April 12, 2024
Property Tax Relief was passed by the Senate in Conference Committee Report (CCR) 2096, but hit a brick wall in the House. The provisions include:
- Expand the property tax freeze for seniors and disabled veterans so more people qualify
- Eliminate personal property taxes on items not used for business purposes, such as off-road ATVs, 15,000 lbs. trailers, motorized wheelchairs, bicycles, scooters, watercraft, and golfcarts
- Veterans’ Valor property tax relief program providing for totally disabled and unemployable
- Provide the current year and a four-year lookback on property valuation notices
- Allow payment under protest and appealing valuation in the same year if new evidence is provided
- Establish government competition property tax exemption
- Clarify 1031 exchange, build-to-suit, or sale/leaseback are not used establishing fair-market value
Property tax provisions in CCR 2096 will help many, especially seniors in need and disabled veterans. However, the House believed inaccurate information that there are two provisions for the rich and big businesses. The government competition piece is to stop governments from running a business that directly competes with businesses. It is a problem and this legislation is a shot across the bow to try to stop this practice. It is narrowly crafted for day-cares, health clubs, and restaurants within a city or 5 mile radius, but will most likely be expanded to include hotels/motels at some point. Topeka City Council bought and is running a hotel. Taxpayer funded lobbyist, such as the Kansas County Commissioners and the League of Municipalities opposed the legislation, but they offer no solution. The business has to be in existence before the government started a competing business. The State Constitution exempts government from property taxes, so it makes sense to provide directly competing businesses the same benefit, until the government stops running or sells the business. The other provision taxpayer lobbyists are against is making it clear that the value of property should be considered, not the rent or income the property generates. Would you want your income to be considered in the value of your home? All of the provisions in the bill deal with property tax. The House voted to send CCR 2096 back to conference committee.
Leadership may or may not allow the conference committee to meet again and if not, the CCR will be lost this year unless the House does a motion to reconsider the first day we return for veto session. The House could pass the CCR and send it to the Governor, since it has passed the Senate 23 to 14. I voted Yes.
I agree that each bill should pass on its own, but all of this legislation did not pass both chambers, so the only chance for it to pass this year is in a CCR. The conference committee put legislation together in CCRs by topics – property tax, sales tax, administrative, pro-life, and such. The only tax committee CCR that did not pass both chambers was CCR 2096.
I have worked diligently on provisions in this CCR, property tax relief for seniors, disabled veterans, and the personal property tax exemptions for all. Let’s hope we don’t lose the CCR and that the House or the Governor doesn’t throw the “baby out with the bathwater”, and focus on all the good in this CCR.
Governor’s Veto Pen could break last year’s record number of 17. There was also a record number of veto overrides last year. Because the last day of session was early, there wasn’t a chance to override all of the vetoed legislation and that could happen this year, including CCR 2096 if the House were to pass it. There was an attempt to override 14 of the 17 last year. Eight of the overrides were successful. There have been 6 vetoes this year: 2436, making it unlawful to force an abortion; 2446, making it unlawful to ban plastic bags; 2749, requiring reporting of each abortion; 2648, requiring impact statements of rules and regulations that have the force of law; 233, prohibiting sex changes of minors; and 434, exempting sugaring hair removal from cosmetology requirements. It takes 2/3 majority in each chamber to override a veto.
It is an honor and a privilege to serve as your 12th District State Senator.
Caryn