KANSAS CITY, Mo. — Kansas Gov. Laura Kelly signed a bill into law Thursday that may save homeowners some money in property taxes.
The legislation includes changes that would cut taxes by $310 million over the next three years. Residential properties will see the most savings of about $134 million over three years.
The goal of the new tax changes under House Bill 2239 is to keep homeowners’ tax bills from increasing even if the assessed value of a home goes up.
Johnson County Chief Deputy Treasurer Greg Baldwin shares there are three variables that are considered when calculating a homeowner's maximum exemption:
- The amount of residential exemption (previously $20,000 before HB 2239)
- The residential property rate of .115
- State levy rate of .020
Through HB 2239, Kelly increased the residential exemption from $20,000 to $40,000. This will help save homeowners about $46 more than the previous year.
“Even though your house has gone up by $60,000 in value, you may not have a commensurate increase in your taxes if they lower your mill levies a little bit, too. And on top of that, this legislation would provide some additional relief,” said Lucky DeFries, tax attorney.
DeFries says adjusting any part of the equation will change the payment outcome. For example, he expects counties to have their own deliberations in bringing down other tax variables.
“I know based on conversations I’ve had with some counties that they are looking at, and are indicating, that some of their mill levies will go down," he said. "They are not able to quantify exactly what that will be."
All changes to the equation will be reflected in the 2022 tax billing, but homeowners will have to wait until the end of the year to know the exact amount.
There are other variables that may alter monthly mortgage payments as well.
A mortgage is made up of four variables: principal, interest, taxes and insurance. While the principal and interest usually stay consistent, insurance rates could fluctuate and affect the overall monthly payment.
