Breaking down the numbers: Topeka's proposed 2025 property tax increase
TOPEKA (KSNT) - Capital city leaders will set the 2025 mill levy rate during tomorrow's public budget hearing, but what does that mean for Topeka homeowners?
Here's a simple overview of the mill levy system, what the city is currently proposing, and how it could impact property taxes.
What is the mill levy?
The mill levy is what Kansas and local taxing entities use throughout the state to determine how much homeowners will pay in property taxes.
One mill is equivalent to $1 per $1,000 in assessed value, according to the Kansas Department of Revenue (KDOR), the assessed value of a home is 11.5% of its appraised value.
Discussions have been ongoing for weeks regarding the city of Topeka's 2025 operating budget. The maximum possible mill levy rate would be 38.952 mills. City leaders landed on a proposal to increase the levy one full mill from 36.952 to 37.952.
How would an increase affect Topekans?
KSNT 27 News spoke with Shawnee County Appraiser, Steve Bauman, who said the average appraised value of a single family residential home in Topeka is $155,800. Using the KDOR formula, that means the average assessed value would be $17,917 ($155,800 x 0.115 = $17,917).
If the average assessed value is $17,917, the property tax obligation to the city of Topeka breaks down as follows:
- ($17,917 x 36.952)/1,000 = $662.069 (based on current mill levy)
- ($17,917 x 37.952)/1,000 = $679.986 (based on proposed mill levy)
- ($17,917 x 38.952)/1,000 = $697.903 (based on maximum possible mill levy)
This is roughly an $18 increase if the proposal goes through. That may not seem significant by itself, but the city is just one of eight entities that collects property taxes in Shawnee County. A list of the entities that property taxes go to is listed below:
- State of Kansas
- Shawnee County
- City of Topeka
- Topeka and Shawnee County Public Library
- Washburn University
- Topeka Metro Transit Authority
- Metropolitan Topeka Airport Authority
- Public Schools
Topeka City Council passed a resolution during their Aug. 20 meeting urging all entities to keep rates low. The Topeka Metro Transit Authority has already said it would be increasing its tax rates above revenue-neutral. That increase will also be voted on at tomorrow's public hearing.
The hearing takes place at 6 p.m Tuesday Sept. 10. For information on signing up to speak at the meeting, click here.
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