Sales Tax Updates in Kansas

Tax Professionals' Resource
December 12, 2012 — 1,171 views  
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State Sales and Use Tax Rate

The big news in Kansas is that the state sales tax rate is scheduled to fall to 5.7%, from the current rate of 6.3%. The change is not scheduled to take effect until July 1, 2013. The rate was increased temporarily in 2010 to ensure public school funding.

Those dealing with the Kansas sales tax rate should pay attention to the Legislature in the coming months, as Gov. Brownback attempted to rescind the reduction in the 2012 legislative session, but the proposal was defeated.

The governor pushed through large cuts in individual tax cuts, property tax cuts and exemptions for smaller businesses but must now balance the budget. Recently, Gov. Brownback indicated that another attempt to rescind the scheduled sales tax rate reduction is a possibility. Much can happen in the 2013 legislative session, and the anticipated sales tax cut may change between now and July 1.

Food Sales Tax Refund

The Food Sales Tax Refund for low income tax payers has been rescinded effective January 1, 2013. For the 2012 tax year, the refund remains for those with household income of $35,410 or less. The taxpayer must be over the age of 55, disabled or have a minor dependent in the household. As of now, 2012 is the last year for claiming the refund.

Another possible change of note is the proposed exemption of food and groceries from sales tax. A measure exempting these sales from state sales tax passed the Kansas House last year, but failed to pass the Senate. Another similar bill is likely to be submitted in 2013.

Local Sales Tax Changes

For local sales taxes, at least 30 counties or municipalities have changed their local sales tax rates. Major areas affected are Riley, Lane and Jackson Counties and the cities of Holton, Council Grove, Riley, Manhattan and Leonardville. Jackson County has raised the county rate to 1.4 % from 1%. Lane County is beginning a 1% rate. Riley County has reduced its rate from 1% to .5%.

The City of Wichita has created a Community Improvement District in the Broadway and Douglas area, with a 2% rate. The City of Shawnee has created CID’s at Ten Quivara Plaza with a .5% rate and a portion of Shawnee Mission Parkway with a .5% rate. The City of Roeland Park has created a CID 4701 Sycamore Drive and even addresses between 5000 – 5200 Roe Blvd. The rate is 1% for the CID. The full list of local changes can be found at http://www.ksrevenue.org/pdf/StateLocalSalesRates.pdf

 

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