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.
For example: If a taxing entity uses $1 million of property tax revenue in 2023, being revenue neutral means they plan to only use $1 million in 2024 as well.
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.
The mill levy tax rate is applied by taxing jurisdictions (like the city, county, school district, fire district, college and the state) to raise revenue to cover their budgets and pay for public services. The mill rate of each jurisdiction is multiplied by your home's assessed value to give you an estimated tax bill.
Estimated Tax Notice
In March 2021, the Kansas Legislature passed K.S.A. 79-2988, which requires Kansas County Clerks to send taxpayers notification of the revenue neutral rate (RNR) compared to the proposed rate for each taxing subdivisions. Taxing subdivisions are prohibited from levying an ad valorem property tax that exceeds the RNR without first holding a public hearing and passing a resolution.
Therefore, in August, an estimated tax notice will be mailed out by the County Clerk to all County property owners with information about property tax revenue and an estimated tax notice on behalf of all of their taxing subdivisions.
The notice will include:
- information on specific property values and taxes
- dates, times, and locations for upcoming public hearings for taxing subdivisions that plan to exceed the RNR
This notice is not a bill and does not include information on special assessments that may be charged. It is solely a notice of whether your subdivisions plan to exceed the revenue neutral rate (RNR) for the upcoming budget.