This 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 county earnings tax must be reviewed every five years to determine whether it should continue.

The bill also includes provisions for exemptions, stating that individuals exempt from state income tax will also be exempt from the county earnings tax. It allows for credits against the earnings tax for residents who have already paid an earnings tax to another county. Furthermore, the bill mandates that employers within the county are responsible for collecting and remitting the earnings tax, with specific guidelines for deductions and confidentiality of employee information. The existing law, K.S.A. 2024 Supp. 19-101a, is repealed, and new sections are added to establish the framework for the earnings tax.

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