Kansas 2023-2024 Regular Session

Kansas Senate Bill SB57

Introduced
1/18/23  
Refer
1/19/23  

Caption

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.

Impact

The implication of this bill would create a more favorable tax environment for consumers purchasing basic necessities, making them less likely to incur additional sales tax on essential goods. Another noteworthy aspect is the establishment of the STAR bonds food sales tax revenue replacement fund, designed to mitigate the financial impact on areas that might lose tax revenue from the lowered rates. This fund ensures ongoing financial support for STAR bond districts, helping to maintain their operational integrity despite changes introduced by the bill.

Summary

Senate Bill 57 proposes significant changes to the state tax laws in Kansas relating to sales and compensating use tax. The bill aims to establish a 0% state sales tax rate on food and food ingredients, which would alleviate the financial burden on families purchasing groceries. It also provides specific exemptions for essential items like children's diapers and feminine hygiene products, recognizing their necessity from a public health perspective. These adjustments signal the state's intent to make food and hygiene products more affordable, particularly for lower-income families who may struggle with these costs.

Contention

The legislative discussion surrounding this bill may bring varying viewpoints, especially concerning its fiscal implications. Proponents are likely to argue that reducing the tax burden on food and essential products is a necessary step to support families, thereby fostering a more equitable economic environment. Opponents may raise concerns about potential revenue losses for the state and local governments, questioning the sustainability of the STAR bond funding mechanisms in light of lowered sales tax incomes.

Companion Bills

No companion bills found.

Similar Bills

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 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 HB2586

Increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the normal rate of privilege tax, increasing the household and dependent care expenses income tax credit amount, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction, providing for an annual sales tax holiday for certain sales of school supplies, computers and clothing, providing sales tax exemptions for children's diapers and feminine hygiene products and reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

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.

KS SB169

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.

KS SB159

Creating the Kansas rural grocery store development incentive act to provide tax incentives for the development of grocery businesses in rural areas of the state.

KS HB2773

Providing a sales tax exemption for certain purchases by the boys' and girls' club of Topeka.