New revenue projections give Kansas a $3.1B surplus as governor pushes for food sales tax cut

TOPEKA — A revised economic forecast for Kansas projects the state will collect $407.8 million more than previously expected in the upcoming fiscal year, adding to a budget surplus that could be used to eliminate the 6.5% state sales tax on food.

Gov. Laura Kelly, a Democrat seeking reelection this year, has made the elimination of the sales tax on food a cornerstone of her campaign. Republicans have favored an approach that would phase out the tax over several years, as long as revenue numbers remain strong, while eying other potential tax cuts and criticizing the governor for vetoing a tax bundle three years ago.

The new revenue estimate, which is tempered for inflation and includes all of the legislation already signed by the governor, shows the state would have a $2.7 billion surplus entering July and a $3.1 billion surplus in another 12 months. The elimination of the sales tax on food would reduce revenue by an estimated $402.5 million.

“I can’t get out of this room without making another plug, specifically with inflation happening, that this does reaffirm the governor’s position that we can clearly immediately repeal the entirety of the state level food sales tax on groceries in Kansas effective July 1,” said Adam Proffitt, the state budget director, during a news conference Wednesday at the Statehouse. “These numbers do put enough into the cushion there.”

Read more: https://kansasreflector.com/2022/04/20/new-revenue-projections-give-kansas-a-3-1b-surplus-as-governor-pushes-for-food-sales-tax-cut/