OLATHE, Kan. —Governor Laura Kelly made an appearance at a grocery store in Olathe to sign legislation to axe the food tax in Kansas.
"This is a huge win for our state and, once fully implemented, will save Kansas families hundreds of dollars a year."
House Bill 2106 will take effect January 1, 2023, reducing the state sales tax on groceries from 6.5% to 4.0%. On January 1, 2024, the rate will reduce to 2.0%, and the state sales tax on groceries will be completely eliminated beginning January 1, 2025.
Kansans pay the second highest state sales tax on groceries at 6.5% driving some families along our border communities to other states for savings. Signing this bill means local grocers and other businesses will begin to see increased revenues by keeping Kansas dollars in Kansas.
The plan would save taxpayers about $740 million over three years, and a family spending $200 a week on groceries would save $208 in 2023.