TOPEKA, Kan. (WIBW) – Governor Laura Kelly has highlighted how her Axis Food Tax plan would help save child care providers an estimated $7.5 million.
As food prices continue to rise due to COVID-19 pandemic-induced inflation, Gov. Kelly said child care centers have seen their budgets squeezed, like all Kansas households. She said child care is crucial to keeping Kansas’ workforce strong and the economy growing.
“The complete elimination of the state sales tax on groceries will help these establishments keep their doors open and provide needed care for working families in Kansas,” Kelly said. “We need to ‘Focus the Food Tax’ now. I ask the Legislature to send me a clean bill eliminating the state sales tax on groceries. »
The owners of T-Rocks said the cost of food is the second highest expense – just after payroll.
The Governor noted that approximately 79 percent of child care providers in the state would benefit from the elimination of the state sales tax on groceries. If the tax were eliminated, she said the state’s child care sector would see about $7.5 million in savings — depending on the type of provider. She said that’s an average of $22,776 per child care program per year.
Kelly said lawmakers will return to the Statehouse on April 25 when they can focus the tax on food and eliminate the 6.5% sales tax on groceries — which could be implemented by April. 1st of July.
Copyright 2022 WIBW. All rights reserved.