NFIB State Director Dan Murray's Testimony
NFIB State Director Dan Murray testified in support of SB 294, a bill that would require local governments to calculate a certified property tax every year and then submit that rate to the Department of Administration for approval. It also prohibits local governments from levying a tax rate higher than the state approved rate without first adopting an ordinance or resolution and notifying taxpayers in a local newspaper and by mail or electronically.
Written Testimony in Support of SB 294 Mr. Daniel Murray Kansas State Director, National Federation of Independent Business
Senate Assessment & Taxation Committee February 7, 2020
Madam Chair and members of the committee, I am pleased to submit testimony in strong support of SB 294 on behalf of NFIB Kansas. NFIB Kansas is the leading small business organization in Kansas representing small and independent businesses. A non-profit, nonpartisan organization founded in 1943, NFIB Kansas represents the consensus views of its almost 4,000 members in Kansas.
Senate Bill 294 would require local taxing entities to calculate a certified property tax rate annually and to submit that rate to the Department of Administration for verification. The bill would prohibit a governing body from levying a tax rate in excess of the certified rate unless the body adopts an ordinance or resolution to do so. The governing body would be required to notify taxpayers of their intent to exceed the certified tax rate by publishing in the local paper of record and by notifying affected taxpayers by mail or electronic means.
In our most recent Small Business Problems and Priorities, NFIB found the that tax related issues continue to be significant problems for small business owners. Small business owners not only find current rates a burden but equally problematic are the complexity of tax compliance and the frequency of changes in tax laws. Five of the top 10 most severe problems for small-business owners are tax related small business issues, with property taxes being the 8th highest concern for owners.1
Senate Bill 294 is a commonsense bill which would address many small business owners’ worries about property tax rates, particularly the concern of lack of transparency. This bill would alert small business owners to potential rate hikes above the certified rate and increase the likelihood that their voices would be heard. Undertaking every effort to inform and engage taxpayers should be the goal of all governing bodies. We think SB 294 will improve transparency, increase constituent participation in the civic process and provide additional accountability of governing bodies.
Thank you for the opportunity to provide comments today and we urge your support of SB 294.
