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. The bill mandates that any approved earnings tax must be resubmitted to voters for renewal every ten years. 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bill also includes amendments to existing laws, specifically K.S.A. 12-140 and K.S.A. 2024 Supp. 19-101a, which will be repealed, thereby removing previous restrictions on cities and counties regarding income tax levies. It establishes a framework for the administration of the earnings tax, including the confidentiality of employee information provided by employers and the responsibilities of employers in collecting and remitting the tax. Overall, the legislation aims to provide local governments with a new revenue source while ensuring accountability and transparency in its implementation.

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