Kansas governor plans to ‘axe’ sales tax on food, joins AG in urging legislative action

by Noah Taborda, Kansas Reflector

Topeka — Kansas Gov. Laura Kelly says she plans to introduce legislation in January to exempt food from the state sales tax, joining Attorney General Derek Schmidt in urging GOP leaders to take action on the issue.

Kelly, a Democrat running for re-election, said her plan will “axe” the sales tax on groceries. Schmidt, the favorite to receive the Republican nomination for governor in next year’s election, sent a letter last week to legislative leaders asking to either eliminate or significantly reduce the same tax.

The governor has supported efforts to reduce the tax burden on food during past sessions, including a plan that would have re-instated a tax rebate for low-income families. Her office planned the Monday announcement before Schmidt’s campaign announced his letter on Friday.

“For too long, Kansans have been paying more for groceries than people in almost every other state,” Kelly said. “This legislation will save the average Kansas family $500 or more a year on their grocery bill, and thanks to the fiscally responsible decisions we made before and during the pandemic, we can cut the food sales tax and keep Kansas’ budget intact.”

Under Kelly’s proposal, a family of four is estimated to save $500 on their grocery bill. Kelly estimated the state’s loss of revenue to be $450 million.

Kansas is one of seven states with a full tax on groceries, and the state rate of 6.5% is the second highest in the country. At least 37 states levy no sales tax on groceries and six more have reduced grocery taxes.

Grocery prices have been rising across the country with the latest consumer price index showing a 5.4% increase in prices from September 2020 to September 2021.

“If Kansas is to thrive and grow, our public policies must attract, retain and support working families,” Schmidt wrote in the letter to Senate President Ty Masterson, R-Andover, and House Speaker Ron Ryckman, R-Olathe. “Our state must be an affordable place to live, work and raise a family. In light of the state’s current budget situation, carefully constructed tax relief that benefits all Kansans by eliminating or at least significantly reducing the sales tax on groceries is possible, necessary and overdue.”

Schmidt was critical of Kelly for vetoing a 2019 bill that included a one-cent reduction in the sales tax on groceries, among other tax reforms. In vetoing the bill, Kelly argued it would have set the state back to former Gov. Sam Brownback’s tax policies by predominantly providing relief to large, multinational corporations who hoped to evade paying state income taxes on overseas profits.

Kelly said Monday any food sales tax cut measure would need to arrive on her desk without other provisions tacked on.

“I am glad that Derek Schmidt supports our plan to eliminate the sales tax on food,” said House Minority Leader Tom Sawyer, D-Wichita. “Hopefully the Speaker of the House and Senate President will pass it without bogging it down with excessive additional tax cuts for the rich.”

The Kansas Democratic Party highlighted Schmidt’s record of supporting sales tax increases while in the Legislature. In 2002, he voted for a package that included an increase in sales tax from 4.9% to 5.3%. In 2005, he voted to allow an increase in local sales tax.

“Despite what Derek Schmidt might say today, he can’t run from his history of raising taxes on Kansas families that goes back decades,” said KDP spokesperson Emma O’Brien. “Derek Schmidt has a track record of looking out for himself and his special interest donors, not Kansas families and Main Street small businesses. His sudden change of heart is nothing more than a bad-faith attempt to play politics, and Kansans can see right through it. Kansans don’t want empty words, they want action, and Derek Schmidt can’t deliver.”

Kansas Action for Children President John Wilson praised the timing of the governor’s announcement as the state experiences strong revenues. He said sales tax worsens income inequality because low-income people must pay a higher share of their income on basic needs like groceries.

An estimated 21% of children younger than 19 are living below the federal poverty level, Wilson said, and ending the food sales tax could reduce food insecurity among this group.

“Kansans have experienced one of the highest sales taxes on food in the country for years, a consequence of previous poor state tax policy,” Wilson said. “Now that Kansas has recovered from that policy and has stable revenue, it’s time to invest in Kansas workers and their families with this commonsense policy that has long had bipartisan support.”

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2021/11/08/kansas-gubernatorial-candidates-push-legislature-to-eliminate-or-reduce-food-sales-tax/
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Home weatherization can lower utility costs this winter

Program available to help low-income households

October is the perfect month to apply for weatherization assistance.

With the average U.S. home almost 40 years old, weatherizing a home to protect it from elements like the cold and rain can increase energy efficiency and lead to savings on utility bills, according to a Board of Public Utilities spokesman.

Weatherizing reduces leaks around the perimeter of a home, which includes sealing air ducts, bypasses, recessed lighting, as well as cracks around windows and doors. Weatherization saves households an average of 30% on heating costs in cold weather.

For those that might not be able to afford the upfront costs of weathering a home, the U.S. Department of Energy (DOE) has weatherization assistance programs in all 50 states, helping more than 30,000 homeowners get weatherization assistance annually.

Locally, the Kansas Weatherization Assistance Program helps low-income households cover the cost of heating, cooling, and energy efficiency improvements – free of charge. It’s funded by the Department of Energy (DOE) and the Low-Income Energy Assistance Program (LIEAP) and is regulated by the Kansas Housing Resources Corporation.

At no charge, income-eligible families can receive a comprehensive home energy audit, assessing their entire home.

Certified energy auditors will search a home, inside and out, looking for inefficiencies and safety concerns using advanced equipment and identify a customized account of areas for cost-effective improvements. The improvements will be provided free of charge by a network of professional crews and contractors.

For more information or to enroll, go to www.ECKAN.org/weatherization/ or call 785-242-6413.

Kansans will pay more for natural gas this winter

Your natural gas bill will increase this winter as supply issues drive up market prices.

by Brian Grimmett, Kansas News Service

Wichita, Kansas — Your natural gas bill is going to go up this winter.

Natural gas prices run nearly double what they did a year ago and experts predict the increased prices to last at least through the winter.

Utility companies pass the cost of natural gas directly on to their customers. As the price of wholesale natural gas increases, so will the fee your utility charges every month.

For Kansas Gas Service customers, that fee this month is $5.67 per thousand cubic feet of gas used. Last October it was only $3.76.

Other large gas utilities have made similar increases.

The Atmos Energy gas purchase fee this month is nearly $1.50 more than last year. At Black Hills Energy it’s more than $3 more.

“Right now, what we see is a relatively tight market, and higher prices signalling that more (gas) supplies are needed on the market,” said Richard Meyer, vice president of the American Gas Association that represents natural gas utilities.

The U.S. Energy Information Agency said a few things are causing strain on natural gas supply that contribute to higher-than-normal natural gas prices.

First, the amount of gas in underground storage is lower than normal. That’s partly caused by February’s winter storm that set record cold temperatures for much of the central U.S. It’s also caused by increased usage by gas-fired power plants during a particularly hot August.

Hurricane Ida also cut natural gas production and supplies.

While the EIA expects many of those supply issues to get resolved, it said the price will likely remain high all winter.

If it does, the average Kansan could see a monthly bill increase as much as $100 higher than last year.

Kansas Gas Service spokeswoman Dawn Tripp said the company has several tools to help keep the cost of gas down even as market prices rise.

The company has purchased and stored large amounts of gas this summer when prices were generally lower. It also will enter into long- and medium-term contracts to try to lock a price in and hedge against future increases.

“By doing that, we’re able to place a price cap on a portion of our winter supply,” Tripp said.

Increased natural gas prices will also greatly impact Kansas farmers. Natural gas is the main ingredient in nitrogen fertilizers. When the price of gas goes up, so does the price of fertilizer.

“Fertilizer is the largest direct cost (for farmers),” said Mark Nelson with the Kansas Farm Bureau.

Higher fertilizer prices will mean thinner profit margins, he said.

Last year the price to put fertilizer on no-till corn was $60 an acre. Nelson said many people are preparing for that cost to double.

“That’s a lot of money just for that one cost input,” Nelson said.

Brian Grimmett reports on the environment, energy and natural resources for KMUW in Wichita and the Kansas News Service. You can follow him on Twitter @briangrimmett or email him at grimmett (at) kmuw (dot) org. The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.
Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to ksnewsservice.org.
See more at https://www.kcur.org/news/2021-10-13/kansans-will-pay-more-for-natural-gas-this-winter.