Providing for sales tax exemption for hygiene products.
Impact
If enacted, HB 2162 would directly amend the current sales tax laws in Kansas by exempting a specific category of goods—hygiene products—from sales tax. This change would represent a significant policy shift, as hygiene products are typically subject to taxation like other consumer goods. The exemption is expected to not only provide immediate relief to consumers but also promote long-term public health benefits through improved hygiene practices among the general population.
Summary
House Bill 2162 aims to provide a sales tax exemption for hygiene products in the state of Kansas. The bill identifies specific hygiene items that will no longer be subject to sales tax, thereby reducing the cost burden on consumers. The primary motivation behind this legislation is to improve public health by making essential hygiene products more affordable and accessible to all residents, particularly those from low-income backgrounds. Supporters of the bill argue that the exemption could lead to better overall health outcomes in the community by encouraging individuals to purchase necessary hygiene products without the added financial burden of sales tax.
Contention
While the bill has garnered widespread support for its intentions, there are notable points of contention among legislators. Critics have expressed concerns regarding the potential loss of revenue for the state, pointing out that the removal of sales tax from these products could impact funding for essential public services. Additionally, some lawmakers argue about the definition of what constitutes a 'hygiene product' and whether such exemptions should be applied more broadly to include other health-related items. This has led to discussions about fiscal responsibility versus social welfare and the complexities of implementing such tax reforms.
Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.
Decreasing the sales and use tax rate, establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.
House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.
Providing a sales tax exemption for purchases of property and services by nonprofit organizations distributing food pursuant to a food distribution program on a charitable basis.
Substitute for SB 60 by Committee on Assessment and Taxation - Providing sales tax exemptions for custom meat processing services, purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, certain purchases and sales by the Johnson county Christmas bureau association, certain purchases by doorstep inc., exploration place, inc. and Kansas children's discovery center, inc. and sales of menstrual discharge collection devices and diapers and establishing an annual sales tax holiday exempting certain sales of school supplies, computers and clothing.