Bill > SB108

This bill authorizes Kansas counties to impose an earnings tax (a tax on salaries, wages, and other compensation) on both residents working within the county and non-residents working in the county, with several key provisions. The tax rate would be limited to 1% per year and would require voter approval through a county election, where a majority of voters must support the tax. The revenue from this earnings tax must be used for general county purposes and would be used to reduce property tax revenue. Counties would be required to provide specific details about the tax in their election notice, including the tax rate and purpose. Employers would be responsible for collecting and remitting the tax, and they would be allowed to keep a small percentage (1.5-3%) of the collected taxes as compensation for administrative costs. The bill includes provisions for tax credits if an individual pays earnings tax to another county, exemptions for certain taxpayers (such as those exempt from state income tax), and a requirement to revisit the tax every five years through another voter referendum. Importantly, the bill also amends existing county legislation to explicitly allow for this type of income tax, which was previously prohibited. The earnings tax would apply to both resident and non-resident workers, with a formula to be established by each county for calculating taxes for workers who perform services both inside and outside the county.

Budget and Finance

https://kslegislature.gov/li/b2025_26/measures/sb108/