Kansas 2023-2024 Regular Session

Kansas Senate Bill SB429

Introduced

1/30/24

Refer

1/31/24

Failed

4/30/24

Caption

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

Impact

The impact of SB 429 is expected to be far-reaching, as it directly influences state revenue collected through sales tax. By eliminating the tax on food, the state is projected to experience a decrease in overall tax revenue, which might affect funding for various public services. To mitigate this impact, the bill focuses on ensuring that other taxing structures remain intact and capable of compensating for the lost revenue. The proposed changes have raised discussions about how the state will allocate funds to various essential sectors, especially if the sales tax income declines significantly post-implementation.

Summary

Senate Bill 429 proposes significant changes to the state sales tax structure, primarily aimed at reducing the tax on food and food ingredients. Effective April 1, 2024, the bill sets the state sales tax rate on these items to 0%, following a gradual reduction from 4% starting January 1, 2023. The rationale behind this bill is to relieve the financial burden on consumers, particularly low-income families, who are disproportionately affected by sales taxes on essential goods. Proponents argue that this shift will make food more affordable for residents and consequently stimulate consumer spending in other areas of the local economy.

Contention

The bill has faced some opposition, with critics arguing that while the intention to lower food costs is commendable, the execution may lead to unintended consequences for the state's budget. There are concerns that without careful adjustments elsewhere, the state may struggle to maintain funding for critical services such as education and healthcare, which rely heavily on tax revenue. Additionally, some lawmakers highlight that not all families will benefit equally from this change, suggesting that targeted assistance programs might be a more effective solution for low-income households rather than a blanket tax exemption on food.

Latest KS SB429 Activity

View All Events: KS 2023-2024 Regular Session SB429

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 HB2256

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.

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 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 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 HB2837

Simplifying income tax rates for individuals, increasing the 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 and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

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 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 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.

Similar Bills

KS SB539

KS HB2256

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.

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 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 SB248

KS HB2284

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.