Kansas is on track to implement the ‘Axe the Food Tax’ legislation passed during the 2022 session.
According to Kansas Governor Laura Kelly’s office, the Kansas Department of Revenue published its notice to initiate those changes. Governor Kelly also renewed her call for the legislature to pass a bill that immediately eliminates the state sales tax on groceries, diapers, and feminine hygiene products.
“We have ‘Axed the Food Tax’ and are putting money back in Kansans’ pockets,” Governor Laura Kelly said. “Kansans will see the savings very soon, but we can do more. When the Kansas Legislature comes back in January, I will push again for the complete and immediate elimination of the state’s sales tax on groceries.”
Governor Kelly signed bipartisan House Bill 2106 to gradually eliminate the state’s sales tax on groceries. The first reduction of the tax rate will occur on January 1, 2023, changing the state sales tax rate on groceries from 6.5% to 4.0%. Current legislation will completely eliminate the state’s sales tax on groceries by 2025. Local tax rates still apply.
Leading up to the ‘Axe the Food Tax’ implementation, the Department worked with the retail grocery industry to provide educational opportunities and has formally posted its informational notice and sales tax publication that address the reduction in the state sales tax rate as well as the types of food purchases subject to the rate reduction.
“Even after providing the educational materials and opportunities as it rolls out these changes, KDOR continues to be available to retailers to ensure the transition to these sales tax savings is as smooth as possible,” Revenue Secretary Mark Burghart said.
The informational notice can be found here, and the sales tax publication can be found here. Retailers with questions about implementation can contact the Kansas Department of Revenue’s Tax Assistance Center at 785-368-8222.