Overland Park advances 2018 budget with cut to property tax rate, would save average homeowner around $8 per year

Overland_Park_KS

Overland Park is already notable among Johnson County municipalities for its low property tax rate — and next year that rate is likely to go even lower.

On a vote of 8-3, the Overland Park city council on Monday advanced a 2018 budget that cuts the city’s mill levy from its current 13.8 mills to 13.55 mills. The savings to Overland Park homeowners would be relatively modest — the owner of a home appraised at $300,000 would save $8.63 in annual property taxes for a total tax bill of $467 — but several members of the council felt it was important to cut the rate after the uptick in appraisal values this year.

Overland Park has for years had the lowest property tax rate among Kansas cities of the first class (those cities with a population of 15,000 or more), a feat made possible by the economies of scale of its large population as well as its high property values.

Some councilmembers, however, voiced concerns about reducing the tax rate given the tax lid legislation passed by the state legislature, which will make it more difficult to raise property tax rates in the future.

The tax cut as published in the city’s budget would cut into the city’s cash balance by more than $3.5 million over five years.

The council will hold a public hearing on the published budget at its council meeting August 7. The council is set to vote on final adoption of the budget August 21.