By Sherman Smith, Kansas Reflector
TOPEKA — Gov. Laura Kelly on Wednesday proposed a three-part plan to provide “a real and lasting solution” for property tax relief as lawmakers head back to Topeka to close out the legislative session.
First, she vetoed a bill that would have allowed a fraction of registered voters to overturn local property tax increases. Then, she dangled her offer, which includes $313 million in one-time tax credits for vehicle owners, $60 million in incentives for local governments to limit spending growth, and $120 million in state property tax exemptions.
Republican legislative leaders responded by saying the Democratic governor was standing in the way of property tax relief.
“Kansans deserve real property tax relief, and they deserve the truth about how such relief can be accomplished,” Kelly said. “To date, the Legislature — led by a Republican supermajority — has provided only lip service on this topic and has failed to deliver on the campaign promises and talking points they have been repeating for two years.”
Lawmakers are scheduled to resume their work Thursday and Friday, when they could override the governor’s vetoes and pass new legislation before ending the session for the year. The early adjournment was planned to allow lawmakers to hit the campaign trail.
Kelly’s plan for property tax relief would incorporate Senate Bill 378, proposed by her chosen successor, Sen. Ethan Corson, a Fairway Democrat who is running for governor. The bill would give $250 to all vehicle owners when they register their vehicles. The tax credits would be paid for with a $313 million transfer from the state’s rainy day fund, which currently sits at a little more than $2 billion.
The Senate tax committee gave the bill a hearing in early February but never took action.
The governor’s plan also would create a new fund, starting with a $60 million transfer from the rainy day fund and increasing by 2% each year, to help pay down local property taxes. Cities and counties that keep their annual budget growth below 3% each year would be eligible to claim a portion of the fund, which would be distributed based on population and total assessed property value.
The final prong in the governor’s plan is to exempt $150,000 in home values from the state’s 20-mill property tax. The current exemption is $75,000. The difference would mean $172.50 in tax relief for homeowners. A spokeswoman for the governor’s office said the annual tax relief would total approximately $120 million.
Senate President Ty Masterson, an Andover Republican who is running for governor, was unimpressed by the governor’s “eleventh-hour” plan.
“Her veto of real property-tax relief that we spent all session working on and this last minute ‘plan’ continue to prove my point,” Masterson said. “Our state desperately needs a Republican Governor who takes this crisis seriously. When I’m Governor, I’ll get the job done and provide real property-tax relief to Kansas families.”
The governor offered her plan in place of House Bill 2745. That legislation was hastily rewritten and narrowly passed on the final day of the regular session. It would allow 10% of voters to sign a petition and block local tax increases that exceed 3%.
The vote was 22-18 in the Senate and 63-59 in the House.
Two years ago, Republicans prioritized income tax cuts for the wealthiest Kansans. Then, on the campaign trail, they convinced voters that Democrats were to blame for high property taxes and promised to deliver relief.
But, the governor said Wednesday, the truth is that the overwhelming majority of property taxes are levied by cities, counties and school districts. And, she said, the taxes pay for police and firefighters, road maintenance, and high-quality public schools.
House Speaker Dan Hawkins, R-Wichita, and Majority Leader Chris Croft, R-Overland Park, said the governor’s veto shows she is still standing in the way of property tax relief.
“The people of Kansas deserve a voice in how their hard-earned dollars are taxed, and this veto ignores their needs and the will of the people,” Croft said. “It’s time to put Kansans first and ensure real property tax relief becomes a reality.”
Republicans could resume efforts to pass Senate Concurrent Resolution 1603. That would present voters statewide with the option of rewriting the Kansas Constitution to cap annual increases in property valuations.
“Kansans didn’t send us to Topeka to play political games,” Hawkins said. “They sent us here to deliver results. Kansas families are being crushed by rising property taxes. Across the state, they are being forced into tightening their budgets and making smarter, more fiscally responsible choices. Local government should be doing the same.”
