Bill > HB2385

This bill authorizes cities and counties in Kansas to propose and potentially levy an earnings tax specifically on nonresident workers, subject to voter approval. The tax would be limited to a maximum of 1% per year and could only be imposed after a public election where a majority of voters support it. If approved, the earnings tax would be dedicated to specific purposes: for cities, at least 50% of the revenue would go toward infrastructure and reduce property tax requirements, while for counties, at least 50% would support general county purposes and property tax reduction. The bill requires that the tax be resubmitted to voters for renewal every 10 years and includes provisions for tax credits (such as allowing credits for taxes paid in other jurisdictions), exemptions for certain taxpayers, and mechanisms for employers to collect and remit the tax. Employers would be allowed to retain a small percentage of collected taxes as compensation for administrative costs. The bill also mandates confidentiality of employee lists used for tax collection purposes and includes safeguards such as allowing exemptions for certain individuals and providing a credit system to prevent double taxation. Importantly, the tax would only apply to nonresidents working within the city or county, not to residents of the taxing jurisdiction.

Budget and Finance

Taxation (House)

https://kslegislature.gov/li/b2025_26/measures/hb2385/