Kansas 2025-2026 Regular Session

Kansas Senate Bill SB108

Introduced
1/29/25  

Caption

Authorizing counties to impose an earnings tax.

Impact

If enacted, SB 108 would significantly alter local taxation structures by providing counties with a new revenue-generating tool through the earnings tax. The bill mandates that any county wishing to adopt this tax must first gain approval from a majority of the electors in an election specifically organized for this purpose. This requirement ensures that local citizens have a direct voice in taxation decisions affecting their livelihoods, fostering a sense of local governance and community involvement in fiscal matters.

Summary

Senate Bill 108 aims to empower counties in Kansas to impose an earnings tax on individuals employed within or residing in the county. The proposed bill allows counties to levy a tax of up to 1% per annum on salaries, wages, commissions, and other forms of compensation. The revenues generated from this tax are designated for general county purposes and are intended to reduce the reliance on ad valorem property taxes. The bill outlines the specifics of the earnings tax while also establishing protective measures for taxpayers and local governance processes.

Contention

Despite its intended benefits, the bill may face contention, particularly concerning state-local relationships and potential inequities among different counties. Critics may argue that such an earnings tax could disproportionately affect lower-income workers or those employed in less profitable sectors. Additionally, questions regarding the administrative burden on employers to collect and remit the tax, as well as compliance with state regulations, could be points of concern during discussions and debates surrounding the bill.

Companion Bills

No companion bills found.

Previously Filed As

KS SB5

Authorizing counties to impose an earnings tax.

KS SB79

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 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 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 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 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 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.

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