Since moving to a bi-monthly schedule, the Government Affairs Update in this publication has shifted away from legislative and policy updates to general issue education. If you’re a repeat reader, I know you’re missing these updates. So, my gift to you in this holiday season is a list of Issues to Watch for the upcoming year.

• State Tax Policy
  • Picking up the pieces from last legislative session’s vetoed tax bills, KAR will continue to advocate for property tax relief. The barrier preventing any tax relief in 2023 was a governor’s veto of the 5.15% single income tax rate. Expect to see that topic among a slew of others reemerge in 2024, possibly as early as January. 
  • There has been plenty of talk on a 4% property valuation cap between legislators and industry groups. Legislators are proposing a constitutional amendment to cap valuations at 4% as a property tax relief measure, but any REALTOR® who knows even a bit can guess that limiting valuations won’t stop local governments from raising taxes. Issues abound with the policy proposition, so stayed tuned for further talking points around opposing this dangerous policy. 
• Short Term Rentals (STRs)
  • If you recall, the City of Wichita passed ordinance and zoning regulation in Fall 2023 to clean up (restrict) STR policy. Should the City have even dabbled in this issue? I could argue against. But being the good partner that RSCK is in crafting right-size legislation, we jumped into the ring and endorsed where the City landed. Now, KAR is considering the situation around STRs as other states pass preemption bills. Research will be conducted and the issue will be monitored in case a rogue bill gets introduced.
• Consumer Protection-Wholesaling-KREC Authority  
  • 2024 may be the year this issue gets its much needed traction. Perhaps the years’ long effort of REALTORS® to prove wholesaling as a consumer protection issue has paid off. Key legislators “would welcome legislation that simply bans the practice of wholesaling”, according to KAR. The topic of granting cease and desist authority to KREC in connection with that type of legislation was received positively as well.  
• City of Wichita Disposition of Public Housing Stock
  • The City is in the process of selling 352 homes that it owns and “operates” (I use that term loosely) as rental properties for low to moderate income families. Due to historic disinvestment from HUD into these homes, the state of this public house stock has fallen into disrepair with no outlook of a significant capital investment for its improvement. Homes will be sold in groupings throughout the upcoming months to owner occupants and developers (again, a loose term for nonprofit housing providers, contractors, property managers… YOU) with affordability restrictions tied to the properties. 
• Local Property Taxes
  • A proposed 4% valuation cap mandated from the State down will likely bring the issue of local property taxes to the fore. Forcing this on the radar of our elected officials by threatening their revenue stream, we finally hold a bit of power in keeping them accountable to us, their bosses. The trends of the past few years are unsustainable and local government will have to evaluate their budgets, especially as economic conditions remain tenuous.

Stay tuned to all RSCK’s communication methods for updates as they come – Facebook, LinkedIn, eReport, REALTOR® Update, and more.