ICYMI: Food Sales Tax Axed by Governor Kelly to be Fully Eliminated in 2025

Oct 7, 2024

ICYMI: Food Sales Tax Axed by Governor Kelly
to be Fully Eliminated in 2025

KEY QUOTE: “Kansas Gov. Laura Kelly said this tax reduction is ‘a win for the Kansas people.’ ‘All people have been talking about for the past two years or so has been inflation and particularly the cost of food,’ Kelly said. ‘Now that’s waning, coming down quite significantly, but by eliminating the sales tax on food — you take a 6.5% reduction in the cost of food for people — that makes a huge difference to many, many people. Now I think we calculated that the average family of four would save over $500 a year, just on sales tax elimination.’”

Kansas to eliminate food sales tax in 2025
Meredith McCalmon, Kansas State Collegian
Oct. 2, 2024

  • State sales tax on food in Kansas will reduce to 0% by Jan. 1, 2025 — a process which began in 2023 in accordance with House Bill 2106. According to a publication by the Kansas Department of Revenue, [the] Kansas legislature reduced food tax from 6.5% to 4% in Jan. 2023, to 2% in Jan. 2024 and will eliminate it completely on Jan. 1, 2025.
  • Daniel Kuester, director of undergraduate studies in economics at Kansas State, said this bill is especially impactful to low-income individuals. “I personally look at this as more of a way to remove what is, in essence, a regressive tax,” Kuester said, “Because the people with the least amount of income pay the highest percentage of their income on sales tax, particularly those on things like groceries.”
  • Basil Knight, junior in music education, said saving money on groceries would allow them to make more meals instead of eating fast food. “It’s so hard, with groceries being so expensive, to be able to afford getting enough for three meals a day…But now knowing that there won’t be taxes on it [groceries], it’ll be less expensive and I won’t have to waste so much money eating out all the time.”
  • Kelly said she talked with many Kansans for public input on the food sales tax reduction. “[I had] lots and lots of conversations with folks…In fact, I did a sort of around-the-state tour when we [proposed] to axe the sales tax, so I heard from lots and lots of people about how much they would appreciate the elimination of that sales tax. … I know people are very pleased that we did what we did.”

###