Kansas House Bill HB2277

Kansas 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/5/25

Caption

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

Summary

HB 2277 would change Kansas sales and compensating use tax law in two main ways. First, it lowers the state sales tax rate on prepared food to 0% beginning January 1, 2025, while leaving the existing 0% state rate for food and food ingredients in place. The bill keeps the broader sales tax structure intact for other taxable goods and services, but it updates the food-related provisions to distinguish prepared food from other food items and to continue the current treatment of food ingredients. Second, the bill increases the share of sales and compensating use tax revenue credited to the state highway fund. It raises the highway-fund diversion from 18% to 19.736% beginning July 1, 2025, and makes corresponding changes in both the retailers’ sales tax and compensating use tax statutes. The bill also makes conforming amendments to related revenue-distribution provisions and repeals the prior versions of the affected statutes.

Impact

The bill would amend K.S.A. 2024 Supp. 79-3603, 79-3603d, 79-3620, 79-3703, and 79-3710. In practical terms, it would eliminate the state sales tax on prepared food, preserve the zero rate for food and food ingredients, and redirect a larger percentage of sales and use tax revenue to the state highway fund. Those changes would affect retailers selling prepared food, consumers purchasing restaurant and similar meals, and state revenue allocations supporting highway purposes. The bill also updates related refund and special-district provisions to conform to the new revenue percentages and effective dates.

Sentiment

Based on the bill text and the limited available context, the measure appears to be framed as a tax-relief and transportation-funding bill. The caption emphasizes reducing the state rate for prepared food while increasing the amount credited to the highway fund, suggesting an attempt to balance consumer tax relief with infrastructure funding. There are no committee transcripts or recorded votes provided, so no direct evidence of support or opposition is available from the supplied materials.

Contention

The most likely point of contention is the tradeoff between lowering taxes on prepared food and increasing the share of sales tax revenue dedicated to the highway fund. Supporters would likely favor the consumer tax reduction and the transportation funding increase, while opponents might question the revenue impact on the general fund or the fairness of shifting tax burdens across taxpayers and spending categories. Because no hearing testimony or vote history is included, no specific stakeholder objections can be identified from the record provided.