The bill authorizes counties in Kansas to impose an earnings tax on individuals employed within the county and on residents working outside the county, with a maximum rate of 1% per annum. The revenue generated from this tax is designated for general county purposes and is intended to reduce the reliance on ad valorem property taxes. The bill outlines the process for counties to levy this tax, which requires approval from a majority of the electors in the county through a public election. Additionally, it stipulates that any person exempt from state income tax will also be exempt from the earnings tax, and it allows for credits against the earnings tax for individuals who have already paid an earnings tax to another county.

The bill also includes provisions for the administration of the earnings tax, such as allowing counties to provide deductions and exemptions, and requiring the state and its subdivisions to withhold the tax from employee earnings. Employers are tasked with collecting and remitting the tax, with a provision for them to retain a percentage of the collected amount as compensation for their efforts. The bill amends existing law to clarify the authority of counties regarding taxation and repeals a previous section of the law that may conflict with the new provisions. Overall, the legislation aims to provide counties with additional revenue-generating tools while ensuring transparency and accountability in the tax collection process.

Statutes affected:
As introduced: 45-229, 19-101a, 19-101b