Revenue Neutral Rate Information - KSA 79-2988

KSA 79-2988 was established by the Kansas legislature in 2021 and updated in 2022 and 2024. This legislation governs the ability for taxing entities to levy property taxes.

• Taxing subdivisions are prohibited from levying an ad valorem property tax that exceeds the revenue neutral rate (RNR) without first holding a public hearing and passing a resolution.

• Revenue neutral is when a taxing jurisdiction budgets the exact same amount of property tax revenue, in dollars, for the upcoming budget year as they did for the current year. If a taxing jurisdiction plans to use more property tax revenue in the next budget year compared to the current year, even $1 more, they would exceed revenue neutral and need to hold a public hearing.
  For example:  If a taxing entity uses $1 million of property tax revenue in 2024, being revenue neutral means they plan to only use $1 million in 2025 as well.

• Kansas County Clerks are required to send taxpayers notification of the RNR compared to the proposed rate for each taxing subdivisions. You will receive this notification every year. If you would like to receive these notices by Email in the future – sign up below