New study shows Kansas sales tax hurting rural grocers

by Jim McLean, KHI News Service

A group pushing for elimination of the sales tax on groceries in Kansas is touting a new study.

The Wichita State University study shows that even before it was raised last month from 6.15 percent to 6.5 percent, the statewide sales tax was costing rural grocers an average of about $18,000 a year in lost sales.

The study was paid for by KC Healthy Kids, a nonprofit organization pushing to make Kansas the 37th state to eliminate its sales tax on groceries.

Ashley Jones-Wisner, a spokesperson for the group, said ongoing budget problems shouldn’t keep Kansas lawmakers from exempting groceries from the sales tax.

“What we can’t afford to do is keep going down the path that we’re going down right now,” Jones-Wisner said, noting that the study suggests the grocery tax could be one of the reasons Kansas has been slipping in state health rankings.

The study indicates that some consumers may be limiting their purchase of fruits and dairy products due to the high tax rate.
“That’s a key finding in the study,” Jones-Wisner said. “Dairy and fruits are so critical to a healthy diet.”

Of the 14 states that levy sales taxes on groceries, only Kansas and six others charge their full rates. Kansas’ rate is now the highest in the nation.

The WSU study indicates that the high tax rate also is costing jobs in rural areas.

“Workers at rural grocery stores see lower compensation due to the sales tax on groceries and employment at rural groceries is lower than it would otherwise be without the tax,” writes Kenneth Kriz, the WSU professor who conducted the study.

If lawmakers want to improve the economies in smaller communities, Kriz said, they could “consider shifting the burden from a sales tax on groceries to the income tax.”

It’s unlikely that members of the Legislature’s conservative Republican majority will consider that trade-off. They ended the 2015 session — the longest in state history — by passing increases in sales and tobacco taxes to generate revenue lost because of income tax cuts approved in 2012.

Several of the tax increase plans discussed in the final weeks of the session would have lowered but not eliminated the sales tax on groceries. But that feature, intended to make the tax package more attractive to Democrats and moderate Republicans, was dropped from the plan that ultimately passed.

The nonprofit KHI News Service is an editorially independent initiative of the Kansas Health Institute and a partner in the Heartland Health Monitor reporting collaboration. All stories and photos may be republished at no cost with proper attribution and a link back to KHI.org when a story is reposted online.

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Biancalana to appear at Friday’s T-Bones game

The Kansas City T-Bones have announced that Buddy Biancalana will be at CommunityAmerica Ballpark on Friday, Aug. 7.

Biancalana, starting shortstop on the Kansas City Royals’ 1985 world championship team, will be throwing out a first pitch and then signing autographs during the ‘80’s Night game on Friday in Kansas City, Kan.

Biancalana hit .278 and played errorless defense during the 1985 World Series against St. Louis. He gained fame during August of the 1985 season when Late Night host David Letterman brought out a “Buddy Biancalana Hit Counter” to show Biancalana’s “chase” of all-time hits leaders Pete Rose and Ty Cobb.

The T-Bones game vs. Joplin begins at 7:05 p.m., with gates opening at 5:30.

Crash occurs while vehicle tries to change lanes on I-70

Two vehicles collided when one tried to make a lane change on I-70 near the I-435 exit at 4:40 p.m. Aug. 6, according to the Kansas Turnpike Authority.

One of the vehicles hit the barrier wall, the trooper’s report stated.

A 39-year-old man from Emporia, Kan., driving a Nissan Altima had possible injuries, the report stated.

A 31-year-old man from Canton, Ga., driving a Honda Civic was not injured, the report stated.