By MIKE COURSON
Great Bend Post
The New Year is always a time of change. In Kansas, one of the biggest changes comes at the grocery store as the state has zeroed out its sales tax on groceries. Karissa Winkel, family and community wellness agent with K-State Research and Extension – Cottonwood District, reminds shoppers that the old sales tax rate will still apply to prepared foods.
"Prepared foods are anything you buy from the deli or anything that comes with utensils or is heated; anything they do at the store to prepare it for you in advance," she said. "It's more like a convenience food in that aspect. Those types of foods will continue to be taxed at the full 6.5 percent."
While prepared foods will still be taxed at the old state rate of 6.5 percent, plus local taxes, other foods will now carry only the local tax rate. In Barton County, all sales are taxed at one percent, and Great Bend has a sales tax of 1.2 percent. In other words, qualifying groceries purchased in Great Bend will be taxed at 2.2 percent rather than 8.7 percent.
Winkel said the timing of the tax reduction coincides with New Year's Resolutions to eat healthier and save money. Smart shopping can accomplish both.
"Pricing for ingredients, including fresh and frozen produce, canned items, and meat and poultry will likely be significantly more affordable than those prepared foods from the deli," she said. "If you want to capitalize on that, I suggest meal planning and preparing meals at home, so this can include purchasing those fresh ingredients that often get a bad reputation for having high prices. With them not having the sales tax anymore, that's going to make them more affordable compared to the ready-to-eat convenience foods."
As defined by the Kansas Department of Revenue, prepared food includes those in a heated state or heated by the seller, those that are sold with eating utensils provided by the seller, and those that are the result of a seller mixing two or more items together. Alcoholic beverages will continued to be taxed at the old rate. Fountain drinks are taxed at the old rate while bottled or canned drinks have the reduced rate.
A complete list of food items and how they are impacted by the reduction can be found beginning on page 21 of this manual created by the Department of Revenue.