HB 2396 — Senate Substitute for HB 2396 by Committee on Assessment and Taxation - Authorizing the use of a protest petition to limit funding of a taxing jurisdiction by property tax revenues exceeding a certain amount, providing for a protest petition notice to be sent to taxpayers and modifying the content requirements of the revenue neutral rate hearing notice.

As Amended by Senate Committee Session of 2025 Senate Substitute for HOUSE BILLNo.BILL No.

2396 By Committee ononAssessment Assessment and Taxation 3-19 ANACTAN ACT concerning property taxation;

modifying the content requirements of the revenue neutral rate hearing noticenotice; limiting certain increases in property tax revenues unless approved by a majority of qualified electors at an election called and held thereon;

continuing reimbursements from the taxpayer notification costs fund for an additional five years;

79-1801 and 79-79-2988 2988and 2025repealing Supp.the existing sections.

79-2989 and repealing the existing sections section.

New Section 1. (a) The governing body of any taxing subdivision shall not approve any budget that provides for funding by property tax revenues in an amount exceeding the amount of property tax levied for the previous tax year as adjusted to reflect the increase in the average of the consumer price index for all urban consumers in the midwest region as published by the bureau of labor statistics of the United States department of labor for the previous calendar year, except by not more than 3%, unless the governing body first makes a proposal to approve such budget with the adoption of a resolution and such resolution is submitted to and approved by a majority of the qualified electors of the taxing subdivision voting at an election called and held thereon.

In addition to other provisions, the resolution shall include the proposed amount of property tax revenue for the current tax year and the amount of property tax levied for the previous tax year.

(b) The election shall be noticed, called and held in the manner provided in K.S.A.

10-120, and amendments thereto, and held at the next regularly scheduled election held in August.

(c) If a resolution proposing to approve a budget funded with property tax revenues in excess of the previous tax year as adjusted pursuant to subsection (a) is not approved by a majority of the qualified electors of the taxing subdivision voting at an election called and held thereon pursuant to this section, then the governing body shall not S Sub HB 2396—Am.

by SC 2 approve a budget that provides for funding by property tax revenues in an amount that exceeds the amount of property tax levied for the previous tax year.

Sec.

2. K.S.A.

2025 Supp.

79-2989 is hereby amended to read as follows:

79-2989.

(a) For calendar years 2024, 2025 and 2026 through 2031, if a county clerk has printing or postage costs pursuant to K.S.A.

2025 Supp.

79-2988, and amendments thereto, the county clerk shall notify and provide documentation of such costs to the secretary of revenue.

The secretary of revenue shall certify the amount of moneys attributable to such costs and shall transmit a copy of such certification to the director of accounts and reports.

Upon such receipt of such certification, the director of accounts and reports shall transfer an amount of moneys equal to such certified amount from the state general fund to the taxpayer notification costs fund of the department of revenue.

The secretary of revenue shall transmit a copy of each such certification to the director of legislative research and the director of the budget.

(b) There is hereby established in the state treasury the taxpayer notification costs fund that shall be administered by the secretary of revenue.

All expenditures from the taxpayer notification costs fund shall be for the purpose of paying county printing and postage costs pursuant to K.S.A.

2025 Supp.

79-2988, and amendments thereto.

All expenditures from such fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or the secretary's designee.

A protest petition contesting the increase in property tax revenues for the taxing jurisdiction may be submthtedsubmitted to the county clerk within 30 days, or the next business day after if the 30 day falls on a weekend or county holiday, following the date that the governing body of a taxing jurisdiction certifies to the county clerk the amount of ad valorem tax to be levied pursuant to K.S.A.

(2) The county clerk shall notify the county treasurer of all taxing jurisdictions that approve any appropriation or budget that provides for Sfunding Subby HBproperty 2396—Am.tax revenues in excess of the amount provided in subsection (b).

by SC 3 funding by property tax revenues in excess of the amount provided in subsection (b).

25-3602, and amendments thereto, relating to the filing of petitions at one time all in one group and HB 2396 2 the petition circulator and signature requirements shall not apply to protest petitions maintained by a county treasurer.

S(c) The Subprovisions HBof 2396—Am.this section shall not apply to the state of Kansas or a school district.

by SC 4 (c) The provisions of this section shall not apply to the state of Kansas or a school district.

The notice shall HB 2396 3 be in a format prescribed by the director of accounts and reports.

Upon such receipt of such certification, the director of accounts and reports shall transfer an amount of moneys equal to such certified amount from the state general fund to the protest Spetition Subnotification HBcosts 2396—Am.fund of the department of revenue.

by SC 5 petition notification costs fund of the department of revenue.

All expenditures from such fund shall be made in accordance with appropriations acts upon warrants of the director of HB 2396 4 accounts and reports issued pursuant to vouchers approved by the secretary of revenue or the secretary's designee.

(b) Except as otherwise provided in this section, no tax rate in excess Sof Subthe HBrevenue 2396—Am.neutral rate shall be levied by the governing body of any taxing subdivision unless a resolution or ordinance has been approved by the governing body according to the following procedure:

by SC 6 of the revenue neutral rate shall be levied by the governing body of any taxing subdivision unless a resolution or ordinance has been approved by the governing body according to the following procedure: