Tax Legislation Updates From 2022 You Need To Be Aware Of

Tax legislation is constantly evolving, and it can be nearly impossible to keep track of all the nuances. That’s why, for our multistate readers, we believe it’s helpful to have a state tax consulting partner to help. It is crucial to stay as up to date as possible to ensure you meet all of your sales (and other state) tax obligations. In this article, we dive into some of the most relevant 2022 tax reforms we have seen so far this year.

Kansas Food Tax Reform

Back in December, we published an article about Kansas Gov. Laura Kelly’s plan to introduce a bill to “Axe the Food Tax” and completely eliminate sales tax on groceries in the state. In the beginning of May, the Kansas Legislature passed a bill with strong support from both parties to gradually decrease the tax over the next three years.

The first sales tax decrease from 6.5% to 4% will go into effect in the beginning of 2023, will drop from 4% to 2% in 2024 and will be eliminated entirely by the beginning of 2025.

Some foods do not qualify and will still be taxed at the same rate. For a full list of items which remain subject to tax, check out this link, but they include prepared foods, alcoholic drinks and food sold with eating utensils.

Other states, including Illinois, Oklahoma and Tennessee, are considering proposals to temporarily suspend sales tax on groceries as well.

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