- Kansas reduces sales and use tax rate on food and food ingredients
- The rate is reduced to 2% effective January 1, 2024
- This is part of a planned reduction in the tax rate
- Previously, the rate was reduced from 6.5% to 4% effective January 1, 2023
- Starting on January 1, 2025, the rate will be reduced to 0%
- Local sales and use taxes still apply
- “Food and food ingredients” includes substances sold for ingestion or chewing by humans
- It includes bottled water, candy, dietary supplements, food sold through vending machines, and soft drinks
- Alcoholic beverages and tobacco are not included
- “Prepared food” is food sold in a heated state, mixed by the seller, or sold with eating utensils provided by the seller
- Prepared food can be taxed at the reduced rate if it is sold without eating utensils and meets certain criteria
- The Kansas Department of Revenue provides more details and examples on its website
- Sellers should adjust their systems to account for the tax rate changes
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
