The Olathe Public School’s proposed 2025 budget would lower its property tax rate slightly, but that may not reduce the amount the average homeowner in the school district actually pays on their annual tax bill.
Earlier this month, the Olathe Board of Education heard its first major budget presentation for 2025, kicking off a weeks-long approval process that will end this fall with public hearings and the adoption of a final budget.
Find the full Olathe school board budget presentation here.
The breakdown: How might it affect your bill in 2025?
For 2025, Olathe schools’ staff have proposed a lower property tax rate of 63.097 mills, which includes both the general fund levies set by the state and the levies for the district’s local option budget set by the district.
That proposed overall tax rate is a reduction of about .38 mills from 2024.
On top of the proposed reduction in the mill levy rate set by the school district, the state legislature also increased the exemption on property tax valuation up to $75,000. That exemption applies only to the 20 mills of local school districts’ property tax rate set by the statehouse.
However, despite the increased exemption and the proposed reduction in the Olathe schools local mill levy, most property owners in the school district should expect to pay more in the coming year on their annual property tax bill due to home values that continue to rise in Johnson County.
A property tax rate, also called the mill levy rate, decides how much an individual property owner will pay in taxes to a jurisdiction based on their property’s assessed value.
According to real estate statistics from Johnson County, the average residential property in Olathe is valued at $407,350. (Keep in mind that the Olathe school district also covers parts of Lenexa and Overland Park, which have different average residential property values than Olathe.)
To calculate what your actual tax bill to the school district would be if this budget is approved:
- First, subtract $75,000 from the value of your home, and multiply the result by .115 the residential assessment rate). This accounts for the new higher exemption level.
- From there, take that number and divide it by 1,000, then multiply the result by 20, representing the portion of the mill rate set by the state.
- Then, multiply the value of your home by .115, the residential assessment rate). Take that number, divide it by 1,000, and multiply the result by the locally set part of the proposed mill levy rate, in Olathe’s case, 43.097.
For the average homeowner in the Olathe school district who lives in Olathe, that means about $2,783.28 in property taxes owed to the school district for 2025.
For comparison, the same homeowner paid the school district about $2,724.80 in property tax in 2024.
Remember: Your total annual property tax bill will also include mill levies set by other taxing authorities, including city governments and Johnson County itself.
Olathe schools proposes $333M 2025 budget
- Olathe Public Schools’ proposed 2025 budget is about $333 million.
- That budget is up about 7%, or about $21.5 million more than what was approved for 2024.
- That means, if this budget is approved, it will not be revenue neutral.
- The standard is set by state statute and requires taxing jurisdictions to bring in the exact same amount of revenue as the previous year. If they do not, they have a few extra steps to take before adoption.
- To remain revenue neutral, the Olathe school district would have to adopt a mill levy rate of closer to 60.524 mills, a reduction of nearly three mills.
Olathe schools’ budget next steps:
- The Olathe school board is expected to hold its budget hearings on Sept. 4.
- During that same meeting, the board is expected to adopt the 2025 budget.
More Olathe schools news: Olathe schools crack down on student cell phone usage. What are the new rules?
