By
NICK GOSNELL
Hutch
Post
HUTCHINSON,
Kan. — An economist with the Sandlian Center for Entrepreneurial Government at the Kansas Policy Institute notes that there is more to how much you pay in property taxes than just the mill rate."What we've come to find out over the past two decades or so is that city and county officials may tell Kansas homeowners that they're holding the line on property taxes, but when their property taxes still rise, Kansans eventually realize those local officials only really meant the mill rate," Michael Austin said. "Property taxes are continuing to climb as local officials allow the property values to rise, but they don't adjust the mill rate."Austin explains what he calls the honesty gap, which is the increase in taxes over and above the increase in the mill levy."Over the past 20 years, property taxes in Hutchinson have risen 112%," Austin said. "That mill rate only grew 14%. That means local officials need to explain why property taxes are roughly 98% higher than changes in that mill rate. If you look at the entire county, there's an honesty gap, that difference between property taxes and the change in the mill rate of about 127%."Austin calls valuation increases without corresponding mill rate cuts a backdoor tax increase."Kansas really need to have a better understanding of what local officials are doing with their property taxes and their budget to explain such a huge divergence between the property taxes and the mill rates they pay."Austin notes that local control means Kansans oversee their community government, not the other way around.

Free-market economist sees 'honesty gap' in local property tax increases