Tax & Accounting Blog

Kansas Considering Extending Sales Tax to More Services

Indirect Tax, Sales and Use Tax February 15, 2011

Kansas Senator Dick Kelsey, a Republican from Goddard, has proposed a bill that would, if enacted, provide for comprehensive changes to state taxes. SB 98 would eliminate the sales tax on groceries and the corporate income tax, as well as reducing the personal income tax. To make up for the loss of those revenues, Kelsey would apply the sales tax to most services that are currently exempt including accounting, plumbing, electrical, haircuts and taxi services. He would also eliminate most sales tax exemptions for state and local governments, schools and charitable agencies. According to the Kansas Legislative Research Services, Kelsey’s plan would lower the sales tax from 6.3 percent to 5.3 percent and still generate the same amount of revenue that the state government receives from the existing tax structure.

SB 98 can be viewed here: kslegislature.org/li/b2011_12/year1/measures/sb98/