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For Immediate Release: December 28, 2023 Contact: Grace Hoge [email protected]
Governor Kelly Announces Grocery Shoppers Can Expect an Additional $150M in Tax Relief in 2024
~~Kansans to See State Sales Tax Go Down on Food for Second Straight Year~~
TOPEKA – Governor Laura Kelly today announced that in 2024, consumers in the Sunflower State are projected to see an additional $150 million in savings because of the “Axe the Food Tax” legislation she signed in 2022. According to projections from the Kansas Department of Revenue, the reduction of the state sales tax on groceries from 4% to 2% will save shoppers $12.5 million per month in 2024.
“By taking a middle-of-the-road approach, we have been able to continue putting money back in the pockets of every Kansan,” Governor Laura Kelly said. “This reduction is a step toward eliminating the state sales tax on groceries completely, which will happen in 2025.”
After working tirelessly to put the state on solid financial footing, in 2021 Governor Kelly called on the Kansas Legislature to eliminate the state sales tax on groceries as soon as possible. The legislature ultimately passed legislation that gradually reduced the state sales tax on groceries over three years.
In 2023, the state sales tax rate on groceries went down from 6.5% to 4%, saving consumers $187.7 million per year. By the end of 2024, it is projected that shoppers will have saved more than half a billion dollars in sales tax on groceries over the two years the reduction has been in place.
The state sales tax reduction applies to food, food ingredients, and certain prepared foods. When looking at a receipt, shoppers will see two tax rates, one for qualifying purchases and one for all other items.
The reduction to the 2% state sales tax on qualifying items goes into effect on January 1, 2024.
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