This bill authorizes cities and counties in Kansas to propose and levy an earnings tax on nonresidents working within their jurisdictions, contingent upon approval from the local electorate. The earnings tax rate is capped at 1% per annum, and the revenue generated must be allocated for specific purposes: at least 50% for infrastructure in cities and for general county purposes in counties, with provisions for reducing reliance on ad valorem property taxes. The bill mandates that any approved earnings tax must be resubmitted to voters every ten years for continued approval. Additionally, it allows for certain exemptions and credits against the tax, including for individuals exempt from state income tax and for taxes paid to other jurisdictions.

The bill also outlines the procedural requirements for implementing the earnings tax, including the need for an ordinance or resolution to notify voters of the tax proposal and its intended use. Employers are required to deduct the earnings tax from employee wages and remit it to the respective city or county, with provisions for compensating employers for the collection process. The bill amends existing statutes to clarify that cities and counties may levy this tax, repealing previous restrictions on income taxation. Overall, the legislation aims to provide local governments with a new revenue source while ensuring accountability and voter oversight.

Statutes affected:
As Introduced: 45-229, 12-140, 19-101a, 19-101b
As introduced: 45-229, 12-140, 19-101a, 19-101b