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Thursday. February 1, 1990 / University Daily Kansan
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THIS WEEK AT DILLONS...
Hayden outlines tax rollback
Gov. Mike Hayden yesterday introduced the final installment of his property tax relief trilogy.
By Rod Griffin
Kansan staff writer
"It strikes a middle ground between those who would go to one extreme and those who would not do anything," he said.
Because of the procedures required to amend the Constitution, Hayden's proposal could not be enacted until 1991. Hayden has proposed two other measures to provide property tax relief in the interim.
He entitled it Kansas Proposition 13, a reference to sweeping 1978 California property tax reforms.
Hayden also expected support for the amendment from the Legislature.
Proposition 13 would amend the Kansas Constitution, rolling back property tax levies to 90 percent of their 1999 levels.
Hayden said the rollback would result in a $310 million reduction in property taxes beginning in 1991 if the ballot were on the ballot this November.
In addition to the rollback, the amendment would begin in 1992 to limit permanently property tax increases to annual inflation rates.
"The real proposition in this amendment is not really the rollback of the argument," he said. "The real proposition here is an effort to reduce the reliance on prop-
The amendment would permit any taxing subdivisions to reject the property tax rollback and the limit with the consent of voters.
It also includes a provision that would allow counties and cities to replace the lost property tax revenues with a local option sales tax. It would allow an increase in local sales taxes of 1.5 percent.
The proposal also permits cities and counties to impose income and earnings taxes.
Hayden said it was essential that a balanced mix of taxes be found.
"I think we'll only find that mix after we roll back and put a limit on property taxes," he said.
He has proposed a two-year tax lid that would freeze property taxes at their 1989 level until 1992.
In response to concerns that the amendment would severely damage the effectiveness of local governments, Hayden said the cuts left 88 percent of their budgets intact.
to their knees," he said.
"I don't think it's fair to say that it's going to bring local governments
Hayden also introduced a $70 million circuit breaker that would provide some relief for taxpayers until the amendment could be enacted.
But Hayden said the constitutional amendment was the most important part of his property tax program.
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