TOPEKA (KSNT) - Kansan consumers could see $150 million in savings thanks to the "Axe the Food Tax" legislation signed in 2022.
In 2024, the state grocery tax will be cut from 4% to 2%, saving consumers $12.5 million per month. In 2022, Governor Laura Kelly signed legislation that will gradually reduce state sales tax on grocery food to zero by 2025. The next tax cut will go into effect on Jan. 1, 2024.
In April, 2022, Kansas Republicans voted 48-74 against a motion to immediately bring the food sales tax to zero. Instead, they opted to support a plan to gradually reduce the food sales tax.
“We want to take a look at the out years and the longevity and make sure we’re not going too far too fast,” said Republican House Tax committee chair Rep. Adam Smith, speaking with Kansas Capitol Bureau in January, 2023. ”…I’m trying to act on it with caution, and make sure that we’re being responsible.”
In 2023, the sales tax on groceries was cut from 6.5% to 4%, saving consumers $187.7 million per year, according to the Office of the Governor. Shoppers will have saved close to half a billion dollars since the tax reduction started.
“By taking a middle-of-the-road approach, we have been able to continue putting money back in the pockets of every Kansan,” Kelly said. “This reduction is a step toward eliminating the state sales tax on groceries completely, which will happen in 2025.”
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