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Kansans Crossing Into Other States to Avoid Grocery Sales Tax

Caden Crawford
/
Creative Commons

Kansas has one of the highest grocery sales tax rates in the country. And the high taxes are causing Kansans to cross over into other states when they shop,says The Shawnee Dispatch. Critics have long complained that the high sales tax rate hurt the finances of low-income families. But now, it’s also putting the pinch on rural grocery stores and local governments, according to a new study.  In 2013, Kansas lost almost $350 million in food sales. That amounted to over $20 million dollars in lost sales tax revenue for the state, according to numbers from the Kansas Public Finance Center.

And last year, Kansas hiked the food tax again, to 6.5 percent. Kansas is one of only 14 states that tax food.

Nebraska doesn't have a grocery tax, and Colorado exempts food sales from taxes. Oklahoma taxes food, but at a lower rate. So Kansans often save money by crossing into other states.