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Kansas Creative Sales Tax Foot Work

  • Mar 13, 2012 | Susan McLain

UPDATE: 3/20/2012. Senate gave first round approval to H Sub 177.

UPDATE: H Sub 177 was passed by the House on March 14, 2012 with amendments including the sales tax exemption for food. The bill has been sent to the Senate, who reconvene today, March 15, 2012. If passed, food would become sales tax-exempt starting July 1, 2012.

Twitter is abuzz with the latest activities in Kansas state legislative actions. Kansas House representatives have tentatively approved a bill that includes a sales tax provision. Partway into the debate about the “…Republican-backed income tax reduction bill” debate, Representative Jana Goodman, from Leavenworth, “…proposed eliminating state sales tax on groceries,” but retaining the sales tax on “…alcohol, tobacco, candy and prepared food.”

The sales tax amendment is being wrapped into an income tax bill that proposes:

  • Capping growth of state spending at 3 percent (originally set at 2 percent)
  • Eliminating state sales tax on food (local sales taxes may still apply and is determined by the local municipality)
  • Dropping the sales tax rate from 6.3 percent to 5.7 percent in July 2013
  • Reducing income tax rates
  • Eliminating “…earnings taxes for thousands of partnerships, sole proprietorships and other small businesses."

The heavily debated legislation has received a 68-53 vote and will be voted on again Wednesday morning. If the bill, as amended, is approved “…on a second vote [it] would send the bill to the Senate.”

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”