Proposal offers cap on senior property taxes

? Senior citizens who own the homes they live in would have their property taxes capped under a proposal unveiled Tuesday by two northeast Kansas lawmakers.

“Kansas seniors need relief from escalating property valuations,” said state Rep. Lee Tafanelli, R-Ozawkie.

Tafanelli proposed an amendment to the state Constitution that would cap property-tax bills at 2004 levels for owner-occupied, single family homes valued under $250,000 for Kansans at least 65 years old.

Tafanelli is joined by state Rep. Kenny Wilk, R-Lansing, who said, “Most retirees are on fixed incomes and cannot afford their ever-rising property tax bills.”

The lawmakers will file their proposal for the 2004 legislative session, which starts Jan. 12.

If approved by at least two-thirds of the House and Senate, the measure would be placed on the November ballot for voters statewide to decide.

Fiscal impact unknown

Both legislators said they expected the proposal to prompt lots of debate.

For one, they conceded, there is no estimate how much the amendment would cost the state — and local taxing units — in lost tax dollars.

“It may have some effect, ” Tafanelli said. “Ultimately, it may end up being a tax shift, quite honestly,” he said.

Douglas County Appraiser Marion Johnson said he would want to study the proposal more before commenting about it. He said he had no idea how many properties would be affected.

County Administrator Craig Weinaug said that at first glance, the proposal would seem to correct an inequity in the property tax system — specifically that when people retire and earn less, their property tax bills continue to increase because the value of their home increases. Valuations in Douglas County have increased an average of 5 percent to 7 percent annually in the past several years, officials said.

“There is an inherent inequity in the property tax that works a real disservice to seniors,” Weinaug said.

But, he said, administering the tax break would be difficult. For example, he said, younger people could take advantage of the capped taxes by placing their homes legally in the name of a parent.

The amendment wouldn’t be of benefit to elderly Kansans who don’t own their own homes but are paying property taxes as part of the rent they are charged.

Property tax is a major source of revenue for the county, the four cities in the county and area school districts.

Amendments popping up

The proposed constitutional amendment is the third one announced by state legislators in recent days. All are aimed at limiting governmental finances, and if approved, all would be on the ballot when all legislative seats are up for election.

State Rep. Brenda Landwehr, R-Wichita, has proposed a constitutional amendment requiring a public vote on any proposal to raise taxes or fees, and state Rep. Patricia Lightner, R-Overland Park, has a measure seeking two-thirds majorities in the House and Senate to approve tax increases.

Tafanelli said he came up with the idea of the property tax amendment during a visit to a family member in Chicago. He was talking to an elderly neighbor there who told him that even though property valuations were skyrocketing in that area, her tax bills were locked in.

Tafanelli wondered if Kansas could have a similar system.

“In my district, we have quite a few seniors, and at every forum I go to and when you go to coffee shops, the big concern they have is the rising property tax on their residence,” he said.

If approved by voters, the Legislature would have to adopt implementing legislation in 2005. The proposed amendment would also allow the Legislature to adjust the $250,000 valuation cap for inflation.