Governor Kelly Releases Tax Cut Plan to Save Kansans More Than $500M Over Next Three Years

~~ Calls on Bipartisan Legislators to Join Her in ‘Axing Your Taxes’ ~~

ROELAND PARK – Governor Laura Kelly today released her three-part ‘Axing Your Taxes’ plan to save Kansans more than $500 million over the next three years. The comprehensive plan delivers on major campaign promises, including a push to immediately ‘axe the tax’ on groceries and eliminate the state sales tax on diapers and feminine hygiene products; create an annual state sales tax holiday for school supplies; and cut taxes on social security for retirees.

“I’m pleased to introduce a plan that axes taxes for Kansas families and retirees in a way that keeps our state’s economy and budget strong,” Governor Laura Kelly said. “By cutting taxes on groceries and diapers, school supplies, and social security, this plan will put money back in Kansans’ pockets and create real savings for those who need it most.”

Last spring, Governor Kelly signed the “Axe the Food Tax” bill to gradually eliminate the 6.5% state sales tax on groceries, which is one of the highest in the country, starting January 1, 2023. If passed, the first part of her ‘Axing Your Taxes’ plan would supersede the gradual reduction and immediately zero-out the tax – as well as the state sales tax on other essentials like diapers and feminine hygiene products, which were not included in the 2022 bill. View the bill draft here.

The second part of the ‘Axing Your Taxes’ plan would create a three-day zero percent sales tax holiday on school supplies, personal computers, instructional materials, and art supplies, every August. The holiday would provide relief to families and teachers gearing up for back to school and keep Kansas retailers competitive to surrounding states. View the bill draft here.

Right now, Kansans earning less than $75,000 annually do not pay state income tax on social security income. But once they earn a dollar more – including through investments and life insurance policies – the entirety of their social security income is subject to state income tax. The third part of Governor Kelly’s ‘Axing Your Taxes’ plan would smooth out that cliff so no Kansan making under $100,000 pays full taxes on social security. View the bill draft here.

These tax cuts are possible through Governor Kelly’s fiscal responsibility and leadership during her first term as governor.

“I am calling on legislators of both parties to support these bills and provide practical financial relief to families and retirees across our great state,” she said.