Except for those who deal with the numbers on a frequent basis, how property taxes are figured can be complicated.
The process contains two main components: appraised value, often called market value of a property because it generally is what a house would be expected to fetch when sold; and assessed value, a percentage of appraised value and what is used to determine taxes.
For simplicity’s sake, let’s say a house is appraised at $100,000. To find its assessed value, that number is multiplied by 11.5 percent, the taxing rate for residential property. Commercial property is taxed at 25 percent of its appraised value. The tax rate, in mills, is applied to the assessed valuation to come up with tax dollars owed.
Knowing those facts leads us to the point of this editorial.
Our state senator, Caryn Tyson, recently was quoted in the Ottawa Herald as declaring Kansans paid $4 billion a year in property taxes, and that the collective value of Kansas property was $33 billion. She added that meant in 8.25 years the annual tax would equal the total value of Kansas property.
That is true mathematically, and would be correct if it were made clear she was talking about assessed valuation. However, it is likely most readers (and listeners when she repeated the numbers in public settings) assumed Tyson was talking about market value, what a person paid for their house or what it would likely bring if sold.
Fact is, property value in Kansas totals about $200 billion, meaning a $4 billion annual tax is 2 percent of that total, and it would be 50 years before an owner paid taxes equal to market value.
We think Tyson is eager to represent herself and what she says to constituents in a fair and honest way.
It would be wise and more instructive for constituents if she would give full disclosure on this topic and all other taxes with so much emphasis during the current session being put on a $342 million revenue shortfall for the current fiscal year (2017) budget.
Solving this year’s budget mess is not a one-shot affair. Projected shortfall for fiscal year 2018, which starts July 1, is $500 million, with fiscal 2019’s of similar proportions.
Deep cuts to education and other very necessary programs, from law enforcement and highway construction and maintenance to healthcare and social safety net programs, have occurred like clockwork since legislators bought into Gov. Sam Brownback’s income tax cuts in 2012-13.
Putting all those things back on level footing will be a titanic task.
As Dr. Barry Flinchbaugh, noted Kansas State economist, told those at a gathering here Monday evening, it can be done. The starting point is to convince Brownback that supply-side economics, on which the income tax cuts were based, is fantasy. The concept — that money retained by business owners will result in expansion and increased employment —“doesn’t work,” Flinchbaugh said.
The current crop of legislators through coalitions of Democrats and moderate Republicans may be able to turn back some or all of the cuts, but the linchpin is getting Brownback to go along. That’s a must, because passing such legislation for his approval in veto-proof fashion is unlikely, even with the upheaval that occurred on Nov. 8 in the House and Senate.
Tyson has said, “We must address government spending and our current tax code so that it is fair for all Kansans.” We agree with redoing the tax code, but have concerns about any additional spending cuts.
Rep. Kent Thompson told the Register any further cuts would find bone only to sever. Muscle and tissue have been stripped from the skeleton of state government.
— Bob Johnson
