TOPEKA — Sen. Caryn Tyson urged fellow senators Thursday to endorse “historic” property tax reform and overlook changes made by the House to lump school districts into the reform package for local governments.
Tyson, a Republican from Parker, credited the late Sen. Bud Estes, a Dodge City Republican who died last month, with engaging her several years ago in the process of figuring out how to fix property tax problems in Kansas.
“We are literally taxing people out of their homes,” she said in a speech on the Senate floor, shortly before the chamber adopted the law by a 30-5 vote.
The end product would remove the loathed, state-imposed local property tax lid, exclude normal maintenance from property valuations, allow for payment plans, and require written notices and public hearings before raising taxes by any amount. Tax increases are measured by the dollar, rather than mill levy, to abolish the practice of raising taxes by increasing property valuations.
Senate Bill 13 now goes to Gov. Laura Kelly for consideration.
Senate Democrats expressed concerns with changes made by the House to require public school districts to follow the same rules as city and county commissions.
The state funds schools in part with a 20 mill levy, and districts can augment operations through local taxes.
The bill also presents a deadline challenge: Public hearings are to be held between Aug. 10 and Sept. 10, but public schools have to finalize budgets by Aug. 25.
Tyson promised to address school-related concerns with legislation slated for a hearing next week.
“Call me a skeptic, and a little cautious,” said Senate Minority Leader Dinah Sykes, a Democrat from Lenexa who voted against the bill because of the school component.
The Senate also passed Senate Bill 50 to require online, out-of-state retailers to collect sales tax for sales above $100,000 annually. By closing a loophole for “marketplace facilitators” like Etsy, Amazon and eBay, the Kansas Department of Revenue expects to collect an additional $35 million per year.
The issue is a source of heartburn for Republicans who hope to frame it as a leveling of the playing field for brick and mortar shops and not as a tax increase.
“Whether you’re buying an item in state, out of state, from one retailer or the other, they should all be subject to the sales tax,” said Sen. J.R. Claeys, R-Salina. “This bill makes sure that all online sales instead of just some online sales are treated the same.”
