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KS HB2385

Bill

Status

Introduced

2/14/2025

Primary Sponsor

Taxation

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Cities and counties may levy an earnings tax of up to 1% annually on nonresidents who work within their jurisdiction, but only after majority voter approval at an election
  • City earnings tax revenue must be used for infrastructure purposes, with at least 50% credited toward reducing property taxes; county revenue goes to general purposes with the same 50% property tax reduction requirement
  • The earnings tax must be resubmitted to voters every 10 years to continue, and can be repealed or modified through a petition signed by at least 10% of electors
  • Public and private employers are required to withhold the tax from employee earnings and remit it to the levying city or county, with employers entitled to retain 1.5-3% as compensation for collection
  • Individuals exempt from Kansas state income tax are also exempt from the earnings tax, and credits are allowed for earnings taxes paid to other cities or counties to prevent double taxation

Legislative Description

Authorizing cities and counties to propose an earnings tax for ballot question and to levy such tax if approved by the electors of a city or county, requiring resubmission of the question, if approved, to the electors every 10 years, allowing certain credits and exemptions against the tax, providing for deductions by public and private employers of the tax from employee earnings and providing that revenue from any such tax be pledged for certain purposes.

Last Action

House Hearing: Monday, February 9, 2026, 3:30 PM Room 346-S

2/9/2026

Committee Referrals

Taxation2/17/2025

Full Bill Text

No bill text available