By KATHY HAGEMAN
Dickinson County public information coordinator
Many Dickinson County property owners – like those in other counties across the state – are confused by a document that was mailed out early in August showing property tax revenues.
The 2022 Notice of Estimated Ad Valorem Taxes – a new mailing required by law – shows each taxpayer’s taxing jurisdiction’s intent or non-intent to exceed its revenue neutral rate by assessing more property taxes than the entities did the previous year.
In March 2021, the Kansas Legislature passed KSA 79-2988, a law that requires county clerks to send notification of the revenue neutral rate (RNR) compared to the proposed rate for the upcoming year for each taxing subdivision.
Required hearings for jurisdictions planning to exceed the RNR started last year, but this year marks the first time that letters had to be sent.
Dickinson County Appraiser Lisa Berg met with commissioners Aug. 18 to advise them that her office has been inundated with phone calls and visits from patrons asking why the letter was sent, what it means and what action they are supposed to take. She had already heard from about 40-some people.
“I explain if your taxes are going to go up, this letter informs which entity is raising their mill levies or budget and to attend the budget hearings listed on the forms,” Berg said.
“Discussion during our monthly conference call with the state, the director of the property valuation division, David Harper, said ‘it’s not the appraisers’ role, they have nothing to do with this letter or law,’ but we are getting the calls,” Berg said.
Berg related that Harper had advised county appraisers to “explain to taxpayers that if they have a further complaint, they can contact the Board of Tax Appeals in regards to RNR.”
Confusing letter
Berg, along with County Clerk Jeanne Livingston, Treasurer Leah Hern, and Assistant County Administrator/Budget Director Janelle Dockendorf, met in July hoping to find ways to ease concerns of taxpayers who were not going to understand why they were receiving the letter, which was sent out early in August.
“We knew it was going to be confusing and we were hoping to find ways to be more proactive than reactive,” Berg explained.
Although the document is meant to tell people what entities are changing their RNR rate, it also causes many to ask if the value on their property will be going up – especially since the taxpayer’s property values are the first item they see on the letter.
“That makes people think ‘call the appraiser because my value did something’,” Berg said. “But unfortunately, we cannot do anything this time of year, unless it’s a 2021 payment under protest.”
“Again, people have been very nice, but this letter is going to prompt quite a few payments under protests this year,” Berg added.
While the expressed purpose of the RNR letter is to “increase transparency” so taxpayers can see what the various taxing entities are planning to do, Dockendorf said many do not understand that the information included in the letter is just estimates.
“I don’t think these questions should go to the appraiser’s office because they are not the ones issuing taxes. These are just estimates. But people don’t understand that,” Dockendorf said. “I think once tax statements come out in November we’ll see even more people with questions.”
She wonders if the legislators who drafted the confusing RNR rules meant to cause this situation or if it is an “unintended happening.”
“I’m not sure if this is exactly what they were hoping for when they passed this legislation, but I’d like to think it wasn’t,” Dockendorf said. “I’m sure with time, more of these questions are going to funnel into the clerk and treasurer’s offices.”
County Clerk Livingston said she has heard from about 10 people with questions and said the treasurer’s office also has received calls and visits from concerned patrons.
“The biggest question I’m getting from people is ‘why am I getting this?’” Livingston said. “I’m telling them to contact their legislator.”
Berg said that once she explains what the letter is, a few people have said the letter was a waste of time and money.
Commission Chairman Lynn Peterson said he knew the state was paying the cost this year to send out the letters, but in coming years, the county will have to bear the cost.
The cost of printing and mailing the letters was between $8,000 and $10,000.
Each of the department leaders also noted the new requirement is an additional burden on their departments, as understaffed offices now are preoccupied with answering even more questions than usual.