The city of Lawrence has joined a coalition of local governments pushing for changes in a law passed last year that will impose a new property tax lid on cities and counties.
Both the House and Senate tax committees are holding hearings this week on competing bills that would revisit the tax lid that lawmakers passed last year near the end of the 2015 session as part of a broader tax bill aimed at balancing the state budget.
The city said it opposes that bill, and the tax lid generally, in part because it ties revenue increases to the urban consumer price index, or CPI, which is generally thought of as the inflation rate.
But Lawrence said the CPI measures the cost of a basket of goods and services, like food and housing, that are consumed by households, and it does not reflect the cost of things municipal governments typically buy, such as sand and gravel, water and sewer pipes, fire trucks and playground equipment.
But the city is supporting an alternative bill in the House that would leave the 2018 effective date in place and allow cities and counties to use their home rule authority to exempt themselves from it.
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