Counties and county officers; Counties and County Officers Act of 2025; effective date.

2025 Regular Session Introduced by Kyle Hilbert

The bill temporarily freezes the levy-based portion of countywide sales tax revenue distribution at its current level through 2026, leaving the population-based share unchanged.

Second Reading referred to Rules

Purpose

HB 2377 (2025) addresses how revenue from a countywide retailers’ sales tax for general purposes is apportioned between counties and the cities within them. The bill, as amended by the House Committee on Taxation, directs that the portion of sales-tax apportionment based on tangible property tax levies remain unchanged between July 1, 2025 and December 31, 2026. The population-based portion of the apportionment is not affected.

Key provisions

Freezes the apportionment formula component that allocates 50% of countywide retailers’ sales tax revenues according to the proportion of “total tangible property tax levies” among the county and its cities so that this allocation “shall not change between July 1, 2025, and December 31, 2026.”

Leaves the other 50% apportionment (population-based distribution: unincorporated county population share first, then cities by population) unchanged.

The House Committee removed an earlier provision that would have replaced the levy-based apportionment with an assessed-valuation–based apportionment; that change no longer appears in the amended bill.

Background and intent

The bill was introduced by the House Committee on Taxation at the request of Representative Hoheisel on behalf of Sedgwick County.

Proponents (Sedgwick County and Kansas County Commissioners Association) argued that the levy-based apportionment discourages local governments from lowering property tax levies because reducing levies can reduce a jurisdiction’s share of countywide sales-tax revenue. Freezing the current levy-based allocation temporarily was presented as a means to reduce that disincentive while further changes are considered.

The House Committee amendment specifically preserved the status quo apportionment ratios (levy-based) through the end of 2026 and removed the switch to assessed valuation.

Who is affected

Counties that impose countywide retailers’ sales taxes and the cities located in those counties (local distribution of sales-tax revenue).

County treasurers (administration/receipt of apportioned funds).

Local budgets and taxing authorities — the distribution of sales-tax revenue among local governments determines local general-fund receipts and could affect decisions about property tax levies.

Fiscal impact

According to the Division of the Budget fiscal note (Feb. 24, 2025), the bill would have no state fiscal effect; only local revenues are affected.

The fiscal impact on individual counties/cities would vary depending on the distribution of tangible property tax levies and population; the original (unamended) change to assessed valuation had the potential to redistribute revenue among jurisdictions. The amended bill instead temporarily preserves existing levy-based shares.

Procedural status / timeline (selected)

Introduced: February 3, 2025 (by House Committee on Taxation at request of Rep. Hoheisel on behalf of Sedgwick County).

Fiscal note issued: February 24, 2025.

Committee hearing: February 25, 2025 (proponent testimony from county groups).

House Committee on Taxation reported the bill as amended (committee report dated March 19, 2025).

Current status (per provided data): Referred to Committee on Assessment and Taxation.

Notes: The bill amends K.S.A. 2024 Supp. 12-192. The committee amendment’s temporary freeze delays any shift away from levy-based apportionment for the specified period, giving local governments and policymakers time to consider longer-term changes.

Bill