Property Taxes are imposed on real and personal property by states, counties, cities, and/or other taxing entities. Property tax is also known as ad valorem tax, the second largest source of revenue for the City General Fund.

City Property Tax dollars are used for roads, parks, fire protection, law enforcement and many other local services.

Property Tax Rate (Mill Levy)

• One mill is equal to $1 for every $1,000 of assessed valuation.
• The City of Olathe portion of the mill levy is 23.356, or approximately 19 percent of the property tax bill.
• Additional mill levy portions are determined and levied by the State of Kansas, Johnson County, Johnson County Community College, Olathe School District, and the Olathe Public Library.

Property Tax Calculation

• Residential Property Tax is calculated by multiplying the assessed valuation of a home (11.5 percent of the appraised value) by the total mill levy, and then dividing by 1,000.
• Commercial Property Tax is calculated by multiplying the assessed valuation of a commercial property (25 percent of the appraised value) by the total mill levy, and then dividing by 1,000.

2023 Mill Levy for 2024 Budget

A property tax rebate program is available to income eligible Olathe residents to offset the City property tax. Visit the Property Tax Rebate webpage for more information.

Sales tax is collected from Olathe residents and non-residents on the purchase of tangible goods and services within the city.

Almost half of the city's annual current general fund revenue is from sales tax.

Special taxing districts are used in Olathe, and throughout Kansas, where additional sales tax is collected to fund new development areas.

• Transportation Development Districts
• Community Improvement Districts

Additional Sales Tax Information

• A Street Maintenance Sales Tax Finance Oversight Committee is appointed by the Olathe City Council and reviews the SMST income and expenditures, and reports to the City Council in a public session annually.
• Olathe Parks & Rec utilizes a Park Sales Tax of 1/8 cent and Park Excise Tax to develop and maintain Olathe parks, recreation facilities and trails. The Park Sales Tax was approved by public vote in 1999 and renewed in 2004, 2014 and 2023.

Franchise fees are collected from electric, gas, telephone, and cable service providers operating within City limits. The City of Olathe collects a 5% franchise fee per agreements between the City of Olathe and utility providers.

Franchise fees are legally authorized by the Kansas State Legislature to:

• Pay for the use of public right-of-way and property easement areas within the City
• Offset City operating costs
• Offset additional personal property taxes

The Kansas Corporation Commission (KCC) regulates electric, gas, telephone and cable providers.

The Transient Guest Tax is a tax imposed on guests of hotels or other lodging facilities. This tax is commonly referred to as a "bed tax," "hotel occupancy tax," or "motel tax."

• The tax is currently set at 6% as determined by the Olathe City Council.
• The revenue is directed to the Olathe Chamber of Commerce for economic development and Convention and Visitors Bureau services.

Transient Guest Taxes are commonly used by local government entities in Kansas.

The State of Kansas produces a quarterly report of Transient Guest Tax Rates and Effective Dates.

Street Excise Tax

Development in Olathe: $0.215 per square foot of land area.

• Submitted to City Planning Division before recording the final plat.
• Arterial street right-of-way is exempt from Street Excise Tax.
• Public parkland dedicated to the City is exempt from Street Excise Tax.

Traffic Signal Excise Tax

Single Family Zoning Districts: $0.0037 per square foot of land area.
Multi-Family Zoning Districts: $0.0120 per square foot of land area.
Commercial Zoning Districts: $0.0576 per square foot of land area.
Other Zoning Districts: $0.0098 per square foot of land area.

• Submitted to City Planning Division before recording the final plat.
• Arterial street right-of-way is exempt from Traffic Signal Excise Tax
• Public parkland dedicated to the City is exempt from Traffic Signal Excise Tax

Park Excise Tax

Industrial Development: $0.07 per square foot of gross floor area.
Office/Commercial Development: $0.13 per square foot of gross floor area.
Residential Development: $520 per dwelling unit.

• Submitted to the Building Codes Division when building permit fees are paid.
• Revenue generated from the Park Excise Tax is directed into the Neighborhood Park Fund or the General Park Fund, depending on the building use.
• Revenue from all single-family and duplex residential building units is deposited in the Neighborhood Park Fund and used exclusively for acquisition and development of neighborhood parks.
• Revenue from all multi-family dwelling units and all commercial and industrial building development is deposited in the General Park Fund.
• The General Park Fund can be used throughout the Olathe Park system to:
  • Acquire new parkland and open space
  • Provide new facilities
  • Upgrade existing facilities

• Animal Licenses and Fees
• Utility Charges
• Municipal Court Fines and Fees
• Construction Fee Schedule