Kansas Tax Dodge Wonderland: A Breakdown of RNR and SALT Parity Act
Welcome to Kansas Tax Land, where if you’ve got the right stack of LLCs and a good tax advisor, you’re golden. But for the rest of us? Well, we’re just here to watch our tax bills climb as our deductions disappear. Thanks to the Revenue Neutral Rate (RNR) and the SALT Parity Act, Kansas’s tax system has become a well-oiled machine for the well-connected. Let’s break down the absurdity.
Revenue Neutral Rate (RNR): Neutral in Name Only
The RNR, introduced through Kansas Senate Bill 13 (2021), was designed to ensure transparency in local tax increases. The idea? Local governments can’t raise taxes without publicly notifying property owners and holding a public hearing if they plan to exceed the Revenue Neutral Rate (the rate at which property taxes stay the same as last year, despite changing values).
Here’s the kicker: even if your local government keeps the mill levy flat or lowers it slightly, rising property values mean your tax bill still goes up. Congratulations, Kansas—where “neutral” is a polite way of saying “surprise, you owe more”.