Kansas Governor Laura Kelly said Monday she will introduce a bill in the Legislature next year to eliminate the state sales tax on food.
The governor said her plan to “Axe the Food Tax” will save the average Kansas family $500 or more each year on their grocery bills. She said thanks to financial decisions made before and during the COVID-19 pandemic, the state will be able to cut the food sales tax and keep the state’s budget intact.
Kansas is one of seven states in the U.S. that fully taxes groceries. The tax rate is 6.5 percent, the second highest rate in the country.
Lieutenant Governor and Commerce Secretary David Toland said the bill will not only support families but it will also help businesses by keeping Kansans from going across the border to buy their groceries.
From the Associated Press:
Many Kansas families would save hundreds of dollars a year under a proposal from Democratic Governor Laura Kelly to eliminate the state’s sales tax on groceries. The proposal outlined Monday by Kelly would save consumers $6.50 on every $100 of groceries they buy and a total of roughly $450 million a year.
The governor unveiled her proposal three days after GOP Attorney General Derek Schmidt called on lawmakers to cut or eliminate the 6.5% tax. With both of them supporting the idea, it’s more likely to pass the Legislature after lawmakers reconvene in January. Kelly promised in her 2018 race for governor to reduce or eliminate the tax.
