Neighborhood Revitalization Act

January 13, 2014

Property Tax Calendar • January 1 - The valuation date for County Appraiser (K.S.A. 79-5a04)

• March 1 - Real Estate Property Change of Value Notices (CVN) mailed to all Real Property owners

• {May 10 - Second half taxes due for previous year}

• June 15 - Appraiser certifies Appraisal and Personal Property Tax Rolls to County Clerk.

• August – Budget approval / mill levy set for local units of government.

• November 15 - Mailing of tax bill to property owners. (K.S.A. 79-2001)

• December 20 or before - Full or first half taxes must be paid to the county treasurer in order to avoid penalties. If the first half taxes are not paid by Dec. 20, the full amount becomes immediately due and payable and late payment interest will begin to accrue.

• May 10 of the next year - The second half taxes must be paid to the county treasurer in order to avoid penalty (K.S.A. 79-2004a).

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Property Tax 101 Property taxes in Kansas: How are they figured?

• The basic rule is assessed value is multiplied by the levy. The result is the tax to be paid.

Appraised Value

• All real estate and personal property are valued as of January 1. All property is valued by the County Appraiser.

• Real estate is valued by the Appraiser annually. If a building is partially complete at January 1, that part which is complete will be included in the property value for computing taxes.

Assessed Value

Once the Appraised Value is set, the Assessed Value is a mathematical calculation.

• Real property used for residential purposes - 11.5%

• Vacant Lots - 12%

• Real property used for commercial and industrial purposes - 25%

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City of Olathe, Kansas 4

Kansas NRA – KSA 12-17, 114 et. seq.

• Passed in 1994

• A tool for municipalities to encourage investment in aging and deteriorating neighborhoods and commercial districts

• Expanded in 1996 - “dilapidated structure” as an eligible project

• All municipalities authorized to participate

• Includes any taxing or political subdivision

• Cannot include an entire jurisdiction

• $38.7 Million invested statewide from 2003-2007

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Purpose

• Stabilize neighborhoods and valuations

• Encourage investment where it isn’t occurring

• Increase tax base and expand housing opportunities

• Reverse outward migration and deterioration of traditional neighborhoods

• Reduce crime

• Enable private investment with no fiscal burden on taxing jurisdictions

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Program Elements

• Requires a finding by the Governing Body to designate a Neighborhood Revitalization District based on one or more conditions:

– Enhance health, safety, or welfare

– Eliminate concentration of poor conditions

– Preserve or restore structures

• Requires 3 elements:

– Plan

– Interlocal Agreement

– Procedures Agreement 7

Neighborhood Revitalization Plan

• Adopted prior to designating the District, but after a public hearing

– Legal description and map

– Assessed valuation

– Names and addresses of owners

– Zoning classifications and land uses

– Proposals for including or expanding services

– Statement of eligibility and criteria

– Application contents and submission procedure

– Maximum years for rebate

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Interlocal Agreement

• Act requires two or more municipalities to cooperate pursuant to the Interlocal Cooperation Act, KSA 12-2901 et. seq.

– Purpose

– Duration

– Termination

– Financing (eligible improvements & use of NRA Fund revenues)

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Procedures Agreement

• Contemplated under the Interlocal Agreement

– Purpose

– Term

– Termination

– Compensation (to County for administration)

– Definitions

– Application Procedure

– County Responsibilities

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