More Johnson County cities offer residents property tax relief. Could these be next?
More cities in Johnson County are easing property taxes for low-income residents struggling to stay in their homes.
As home appraisals skyrocket across the county, Prairie Village, Shawnee and Merriam approved tax rebate programs last year, following the lead of Mission several years ago and Roeland Park a few years ago.
Now, the Johnson County Board of Commissioners is planning to launch a pilot program next year that would offer property tax assistance to residents over the age of 65 and disabled veterans who meet income requirements. And more cities — Lenexa, Olathe and Overland Park — are considering whether to fund similar initiatives to help low-income homeowners.
Many homeowners wait anxiously for the day appraisal notices hit their mailboxes, having come to expect higher valuations each year. Those values help determine what residents pay in property taxes.
Across the county, appraisals rose about 12% on average this year.
Homes in Prairie Village saw the largest average increase, at more than 16.5%, with homes appraised at $496,400 on average, according to the county appraiser’s office. Most other cities saw double digit jumps as well, including more than 16% in Olathe, 15% in Spring Hill and Leawood, 13% in Overland Park and 11% in Shawnee.
Many longtime Johnson County homeowners have been pleading for relief from rising property taxes. And some instead are choosing to cash in on the high home prices to escape the burden.
Five cities are now offering programs that allow residents who meet a certain income threshold to receive up to a 100% rebate on their city property taxes.
And on Wednesday evening, Overland Park became the latest to take up the issue. Council members Melissa Cheatham and Logan Heley are pushing for the program, which was proposed to the finance committee and met with mixed reactions.
City staff estimates as many as 9,800 Overland Park households are at or below the low-income threshold established by the U.S. Department of Housing and Urban Development: an annual income of $62,000 or less for a two-person household.
The 100% property tax rebate for a $350,000 single family home in Overland Park would be $587.
“I think this is a way to keep people in their homes who have invested in this community. I don’t think that’s the only people who are likely to be helped, but it’s probably the poster child for it,” Cheatham said, adding that the rebate program would be targeted to “those who really need it” without taking a toll on city services.
But some council members had reservations, including Paul Lyons, who said the matter “more appropriately belongs at the state level. The state has the infrastructure. They have the means to look at people’s income tax to determine that they’re valid income tax forms. They have the mechanism in place to ensure the income tax forms are submitted appropriately and all of those things. We don’t have any of that.”
He said there’s also a “bigger question about, do we want to start providing social services for Overland Park? The city’s policy for 60-plus years has been to keep our property taxes low and that’s why our property taxes are much lower than the cities around us.”
According to Overland Park city documents, the city of Shawnee received nearly 100 applications for rebates over the past year, with the program costing $43,000. Prairie Village received 33 applications and spent roughly $14,000.
All of the cities with such programs require that applicants are current residents and are up to date on property taxes and special assessments. Merriam also requires an applicant’s property have no code violations.
Councilman Faris Farassati also proposed starting a food sales tax rebate program for residents in need, which sparked a similar debate. While the state is phasing out its food sales tax, this proposal would refund the additional city sales tax. Council members agreed to continue discussing the ideas in the coming months.
Meanwhile, Overland Park voters last month agreed to raise the city’s sales tax to fund road construction and repair work. And staff has proposed keeping the city’s property tax rate flat to help pay for more infrastructure projects.
In the more immediate future, both Lenexa and Olathe are considering adding property tax rebate programs to their budgets for next year. Olathe, for example, is considering offering a 100% property tax rebate, of up to $750, for qualifying households. A two-person household would meet the income threshold if they earn $65,600 or less a year.
Johnson County commissioners also have agreed, on a year-long trial basis, to offer relief on county taxes to those aged 65 or older and disabled veterans who meet income requirements, $35,900 for a single person. The maximum tax refund would be $200 per household. The program is estimated to cost $500,000, which would provide rebates for as many as 2,500 people next year.
The county also is proposing lowering the property tax rate in next year’s budget.
This story was originally published July 20, 2023 at 2:36 PM.
