A report released by KC Healthy Kids shows that Kansas’ current 6.5% sales tax on food hurts economic activity, especially in border counties. The study found the current sales tax drives shoppers across state and county lines to save money on food. The result is slowed sales growth in counties on the state line, and cannibalization of income among Kansas counties.
As tax day approaches, many Kansans are anxiously awaiting their tax returns. This year, however, many will get less than in years past, when they may have been refunded money that went toward sales tax on food. But 2012 was the last year Kansas issued that refund. The change will impact about 385,000 eligible Kansans who used it.
Kansas Senator Tom Holland has filed a constitutional amendment that would phase out the state’s sales tax on food, resulting in a complete elimination by the year 2019.
Lowering the costs of fresh food could make healthy choices easier and reduce obesity across the State
Kansas’ state tax on groceries puts an unfair burden on low income families, hurts rural grocers and their employees, and drives shoppers across state lines to buy food. KC Healthy Kids has commissioned the Kansas Public Finance Center at Wichita State University to publish a series of reports examining these three ways sales tax on food impacts Kansans.
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