Kansas Policymakers Should Consider a Levy Limit to Ease Property Tax Burdens

• Assessment limits, while well intentioned, are not an ideal solution for property tax relief because they create gaps between a property’s taxable appraised value and market value and distort economic decision making.
• A levy limit without exemptions would be a more effective solution, as it would avoid introducing economic distortions and would limit the growth of future property tax collections in a fair, predictable manner.

After enacting income tax reform and relief in 2024, Kansas policymakers have turned to the property tax this session, with many legislators eyeing property tax relief in the form of a property tax limitation. Senate Concurrent Resolution 1603, a proposed constitutional amendment to create an assessment limit, passed the Senate on February 6^th. Meanwhile, a proposal to impose a levy limit on the statewide school finance levy—but not on local property tax levies—advanced out of the House Committee on Taxation on January 30^th as part of H.B. 2011. As policymakers look for ways to keep Kansans’ property tax bills in check, they should consider a property tax levy limit that caps the amount by which local taxing jurisdictions’ property tax collections grow from year to year.

Currently, Kansas is one of only a few states without a state-imposed levy, assessment, or rate limit. Instead, under Kansas’ “Truth in Taxation” policy, by default, local taxing jurisdictions must set their budgets such that property tax collections do not exceed the prior year’s level. If a local taxing jurisdiction wishes to generate more revenue from property taxes than in the previous year, taxing authorities must first send a written notice to property owners detailing (1) the amount by which their property tax bill would increase and (2) the date, time, and location of the public hearing at which the increase will be considered.