Bill > HB2277

This bill modifies the state sales and use tax rates for food and prepared food, with a focus on gradually increasing the percentage of tax revenue credited to the state highway fund. Specifically, the bill reduces the state sales tax rate on prepared food to 0% and changes the percentage of sales tax revenue allocated to the state highway fund from 17% to 18% on January 1, 2025, and then to 19.736% on July 1, 2025. The legislation affects multiple sections of Kansas tax law, including how sales tax is collected and distributed. The changes are intended to provide continued funding for state highway infrastructure while potentially reducing the tax burden on prepared food purchases. The bill also removes previous provisions that had different tax rates for food and food ingredients at various points between 2023 and 2025, effectively simplifying the tax structure for these items. These modifications will impact retailers, consumers, and state revenue collection, with a particular emphasis on supporting transportation infrastructure funding.

Budget and Finance

https://kslegislature.gov/li/b2025_26/measures/hb2277/