SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 248
As Recommended by Senate Committee on
Assessment and Taxation
Brief*
SB 248 would create, effective January 1, 2024, a sales
tax exemption for “healthy food” and would repeal the existing
schedule of reduced state sales tax rates for food and food
ingredients.
“Healthy food” would be defined to include fruits and
vegetables, including fresh, canned, jarred, frozen, and dried;
meat, poultry, and fish; eggs; milk, including whole, fat-
reduced, nonfat, evaporated, dry, soy, and almond; cheese;
yogurt; tofu; infant formula; infant cereal; infant food fruits,
vegetables, and meats; juice; whole wheat or whole grain
bread; corn or flour tortillas; pasta; brown rice, bulgur,
oatmeal, and whole grain barley; breakfast cereals; beans
and nuts; and peanut butter.
The bill would eliminate a provision in current law
allowing for local sales and use taxes to apply to all sales of
food and food ingredients.
The bill would eliminate a provision in current law
providing for an increase of sales and use tax revenues to be
deposited in the State Highway Fund from 17 percent to 18
percent on January 1, 2025.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Peck.
Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Senator Masterson, who stated the bill
would provide a true sales tax exemption for nutritional food
and would facilitate broader tax reform opportunities.
Written-only proponent testimony was provided by a
representative of Americans for Prosperity-Kansas.
Opponent testimony was provided by representatives of
Fuel True, Kansas Appleseed Center for Law and Justice,
Kansas Beverage Association, and Retail Grocers
Association of Kansas and Missouri. The opponents generally
stated the bill would be difficult for retailers to implement and
could result in an effective sales tax increase for Kansans.
Written-only opponent testimony was provided by
representatives of Greater Kansas City Food Policy Coalition,
Harvesters, Kansas Chamber of Commerce, Kansas Food
and Farm Coalition, Kansas Rural Center, National
Confectioners Association, Queen’s Price Chopper, and
United Community Services of Johnson County and by a
private citizen.
Written-only neutral testimony was provided by
representatives of Economic Lifelines, Kansas Association of
Counties, and Kansas Policy Institute.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department of Revenue indicates
2- 248 enactment of the bill would reduce state receipts by $284.4
million in FY 2024 and by $119.1 million in FY 2025. The bill
would have no fiscal effect on aggregate state receipts in
years after FY 2025.
The change in disposition of revenue percentages would
result in the State Highway Fund receiving reduced receipts
of $7.2 million in FY 2024, increased receipts of $4.3 million
in FY 2025, and reduced receipts of $5.7 million in future
years.
The Department of Revenue indicates enactment of the
bill has the potential to place Kansas out of compliance with
the Streamlined Sales and Use Tax Agreement and could
imperil more than $80.0 million state and local tax receipts
received pursuant to that agreement.
The Kansas Association of Counties and League of
Kansas Municipalities indicate the bill would reduce the
amount of local sales and use taxes.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
Taxation; sales tax; exemption; rate; food; healthy food
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