NEIGHBORHOOD IMPROVEMENT DISTRICTS

Current law requires the governing body of a city or county to provide notice of a public hearing to consider the plans, specifications, and proposed assessment rolls for a neighborhood improvement district (NID), with such notice to be published in a newspaper of general circulation and mailed to each owner of real property subject to assessment within the boundaries of the NID. This act requires such notice to also be given to the Department of Revenue, which shall publish such information on its website. (Section 67.461)

This act also requires the governing body of a city or county establishing a NID to submit to the State Auditor and the Department of Revenue a description of the boundaries of the district, as well as information on assessments made in the district, as described in the act. The governing body establishing a NID shall not order any assessments on property within the district until such information is submitted. (Section 67.457)

DESCRIPTIONS OF PROPOSED TAXES

This act prohibits a political subdivision or election authority from describing any proposed tax on property or sales tax in the political subdivision as not increasing taxes unless both failing to adopt the proposed measure would cause an actual increase in the tax rate and adopting the proposed measure would cause the tax rate to stay the same or decrease. (Section 67.496)

This provision is identical to a provision in HCS/HB 1583 (2022).

ECONOMIC DEVELOPMENT SALES TAX

Current law requires a city or county imposing an economic development sales tax to submit a report to the Joint Committee on Economic Development. This act requires such report to instead be submitted to the Department of Revenue, and requires such report to include the name of an entity awarded funds and the entity's address. (Section 67.1305)

COMMUNITY IMPROVEMENT DISTRICTS

Current law requires the governing body of a municipality to provide notice of a public hearing to establish or amend a community improvement district (CID), with such notice to be published in a newspaper of general circulation and mailed to each owner of real property within the boundaries of the CID. This act requires such notice to also be given to the Department of Revenue, which shall publish such information on its website.

This act also requires the governing body of a city or county establishing a CID to submit to the State Auditor and the Department of Revenue a description of the boundaries of the district, as well as the rates of property tax and sales tax in the district, as described in the act. The governing body establishing a CID shall not collect any taxes or assessments until such information is submitted. (Sections 67.1421 and 67.1431)

Current law also requires the governing board of a CID to provide a proposed annual budget to the governing body of the city, as well as submit a report including financial and other information to the municipal clerk and the Department of Economic Development. This act requires such information to also be sent to the Department of Revenue and the State Auditor. (Section 67.1471)

EARNINGS TAX

Current law authorizes the cities of Kansas City and St. Louis to levy an earnings tax, which is imposed in part on salaries, wages, commissions, and other compensation earned by nonresidents of the city for work done or services performed or rendered in the city. For all tax returns filed on or after January 1, 2022, this act provides that "work done or services performed or rendered in the city" shall not include any work or services performed or rendered through telecommuting or otherwise performed or rendered remotely unless the location where such work is performed is located in the city. Any taxpayer denied a refund for taxes paid for such work or services not performed or rendered in the city may bring a cause of action in a court of competent jurisdiction, and such taxpayer shall recover reasonable attorney's fees resulting from such cause of action.

This provision is identical to HCS/HB 1740 (2022) and is substantially similar to SCS/SB 604 (2021), HB 1294 (2021), and HB 1420 (2021), and to a provision contained in HCS/HB 394 (2021) and HCS/HB 688 (2021).

Current law also requires an earnings tax to be submitted to the voters every five years. This act requires the City of St. Louis to also submit such tax to the voters of St. Louis, St. Charles, and Jefferson counties. The city of Kansas City shall also submit the tax to the voters of Jackson, Clay, Cass, and Platte counties. (Section 92.115)

TAX INCREMENT FINANCING DISTRICTS

Current law requires a tax increment financing (TIF) commission to provide notice of a public hearing prior to the adoption of an ordinance proposing a redevelopment plan or project, with such notice to be published in a newspaper of general circulation and mailed to each owner of real property within the boundaries of the TIF district. This act requires such notice to also be given to the Department of Revenue, which shall publish such information on its website.

This act also requires the governing body of the municipality establishing a redevelopment area to submit to the State Auditor and the Department of Revenue a description of the boundaries of the redevelopment area, estimated redevelopment project costs, and the date on which the redevelopment area terminates, as described in the act. The governing body establishing a redevelopment area shall not deposit any payments in lieu of taxes into the special allocation fund until such information is submitted. (Sections 99.825 and 99.830)

Current law also requires the governing body of a municipality to provide notice of a public hearing to be held five years after the establishment of a redevelopment plan, with such notice to be published in a newspaper of general circulation. This act requires such notice to also be given to the Department of Revenue, which shall publish such information on its website. (Section 99.865)

TEMPORARY PROPERTY TAX LEVIES

This act requires that if the voters in a political subdivision approve an increase to the tax rate ceiling prior to the expiration of a previously approved temporary levy increase, the new tax rate ceiling shall remain in effect only until such time as the temporary levy increase expires under the terms originally approved by a vote of the people, at which time the tax rate ceiling shall be decreased by the amount of the temporary levy increase.

If, prior to the expiration of a temporary levy increase, voters are asked to approve an additional permanent levy increase, voters shall be submitted ballot language that clearly indicates that if the permanent levy increase is approved, the temporary levy shall be made permanent. (Section 137.073)

This provision is identical to a provision in HCS/HB 1583 (2022) and is substantially similar to SB 880 (2018) and SB 357 (2017).

ASSESSMENT OF PERSONAL PROPERTY

Beginning January 1, 2023, this act provides that growth in personal property assessed values shall not exceed the consumer price index. (Section 137.115.4)

Current law requires assessors to use the trade-in value published in the October issue of the National Automobile Dealers' Association Official Used Car Guide to determine the true value in money of motor vehicles. This act provides that assessors shall use the current or two previous years October issue of such publication to determine the true value. The assessor may assign any value that the assessor deems to be the true value, provided that such value is not greater than the current October issue of the National Automobile Dealers' Association Official Used Car Guide and not less than the lowest value in the current or previous two years of such publication.

In the absence of a listing for a motor vehicle, recreational vehicle, or agricultural equipment, the assessor may use such information or publications which in the assessor's judgement will fairly estimate the true value in money of such motor vehicle, recreational vehicle, or agricultural equipment. (Section 137.115.10)

These provisions are identical to HB 2694 (2022) and are substantially similar to SB 1139 (2022).

These provisions contain an emergency clause.

REORGANIZED COMMON SEWER DISTRICTS

This act creates provisions relating to reorganized common sewer districts.

This act allows a reorganized common sewer district and a public water supply district to consolidate. The plan of consolidation shall be filed with each district and shall be open for public inspection.

Each district shall conduct separate hearings to consider the plan of consolidation. Notice shall be mailed to owners of property receiving service from the public water supply district at least 10 days prior to the hearing with information as stated in the act.

If both governing bodies order the plan of consolidation be implemented, the districts shall jointly petition the circuit court of the county containing the majority of the consolidated service territory of the public water supply district to amend the decree of incorporation of the reorganized common sewer district to allow it to consolidate the public water supply district into the sewer district.

If the circuit court finds that 20% of the customers of the public water supply district filed verified petitions of objection, then the decree of incorporation shall not become final and conclusive until it is submitted to a vote of the customers of the public water supply district and it is assented to by a majority of such customers voting on the proposition. (Section 204.603)

Under this act, any reorganized common sewer district that is authorized to engage in the construction, maintenance, and operation of water supply and distribution facilities is authorized to acquire, construct, improve or extend, maintain, and operate a combined waterworks and sewerage system.

Any such combined waterworks and sewerage system may consist of facilities as stated in the act.

A reorganized common sewer district desiring to operate and maintain a combined system shall adopt a resolution declaring the intent to operate its facilities, whether currently existing or to be acquired or constructed, as a combined system. (Section 204.605)

These provisions are identical to SB 1007 (2022) and HB 2391 (2022).

TRANSPORTATION DEVELOPMENT DISTRICTS

Current law requires a circuit clerk to provide notice to the public that a petition has been filed for the creation of a transportation development district (TDD), with such notice to be published in a newspaper of general circulation. This act requires such notice to also be given to the Department of Revenue, which shall publish such information on its website. (Section 238.212)

This act also requires the governing body of a local transportation authority establishing a district to submit to the State Auditor and the Department of Revenue a description of the boundaries of the district, as well as the rates of property tax and sales tax in the district, as described in the act. The governing body establishing a TDD shall not collect any taxes until such information is submitted. (Section 238.222)

PROPERTY TAX BALLOT LANGUAGE

This act requires any ballot measure seeking approval to add, change, or modify a tax on real property to express the effect of the proposed change in the ballot language in terms of the change in real dollars owed per one hundred thousand dollars of a property's market valuation. (Section 1)

This provision is identical to a provision in HCS/HB 1583 (2022).

INCOME TAX CREDIT

For the 2021 tax year, this act allows a qualified taxpayer, as defined in the act to claim a non-refundable tax credit in the amount equal to the lesser of $500 if filing single, or $1,000 if filing married combined. The Department of Revenue shall automatically adjust each qualified taxpayer's return and shall issue refunds if necessary to qualified taxpayers.

The Director of Revenue shall not authorize more than $1 billion in tax credits under the act. If the total amount of tax credits claimed by qualified taxpayers exceeds $1 billion, the amount of the credit shall be prorated. (Section 2)

JOSH NORBERG