(The Heart Sq.) – A invoice that backers say will present some property tax reduction to Kansans was signed into legislation Thursday by Gov. Laura Kelly.
Home Invoice 2239 will increase the state’s exemption for residential property taxes from $20,000 to $40,000 of appraised valuation. The invoice additionally permits some private property taxes to be prorated and offers county commissioners extra authority to abate property taxes in circumstances of property destroyed by disasters.
“Our fiscal duty has put Kansas again on monitor,” the governor mentioned in a press launch. “We’ve been capable of totally fund our colleges, repair our roads and bridges, steadiness the funds, and reduce property taxes, offering reduction for Kansans.”
“We have now the chance to assist Kansans who’re feeling the impression of pandemic-induced inflation,” the governor mentioned. “With the biggest funds surplus in a long time, we are able to do each – present property tax reduction and eventually get rid of the state gross sales tax on meals.”
HB 2239 additionally enacts the SALT Parity Act, which permits “sure pass-through entities with the choice of paying state revenue taxes on the entity degree.”
Regardless of the reforms, Kansas nonetheless has a “systemic situation” in its property tax construction, in accordance with Ganon Evans, a coverage analyst with the Kansas Coverage Institute.
“The invoice accommodates good insurance policies, resembling SALT Parity reform, however it continues Kansas’s development of bloated tax incentives,” Evans advised The Heart Sq.. “Equally, the property tax reduction doesn’t change the systemic situation of Kansas having a number of the highest rural property taxes whereas additionally totally taxing non-public retirement plans and out-of-state pensions, (so) the necessity for long-term reductions remains to be wanted.”
Senate President Ty Masterson, R-Andover, mentioned he’s “more than happy Kansas taxpayers will profit from the governor’s election yr conversion.”
Home Majority Chief Dan Hawkins, R-Wichita, thinks the laws was extra of a political transfer than the rest.
“For 3 years the one time we heard Governor Kelly point out taxes was when she was vetoing tax cuts,” Hawkins advised The Heart Sq.. “Now that we’re in an election yr the Governor is even taking credit score for tax cuts that she by no means beforehand weighed in on, (so) Kansas taxpayers won’t be fooled by Governor Kelly’s short-term change of tune.”
Home Invoice 2239 handed the Home in a vote of 103 to 10. The Senate vote as 39 to 0.