deductions for state income tax purposes unless they
also itemize deductions for federal income tax purposes. While the Governor and
legislature will have to come to agreement on a final budget, they are helped
by the fact the State is dealing with revenues that have exceeded estimates
nearly each month of the current fiscal year. Recent revenues increases that
are at least in part a result of the windfall created by preventing Kansas
homeowners from itemizing on their state income tax returns if they take the
standard deduction on their federal income taxes.
As for our other major priorities, stakeholders and legislators have been contacted regarding the best strategies to advance legislation that defines rebates, creates home inspector licensing and prevents fraud and abuse regarding service and emotional support animals. Look for more updates on these issues soon as the committee process heats up in the coming weeks.
The Week Ahead
The Legislature returns on Tuesday where committee work will be the focus
of attention. This includes a number of bills regarding real estate appraisals
and appeals that will have hearings in the Senate Assessment and Taxation
Committee. Hearings are scheduled for SB
263 (requires current year tax estimates on annual notices of valuation); SB
264 (removes terminated appraisers from appearing on the list of those
eligible to be appointed as an appraiser); SB
266 (requires educational courses for appraisers and the State Board of Tax
Appeals to be approved by the Kansas Real Estate Appraisal Board); SB
262 (changes the timeline of appeals to be based on the actual date of service);
SB
265 (allows the State Board of Tax Appeals to serve notices by electronic
means if all involved consent to the method of delivery) and an informational hearing
on prohibiting valuation increases as a result of normal maintenance.
The pace will increase rather dramatically in the coming weeks. I look forward to advancing our issues during the legislative session which is my eleventh either working directly for the Kansas Legislature or working as an association lobbyist. A more extensive update and bill tracking will be provided in our next update. In the meantime, feel free to reach out with any issues, questions or concerns to [email protected] or 785.414.5155.
