Nebraska and Colorado exempt groceries from the state sales tax. Oklahoma charges a 4.5% statewide sales tax on groceries. In Missouri, that state’s sales tax on groceries is 1.2%. None of this maneuvering at the Capitol altered city or county sales tax rates, which also apply to grocery purchases in Kansas. The state sales tax for non-grocery purchases has stayed at 6.5%, but that plan cut the food sales tax to 4% on Jan. In 2022, Kelly proposed immediate elimination of the state sales tax on groceries and the Legislature offered the three-year phase out associated with food purchases.
Kelly vetoed that bill, arguing it would jeopardize the state’s financial health in a way reminiscent of Brownback policy. It included a reduction in the food sales tax.
The 2019 Legislature passed a bill that would have slashed state tax revenue by at least $500 million over three years. The state’s sales tax, including on groceries, was left unchanged. He secured an increase in the state sales tax rate to 6.5%.īrownback’s income tax strategy was repealed by the GOP-controlled House and Senate in 2017 over the Republican governor’s veto. In 2015, however, the state government continued to be plagued by revenue shortfalls. “It has been difficult,” Brownback said at that time. It allowed him to include in the legislation provisions that would gradually lower the Kansas income tax. Instead, Brownback reset the rate at 6.15%. In 2013, he signed legislation repealing the 2010 law that promised to shrink the state sales tax rate to 5.7%. A soft economy and te refusal of Kansas politicians to reduce state spending to match tax revenue losses led to years of painful budget problems.īrownback leaned harder on the state sales tax in an attempt to sustain his quest to eliminate the state’s income tax. It was an experiment in supply-side economics inspired by conservative consultant Arthur Laffer. Sam Brownback signed a bill aggressively reducing the state’s income tax, especially for some business owners. That law promised to draw the rate back to 5.7% after three years. Mark Parkinson agreed to raise the statewide sales tax from 5.3% to 6.3% to prevent cuts in core social service and education programs. Next phase of Kansas’ gradual repeal of state sales tax on food to yield savings of $150 millionĭecemNext phase of Kansas’ gradual repeal of state sales tax on food to yield savings of $150 millionīy Tim Carpenter, Kansas Reflector December 29, 2023ĭuring a bruising recession in 2010, Democratic Gov. The compounding influence of the previous and upcoming decline to 2% would provide consumers an estimated $500 million in sales tax reductions by the end of 2024, Kelly said. The step down from 6.5% to 4% saved consumers shopping for groceries in Kansas an estimated $187 million during 2023. An overwhelming majority of House members agreed. In 2022, the Senate unanimously voted for the food sales tax reduction plan. Lawmakers, pressured to act in an election year, agreed to the stair-step idea. She again called for sacking of the state’s sales tax on food in 2022. In 2021, Kelly recommended the Republican-led Legislature pass a bill abandoning the state sales tax on groceries. “By taking a middle-of-the-road approach,” Kelly said, “we have been able to continue putting money back in the pockets of every Kansan.” Local government sales taxes would still apply to groceries. Kansas would join the majority of states by exempting groceries from state sales tax collections on Jan. That would trigger a reduction in state tax collections of $12.5 million per month. 1 moves the state’s assessment to 2% on food, food ingredients and certain prepared foods. 1, 2023, drop in the state sales tax on groceries from 6.5% to 4%. The agreement embraced by the 2022 Legislature and the governor established a three-year approach that included a Jan. 1 would cut the rate in half to 2% and enable shoppers in Kansas to avoid $150 million annually in food costs. Laura Kelly said the next scheduled reduction in the state’s sales tax on groceries Jan.