‘Any penny counts.’ Shoppers look forward to relief with food tax reduction in 2024

KANSAS CITY, Kan. (KCTV) - State lawmakers announced last year plans to “axe the food tax,” as part of an effort to allow Kansas residents to keep more money in their pockets. The first phase of the tax reduction went into effect this year, bringing the tax down from 6.5% to 4%.

In January, a food tax reduction will take it even lower, going from 4% to 2% before the tax will be gone altogether in 2025.

The reduced sales tax will apply to foods like bread, eggs, fish, meat, and poultry. It will not apply to prepared foods that need to be heated up and are served with eating utensils. For grocery store customers struggling to make ends meet, creating a budget is only half the battle.

“Once they get to the , it’s like a whole ‘nother thing once they add them taxes it’s like, twenty sometimes thirty dollars added to what you already have in your cart,” said Kiara Campbell.

Campbell said the cost of food leaves her with the difficult choice of having to put some of the food she needs back on the shelves.

“Especially chicken prices and beef prices,” she said. “Sometimes it’s like, we’re gonna do chicken this week and we’re gonna have to do beef another week.”

Prior to inflation, she was spending $150 on groceries, now she’s spending $250.

“I have an 11 year old and boys eat and so when we go to the grocery store my budget goes from here to here, like every month,” said Campbell.

That being said, the food tax reduction will make a major difference in her household.

“A lot more money can go toward bills and other stuff and I don’t have to like stress at the grocery store,” said Campbell.

Management at the Kaw Fresh Market in Kansas City, Kansas says after the first phase of the tax reduction this year, they noticed customers making larger purchases. The majority of its customers are low-income and rely on food stamps.

“I think it’s gonna change alot, way better like I said. Any little change is good now when they get rid of them, then it’s gonna be way better for everyone including myself because I am a shopper as well,” said store manager Grace Arellano.

When the tax fully eliminated in 2025, they expect the trend of boosted sales to continue.

“People are already aware of that and they’re excited because they’re gonna be able to buy a little bit more, any penny counts for them,” said Grace Arellano.

The 2 percent tax reduction goes into effect on Jan. 1.

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