Great Bend Post
Aug 26, 2024

Barton Co. using revenue-neutral law as incentive to keep taxes down

Posted Aug 26, 2024 12:00 PM

By MIKE COURSON
Great Bend Post

In March 2021, the Kansas Legislature passed a law that is commonly referred to as the revenue-neutral rate (RNR) law. The legislation not only requires taxing entities to notify taxpayers when they intend to collect more taxes than the year before, creating more transparency in the taxation process, but it also changed how governmental bodies approach their budgets. Barton County, as a taxing entity, has reduced taxes over each of the past four years. Administrator Matt Patzner said RNR has been a better barrier to raising taxes than the so-called tax lid that preceded RNR.

"It really incentivizes us to levy the same amount that we did the year before," he said. "The tax lid really incentivized counties, cities, and anybody that was involved with it, to get the maximum amount that you could that was allowed under the tax lid because that would be your starting point for the next year."

Each budget year is different and taxing entities continue to deal with inflation, and many are paying employees more to retain them. Barton County was still able to cut its 2025 budget by $39,071 from the year before thanks, in part, to the loss of nine county jobs by attrition. Commissioner Donna Zimmerman said it's always a balancing act of trimming expenses and providing quality service to residents.

"We were able to then pay the remaining employees better," she said. "In each instance, we actually went to the employees and asked if they could do the same with fewer employees, then we could spread those wages. It has appeared, at this point, to be a win-win."

Interest revenue has also been vital for Barton County. Patzner said in previous years, the county collected as little as $32,000 in interest. Last year, Treasurer Jim Jordan's accounting practices helped generate more than $1.2 million in interest. Patzner said that was a key factor in the county remaining revenue neutral for another year.