Bill > SB103

This bill authorizes cities and counties in Kansas to propose and levy an earnings tax (a tax on salaries, wages, and other compensation) on nonresidents working within their jurisdiction, subject to specific conditions. The tax would be limited to 1% per year and could only be implemented after receiving voter approval through a local election. If approved, the tax would be required to be resubmitted to voters every 10 years for continued authorization. For cities, at least 50% of the revenue must be used for infrastructure purposes and credited to reduce property tax requirements, while counties would use the revenue for general county purposes with similar property tax reduction requirements. Employers would be responsible for deducting the tax from employee earnings and remitting it to the local government, with a small percentage allowed as compensation for collection. The bill provides for certain exemptions, such as for individuals exempt from state income tax, and allows tax credits for nonresidents who pay earnings taxes in multiple jurisdictions. Importantly, the tax can only be levied on nonresidents, not residents of the city or county, and employers may be required to provide lists of non-resident employees to the local government under certain circumstances.

Budget and Finance

Assessment and Taxation (Senate)

https://kslegislature.gov/li/b2025_26/measures/sb103/