KS
Kansas House Bill HB2256

Kansas 2023-2024 Regular Session

Kansas House Bill HB2256

Introduced
2/1/23  
Refer
2/1/23  

Caption

Decreasing the state rate for sales and use taxes for sales of food, food ingredients and prepared food and modifying the percent credited to the state highway fund from revenue collected.

Impact

The implications of HB2256 extend to the allocation of revenue collected from sales taxes. The bill modifies how much of this revenue will be deposited into the state highway fund. According to the new provisions, a greater portion of the sales tax will be diverted towards the highway fund, which is critical for maintaining and developing the state's infrastructure. This adjustment aims to maintain funding levels for road improvements while simultaneously allowing for the reduction in food taxes. Critics, however, may raise concerns about whether this diversion would adequately fund critical services and reflect the needs of a growing population.

Summary

House Bill 2256 aims to address taxation on sales and use of food and food ingredients in Kansas. This legislation proposes to reduce the state sales tax rate on food, aiming to lessen the financial burden on consumers. Specifically, the bill sets a schedule for tax reductions, eliminating the tax on these items by 2025, with the initial reduction to 4% starting January 1, 2023, followed by a drop to 2% in 2024, and finally to 0% in 2025. Supporters argue that this progressive tax reduction will enhance food affordability and consumer welfare, particularly for lower-income families who spend a larger portion of their income on food.

Contention

While HB2256 presents attractive benefits in the form of reduced food taxes, it has sparked debates regarding its overall economic impact and implications for state revenues. Opponents have expressed concerns about the long-term sustainability of funding for essential services as the redirected funds may limit resource allocation for programs unrelated to infrastructure, including social services. Furthermore, questions arise regarding whether this tax reduction would significantly benefit lower-income households or if it would disproportionately aid wealthier citizens who spend less on food as a percentage of their earnings. The balanced approach of the bill reflects differing priorities among stakeholders and highlights the complexities of tax reform.

Latest KS HB2256 Activity

View All Events: KS 2023-2024 Regular Session HB2256

Companion Bills

No companion bills found.

Previously Filed As

KS HB2546

Reducing the state rate for sales and use taxes for sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS SB429

Reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and 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 and repealing the state rate reduction for sales of certain food and food ingredients.

KS HB2435

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.

KS SB57

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.

KS HB2111

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, altering the calculation for STAR bond districts and discontinuing the food sales income tax credit.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS HB2036

Senate Substitute for HB 2036 by Committee on Assessment and Taxation - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

KS SB37

House Substitute for SB 37 by Committee on Financial Institutions and Pensions - Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on July 1, 2024, and modifying the percent credited to the state highway fund, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund and providing for certain transfers to the state school district finance fund.

Similar Bills

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS HB2546

Reducing the state rate for sales and use taxes for sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SB300

House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.

KS SB429

Reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and 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 and repealing the state rate reduction for sales of certain food and food ingredients.

KS HB2284

Providing an income tax rate of 5.25% for individuals, exempting all social security benefits from Kansas income tax, increasing the standard deduction by a cost-of-living adjustment, increasing the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

KS SB377

Substitute for SB 377 by Committee on Assessment and Taxation - Providing an income tax rate of 5.25% for individuals, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, increasing the Kansas personal exemption, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on April 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.