Gov. Laura Kelly said the next scheduled reduction in the state’s sales tax on groceries Jan. 1 would cut the rate in half to 2% and enable shoppers in Kansas to avoid $150 million annually in food costs. The agreement embraced by the 2022 Legislature and the governor established a three-year approach that included a Jan. 1, 2023, drop in the state sales tax on groceries from 6.5% to 4%. The next step on Jan. 1 moves the state’s assessment to 2% on food, food ingredients and certain prepared foods. That would trigger a reduction in state tax collections of $12.5 million per month. Kansas would join the majority of states by exempting groceries from state sales tax collections on Jan. 1, 2025. Local government sales taxes would still apply to groceries.
Source: The Lawrence Times
