HB 2377 — Providing that countywide retailers' sales tax is apportioned based on tangible property tax levies remain unchanged until December 31, 2026.

AsAmended by House Committee Session of 2025 HOUSE BILLNo.

providing that countywide retailers' sales tax is apportioned based on total assessed valuations of property taxes rather than property taxes levied;levied apportionment based on tangible property tax levies remain unchanged until December 31, 2026;

79 Be it enacted by the Legislature of the State of Kansas:

(a) Except as otherwise provided by subsection (b), (d) or (h), all revenue received by the director of taxation from a countywide retailers' sales tax shall be apportioned among the county and each city located 1nin such county in the following manner:

(1)  /2of all revenue received by the director of taxation shall be apportioned among the county and each city located in such county in the proportion that the total tangible property tax levies made in such county in the preceding year for all funds of each such governmental unit bear to the total of all such levies made in the preceding year based on the total assessed valuations used to calculate such county's and each city's ad valorem property taxes in the preceding year;year in the proportion that the total tangible property tax levies made in such county in the preceding year for all funds of each such governmental unit bear to the total of all such levies made in the preceding year, except that the apportionment pursuant to this provision shall not change between July 1, 2025, and December 31, 2026;

AllHB revenue2377—Am. apportioned to a county shall be paid to its county treasurer and shall be credited to the general fund of the county.

by HC 2 All revenue apportioned to a county shall be paid to its county treasurer and shall be credited to the general fund of the county.

HB 2377 2 (A) The revenue received from the first 0.5% rate of tax shall be apportioned in the manner prescribed by subsection (a);

(i)  //4shall shall be apportioned among the county and each city located in 6 such county in the proportion that the total tangible property tax levies made in such county in the preceding year for all funds of each such governmental unit bear to the total of all such levies made in the preceding year;

(ii)  /4shall/ shall be apportioned among the county and each city located in such county, first to the county that portion of the revenue equal to the proportion that the population of the county residing in the unincorporated area of the county bears to the total population of the county, and second to the cities in the proportion that the population of each city bears to the total population of the county;

The ad valorem property tax levy ofHB any2377—Am. county or city district entity or subdivision shall be included within this term if the levy of any such district entity or subdivision is applicable to all tangible property located within each such city or county.

(2) Forby theHC purposes3 of subsections (a) and (b), any adcounty valoremor property tax levied on property located in a city indistrict Johnsonentity countyor forsubdivision the purpose of providing fire protection service in such city shall be included within thethis term "totalif tangiblethe propertylevy taxof levies"any for such citydistrict regardlessentity HBor 2377subdivision 3is ofapplicable its applicability to all tangible property located within each such city.city or county.

(2) For the purposes of subsections (a) and (b), any ad valorem property tax levied on property located in a city in Johnson county for the purpose of providing fire protection service in such city shall be included within the term "total tangible property tax levies" for such city regardless of its applicability to all tangible property located within each such city.

(f) Prior to March 1 of each year, the secretary of revenue shall advise eachHB county2377—Am. treasurer of the revenue collected in such county from the state retailers' sales tax for the preceding calendar year.

by HC 4 each county treasurer of the revenue collected in such county from the state retailers' sales tax for the preceding calendar year.

(h) The provisions of subsections (a) and (b) for the apportionment of HB 2377 4 countywide retailers' sales tax shall not apply to any revenues received pursuant to a county or countywide retailers' sales tax levied or collected under K.S.A.