TOPEKA, Kan. (KSNT) — A federal court docket agreed with Kansas on Nov. 15 that an try by Congress and the Biden administration to maintain states that settle for federal COVID-19 aid cash from decreasing state taxes is unconstitutional, Attorney General Derek Schmidt mentioned.
This clears the way in which for Kansas to scale back the state’s gross sales tax on groceries. Earlier this month Kansas Gov. Laura Kelly introduced plans to eradicate the gross sales tax on meals.
“The federal court’s ruling ensures that tax relief enacted earlier this year by the Kansas Legislature over Governor Kelly’s veto will remain in effect and will not result in the Biden administration demanding that Kansas return some of its federal COVID-19 relief funds,” Schmidt mentioned. “It also clears the way for Kansas to adopt our bipartisan recommendations to eliminate or significantly reduce the state’s sales tax on groceries without fear of federal reprisal. This is welcome news that confirms our view that the Constitution does not permit the federal government to micromanage how Kansas sets its own state-level tax policy.”
In March, President Biden signed into legislation the American Rescue Plan Act, which contained a provision prohibiting states from utilizing any ARPA funds to (*3*) pay the price of decreasing state taxes for the following three years.