Revenue Neutral Rate Notice of Public Hearings
In March 2021, the Kansas Legislature passed Senate Bill (SB) 13 to establish limitations on ad valorem property tax levies by taxing subdivisions without an additional notice and hearing prior to budget adoption. Subsequently, Senate Substitute for House Bill 2104 was passed to amend the timelines in SB 13. SB 13 is retroactively effective January 1, 2021 and the change in policy applied to the 2022 budget cycle. The bill repealed the tax lid law and computed tax limits imposed by KSA 79-2925b and KSA 79-2925c. Alternatively, the bill introduces the use of a “revenue neutral rate”, defined as the amount of ad valorem tax revenue levied in the prior year over the current year assessed valuation estimates, expressed as a mill.
Taxing subdivisions like the City of Tonganoxie cannot levy above the revenue neutral rate (RNR) without holding a Revenue Neutral Rate Hearing for tax payers to attend and provide feedback. By July 20th of each budget year, taxing subdivisions will notify their county clerk of their intent to possibly exceed the RNR by providing the county clerk the proposed tax rate and the RNR hearing information. Beginning in 2022, county clerks will notify via mail (or email if electronic communication has been requested by the tax payer) all tax payers of the revenue neutral rate hearings and levy changes impacting their property. The notification will include on one notice, among other things, all taxing subdivisions within the county that affect the tax payer’s property. At the end of the RNR hearing, the governing body of the taxing subdivision must vote to pass a resolution to exceed the RNR for the upcoming budget year if so desired.
The City's publication of information related to the Revenue Neutral Rate is available on the City's website for the following years: