By MIKE COURSON
Great Bend Post
The Barton County Commission wants voters to know it does not plan on raising property taxes - not by a single dollar. But of course, it's not that simple. Former Barton County Commissioner and current Kansas Senator Alicia Straub spoke at Wednesday's weekly meeting to discuss the state's revenue neutral rate (RNR) law and how it impacts counties.
Last year, state legislators passed Senate Bill 13 to increase transparency regarding property taxes. While the bill has good intentions, it also muddies the waters for local taxing entities and citizens alike. Straub joined Wednesday's commission meeting to help clarify the issue.
"I, admittedly, voted in favor of Senate Bill 13 not to cause you all a bunch of grief, but because it is transparent," Straub said. "But it's not perfect. Nothing we do in Topeka is perfect, it really isn't."
Given the many variables in property valuation and the number of entities taxing that valuation, Commissioner Kirby Krier said that, although the county intends to collect the same overall dollar amount as last year, individual taxpayers will see variations in their county tax bill. Commissioner Barb Esfeld pointed out that, although the county does not plan to raise taxes, taxpayers may see an increase if other taxing entities in the county raise mill levies.
"You have to be very careful with that statement because the valuation of the land went down a little over two percent," Krier said. "Someone is making that up if we budget the exact same dollars we did last year. Someone will have their taxes raised to make up that difference."
Per the new revenue neutral laws, any taxing entity that intends to collect more tax dollars than the year before must send a notice of intent to do so to all taxpayers. The county clerk's office is charged with mailing those notices. This year that mailing cost just over $14,000, which the state will refund to the county. In the future, entities included on the notice will have to split that cost.
"I understand how much it costs to send out a mailing for all parcels in the county," said Straub. "I served on the county commission here for four years, so I know it costs roughly 10 grand. I don't feel like that's cost beneficial to the taxpayer or the county as a whole."
To further complicate matters, taxing entities use figures as of July 15 but budgets are set in November. Entities that do not express an intent to exceed revenue neutral but do anyway are required to refund that amount to taxpayers. Entities that express an intent to exceed revenue neutral, must weigh the difference between bringing in additional revenue and paying the postage costs to notify voters. The new laws push entities to say they will exceed revenue neutral even if there is no real intent.
"We do not intend to raise taxes, however we're being forced to send out a letter that says we intend to raise taxes," said Commission Chair Shawn Hutchinson.
Hutchinson suggested, and County Treasurer Jim Jordan agreed, a tax credit would be easier and cheaper to manage in instances of refunds. Straub intends to push for amendments to S.B. 13, including omitting refunds for less than $5 to allow for small variations in property valuation changes between July 15 and November. Making the information available upon request would also save the county and state mailing costs.
The commission plans to keep actual tax dollars received the same as last year despite inflation costs. Commissioner Jennifer Schartz expressed frustration that S.B. 13 does not take inflation into consideration.
"The inflation on the cost of fuel is just astronomical," Schartz said. "It's something we did not have any power over. It really affected how we can serve our constituents because when we have to allow this much money for fuel, something else has to be cut."