Providing a sales tax exemption for period products, diapers and incontinence products.
Impact
The implementation of HB2765 would modify the state's existing sales tax code, creating a specific exemption for period products, diapers, and incontinence products. This change is anticipated to have a significant positive impact on many families, particularly those with young children or elderly members requiring incontinence products. By removing the sales tax on these specific items, the bill aims to increase accessibility and affordability, ultimately enhancing public health outcomes. However, the state may also face challenges in adjusting tax revenue forecasts due to this exemption, which could impact funding for other state programs.
Summary
House Bill 2765 aims to amend sales taxation laws in Kansas by introducing exemptions for specific items including period products, diapers, and incontinence products. This bill seeks to alleviate the financial burden on consumers, particularly those in low-income households who may struggle to afford these necessary items. Proponents of the bill argue that these products are essential for hygiene, health, and dignity, advocating for their tax-exempt status as a means to support families and individuals in need. The amendment is focused on the existing Kansas statute K.S.A. 2023 Supp. 79-3606, which outlines general sales tax rules.
Contention
Discussions around the bill indicate potential points of contention among lawmakers regarding its fiscal implications, particularly regarding shortfalls in state revenue. Some legislators expressed concerns about the impact of tax exemptions on the overall budget, arguing that such measures might necessitate cuts in other areas of public service. Furthermore, while support for women's health and child welfare is widely acknowledged, dissenters have called for comprehensive studies to assess the long-term financial impacts of such exemptions before enactment. These discussions highlight the balancing act between social welfare initiatives and fiscal responsibility.
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.
Enacting the Kansas film and digital media industry production development act, providing a tax credit, sales tax exemption and loans and grants to incentivize film, video and digital media production in Kansas and establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas.
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.
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.
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.