OUTSTANDING PROPERTY TAXES VS. TAX ABATEMENTS

AND HOW IT IS AFFECTING OUR COMMUNITY

Deb McCoy

Look what is happening in our small community. As of the 2020 Census, the total population of the incorporated cities in Bourbon County was 8,464, and 5,896 live in unincorporated communities and rural regions, making our total population of Bourbon County 14,360.

As citizens, we need to be held accountable for the actions that we are responsible for. Without taxes, our City and County Government cannot provide the essential services and infrastructure in our community. They primarily fund: Public Schools, Public Safety to support police and fire protection, Roads and Infrastructure contribute to the maintenance and construction of roads and public transportation, and Community Services that include local health and social service programs, libraries, parks, recreational facilities, and other community amenities. Overall, Property taxes are a crucial source of revenue for local governments, enabling them to provide essential services and to maintain the infrastructure of our community.

“Most Americans do not like doing or paying their income taxes, but every year about 85% of them will voluntarily pay the full amount of the taxes they owe. Even so, the IRS estimates that the United States loses over $400 billion of revenue each year because people fail to file their taxes, underreport their income or underpay the amount of taxes they owe.” (4/11/2024 “The Conversation” by Michele Frank)

The recent Legal Notice printout of Bourbon County 2024 outstanding taxes totals of $1,355,870.93.  The following figures are outstanding taxes from 2017 through 2023 that were received from our treasurer’s office:

2017 – $70,123.81

2018 –$80,569.78

2019 –$89,831.45

2020 – $94,115.88

2021 – $159,182.00

2022 – $316,810.93

2023 – $500,321.48

Another Program that gives residents tax breaks is The Neighborhood Revitalization Tax Rebate Commercial or Residential Program.  This program is a partnership between the City and County, with the City responsible for promoting revitalization and development. To qualify the property must be located within the contiguous city limits of the City of Fort Scott, Conform to the City of Fort Scott’s Comprehensive Land Use Plan & Zoning Ordinance, Conform to all applicable building codes, rules & regulation in effect at the time the improvement are made and for the length of the term of the rebate., and be up to date on all property tax & special assessment payments. The following list from 2015 through 2025 breaks down the annual rebates on taxes that were given in Bourbon County through the County Appraiser’s Office:

2015 – $822,736

2016 – $3,328,018

2017 – $4,817,118

2018 – $108,850

2019 – $425,832

2020 – $1,985,078

2021 – $2,754,027

2022 – $1,097,830

2023 – $4,816,782

2024 – $6,927,358

2025 – $5,466,190

The total amount of taxes that are unpaid or rebated in our community for 2024/2025 is $6,822,060.93.

The questions on whether cities should have caps on the number of grants awarded is complex and subjective and perhaps, we as a city and a county should consider caps on tax rebate incentives to ensure they are used effectively and equitably and based on community needs. It’s essential to consider the economic impact of these grants on local communities, as well as the need for flexibility in grant allocation. Ultimately, the decision of our local government should be based on a thorough assessment of the specific circumstances and needs. The purpose of the Neighborhood Revitalization Program was intended to encourage reinvestment and improvement of areas of decline or areas of architectural or historical significance within the community, per K.S.A. 12-17.114. Are we following these requirements and who is monitoring the program to ensure that we are within the purpose and factual findings of this program? These programs are enticing, but have we overextended our means to the point that we cannot meet the basic needs of our essential services and to maintain the infrastructure of our community without imposing additional sales taxes?