Proposed tax cut wouldn't trim all bills

The Wichita Eagle

March 26, 2008

A proposal by some Sedgwick County commissioners to cut tax rates to offset recent increases in property valuation would not mean tax cuts all around, the county's finance chief said Tuesday.

If the county lopped its tax rate by 3 percent -- the amount of the average increase in 2008 property valuations -- some people would get tax cuts while others would see increases, said chief financial officer Chris Chronis.

Who wins and loses would largely depend on what about 100 other units of government -- such as cities, school boards and special districts -- do with their tax rates, Chronis said.

For example, Chronis said, the county increased its mill levy in 1997 to pay for jail expansion. But other governments cut their tax rates, and the average taxpayer saw an overall decrease.

In contrast, two years later, the county cut its mill levy, but the other governments raised theirs and the average taxpayer's total bill went up.

Because state law requires that everyone pay the same mill rate, there is no way the tax relief could be targeted just to homeowners, Chronis said. Nor is there any way to target tax relief to those whose property values rose this year.

As a result, those whose property values dropped or stayed the same -- about a fourth of all county taxpayers -- would get a tax cut and pay less than they did last year.

Those who received high increases in valuation would still get higher tax bills this year, because the mill levy decrease wouldn't offset the effect of their increased valuation, he said.

Commissioner David Unruh said he's concerned that a mill rate reduction might not have the desired effect of returning money to ordinary taxpayers.

'The practical effect is... Bradley Fair is going to get a nice little present, and you and I may not get anything,' Unruh said.

But commission Chairman Tom Winters said he thinks the cut would send a message that the county doesn't want to profit from increased valuations, which taxpayer advocates have long characterized as stealth tax increases.

He acknowledged that some would benefit more than others, but added, 'It's going to be a lesser tax bill for some people... I want to try to pursue that.'

Copyright © 2008 The Wichita Eagle, All Rights Reserved.