2013KANSASREALTORS LEGISLATIVEISSUESMATRIX PASSEDLEGISLATION

SUMMARYOFPROPOSAL
Amongotherthings,continuesthestatewide20mill propertytaxlevyforK12educationthroughtheend oftaxyear2014 Removesthesunsetandpermanentlyextendsthe KansasHomeInspectorsProfessionalCompetenceand FinancialResponsibilityAct Increasesthemaximuminterestrateoncertain mortgageloansallowedbythestatefrom1.5%to3.5% abovetheFreddieMac90day30yearfixedrate mortgage

6/1/2013

BILL NUMBER

KAR POSITION

RATIONALE

STATUS

SB23

NoPosition

KARnormallyopposesanypropertytaxlevies,butthis levyhasbeenaroundformanyyearsandisthe SignedbyGovernor;PassedbyHouseonvote primarysourceforfundingK12publiceducationin of119to1;PassedSenateonvoteof28to11 Kansas Removesthesunsetandcontinuespermanentlythe state'sauthoritytoregulatehomeinspectorsand protectconsumers VetoedbyGovernor;LegislatureDidNot OverrideVeto;PassedHouseonvoteof102 to17;PassedSenateonvoteof36to3

SB37

Support

SB52

NoPosition

Banksarguedthatincreaseinmaximuminterestrate SignedbyGovernor;PassedHouseonvoteof onmortgageswasnecessarytoenticeinvestorsto 120to2;PassedSenateonvoteof39to0; purchasemortgageloansonthesecondarymarket OverruledbySB129 Amongotherthings,fixesanerrorin2012incometax reformbillthatfailedtoretainlanguageallowing SignedbyGovernor;PassedHouseonvoteof taxpayerstoclaimitemizeddeductionsinlieuof standarddeduction;Alsorequiresownersofleased 104to15;PassedSenateonvoteof36to2; Amongotherthings,conferencecommittee commercialandindustrialrealpropertytosubmit reportincludestheprovisionsofHB2042 incomeandexpensestatementstocountyappraiser nomorethan30daysafterinformalmeetingtodiscuss taxappeal FreddieMacrecentlystoppedpublishingthismortgage SignedbyGovernor;PassedHouseonvoteof rate,whichmeantthatthestatehadnostandardto 121to0;PassedSenateonvoteof38to1; referenceforourmortgageinterestratecap;15%cap OverridesSB52 substituted KARhasnottakenapositioninthepastonany proposalsthatregulateindustryprofessionalswho provideservicestohomebuyersandhomeowners SignedbyGovernor;PassedHouseonvoteof 100to22;PassedSenateonvoteof35to4

Clarifyingthattaxpayerscanclaimitemizeddeductions ontheirstateincometaxreturnsinlieuofthestandard deductionandchangesprocedureforappealing propertytaxvaluesonleasedcommercialand industrialproperty

SB83

Support

Eliminatesthestate'smaximuminterestrateon mortgageloans,whichwastiedtotheFreddieMac90 day30yearfixedratemortgage Requiresanyindividualwhoengagesinoroffers "residentialroofing"servicestoregisterwiththe AttorneyGeneral'sofficeandabidebycertain requirementsandrestrictions

SB129

NoPosition

HB2024

NoPosition

SUMMARYOFPROPOSAL

BILL NUMBER

KAR POSITION

RATIONALE

STATUS

Reducesstateincometaxrates,increasesalestaxrate to6.15%,phasesoutallitemizeddeductions(excluding charitablecontributions)overtimeinproportionto HB2059 futureincometaxreductionsandcapsfuturegrowthin statespendingat2% Makesvariouschangestotheredemptionrightsofreal propertyownerstoclarifyexistinglawonwhether HB2081 propertyownerscanwaiveredemptionrightsfor certainproperties Prohibitsutilitiesfromdisclosingbillingsforresidential customerstothirdpartieswithouttheexpressconsent HB2128 ofactualcustomers Eliminatesthehistoricenvironsreviewrequirementfor propertieslocatedwithin500or1,000feetofhistoric HB2249 properties

Support

EliminatestheKansasstateincometaxoveraperiodof AwaitingactionbyGovernor;PassedHouse years;ensuresthattaxpayerscanpermanentlyclaim onvoteof69to45;PassedSenateonvoteof themortgageinterestandpropertytaxdeductionsin 24to13 proportiontocurrentmarginalincometaxrates Amongotherthings,clarifiesthatonlytheownerofa singlefamilyorduplexdwellingisprohibitedfrom SignedbyGovernor;PassedHouseonvoteof waivingtheirredemptionrightsoragreeingtoa 121to0;PassedSenateonvoteof39to1 shorterredemptionperiodthanallowedunderstate law Removedanopenrecordsexemptionforutility informationrequestedbythirdpartiesonresidential SignedbyGovernor;PassedHouseonvoteof customers;Tooknopositiononthechangeduringthe 119to0;PassedSenateonvoteof40to0 legislativeprocess Repealstheburdensomehistoricenvironsreview requirementandprovidesprotectiontoonly propertiesactuallylistedonthestateornational historicregistries SignedbyGovernor;PassedHouseonvoteof 92to18;PassedSenateonvoteof29to10

NoPosition

NoPosition

Support

DEADLEGISLATIONFORTHISSESSION
SUMMARYOFPROPOSAL
IncreasesstategeneralfundtransferstoLocalAd ValoremTaxReductionFundtofundlocalpropertytax relief Requirestheborrowertopaythemortgage registrationfeeinsteadofthemortgagelender,which expandsthefeetofarmcreditloans

BILL NUMBER

KAR POSITION

RATIONALE
Unfortunately,researchshowsthatLAVTRFfunding doesnotactuallyresultinreductionsintheproperty taxburdenbylocalgovernments Willrequirethemortgageregistrationfeetobepaid onallmortgageloansissuedbyfarmcreditlenders, whicharecurrentlyexemptfromthemortgage registrationfee

STATUS

SB15

Oppose

PendinginSenateTaxationCommittee;No hearingscheduledatthistime

SB55

NoPosition

PendinginSenateTaxationCommittee;No hearingscheduledatthistime

SUMMARYOFPROPOSAL
Expandsthenumberofmortgageloanscoveredbythe mortgageregistrationact

BILL NUMBER
SB71

KAR POSITION
Oppose

RATIONALE

STATUS

Willrequiremoreborrowerstopaythemortgage PendinginSenateFinancialInstitutionsand registrationfee,whichwillincreasethetaxburdenon InsuranceCommittee;Nohearingscheduled homebuyers atthistime Increasestheincometaxburdenonhomeowners throughtheeliminationofthemortgageinterest deduction Fixesanerrorinthe2012incometaxreformbillthat failedtoretainlanguageallowingtaxpayerstoclaim itemizeddeductions PendingonSenateFloor;Committeeadopted amendmenttopreservepropertytax deduction;Contentsfoldedinto HB2059

Extendselevated6.3%salestaxratepermanentlyand eliminatesmortgageinterestdeductionpermanently

SB78

Oppose

Clarifyingthattaxpayerscanclaimitemizeddeductions ontheirstateincometaxreturnsinlieuofthestandard deduction

SB79

Support

PendingonSenatefloor;Languagepassedin conferencecommitteereportonSB83

Reducesstateincometaxratesinfutureyearsand phasesoutallitemizeddeductionsovertimein proportiontofuturereductionsinstatemarginal incometaxrates

SB84

Support

Pendinginconferencecommittee;Passed EliminatestheKansasstateincometaxoveraperiodof Houseonvoteof82to39;HouseTaxation years;ensuresthattaxpayerscanpermanentlyclaim Committeeadoptedouramendmenttophase outallitemizeddeductionsratherthan themortgageinterestandpropertytaxdeductionsin eliminatemortgageinterestandpropertytax proportiontocurrentmarginalincometaxrates deductions Legislationdoesnotapplytoresidentialpropertyand shouldmakeiteasiertoidentifyliensoncommercial properties Testingcanbecostprohibitiveandshouldonlybe conductedattherequestofthebuyerandbya professionalhiredbythebuyer;existinglawalready requiresthedisclsoureofanyknownradongastests PendinginSenateCommerceCommittee; Hearingcompleted

Createsthecommercialconstructionlienregistryand requiresfilingofelectronicliennotices Requiringmandatorytestforradongaspriortoeach residentialrealestatetransactionandnew acknowledgementlanguageinallresidentialreal estatecontractsonradongas Prohibitstheacceptanceorpaymentofreferralfeesby allrealestatelicenseeswithnoexceptions Allowscertainschooldistrictstoadopta"local activitiesbudget"tosupportK12educationand requiresvoterapprovalofthetaxlevy Changesthe"localoptionbudget"forK12education to"localoperatingbudget"anddoesnotappearto increasethepropertytaxesleviedunderthisprovision

SB93

NoPosition

SB115

Oppose

PendinginSenateCommerceCommittee;No hearingscheduledatthistime

SB116

Oppose

Paymentofreferralfeesarecustomaryinthereal PendinginSenateCommerceCommittee;No estateindustryandencouragecooperationbetween hearingscheduledatthistime realestatelicensees Onlyincreasesthepropertytaxburdenontaxpayersif PendinginSenateEducationCommittee;No votersapprovetheresolutionadoptedbythelocal hearingscheduledatthistime schoolboard DoesnotincreasethepropertytaxburdentofundK12 publiceducationanddoesnoteliminatethepublic Billwasguttedandusedforfinalbudget voterequirementforincreasesinthelocaloperating agreement;PassedHouseonvoteof63to57 budget

SB133

NoPosition

SB171

NoPosition

SUMMARYOFPROPOSAL
Increasesbasestateaidperpupil(BSAPP)fundingforK 12schoolfinanceandincreasesthemaximumlocal optionbudgetforschooldistrictsto32%and33%over twoyears Changesthe"localoptionbudget"forK12education to"localoperatingbudget"anddoesnotappearto increasethepropertytaxesleviedunderthisprovision Modifiespropertytaxappealsstatutesto:(1)require productionofincomestatementsoncommercialand industrialproperties;and(2)allowappraisersto correctclericalerrors Prohibitslocalgovernmentsfromincreasingproperty taxesthroughassessedvaluationincreasesand requiresthemtovotetoincreasepropertytaxes throughassessedvaluationincreases Createsthecrimeof"homeimprovementfraud"for individualswhodefraudindividualsinhome improvementtransactions Allowslocalgovernmentstoseize"abandoned property"thatisvacantfor180daysandhasa blightinginfluenceonsurroundingproperties

BILL NUMBER

KAR POSITION

RATIONALE

STATUS

SB178

NoPosition

Increasesthelocaloptionbudgetby1%eachyearfor PendinginSenateEducationCommittee;No twoyears,butretainsthemajorityvoterequirement hearingscheduledatthistime neededtoapproveallincreasesinLOBabove30% DoesnotincreasethepropertytaxburdentofundK12 PendingonHousefloor;PassedbyHouse publiceducationanddoesnoteliminatethepublic EducationCommittee;Languageamended voterequirementforincreasesinthelocaloperating intoconferencecommitteereportonSB171 budget Committeeadoptedourballoonamendmentto PendinginSenateTaxationCommittee; addressourconcernswiththebill;propertyownerwill PassedHouseonvoteof109to12;Language stillhavetoturnoverincomeandexpensestatements, passedinconferencecommitteereportonSB 83 butatalatertimethanoriginallyproposed PendinginSenateTaxationCommittee; Increasesthetransparencyoflocalgovernmentswho PassedHouseonvoteof68to53;Attempting increasepropertytaxesandwillreducepropertytax tofoldlanguageintoaconferencecommittee increasesovertimebyrequiringmilllevyincreases report Havenotstudiedbillindetail,butlegislationappears PendinginSenateJudiciaryCommittee; tohelppreventhomeownersfrombeingvictimizedby Hearingcompleted;PassedHouseonVoteof fraudandflybynightindividualsofferingcontractor 106to16 services Billhaschangedsignificantlysincelastyear;Only allowslocalgovernmentstoseizepropertywhen propertyisvacantandhasablightinginfluenceon surroundingproperty Giveslocalgovernmentsanddevelopersmore flexibilitytousedistrictrevenuestobuild infrastructurecontiguoustothedistrict Stopsshortofafullrepeal,butisagoodfirststepto reforminghistoricpreservationlawsandeliminating historicenvironsreviewrequirementsforhistoric properties PendinginSenateLocalGovernment Committee;PassedHouseonvoteof72to 51;KARballoonamendmentadoptedin committee PendinginSenateCommerceCommittee; PassedHouseonvoteof81to41

HB2003

NoPosition

HB2042

NoPosition

HB2047

Support

HB2065

NoPosition

HB2075

NoPosition

Allowsinfrastructurenexttoacommunity developmentdistrictortaxincrementfinancingdistrict HB2086 tobefinancedbytaxrevenuesgeneratedwithinthe district Allowslocalgovernmentsto"optout"ofenforcingthe historicenvironsreviewrequirementsforhistoric HB2089 properties

NoPosition

Support

PendinginHouseLocalGovernment Committee;Hearingcompleted

SUMMARYOFPROPOSAL
Extendselevated6.3%salestaxratepermanentlyand eliminatesmortgageinterestandpropertytax deductionspermanently

BILL NUMBER
HB2110

KAR POSITION
Oppose

RATIONALE
Increasestheincometaxburdenonhomeowners throughtheeliminationofmortgageinterestand propertytaxdeductions Repealstheburdensomehistoricenvironsreview requirementandprovidesprotectiontoonly propertiesactuallylistedonthestateornational historicregistries

STATUS
PendinginHouseTaxationCommittee; Hearingcompleted;;Partoflanguage containedinHB2059 PendingonSenatefloor;PassedbySenate LocalGovernmentCommitteewithminor technicalamendment;PassedHouseonvote of99to24;Languagefoldedintoconference committeereportonHB2249

Eliminatesthehistoricenvironsreviewrequirementfor propertieslocatedwithin500or1,000feetofhistoric HB2118 properties

Support

MakesvarioustechnicalchangestotheKansasReal EstateBrokers'andSalespersons'LicenseAct (KREBSLA)RequestedbytheCommission

HB2122

Support

PendingonSenatefloor;PassedbySenate Onlymakesbasictechnicalchangestothestatutesto CommerceCommittee;PassedHouseonvote addresserrorsandminorproblems of121to1 Commissionneedsadditionalfeeauthoritytobalance PendingonSenatefloor;PassedbySenate theirbudgetandsupportongoingoperations;lackof CommerceCommittee;PassedHouseonvote feeincreasewillleadtodraconianbudgetandservice of71to50 cuts

Increasesthestatutorymaximumrealestatelicensing feesforrealestatebrokersandsalespersonsby$50for HB2125 atwoyearlicense Holdspropertyvalueforthreeyearsaftersuccessful taxappeal;requirescountyappraisertoaccept appraisalfromlicensedappraiser;defines"substantial andcompellingreasons";andrequriescounty appraisertoproducecomps48hoursinadvanceof informalmeeting

Support

HB2134

Support

Willmakethepropertytaxappealprocessless burdensomeforbothcommercialandresidential propertyowners

PendingonHousefloor;PassedbyHouse TaxationCommitteewithsubstantive amendmentstoaddressopponents'concerns withthebill

Requirestaxpayerappealingpropertytoprovide"good faithestimate"ofproperty'svalue,changestheterms HB2159 ofjudgesontheCourtofTaxAppealsandmodifies filingfees Createsthecommercialconstructionlienregistryand requiresfilingofelectronicliennotices Allowscertainschooldistrictstoadoptan "extracurricularschoolactivitiesbudget"tosupportK 12educationandrequiresvoterapprovalofthetax levy HB2173

NoPosition

Changeswouldhaveanunknowneffectonthe statutes;tryingtodeterminewhoaskedforthe introductionofthelegislation Legislationdoesnotapplytoresidentialpropertyand shouldmakeiteasiertoidentifyliensoncommercial properties Onlyincreasesthepropertytaxburdenontaxpayersif votersapprovetheresolutionadoptedbythelocal schoolboard

PendinginHouseTaxationCommittee;No hearingscheduledatthistime

NoPosition

PendinginHouseJudiciaryCommittee; Hearingcompleted

HB2248

NoPosition

PendinginHouseEducationBudget Committee;Hearingcompleted

SUMMARYOFPROPOSAL

BILL NUMBER

KAR POSITION

RATIONALE
Clarifiesexistinglawonwhatisdefinedaspersonal versusrealpropertyandexpandsthescopeofwhat qualifiesfor"commercialmachineryandequipment" exemption Providesgreaterprotectiontopropertyownersfrom claimsbytrespassersontheproperty Unfortunately,researchshowsthatLAVTRFfunding doesnotactuallyresultinreductionsintheproperty taxburdenbylocalgovernments

STATUS

Redefines"commercialmachineryandequipment"and ensuresthatpersonalpropertyisnottaxedasreal HB2285 propertyforpropertytaxpurposesbycounty appraisers Modifiesthecommonlawrulespertainingto trespasserliabilityandprovidesadditionalprotections topropertyowners HB2315

NoPosition

PendingonHousefloor;PassedbyHouse TaxationCommittee PendinginHouseCorrectionsandJuvenile JusticeCommittee;Nohearingscheduledat thistime PendinginHouseTaxationCommittee;No hearingscheduledatthistime

Support

IncreasesstategeneralfundtransferstoLocalAd ValoremTaxReductionFundtofundlocalpropertytax HB2333 relief Expandsthenumberofmortgageloanscoveredbythe HB2347 mortgageregistrationact

Neutral

Oppose

Willrequiremoreborrowerstopaythemortgage PendinginHouseTaxationCommittee;No registrationfee,whichwillincreasethetaxburdenon hearingscheduledatthistime;Similarbillto homebuyers SB71 Increasesregistrationfeesforlobbyistsandpolitical actioncommitteesbyareducedamountunder compromisewithKansasGovernmentalEthics Commission Leviesasalestaxonservices,butexemptsresidential andcommercialpropertysalesandrepealstheKansas incometax KARhasconcernsabouttheimpactofconservation easementsonprivatepropertyrightsandhousing development PendingonHousefloor;PassedbyHouse GeneralGovernmentBudgetCommittee

Increaesethicsregistrationfeesforcandidates, lobbyistsandpoliticalactioncommittees

HB2354

NoPosition

EnactingtheKansasFairTax,repealingtheincometax andexpandingthesalestaxtoallgoodsandservices exceptpropertysales

HB2355

NoPosition

PendinginHouseTaxationCommittee;No hearingscheduledatthistime

Restrictsthedurationofconservationeasementsto thelifeofthegrantoror50yearsandallowsthe HB2365 grantortorevokeconservationeasementsmadebythe grantor

NoPosition

PendinginHouseEnergyandEnvironment Committee;Nohearingscheduledatthistime