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. The bill mandates that any approved earnings tax must be resubmitted to voters every ten years for continued approval. Additionally, it allows for certain credits and exemptions against the tax, including provisions for public and private employers to deduct the tax from employee earnings.

The bill amends existing statutes, specifically K.S.A. 12-140 and K.S.A. 2024 Supp. 19-101a, to clarify that cities and counties may levy income taxes under the new provisions while repealing previous restrictions on such taxation. It also establishes guidelines for the collection of the earnings tax, including confidentiality measures for employee information provided by employers. The act is designed to enhance local revenue generation while ensuring accountability and transparency in the use of tax proceeds.

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