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Kansas Senate Bill SB5

Kansas 2024 1st Special Session

Kansas Senate Bill SB5 Compare Versions

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11 Special Session of 2024
22 SENATE BILL No. 5
33 By Senator Haley
44 6-18
55 AN ACT concerning taxation; authorizing counties to impose 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 general county purposes.
1818 (d) At least 50% of the revenue derived from the earnings tax
1919 authorized by this act shall be credited in the budget of the county to
2020 reduce the amount of revenue otherwise necessary to be derived from the
2121 ad valorem property tax.
2222 (e) If any provision of this act or the application thereof to any person
2323 or circumstance is held invalid, the invalidity does not affect other
2424 provisions or applications of this act, which can be given effect without the
2525 invalid provision or application, and to this end the provisions of this act
2626 are severable.
2727 New Sec. 2. As used in this act:
2828 (a) "Act" means the provisions of sections 1 through 6, and
2929 amendments thereto.
3030 (b) "Earnings tax" means a tax on the salaries, wages, commissions
3131 and other compensation earned by:
3232 (1) Residents of the county; and
3333 (2) nonresidents of the county for work done or services performed or
3434 rendered in the county.
3535 (c) "Salaries, wages, commissions and other compensation" does not
3636 include contributions to any deferred compensation plans, including, but
3737 not limited to, any salary reduction plans, cafeteria plans or any other
3838 similar plans deferring the receipt of compensation by a resident or
3939 nonresident if such contribution is not subject to Kansas state income tax
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7676 at the time such contribution is made.
7777 New Sec. 3. (a) No county shall levy an earnings tax until the
7878 governing body of such county shall first submit such proposition to and
7979 receive the approval of a majority of the electors of the county voting
8080 thereon at election specified by the county. Any county proposing to adopt
8181 an earnings tax shall adopt a resolution giving notice of its intention to
8282 subject such proposition for approval by the electors in the manner
8383 required by K.S.A. 25-105, and amendments thereto. The notice shall state
8484 the time of the election, the rate of the tax and the purpose for which the
8585 proceeds will be expended in accordance with section 1(c), and
8686 amendments thereto. Every election held under this act shall be conducted
8787 by the county election officer.
8888 (b) If a majority of the electors voting thereon at such election shall
8989 approve the levying of such tax, the governing body of that county shall
9090 provide by resolution the levy of the tax. Any repeal of such tax, or any
9191 reduction or increase in the rate thereof, within the limits of this act, shall
9292 be accomplished in the manner provided for in this act for the adoption
9393 and approval of such tax, except that the governing body of a county shall
9494 be required to submit such question upon submission of a petition signed
9595 by the electors of such county equal in number to not less than 10% of the
9696 electors of such county. If a majority of the electors voting thereon at such
9797 election fail to approve the proposition, it may be resubmitted under the
9898 conditions and in the manner provided in this act for submission of the
9999 original proposition.
100100 (c) Any resolution that has been adopted to give notice of the
101101 intention of the governing body of the county to submit the proposition of
102102 levying an earnings tax to the electors of the county shall contain
103103 provisions pledging the use of the revenue to be received from such tax if
104104 such resolution is approved by the voters in accordance with the provisions
105105 of section 1(c), and amendments thereto. Such description shall be
106106 consistent with that contained in the notice of election required by
107107 subsection (a).
108108 (d) In any county imposing an earnings tax pursuant to this act, once
109109 every five years after the initial levy of the earnings tax by the county, the
110110 question whether to continue to impose an earnings tax shall be submitted
111111 to the electors in the same manner provided in this act for the original
112112 proposition.
113113 New Sec. 4. Any person exempt from the payment of state income
114114 tax pursuant to K.S.A. 79-32,113, and amendments thereto, shall be
115115 exempt from the payment of an earnings tax levied pursuant to this act.
116116 New Sec. 5. The amount of earnings tax paid to another county with
117117 an earnings tax by a resident individual shall be allowed as a credit against
118118 the earnings tax of the county of such individual's residence.
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162162 New Sec. 6. (a) By resolution, the county may provide for deductions
163163 and exemptions from salaries, wages and commissions and may provide
164164 exemptions on account of spouses and dependents.
165165 (b) The earnings subject to earnings tax of any nonresident individual
166166 when work is performed or rendered both within and without the county
167167 may be ascertained by a formula set forth by resolution of the county.
168168 (c) The state of Kansas and its political subdivisions shall deduct
169169 from the earnings of their employees the amount of any county earnings
170170 tax levied upon the income of the particular employee and remit the same
171171 to the county levying such tax. The state of Kansas and its political
172172 subdivisions shall be entitled to deduct and retain of the total amount so
173173 collected to compensate such employer for collecting the tax a percentage
174174 as follows: 3% if such county earnings tax is less than 1% of gross
175175 earnings; or 1.5% if such county earnings tax is 1% of gross earnings.
176176 (d) Any county levying an earnings tax is hereby authorized to
177177 impose, by resolution, upon employers within the county the duty of
178178 collecting and remitting to the county any tax that may be levied upon the
179179 earnings of employees pursuant to this act and to prescribe penalties for
180180 failure to perform such duty. If any such county should impose such duty
181181 on employers, each such employer shall be entitled to deduct and retain
182182 1.5% of the total amount collected to compensate such employer for
183183 collecting such tax. The governing body of any such county, by resolution,
184184 may reduce, eliminate or reimpose, if eliminated, the fee allowed to
185185 employers by this subsection.
186186 (e) (1) All employers within the state, upon request as provided in
187187 this subsection, shall submit to any county levying an earnings tax a
188188 complete listing of all their employees who reside within the territorial
189189 limits or boundaries of the requesting county and their current addresses
190190 according to the records of the employer. Any request shall be made in
191191 writing and shall be mailed to the principal office of the employer. If the
192192 employer is a corporation, the written request shall be made to the
193193 registered agent of the corporation at its registered office. All written
194194 requests provided for in this subsection shall be by registered or certified
195195 mail. Such request may not be made more than once each year. This
196196 subsection shall not apply to employers who deduct from the earnings of
197197 their employees the amount of any county earnings tax levied upon the
198198 income of the particular employee and remit the same to the county
199199 levying such tax.
200200 (2) No list of employees furnished to the county shall be used for any
201201 purpose other than in connection with the collection of an earnings tax.
202202 Such lists shall be treated as confidential records and, except in accordance
203203 with a proper judicial order, shall not be disclosed by the county. Such lists
204204 shall not be open to public inspection pursuant to the Kansas open records
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248248 act.
249249 (3) The provisions of this subsection providing for the confidentiality
250250 of records shall expire on July 1, 2029, unless the legislature reviews and
251251 continues such provisions in accordance with K.S.A. 45-229, and
252252 amendments thereto, prior to July 1, 2029.
253253 Sec. 7. K.S.A. 19-101a, as amended by section 1 of 2024 House Bill
254254 No. 2754, is hereby amended to read as follows: 19-101a. (a) The board of
255255 county commissioners may transact all county business and perform all
256256 powers of local legislation and administration it deems appropriate, subject
257257 only to the following limitations, restrictions or prohibitions:
258258 (1) Counties shall be subject to all acts of the legislature which apply
259259 uniformly to all counties.
260260 (2) Counties may not affect the courts located therein.
261261 (3) Counties shall be subject to acts of the legislature prescribing
262262 limits of indebtedness.
263263 (4) In the exercise of powers of local legislation and administration
264264 authorized under provisions of this section, the home rule power conferred
265265 on cities to determine their local affairs and government shall not be
266266 superseded or impaired without the consent of the governing body of each
267267 city within a county which may be affected.
268268 (5) Counties may not legislate on social welfare administered under
269269 state law enacted pursuant to or in conformity with public law No. 271 –
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272272 congress, or amendments thereof.
273273 (6) Counties shall be subject to all acts of the legislature concerning
274274 elections, election commissioners and officers and their duties as such
275275 officers and the election of county officers.
276276 (7) Counties shall be subject to the limitations and prohibitions
277277 imposed under K.S.A. 12-187 through 12-195, and amendments thereto,
278278 prescribing limitations upon the levy of retailers' sales taxes by counties.
279279 (8) Counties may not exempt from or effect changes in statutes made
280280 nonuniform in application solely by reason of authorizing exceptions for
281281 counties having adopted a charter for county government.
282282 (9) No county may levy ad valorem taxes under the authority of this
283283 section upon real property located within any redevelopment project area
284284 established under the authority of K.S.A. 12-1772, and amendments
285285 thereto, unless the resolution authorizing the same specifically authorized
286286 a portion of the proceeds of such levy to be used to pay the principal of
287287 and interest upon bonds issued by a city under the authority of K.S.A. 12-
288288 1774, and amendments thereto.
289289 (10) Counties shall have no power under this section to exempt from
290290 any statute authorizing or requiring the levy of taxes and providing
291291 substitute and additional provisions on the same subject, unless the
292292 resolution authorizing the same specifically provides for a portion of the
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336336 proceeds of such levy to be used to pay a portion of the principal and
337337 interest on bonds issued by cities under the authority of K.S.A. 12-1774,
338338 and amendments thereto.
339339 (11) Counties may not exempt from or effect changes in the
340340 provisions of K.S.A. 19-4601 through 19-4625, and amendments thereto.
341341 (12) Except as otherwise specifically authorized by K.S.A. 12-1,101
342342 through 12-1,109, and amendments thereto, and sections 1 through 6, and
343343 amendments thereto, counties may not levy and collect taxes on incomes
344344 from whatever source derived.
345345 (13) Counties may not exempt from or effect changes in K.S.A. 19-
346346 430, and amendments thereto.
347347 (14) Counties may not exempt from or effect changes in K.S.A. 19-
348348 302, 19-502b, 19-503, 19-805 or 19-1202, and amendments thereto.
349349 (15) Counties may not exempt from or effect changes in K.S.A. 19-
350350 15,139, 19-15,140 and 19-15,141, and amendments thereto.
351351 (16) Counties may not exempt from or effect changes in the
352352 provisions of K.S.A. 12-1223, 12-1225, 12-1225a, 12-1225b, 12-1225c
353353 and 12-1226, and amendments thereto, or the provisions of K.S.A. 12-
354354 1260 through 12-1270 and 12-1276, and amendments thereto.
355355 (17) Counties may not exempt from or effect changes in the
356356 provisions of K.S.A. 19-211, and amendments thereto.
357357 (18) Counties may not exempt from or effect changes in the
358358 provisions of K.S.A. 19-4001 through 19-4015, and amendments thereto.
359359 (19) Counties may not regulate the production or drilling of any oil or
360360 gas well in any manner which would result in the duplication of regulation
361361 by the state corporation commission and the Kansas department of health
362362 and environment pursuant to chapter 55 and chapter 65 of the Kansas
363363 Statutes Annotated, and amendments thereto, and any rules and regulations
364364 adopted pursuant thereto. Counties may not require any license or permit
365365 for the drilling or production of oil and gas wells. Counties may not
366366 impose any fee or charge for the drilling or production of any oil or gas
367367 well.
368368 (20) Counties may not exempt from or effect changes in K.S.A. 79-
369369 41a04, and amendments thereto.
370370 (21) Counties may not exempt from or effect changes in K.S.A. 79-
371371 1611, and amendments thereto.
372372 (22) Counties may not exempt from or effect changes in K.S.A. 79-
373373 1494, and amendments thereto.
374374 (23) Counties may not exempt from or effect changes in K.S.A. 19-
375375 202(b), and amendments thereto.
376376 (24) Counties may not exempt from or effect changes in K.S.A. 19-
377377 204(b), and amendments thereto.
378378 (25) Counties may not levy or impose an excise, severance or any
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422422 other tax in the nature of an excise tax upon the physical severance and
423423 production of any mineral or other material from the earth or water.
424424 (26) Counties may not exempt from or effect changes in K.S.A. 79-
425425 2017 or 79-2101, and amendments thereto.
426426 (27) Counties may not exempt from or effect changes in K.S.A. 2-
427427 3302, 2-3305, 2-3307, 2-3318, 17-5904, 17-5908, 47-1219, 65-171d, 65-
428428 1,178 through 65-1,199, 65-3001 through 65-3028, and amendments
429429 thereto.
430430 (28) Counties may not exempt from or effect changes in K.S.A. 80-
431431 121, and amendments thereto.
432432 (29) Counties may not exempt from or effect changes in K.S.A. 19-
433433 228, and amendments thereto.
434434 (30) Counties may not exempt from or effect changes in the Kansas
435435 911 act.
436436 (31) Counties may not exempt from or effect changes in K.S.A. 26-
437437 601, and amendments thereto.
438438 (32) (A) Counties may not exempt from or effect changes in the
439439 Kansas liquor control act except as provided by paragraph (B).
440440 (B) Counties may adopt resolutions which are not in conflict with the
441441 Kansas liquor control act.
442442 (33) (A) Counties may not exempt from or effect changes in the
443443 Kansas cereal malt beverage act except as provided by paragraph (B).
444444 (B) Counties may adopt resolutions which are not in conflict with the
445445 Kansas cereal malt beverage act.
446446 (34) Counties may not exempt from or effect changes in the Kansas
447447 lottery act.
448448 (35) Counties may not exempt from or effect changes in the Kansas
449449 expanded lottery act.
450450 (36) Counties may neither exempt from nor effect changes to the
451451 eminent domain procedure act.
452452 (37) Any county granted authority pursuant to the provisions of
453453 K.S.A. 19-5001 through 19-5005, and amendments thereto, shall be
454454 subject to the limitations and prohibitions imposed under K.S.A. 19-5001
455455 through 19-5005, and amendments thereto.
456456 (38) Except as otherwise specifically authorized by K.S.A. 19-5001
457457 through 19-5005, and amendments thereto, counties may not exercise any
458458 authority granted pursuant to K.S.A. 19-5001 through 19-5005, and
459459 amendments thereto, including the imposition or levy of any retailers' sales
460460 tax.
461461 (39) Counties may not exempt from or effect changes in K.S.A. 65-
462462 201 and 65-202(a), (b), (d), (e) and (f), and amendments thereto.
463463 (b) Counties shall apply the powers of local legislation granted in
464464 subsection (a) by resolution of the board of county commissioners. If no
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508508 statutory authority exists for such local legislation other than that set forth
509509 in subsection (a) and the local legislation proposed under the authority of
510510 such subsection is not contrary to any act of the legislature, such local
511511 legislation shall become effective upon passage of a resolution of the
512512 board and publication in the official county newspaper. If the legislation
513513 proposed by the board under authority of subsection (a) is contrary to an
514514 act of the legislature which is applicable to the particular county but not
515515 uniformly applicable to all counties, such legislation shall become
516516 effective by passage of a charter resolution in the manner provided in
517517 K.S.A. 19-101b, and amendments thereto.
518518 (c) Any resolution adopted by a county which conflicts with the
519519 restrictions in subsection (a) is null and void.
520520 Sec. 8. K.S.A. 19-101a, as amended by section 1 of 2024 House Bill
521521 No. 2754, is hereby repealed.
522522 Sec. 9. This act shall take effect and be in force from and after its
523523 publication in the statute book.
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