Kansas looks at adding earnings tax to cut property tax burden

TOPEKA, Kan. (KCTV) - The idea of pursuing an earnings tax in the state of Kansas is not a new idea, but for the first time ever, the bill has gotten a hearing in front of the Senate Committee on Assessment and Taxation.

Kansas City and St. Louis, Missouri, have 1% earnings taxes in place, and provide the lifeblood for city services.

The bill sponsor in Kansas continues to be Democrat Senator David Haley. He represents the fourth district in Kansas that encomes most of Wyandotte County, and he believes it could be important to alleviate the burden of property taxes.

“The numbers that have been run at the 1% (earnings tax), this was dated about two years ago, is about $53 to $54 million per year,” Haley said. “The net effect in raw numbers – it would be more than a 50 percent reduction in property taxes.”

If the bill were to become a law, it would require Kansas Counties that wish to implement the tax to a county-wide vote every five years.

“Seventy percent of those income earners in Wyandotte County, don’t reside in Wyandotte County,” Haley pointed out.

Unified Government of Wyandotte County and Kansas City Mayor and CEO Tyrone Garner spoke before the committee about the benefits of the earnings tax, so did Leavenworth County Commissioner Jeff Culbertson.

Republican Senator Jeff Klemp represents district four in Kansas, which includes parts of Wyandotte and Leavenworth Counties. Klemp also sits on the taxation committee.

“There’s a window of opportunity here to take a look at this and have it get some real where everyone’s eyes are going to be on this to see what it could do for our communities,” Klemp said. “I’m not sure this is the right way to do it yet, but I’m very open to understanding it and learning more about it.”

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