Governor Kelly says that Kansas is on track to implement the ‘Axe the Food Tax’ legislation that was passed during the 2022 session.
The Kansas Department of Revenue (KDOR) published its notice to initiate those gradual changes while Kelly is again calling for the legislature to pass a bill that immediately eliminates the state sales tax on groceries, diapers, and feminine hygiene products.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 1st, 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 of Revenue 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. 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.
[Photo: Gov. Kelly Facebook]