Cities could ask voters to tax nonresidents' work pay

A city or county could ask voters to approve a tax on nonresidents' work pay. The tax would apply to nonresidents' pay for work or services performed within the city or county. Certain deferred compensation contributions not subject to Kansas income tax when made would not count as pay. A majority of those voting on the question would have to approve the tax before it could be imposed. The tax rate could not exceed 1% per year. People exempt from state income tax under the cited law would also be exempt from this tax. The city or county could impose the tax only after voter approval; the proposal gives no separate start date for collection.

A city or county imposing the tax would have to submit it to voters again every 10 years. These rules would apply to a city or county that imposes an earnings tax under the proposal. City tax revenue would be pledged for infrastructure; at least half would be credited in the city budget to reduce the amount otherwise needed from property taxes. County tax revenue would be pledged for general county purposes; at least half would be credited in the county budget to reduce the amount otherwise needed from property taxes. The next vote would occur every 10 years after the tax was first imposed.

State and local government employers would deduct the tax from employees' pay and send it to the taxing city or county. The rules would cover employees whose pay is subject to a city or county earnings tax. A city or county could also require other employers within its boundaries to collect and send in the tax, and could set penalties for failing to do so. Employers collecting the tax could keep a portion to cover collection costs; the amount would depend on the employer and the tax rate. The proposal gives no separate start date for employer deductions or collections.