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Kansas House Bill HB2004

Kansas 2024 1st Special Session

Kansas House Bill HB2004 Compare Versions

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11 Session of 2024
22 HOUSE BILL No. 2004
33 By Representatives Curtis, Oropeza and Winn
44 6-18
55 AN ACT concerning taxation; authorizing counties to propose an earnings
66 tax; amending K.S.A. 19-101a, as amended by section 1 of 2024 House
77 Bill No. 2754, and repealing the existing section.
88 Be it enacted by the Legislature of the State of Kansas:
99 New Section 1. (a) Any county is hereby empowered and authorized
1010 in accordance with the provisions of this act to levy an earnings tax upon:
1111 (1) All individuals employed or working within such county; and
1212 (2) all resident individuals of such county who are employed or
1313 working outside such county.
1414 (b) The rate of any earnings tax pursuant to subsection (a) shall not
1515 exceed 1% per annum.
1616 (c) The revenue derived from the earnings tax authorized by this act
1717 shall be pledged for constructing and maintaining a professional sports
1818 stadium.
1919 (d) At least 50% of the revenue derived from the earnings tax
2020 authorized by this act shall be credited in the budget of the county to
2121 reduce the amount of revenue otherwise necessary to be derived from the
2222 ad valorem property tax.
2323 (e) If any provision of this act or the application thereof to any person
2424 or circumstance is held invalid, the invalidity does not affect other
2525 provisions or applications of this act, which can be given effect without the
2626 invalid provision or application, and to this end the provisions of this act
2727 are severable.
2828 New Sec. 2. As used in this act:
2929 (a) "Act" means the provisions of sections 1 through 6, and
3030 amendments thereto.
3131 (b) "Earnings tax" means a tax on the salaries, wages, commissions
3232 and other compensation earned by:
3333 (1) Residents of the county; and
3434 (2) nonresidents of the county for work done or services performed or
3535 rendered in the county.
3636 (c) "Salaries, wages, commissions and other compensation" does not
3737 include contributions to any deferred compensation plans, including, but
3838 not limited to, any salary reduction plans, cafeteria plans or any other
3939 similar plans deferring the receipt of compensation by a resident or
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7676 nonresident if such contribution is not subject to Kansas state income tax
7777 at the time such contribution is made.
7878 New Sec. 3. (a) No county shall levy an earnings tax until the
7979 governing body of such county shall first submit such proposition to and
8080 receive the approval of a majority of the electors of the county voting
8181 thereon at election specified by the county. Any county proposing to adopt
8282 an earnings tax shall adopt a resolution giving notice of its intention to
8383 subject such proposition for approval by the electors in the manner
8484 required by K.S.A. 25-105, and amendments thereto. The notice shall state
8585 the time of the election, the rate of the tax and the purpose for which the
8686 proceeds will be expended in accordance with section 1(c), and
8787 amendments thereto. Every election held under this act shall be conducted
8888 by the county election officer.
8989 (b) If a majority of the electors voting thereon at such election shall
9090 approve the levying of such tax, the governing body of that county shall
9191 provide by resolution the levy of the tax. Any repeal of such tax, or any
9292 reduction or increase in the rate thereof, within the limits of this act, shall
9393 be accomplished in the manner provided for in this act for the adoption
9494 and approval of such tax, except that the governing body of a county shall
9595 be required to submit such question upon submission of a petition signed
9696 by the electors of such county equal in number to not less than 10% of the
9797 electors of such county. If a majority of the electors voting thereon at such
9898 election fail to approve the proposition, it may be resubmitted under the
9999 conditions and in the manner provided in this act for submission of the
100100 original proposition.
101101 (c) Any resolution that has been adopted to give notice of the
102102 intention of the governing body of the county to submit the proposition of
103103 levying an earnings tax to the electors of the county shall contain
104104 provisions pledging the use of the revenue to be received from such tax if
105105 such resolution is approved by the voters in accordance with the provisions
106106 of section 1(c), and amendments thereto. Such description shall be
107107 consistent with that contained in the notice of election required by
108108 subsection (a).
109109 (d) In any county imposing an earnings tax pursuant to this act, once
110110 every five years after the initial levy of the earnings tax by the county, the
111111 question whether to continue to impose an earnings tax shall be submitted
112112 to the electors in the same manner provided in this act for the original
113113 proposition.
114114 New Sec. 4. Any person exempt from the payment of state income
115115 tax pursuant to K.S.A. 79-32,113, and amendments thereto, shall be
116116 exempt from the payment of an earnings tax levied pursuant to this act.
117117 New Sec. 5. The amount of earnings tax paid to another county with
118118 an earnings tax by a resident individual shall be allowed as a credit against
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162162 the earnings tax of the county of such individual's residence.
163163 New Sec. 6. (a) By resolution, the county may provide for deductions
164164 and exemptions from salaries, wages and commissions and may provide
165165 exemptions on account of spouses and dependents.
166166 (b) The earnings subject to earnings tax of any nonresident individual
167167 when work is performed or rendered both within and without the county
168168 may be ascertained by a formula set forth by resolution of the county.
169169 (c) The state of Kansas and its political subdivisions shall deduct
170170 from the earnings of their employees the amount of any county earnings
171171 tax levied upon the income of the particular employee and remit the same
172172 to the county levying such tax. The state of Kansas and its political
173173 subdivisions shall be entitled to deduct and retain of the total amount so
174174 collected to compensate such employer for collecting the tax a percentage
175175 as follows: 3% if such county earnings tax is less than 1% of gross
176176 earnings; or 1.5% if such county earnings tax is 1% of gross earnings.
177177 (d) Any county levying an earnings tax is hereby authorized to
178178 impose, by resolution, upon employers within the county the duty of
179179 collecting and remitting to the county any tax that may be levied upon the
180180 earnings of employees pursuant to this act and to prescribe penalties for
181181 failure to perform such duty. If any such county should impose such duty
182182 on employers, each such employer shall be entitled to deduct and retain
183183 1.5% of the total amount collected to compensate such employer for
184184 collecting such tax. The governing body of any such county, by resolution,
185185 may reduce, eliminate or reimpose, if eliminated, the fee allowed to
186186 employers by this subsection.
187187 (e) (1) All employers within the state, upon request as provided in
188188 this subsection, shall submit to any county levying an earnings tax a
189189 complete listing of all their employees who reside within the territorial
190190 limits or boundaries of the requesting county and their current addresses
191191 according to the records of the employer. Any request shall be made in
192192 writing and shall be mailed to the principal office of the employer. If the
193193 employer is a corporation, the written request shall be made to the
194194 registered agent of the corporation at its registered office. All written
195195 requests provided for in this subsection shall be by registered or certified
196196 mail. Such request may not be made more than once each year. This
197197 subsection shall not apply to employers who deduct from the earnings of
198198 their employees the amount of any county earnings tax levied upon the
199199 income of the particular employee and remit the same to the county
200200 levying such tax.
201201 (2) No list of employees furnished to the county shall be used for any
202202 purpose other than in connection with the collection of an earnings tax.
203203 Such lists shall be treated as confidential records and, except in accordance
204204 with a proper judicial order, shall not be disclosed by the county. Such lists
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248248 shall not be open to public inspection pursuant to the Kansas open records
249249 act.
250250 (3) The provisions of this subsection providing for the confidentiality
251251 of records shall expire on July 1, 2029, unless the legislature reviews and
252252 continues such provisions in accordance with K.S.A. 45-229, and
253253 amendments thereto, prior to July 1, 2029.
254254 Sec. 7. K.S.A. 19-101a, as amended by section 1 of 2024 House Bill
255255 No. 2754, is hereby amended to read as follows: 19-101a. (a) The board of
256256 county commissioners may transact all county business and perform all
257257 powers of local legislation and administration it deems appropriate, subject
258258 only to the following limitations, restrictions or prohibitions:
259259 (1) Counties shall be subject to all acts of the legislature which apply
260260 uniformly to all counties.
261261 (2) Counties may not affect the courts located therein.
262262 (3) Counties shall be subject to acts of the legislature prescribing
263263 limits of indebtedness.
264264 (4) In the exercise of powers of local legislation and administration
265265 authorized under provisions of this section, the home rule power conferred
266266 on cities to determine their local affairs and government shall not be
267267 superseded or impaired without the consent of the governing body of each
268268 city within a county which may be affected.
269269 (5) Counties may not legislate on social welfare administered under
270270 state law enacted pursuant to or in conformity with public law No. 271 –
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273273 congress, or amendments thereof.
274274 (6) Counties shall be subject to all acts of the legislature concerning
275275 elections, election commissioners and officers and their duties as such
276276 officers and the election of county officers.
277277 (7) Counties shall be subject to the limitations and prohibitions
278278 imposed under K.S.A. 12-187 through 12-195, and amendments thereto,
279279 prescribing limitations upon the levy of retailers' sales taxes by counties.
280280 (8) Counties may not exempt from or effect changes in statutes made
281281 nonuniform in application solely by reason of authorizing exceptions for
282282 counties having adopted a charter for county government.
283283 (9) No county may levy ad valorem taxes under the authority of this
284284 section upon real property located within any redevelopment project area
285285 established under the authority of K.S.A. 12-1772, and amendments
286286 thereto, unless the resolution authorizing the same specifically authorized
287287 a portion of the proceeds of such levy to be used to pay the principal of
288288 and interest upon bonds issued by a city under the authority of K.S.A. 12-
289289 1774, and amendments thereto.
290290 (10) Counties shall have no power under this section to exempt from
291291 any statute authorizing or requiring the levy of taxes and providing
292292 substitute and additional provisions on the same subject, unless the
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336336 resolution authorizing the same specifically provides for a portion of the
337337 proceeds of such levy to be used to pay a portion of the principal and
338338 interest on bonds issued by cities under the authority of K.S.A. 12-1774,
339339 and amendments thereto.
340340 (11) Counties may not exempt from or effect changes in the
341341 provisions of K.S.A. 19-4601 through 19-4625, and amendments thereto.
342342 (12) Except as otherwise specifically authorized by K.S.A. 12-1,101
343343 through 12-1,109, and amendments thereto, and sections 1 through 6, and
344344 amendments thereto, counties may not levy and collect taxes on incomes
345345 from whatever source derived.
346346 (13) Counties may not exempt from or effect changes in K.S.A. 19-
347347 430, and amendments thereto.
348348 (14) Counties may not exempt from or effect changes in K.S.A. 19-
349349 302, 19-502b, 19-503, 19-805 or 19-1202, and amendments thereto.
350350 (15) Counties may not exempt from or effect changes in K.S.A. 19-
351351 15,139, 19-15,140 and 19-15,141, and amendments thereto.
352352 (16) Counties may not exempt from or effect changes in the
353353 provisions of K.S.A. 12-1223, 12-1225, 12-1225a, 12-1225b, 12-1225c
354354 and 12-1226, and amendments thereto, or the provisions of K.S.A. 12-
355355 1260 through 12-1270 and 12-1276, and amendments thereto.
356356 (17) Counties may not exempt from or effect changes in the
357357 provisions of K.S.A. 19-211, and amendments thereto.
358358 (18) Counties may not exempt from or effect changes in the
359359 provisions of K.S.A. 19-4001 through 19-4015, and amendments thereto.
360360 (19) Counties may not regulate the production or drilling of any oil or
361361 gas well in any manner which would result in the duplication of regulation
362362 by the state corporation commission and the Kansas department of health
363363 and environment pursuant to chapter 55 and chapter 65 of the Kansas
364364 Statutes Annotated, and amendments thereto, and any rules and regulations
365365 adopted pursuant thereto. Counties may not require any license or permit
366366 for the drilling or production of oil and gas wells. Counties may not
367367 impose any fee or charge for the drilling or production of any oil or gas
368368 well.
369369 (20) Counties may not exempt from or effect changes in K.S.A. 79-
370370 41a04, and amendments thereto.
371371 (21) Counties may not exempt from or effect changes in K.S.A. 79-
372372 1611, and amendments thereto.
373373 (22) Counties may not exempt from or effect changes in K.S.A. 79-
374374 1494, and amendments thereto.
375375 (23) Counties may not exempt from or effect changes in K.S.A. 19-
376376 202(b), and amendments thereto.
377377 (24) Counties may not exempt from or effect changes in K.S.A. 19-
378378 204(b), and amendments thereto.
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422422 (25) Counties may not levy or impose an excise, severance or any
423423 other tax in the nature of an excise tax upon the physical severance and
424424 production of any mineral or other material from the earth or water.
425425 (26) Counties may not exempt from or effect changes in K.S.A. 79-
426426 2017 or 79-2101, and amendments thereto.
427427 (27) Counties may not exempt from or effect changes in K.S.A. 2-
428428 3302, 2-3305, 2-3307, 2-3318, 17-5904, 17-5908, 47-1219, 65-171d, 65-
429429 1,178 through 65-1,199, 65-3001 through 65-3028, and amendments
430430 thereto.
431431 (28) Counties may not exempt from or effect changes in K.S.A. 80-
432432 121, and amendments thereto.
433433 (29) Counties may not exempt from or effect changes in K.S.A. 19-
434434 228, and amendments thereto.
435435 (30) Counties may not exempt from or effect changes in the Kansas
436436 911 act.
437437 (31) Counties may not exempt from or effect changes in K.S.A. 26-
438438 601, and amendments thereto.
439439 (32) (A) Counties may not exempt from or effect changes in the
440440 Kansas liquor control act except as provided by paragraph (B).
441441 (B) Counties may adopt resolutions which are not in conflict with the
442442 Kansas liquor control act.
443443 (33) (A) Counties may not exempt from or effect changes in the
444444 Kansas cereal malt beverage act except as provided by paragraph (B).
445445 (B) Counties may adopt resolutions which are not in conflict with the
446446 Kansas cereal malt beverage act.
447447 (34) Counties may not exempt from or effect changes in the Kansas
448448 lottery act.
449449 (35) Counties may not exempt from or effect changes in the Kansas
450450 expanded lottery act.
451451 (36) Counties may neither exempt from nor effect changes to the
452452 eminent domain procedure act.
453453 (37) Any county granted authority pursuant to the provisions of
454454 K.S.A. 19-5001 through 19-5005, and amendments thereto, shall be
455455 subject to the limitations and prohibitions imposed under K.S.A. 19-5001
456456 through 19-5005, and amendments thereto.
457457 (38) Except as otherwise specifically authorized by K.S.A. 19-5001
458458 through 19-5005, and amendments thereto, counties may not exercise any
459459 authority granted pursuant to K.S.A. 19-5001 through 19-5005, and
460460 amendments thereto, including the imposition or levy of any retailers' sales
461461 tax.
462462 (39) Counties may not exempt from or effect changes in K.S.A. 65-
463463 201 and 65-202(a), (b), (d), (e) and (f), and amendments thereto.
464464 (b) Counties shall apply the powers of local legislation granted in
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508508 subsection (a) by resolution of the board of county commissioners. If no
509509 statutory authority exists for such local legislation other than that set forth
510510 in subsection (a) and the local legislation proposed under the authority of
511511 such subsection is not contrary to any act of the legislature, such local
512512 legislation shall become effective upon passage of a resolution of the
513513 board and publication in the official county newspaper. If the legislation
514514 proposed by the board under authority of subsection (a) is contrary to an
515515 act of the legislature which is applicable to the particular county but not
516516 uniformly applicable to all counties, such legislation shall become
517517 effective by passage of a charter resolution in the manner provided in
518518 K.S.A. 19-101b, and amendments thereto.
519519 (c) Any resolution adopted by a county which conflicts with the
520520 restrictions in subsection (a) is null and void.
521521 Sec. 8. K.S.A. 19-101a, as amended by section 1 of 2024 House Bill
522522 No. 2754, is hereby repealed.
523523 Sec. 9. This act shall take effect and be in force from and after its
524524 publication in the statute book.
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