In May 2022, Kansas Governor Laura Kelly signed a significant bill into law, known as the “Axe the Food Tax” bill (Kansas HB 2106). Hereโs what it means for you:
Whatโs Changing?
- The stateโs 6.5% sales tax on food will be gradually eliminated by 2025 ๐.
How Will It Work?
- On January 1, 2023, the food tax dropped to 4% from 6.5% ๐ .
- On January 1, 2024, it decreased to 2% ๐ .
- Starting on January 1, 2025, there will be no state tax on food ๐.
- This applies to all groceries, including bottled water, candy, dietary supplements, soft drinks, and food from vending machines. However, taxes on alcohol, tobacco, and most prepared foods will remain ๐๐.
Local Impact
- Local sales taxes on groceries will still apply, but the state portion will be eliminated ๐๏ธ.
Why Is This Important?
- Kansas is one of only 13 states that taxes food, with the second highest rate in the country after Mississippi ๐.
- With food costs rising nationally by 10.9% from October 2021 to October 2022, this tax cut will help make groceries more affordable for many families ๐ฝ๏ธ.
- It will also help prevent grocery stores near state borders from closing, reducing the formation of food deserts ๐.
Background
- Previous attempts to reduce the food tax were vetoed by Governor Kelly in 2019 due to budget concerns. However, in 2022, a revised bill (HB 2106) was passed and signed into law ๐.
- The bill was signed at a Hy-Vee in Olathe, marking a significant step towards financial relief for Kansans ๐
What This Means for You
- By 2025, youโll save money on your grocery bills, helping to keep more Kansas dollars in Kansas ๐ค.
- This move aims to boost the local economy and keep grocery stores in business, especially those near state borders ๐๏ธ.
Stay tuned for more updates, and letโs celebrate this step towards making food more affordable for everyone in Kansas ๐๐
Feel free to share your thoughts and questions about this new policy in the comments below ๐ฌ
