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AN ACT enacting the property tax relief act of 1997; amending K.S.A.
  1996 Supp. 72-6431 and repealing the existing section; also repealing
  K.S.A. 1996 Supp. 72-6431a.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 72-6431 is hereby amended to read as
follows: 72-6431. (a) The board of each district shall levy an ad valorem
tax upon the taxable tangible property of the district in the school years
specified in subsection (b) for the purpose of:
  (1)  Financing that portion of the district's general fund budget which
is not financed from any other source provided by law;
  (2)  paying a portion of the costs of operating and maintaining public
schools in partial fulfillment of the constitutional obligation of the legis-
lature to finance the educational interests of the state; and
  (3)  with respect to any redevelopment district established prior to July
1, 1996, pursuant to K.S.A. 12-1771, and amendments thereto, paying a
portion of the principal and interest on bonds issued by cities under au-
thority of K.S.A. 12-1774, and amendments thereto, for the financing of
redevelopment projects upon property located within the district.
  (b)  The tax required under subsection (a) shall be levied at a rate of
35 mills in the 1996-97 school year, 33 mills in the 1997-98 school year
and not exceeding 31 mills in the 1998-99 school year and 25 mills in the
1997-98 school year.
  (c)  The proceeds from the tax levied by a district under authority of
this section, except the proceeds of such tax levied for the purpose of
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
nancing of redevelopment projects upon property located within the dis-
trict, shall be deposited in the general fund of the district.
  (d)  On June 1 of each year, the amount, if any, by which a district's
local effort exceeds the amount of the district's state financial aid, as
determined by the state board, shall be remitted to the state treasurer.
Upon receipt of any such remittance, the state treasurer shall deposit the
same in the state treasury to the credit of the state school district finance
fund.
  (e)  No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-
1964b, and amendments to such sections.
  New Sec. 2.  For all taxable years commencing after December 31,
1996, the following described property, to the extent herein specified,
shall be and is hereby exempt from the property tax levied pursuant to
the provisions of K.S.A. 1996 Supp. 72-6431, and amendments
thereto:  Property used as a single family residence.
  New Sec. 3.  (a) During each of the following fiscal years, the director
of the budget, after consultation with the commissioner of education, shall
certify to the director of accounts and reports monthly amounts for rev-
enue transfer from the state general fund to the state school district fi-
nance fund in an amount not to exceed the following total amount within
the specified fiscal year:
  For the fiscal year beginning on July 1, 1997 [lf$1,551,706,531;
  for the fiscal year beginning on July 1, 1998 [lf1,706,545,671;
  for the fiscal year beginning on July 1, 1999 [lf1,727,613,060; and
  for the fiscal year beginning on July 1, 2000 [lf1,734,114,049.
  (b)  There is hereby created a state school district supplemental aid
finance fund within the state treasury. During each of the following fiscal
years, the director of the budget, after consultation with the commissioner
of education, shall certify to the director of accounts and reports monthly
amounts for revenue transfer from the state general fund to the state
school district supplemental aid finance fund in an amount not to exceed
the following total amount within the specified fiscal year:
  For the fiscal year beginning on July 1, 1997 [lf$52,089,000;
  for the fiscal year beginning on July 1, 1998 [lf59,613,000;
  for the fiscal year beginning on July 1, 1999 [lf67,127,000; and
  for the fiscal year beginning on July 1, 2000 [lf74,920,000.
  (c)  There is hereby created a state school district enhancement fund
within the state treasury. During each of the following fiscal years, the
director of the budget, after consultation with the commissioner of edu-
cation, shall certify to the director of accounts and reports monthly
amounts for revenue transfer from the state general fund to the state
school district enhancement fund in an amount not to exceed the follow-
ing total amount within the specified fiscal year:
  For the fiscal year beginning on July 1, 1997 [lf$28,800,000;
  for the fiscal year beginning on July 1, 1998 [lf58,800,000;
  for the fiscal year beginning on July 1, 1999 [lf89,300,000; and
  for the fiscal year beginning on July 1, 2000 [lf119,900,000.
  Sec. 4.  K.S.A. 1996 Supp. 72-6431 and 72-6431a are hereby re-
pealed.
  Sec. 5.  This act shall take effect and be in force from and after its
publication in the statute book.