Want property tax cuts? Here's a comparison of plans from Kansas Republicans and Democrats

As politicians prepare to pursue property tax relief and other tax cuts in the 2024 legislative session, House Republican and Democratic leadership have put forth competing ideas.

Here's how their plans compare.

Should Kansas fund local property tax relief?

The question of whether the state government should help foot the bill of local governments to provide for some tax relief depends on who you ask. To the top House Republican, the answer is no. For the top House Democrat, the answer is yes.

State law has a Local Ad Valorem Tax Reduction Fund designed to send state money to local governments to be used to reduce local property taxes. But the Legislature has decided to leave the fund unfunded for the past two decades.

House Minority Leader Vic Miller, D-Topeka, would put $130 million into the fund.

House Speaker Dan Hawkins, R-Wichita, would get rid of the fund altogether.

"Quite frankly, that should have been repealed long ago. … So this next year, you can bank on LATVR will be repealed," Hawkins said in September during a Topeka stop of a statewide tax cut campaign.

"Put that out on the floor for a vote, we'll see how popular that idea is," Miller said when House Democrats unveiled their property tax plan on Tuesday. "In fact — you can put this in writing so he hears it before his listening tour later this week — I dare him to introduce that proposal. I double dog dare him."

Hawkins said the LAVTR "failed miserably" at lowering property taxes and contended the money became a "slush fund" for counties. Miller called that "a bogus objection."

"But nonetheless, accepting his argument to be legitimate, we've added language to take away that argument," Miller said, describing a change to turn the money into a rebate on the property tax bill, meaning that local governments can't spend the funds.

Shawnee County Commissioner Bill Riphahn told Hawkins at the September event that LAVTR funding would have equated to a cut of 4.5 mills. For owners of a $100,000 home, that would mean $51.75 a year in savings.

More: Will Kansas help fund local property tax cuts? Shawnee County and state leaders butt heads

Two different ways to cut state property taxes

Property tax bills are largely used to fund local government, but the state does have a piece of the pie.

Kansas collects 20 mills, which is used in turn to help fund local schools, then collects another 1.5 mills for state building maintenance. That's a relatively small portion of the total property tax bill, which is in the 130 to 160 mill range in Shawnee County, depending on school district and other taxing authorities.

Hawkins said he would cut "probably two to three mills" off the state property tax levy.

"It guarantees for a matter of fact that there will be property tax relief," he said.

Miller would instead increase the existing exemption on the 20 mills.

"All we're doing is increasing the amount to make it more substantial, more meaningful," he said.

For years, the state exempted the first $20,000 in valuation from the levy. In 2022, the state doubled the exemption to $40,000 and indexed it to inflation. For owners of homes worth $40,000 or more, the savings were $46 a year in tax year 2022.

The Legislature's bipartisan efforts last session to raise the exemption to either $65,000 or $80,000 ultimately failed.

Miller would now increase the exemption to $100,000.

For a house worth $100,000, Miller's plan would mean $138 in tax cuts as compared to the $40,000 exemption in tax year 2022. It would amount to $110 million in total tax relief — and $110 million in less revenue to the state — per year.

Using the $40,000 exemption, Hawkins' plan would mean that for a house worth $100,000, a cut of 2 mills would be $13.80 in tax cuts and a cut of 3 mills would be $20.70 in savings.

A constitutional amendment could be a solution. But which version?

Both Democrats and Republicans have proposed amendments to the Kansas Constitution to protect homeowners from rising property taxes.

A constitutional amendment would require two-thirds approvals in both the House and Senate, but would not need the governor's signature. It would then go to voters, who would need a simple majority to pass an amendment.

Miller again proposed an idea he put forth last session to reduce the assessment level of residential property from 11.5% to 9%. The plan would effectively shift $300 million in tax burden off of residential property and onto other classes, such as commercial.

"While it might seem unfair to some, it's actually not fair enough," Miller said, citing shifts over the past three decades resulting in residential property owners shouldering a greater share of the tax burden.

More: Did your home value rise? Support for property tax cuts heats up in Kansas Legislature.

Hawkins has backed an idea to cap valuation growth for tax purposes.

Over time, the plan would effectively shift some of the tax burden off older, longtime property owners — such as retirees facing the prospects of being taxed out of their home — and onto people who have owned their property for a shorter time — such as younger, first-time homebuyers.

A growth limit was proposed late last session by Sen. Caryn Tyson, R-Parker. An initial version failed to pass the Senate before a second try passed, but not in time for the House to take it up.

Hawkins vowed to make it a top priority when the Legislature reconvenes in January.

"I will bring that to the floor immediately at the start of next session," he said.

Miller criticized the idea as moving away from "uniform and equal" appraisals. He also said his idea provides more relief.

"Our idea actually reduces property taxes for homes," he said. "Their idea simply slows the growth. Would you rather have immediate relief, or would you rather have just a slowing of the problem?"

More: As property values and taxes rise, is a Kansas constitutional amendment the solution?

Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.

This article originally appeared on Topeka Capital-Journal: Kansas politicians have plans for 2024 homeowner property tax relief