Kansas 2023-2024 Regular Session

Kansas Senate Bill SB79

Introduced
1/23/23  
Refer
1/24/23  

Caption

Authorizing counties to impose an earnings tax.

Impact

This bill introduces significant changes to county revenue generation strategies, allowing local governments greater fiscal autonomy. By enabling counties to impose an earnings tax with voter approval, Kansas aims to provide counties the flexibility to enhance their budgets while reducing property tax dependency. However, the mechanism for voters to reject or approve the tax ensures local residents maintain a degree of control over taxation policies impacting their earnings. This dual-layered approach seeks to balance local economic needs with taxpayer rights.

Summary

Senate Bill 79 empowers counties in Kansas to levy an earnings tax on individuals who are employed or working within the county, as well as on residents working outside the county. The bill defines 'earnings tax' as a tax on salaries, wages, commissions, and other compensations, with a maximum tax rate set at 1% per annum. The legislation requires that at least 50% of the revenue raised from this tax be credited to the county budget to reduce reliance on ad valorem property taxes. County boards must submit the proposition for the earnings tax to voters, obtaining a majority approval for it to take effect.

Contention

Debate surrounding SB 79 is likely to center on issues of local control and the implications of introducing a new tax. Supporters argue that the earnings tax can stabilize county revenues and reduce property tax burdens, facilitating better local services. In contrast, opponents may argue against expanding taxation at the local level, fearing potential economic drawbacks, or contest that taxation without the right safeguards could disproportionately affect lower-income workers. Additionally, concerns may arise regarding the tax's impact on residents who travel to work in other counties, emphasizing the need for clarity in how the tax will be applied and enforced.

Companion Bills

No companion bills found.

Previously Filed As

KS SB5

Authorizing counties to impose an earnings tax.

KS SB108

Authorizing counties to impose an earnings tax.

KS HB2004

Authorizing counties to propose an earnings tax for ballot question.

KS HB2684

Authorizing cities to propose an earnings tax for ballot question.

KS HB2385

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.

KS SB103

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.

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 HB2275

Providing countywide retailers' sales tax authority for Finney, Pawnee, Seward and Jackson counties, providing that countywide retailers' sales tax apportionment based on tangible property tax levies remain unchanged until December 31, 2026, and excluding exempt sales of certain custom meat processing services from sales tax exemption certificate requirements.

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.

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