Leawood poised to exceed revenue neutral property tax level for 2023

For 2023, Leawood intends to exceed its current revenue neutral rate — meaning residents may owe more in property taxes for the year. File photo.

Correction: The original version of the story incorrectly stated that Leawood’s 2023 budget called for an increase in the property tax rate. The budget in fact calls for the property tax rate to hold steady, but anticipates that the total amount of property taxes the city takes in will increase based on rising home valuations.

If the city’s proposed budget is approved, many Leawood homeowners would see a modest increase in the amount of property taxes they pay to the city next year.

What’s going on? As reviewed at Tuesday’s Leawood City Council meeting, the city intends to exceed the “revenue neutral rate” in the 2023 budget.

What does that mean? The “revenue neutral rate” is the tax rate that would generate the same amount of property tax revenue as the previous year.

  • When a city plans to exceed its “revenue neutral rate,” that means it plans to take in more in property tax revenue than it did the previous year. That can happen on account of increased property valuations or on account of increased property tax rates. Leawood plans to keep

How much is it going up? Leawood’s current property tax rate is 24.076 mills. The county estimated that the city would need to reduce its property tax rate to 22.266 mills to stay revenue neutral.

  • In property taxes, this amounts to roughly $24 for every $1,000 in assessed valuation. Assessed valuation in Johnson County is equal to the appraised value multiplied by .115.
  • An increase in the appraised value of a home would also attribute to increasing property taxes for the property. The county will begin sending out notices of appraised value in August.

What’s next? Per recently-passed Kansas law that went into effect this year, cities whose budgets call for exceeding the revenue neutral rate must notify the county clerk and provide ample notice to residents.

  • It requires a public hearing, which the city of Leawood will conduct Sept. 6.
  • At this meeting, the city will also conduct a public hearing on Leawood’s proposed 2023 budget, which the council will review and potentially adopt.
  • Before that, residents will receive notice from the county via mail in early August.