HB 2784

 Session of 2026
                       HOUSE BILL No. 2784
                          By Committee on Taxation
                       Requested by Representative King
                                    2-18
1 AN ACT concerning taxation; relating to property tax; decreasing the rate
2   of ad valorem tax imposed by a school district; providing for certain
3   transfers to the state school district finance fund; amending K.S.A.
4   2025 Supp. 72-5133a and 72-5142 and repealing the existing sections.
5
6 Be it enacted by the Legislature of the State of Kansas:
7     Section 1. K.S.A. 2025 Supp. 72-5133a is hereby amended to read as
8 follows: 72-5133a. (a) On August 15, 2024, and each August 15 thereafter,
9 the director of the budget, in consultation with the director of property
10 valuation, shall certify to the director of accounts and reports if the:
11     (1) Exemption provided by K.S.A. 79-201x, and amendments thereto,
12 is increased from $42,049 for any tax year; or
13     (2) rate of ad valorem tax levied by a school district pursuant to
14 K.S.A. 72-5142, and amendments thereto, is decreased from 20 mills.
15     (b) (1) The director of the budget shall certify to the director of
16 accounts and reports and shall transfer a copy of such certification to the
17 director of legislative research the amount of revenue that the:
18     (A) Increase in the exemption provided by K.S.A. 79-201x, and
19 amendments thereto, would have generated for the tax year if the
20 exemption amount was $42,049; and
21     (B) decrease in the rate of ad valorem tax levied by a school district
22 pursuant to K.S.A. 72-5142, and amendments thereto, would have
23 generated for the tax year if the tax rate levied would have been 20 mills.
24     (2) Upon receipt of such certification, or as soon thereafter as moneys
25 are available, the director of accounts and reports shall transfer such
26 certified amount from the:
27     (A) State general fund to the state school district finance fund of the
28 department of education for the amount provided in paragraph (1)(A); and
29     (B) budget stabilization fund to the state school district finance fund
30 of the department of education for the amount provided in paragraph (1)
31 (B).
32     Sec. 2. K.S.A. 2025 Supp. 72-5142 is hereby amended to read as
33 follows: 72-5142. (a) The board of education of each school district shall
34 levy an ad valorem tax upon the taxable tangible property of the school
35 district in the school years specified in subsection (b) for the purpose of:
 HB 2784  2
1     (1) Financing that portion of the school district's general fund budget
2 that is not financed from any other source provided by law;
3     (2) paying a portion of the costs of operating and maintaining public
4 schools in partial fulfillment of the constitutional obligation of the
5 legislature to finance the educational interests of the state; and
6     (3) with respect to any redevelopment school district established prior
7 to July 1, 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
8 paying a portion of the principal and interest on bonds issued by cities
9 under authority of K.S.A. 12-1774, and amendments thereto, for the
10 financing of redevelopment projects upon property located within the
11 school district.
12     (b) The tax required under subsection (a) shall be levied at a rate of:
13     (1) 20 mills in the school years year 2025-2026; and
14     (2) 19 mills in the school year 2026-2027.
15     (c) The proceeds from the tax levied by a district under authority of
16 this section, except the proceeds of such tax levied for the purpose
17 described in subsection (a)(3), shall be remitted to the state treasurer in
18 accordance with the provisions of K.S.A. 75-4215, and amendments
19 thereto. Upon receipt of each such remittance, the state treasurer shall
20 deposit the entire amount in the state treasury to the credit of the state
21 school district finance fund.
22     (d) No school district shall proceed under K.S.A. 79-1964, 79-1964a
23 or 79-1964b, and amendments thereto.
24     Sec. 3. K.S.A. 2025 Supp. 72-5133a and 72-5142 are hereby
25 repealed.
26     Sec. 4. This act shall take effect and be in force from and after its
27 publication in the statute book.