County joins fight to repeal property tax break

Commissioners support lobbying to levy tax on independent-living units

Douglas County commissioners want state lawmakers to take away the property-tax exemption now enjoyed by residents who lease 80 independent-living units at Lawrence Presbyterian Manor.

It’s only fair, commissioners say.

“It’s not the money,” said Charles Jones, commission chairman. “It’s the equity issue. Everybody’s living longer and outliving their resources, including those people who own their own homes, and they’re paying property taxes.”

Commissioners voted unanimously Monday to support lobbying efforts to end the exemption allowed at nonprofit retirement communities. That exemption costs the county $57,000 a year.

Local and state governments in Kansas are missing out on more than $2.5 million in tax revenue, according to the Coalition for Property Tax Fairness, a group of local governments leading the charge for change. Across the state, such taxes are used to support schools, fix roads, hire sheriff’s deputies and finance other basic government operations.

But during their meeting Monday, commissioners didn’t focus on the lost revenue. Instead, they concentrated on the idea that all taxpayers should be treated equally, no matter where they live.

“We believe that all taxes should be imposed equitably and fairly,” commissioners said, in a letter to be delivered to coalition leaders.

The coalition, led by officials from Harvey County, former home to the headquarters of Presbyterian Manors of Mid-America Inc., owner of Lawrence Presbyterian Manor, have been working for more than a decade to get the exemption lifted.

John Waltner, who leads the coalition as Harvey County’s special projects director and mayor of Hesston, said that the effort had become more focused in recent years as nonprofit retirement communities continued to build more independent-living units to offset declining government reimbursements for more-expensive nursing care.

Lawrence Presbyterian Manor has plans for 14 new independent-living duplexes, to go along with the 26 already at Manor Woods, 1329 Kasold Drive, and 54 apartments inside the main complex at 1429 Kasold Drive.

Each of the new duplexes would be valued at $225,000.

Rhonda Parks, executive director for Lawrence Presbyterian Manor, urged county commissioners to oppose the coalition’s efforts.

Adding property taxes to the monthly bills of existing residents — under their contracts, residents would pay taxes, not the manor — would make things increasingly difficult for people who have made plans for their retirements, she said.

No residents ever are turned out for an inability to pay, Parks said, but the added cost of taxes would need to be factored into future financial plans.

“A lot of people are borderline,” Parks told commissioners. “We are an option for them.”

Commissioners said they would work to enlist the help of legislators who represent Douglas County residents, as the effort works its way through taxation committees in Topeka. An effort to repeal a portion of the exemption passed the Senate last year but failed in the House.