Numerous bills saw action in the final week of committees. KLA testified on several of importance to members. Today marks the final day for non-exempt committees to hear legislation and move it out of committee.
House tax plan - KLA testified in support of HB 2844, the latest mega tax bill to provide both income and property tax relief in the face of growing state surpluses. KLA supports the bill because, unlike past mega tax bills, this version includes broad property tax relief by reducing the statewide school mill levy from 20 mills to 18 mills. Additionally, it would increase the residential exemption from the statewide mill levy from $42,094 to $80,000. HB 2844 also would reduce the current three tax brackets to two by eliminating the bottom bracket of 3.1%, and would lower the top two brackets, taking them from 5.25% to 5.2% and 5.7% to 5.65%. The legislation proposes to increase the standard deduction and personal exemption as well, indexing both to inflation for the next two tax years, and phase out the income tax on Social Security over the next four years. The bill would reduce state revenues by $412 million in fiscal year (FY) 2025, $404 million in FY 26 and $453 million in FY 27. HB 2844 was placed into SB 300 and approved by the House Tax Committee. It is expected to be debated by the House during the last week of the regular session.
Capping valuation increases on real property - KLA testified in opposition to SCR 1611, a proposition to amend the Kansas Constitution, which would limit the valuation increase of real property to 4% in any tax year. Staff explained the bill actually would not provide property tax relief because it only affects one component of total property tax liability, which is the product of valuation multiplied by the assessment rate multiplied by the mill levy set by the statewide mill levy or local government budgets. Additionally, artificially capping valuation increases could shift the tax burden from one class of property to another if appraisals of certain classes increase by more than 4%, while other classes increase by less than 4%. SCR 1611 also would disrupt and likely invalidate the use-value appraisal formula used to determine valuation on agricultural land.
Animal Facilities Protection Act - HB 2816, a bill requested by KLA, passed the House on a vote of 99-24. The bill would prohibit trespassing on animal facilities or field crop research areas and making false statements on an employment application to gain access. The bill amends provisions of current law that were struck down by the 10th Circuit Court of Appeals for First Amendment violations. The bill’s definition for trespass also prohibits the operation of drones over such facilities without permission. The Senate Committee on Agriculture and Natural Resources passed an identical bill, S. Sub. for HB 2047, which awaits further action by the full Senate.
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Categories: Kansas, General