Jan 06, 2023

Great Bend official: 'Axe the Tax' causing confusion on grocery receipts

Posted Jan 06, 2023 1:00 PM
A recent grocery receipt shows two tax lines, including line two for groceries that qualify for the new 2.5 percent reduction in grocery taxes.
A recent grocery receipt shows two tax lines, including line two for groceries that qualify for the new 2.5 percent reduction in grocery taxes.

By MIKE COURSON
Great Bend Post

No one will complain about paying less tax on groceries and other essentials. They may, however, complain about a change on receipts from local retailers. With the rollover into the New Year, Kansas implement the first phase of its "Axe the Tax" legislation in a first step to eliminate sales tax on groceries.

Great Bend Community Coordinator Christina Hayes said because non-groceries are now taxed at a different rate, you may see two tax lines on your receipt.

"It's totaling all your food items and taking out that 2.5 percent from the state, and then it's totaling all your other," she said. "You're not actually getting charged tax twice, because that would be wrong."

Customers did report an issue at some Walmart stores immediately after the change, and that issue has been resolved. Walmart receipts show Tax 1 on food items that do not qualify for the reduction, and are charged at the full 8.7 percent that includes the 6.5 percent state tax and local taxes. A Tax 2 line shows the 2.5 percent savings on qualifying food items at the new state rate of four percent plus local taxes.

"The state will not be getting that money now," Hayes said. "The city and county still get that money because it's part of our tax base. That didn't change for us, but you are saving 2.5 percent on state taxes now."

The state's previous grocery tax rate of 6.5 percent was among the highest in the nation. The legislation signed by Governor Laura Kelly will zero out the grocery tax by 2025, saving Kansans more than $500 million over the next three years. There are, however, restrictions on what food items qualify for the reduction. 

CLICK HERE to view the full legislation, or flip to page 21 for a list of products that qualify for the reduction.