Kansas 2024 1st Special Session

Kansas House Bill HB2004

Introduced
6/18/24  

Caption

Authorizing counties to propose an earnings tax for ballot question.

Impact

The enactment of HB 2004 is anticipated to significantly impact local funding mechanisms and the fiscal landscape of participating counties. By enabling counties to impose an earnings tax, the bill seeks to create a dedicated revenue stream for sports facilities, potentially transforming local economies depending on the size and usage of the stadiums. Proponents argue that this tax could boost local employment and tourism when combined with well-managed sporting events and venues. However, it remains contingent on voter approval, which must be obtained prior to the levy of any earnings tax, thereby involving the electorate in a crucial decision-making process.

Summary

House Bill 2004 introduces a mechanism for counties in Kansas to propose an earnings tax leveraged on workers within their jurisdictions. This tax would be calculated based on salaries, wages, commissions, and other compensations, with the stipulation that the tax rate shall not exceed 1% per annum. The bill specifies that any revenue generated from this earnings tax must be dedicated to the construction and maintenance of a professional sports stadium, with at least half of the revenue also used to offset property tax requirements within the county. This proposal aims to provide counties with new funding resources while reducing dependence on existing collections through property taxes.

Contention

While HB 2004 has its proponents who advocate for the economic benefits associated with new revenue sources for local governments and enhanced public amenities, there are concerns and potential points of contention regarding the financial implications for residents. Opponents may argue that introducing an earnings tax could place additional economic burdens on workers, particularly those already facing financial challenges. Moreover, the requirement for a voter referendum means that there could be mixed opinions among residents, complicating the proposal's acceptance. The effectiveness and fairness of implementing such a tax while maintaining equitable local funding strategies will likely remain a focus of public debate.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2684

Authorizing cities to propose an earnings tax for ballot question.

KS SB79

Authorizing counties to impose an earnings tax.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS SB487

Authorizing counties to contract with other counties to share 911 public safety answering point services and authorizing the distribution of 911 fee moneys to counties for such purposes.

KS SB410

Reducing penalties for the late filing of or the failure to file statements listing personal property for assessment and the discovery of escaped personal property and reporting changes after initial statement, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for new electric generation facilities, additions and new pollution control devices and discontinuing certain current property tax exemptions, providing that county clerks are not required to send revenue neutral rate notices to property owners of exempt property, modifying and prescribing the contents of the revenue neutral rate hearing notice, permitting a tax levy that generates the same amount of revenue as the previous year when the final assessed valuation decreases compared to the estimated assessed valuation, requiring that the governing body's vote be conducted on the same day as the commencement of the public hearing, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for calendar year 2024, providing income tax subtraction modifications for certain federal credit disallowances and the employee retention credit disallowance and to permit the carryforward of certain net operating losses, clarifying the disallowed business interest expense deduction, extending the time period for the single city port authority tax credit, decreasing penalties for failing to timely remit withholding income taxes of employees by employers, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners relating to the salt parity act, providing countywide retailers' sales tax authority for Rawlins, Marshall and Neosho counties and authorizing teleconference or video conference hearings in the small claims and expedited hearings division of the state board of tax appeals.

KS HB2176

Creating the Arkansas city area public library district act and the Udall area public library district act, requiring an election for the creation of such district and authorizing unified school districts No. 470 and 463 to levy a tax on behalf of such library district.

KS SB497

Establishing the Pike reservoir project district act to provide for a lake and related commercial and residential development in Bourbon county and authorizing a governing board and sales and property tax increment financing for such project.

KS HB2205

Creating the Udall area public library district act, requiring an election for the creation of such district and authorizing unified school district No. 463 to levy a tax on behalf of the library district.

KS HB2221

Expanding the eligible uses for the 0% state rate for sales tax for certain utilities and the levying of sales tax on such sales by cities and counties and authorizing cities and counties to exempt such sales from such city or county taxes.

KS HB2002

Providing countywide retailers' sales tax authority for Dickinson and Grant counties, providing for a sales tax exemption for area agencies on aging and purchases made by Kansas suicide prevention HQ, inc., providing that the secretary of revenue file a release of warrant in the county where such warrant is docketed, granting authority to the director of property valuation to develop qualifying courses and providing that certain tax notices and statements may be transmitted by electronic means by the county treasurer and county appraiser if consented to by the taxpayer.

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