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.

HB 2385 authorizes Kansas cities and counties to propose an earnings tax on nonresident workers (those who live outside the city or county but work within it), with a maximum rate of 1% annually. If approved by voters, the tax must be resubmitted to voters every 10 years for renewal. Revenue from the tax must be used for specific purposes: cities must allocate at least 50% to reduce property tax reliance, while counties must use it for general purposes. Employers must deduct the tax from employee paychecks, and the bill excludes deferred compensation contributions from taxation.