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, and it allows for certain credits and exemptions against the tax. Additionally, public and private employers are required to deduct this tax from employee earnings and remit it to the respective city or county.

The bill also includes provisions for the confidentiality of employee information related to the earnings tax and outlines the responsibilities of employers in collecting and remitting the tax. It amends existing laws to clarify that cities and counties may levy this tax, while repealing previous sections that prohibited such taxation. The act is designed to provide local governments with a new revenue source while ensuring that the electorate retains control over the imposition of the tax.

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