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 county earnings tax.

The bill includes provisions for deductions and exemptions from the earnings tax, as well as a mechanism for employers to collect and remit the tax on behalf of their employees. It also allows for credits against the earnings tax for individuals who have already paid an earnings tax to another county. The legislation emphasizes the confidentiality of employee information provided to counties for tax collection purposes and establishes that these provisions will expire unless reviewed and continued by the legislature before July 1, 2030. The existing law regarding county taxation is amended to reflect these changes, and the previous version of the law is repealed.

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