Kansas Mulls Lowering Food Sales Tax

Kansas Sales Tax

As it stands today, a Kansan shopping for groceries can expect to pay as much as 11% in food sales taxes in certain areas of the state.  The Kansas state sales tax accounts for 6.5% of this total.  In the state Senate, proponents are arguing for a constitutional amendment to reduce this rate.  These proposals come while Kansas struggles to balance its budget.  The state Supreme Court recently ordered, for the fifth time in four years, for increased budgeting for public schools.

By The Numbers

Kansas pays significantly more than neighboring states in state sales taxes.  Those living near state lines often find it cheaper to drive further for lower rates.  In Missouri, the food sales tax rate is currently around 1.2%.  Colorado to the west and Nebraska to north offer an enticing 0% rate.  Kansas is, in fact, one of only seven states that continues to charge the full sales tax for groceries.  The current proposal recommends a drop in the sales tax rate for food to 4% in 2019, followed by another in 2020, resulting in a 2% rate for foods.  KCUR reports that "Staff from the Department of Revenue said such tax cuts would lower collections for the state's general fund by $128 million in the first year and $246 million in the second year."

Timing is Everything

This proposal appears while Kansas struggles to fund year to year operations.  A series of national headline-making tax cuts inspired by then-Governor Sam Brownback have left the state scraping the bottom of the proverbial coffers for funds.  The state Supreme Court in October of 2017 ruled that the $4 billion earmarked for public schools fell at least $650 million shy of adequate.  The prevailing sentiment in the Senate for the cuts seems to be one of approval, but only in the context of a larger tax overhaul.  Until the state can solve its ongoing spending crisis, the dream of a lower sales tax rate for foods may remain far off on the horizon.