The Kansas State Legislature introduced House Bill 2396 on March 4, 2025, aiming to reform property tax funding mechanisms for local taxing jurisdictions. The bill seeks to empower voters by allowing them to protest increases in property tax revenues through a petition process, while also establishing a new fund for tax revenue stewardship.

One of the key provisions of HB 2396 is the stipulation that if a protest petition garners signatures from at least 10% of qualified voters—based on the last general election for secretary of state—within 30 days, the taxing jurisdiction must limit its property tax revenue increases. Specifically, the bill caps increases to the previous year's amount adjusted for inflation, as measured by the Consumer Price Index, plus any new revenue from construction or improvements.

The bill also creates the Acknowledging Stewardship of Tax Revenue and Appropriations (ASTRA) fund, which will receive an annual transfer of $60 million from the state general fund. This fund is intended to ensure responsible management of tax revenues and appropriations.

Debate surrounding HB 2396 has highlighted concerns about its potential impact on local government funding. Proponents argue that it enhances taxpayer control and accountability, while opponents warn that it could limit essential services funded by property taxes. The bill does not apply to state or school district funding, which has raised questions about equity in funding across different jurisdictions.

The implications of HB 2396 could be significant, as it may alter the financial landscape for local governments in Kansas. Experts suggest that if passed, the bill could lead to tighter budgets for some jurisdictions, potentially affecting public services and infrastructure projects. As the legislative process continues, stakeholders are closely monitoring the bill's progress and its potential effects on local governance and taxpayer rights.