Chairperson Smith opened the hearing for HB2385.

Mr. Siebers provided an overview for HB2385 would authorize cities and counties to levy an earnings tax on individuals who are not residents of the city or county that are employed or working within such city or county. (Attachment 28)

Mr. Siebers stood for questions from Committee members.

Chairperson Smith stated the fiscal note for HB2385 would have no fiscal effect on state tax revenues.

Opponent:

Representative Sappington, 5th District, testified as an opponent for HB2385 that violates a fundamental tenant of our nation's values which is taxation without representation.  Earnings taxes that would be implemented as a result of HB2385 would be levied against nonresidents of the given municipality, giving them no recourse at the ballot box. (Attachment 29)

Representative Sappington stood for questions from Committee members.

Proponents:

Mike Taylor, Kansas County Commissioners Association, testified via Webex as a proponent for HB2385 that a local earnings tax would give many Kansas counties a reliable revenue source that could help reduce property taxes.  (Attachment 30)

Representative Brownlee Paige, District 35, testified as a proponent for HB2385, no written testimony provided.

Jay Hall, Kansas Association of Counties, testified as a proponent for HB2385 stating KAC supports the local control of allowing counties and cities to submit a ballot question on whether to levy a earnings tax on nonresidents.  The bill would not approve the earnings tax in any community; instead, it would allow commissioners to place a questions on the ballot where residents would be able to vote for or against the tax.  (Attachment 31)

Jeff Culbertson, Leavenworth County Commissioner, testified as a proponent for HB2385 - no written testimony submitted.

Written only proponent testimony for HB2385 was submitted by the following:

Misty S. Brown, County Counselor, Leavenworth County Kansas (Attachment 32)

Representative Pam Curtis, 32nd District (Attachment 33)

Opponents:

Eric Stafford, Kansas Chamber, testified as an opponent for HB2385 noting the bill would allow an earnings tax that is approved by voters. He stated Kansas' income tax rates are among the highest in the region and until we begin to reduce those through the growth trigger passed last year.  This policy takes Kansas backwards in terms of the state's economic competitiveness. (Attachment 34)

Written only Opponent testimony for HB2385 was submitted by the following:

Dave Trabert, Kansas Policy Institute, (Attachment 35)

Daniel Murray, National Federation of Independent Business, (Attachment 36)

Daniel Deisch, Kansas Citizen, (Attachment 37)

Tanner Tempel, American for Prosperity, (Attachment 38)

Joe Roger, Kansas Citizen, (Attachment 39)

Neutral:

Mike Kelly, Military Officers Association of American, testified as neutral to HB2385 stating the domicile or legal resident for service members and spouses is protected by the Service Members Civil Relief Act.  Because uniformed service members serve where ordered by the needs of the federal government, a request for an amendment was made. (Attachment 40)

Mr. Kelly stood for questions from Committee members.

Written only neutral testimony for HB2385 was submitted by Spencer Duncan, League of Kansas Municipalities, (Attachment 41)

Chairperson Smith closed the hearing for HB2385.

Chairperson Smith adjourned the meeting.