KSHB 41 reporter Megan Abundis covers Kansas City, Missouri, including neighborhoods in the southern part of the city. Share your story idea with Megan.
Kansas is eliminating its sales tax on groceries.
Will Missouri shoppers take their business across the state line to save money?
The state's tax on Kansas food sales was 2%.
In Missouri, the food sales tax is 1.225% on take-home grocery food items and the revenue it generates primarily supports public schools.
Local governments levy sales taxes on groceries, potentially increasing the total tax rate up to 8%.
The Missouri Department of Revenue has an online tool that shows the full tax breakdown.
A bill to end the grocery tax in Missouri stalled in the legislature last year, with lawmakers citing lost revenue and confusion on how money from the tax would be made up.
“Frankly, I’ve lived in a couple of states where they didn’t have sales tax on food and it always works out better,” said Marcus Moses, a shopper in south Kansas City. "Oh yeah, it’s going to affect how I shop. I’m going to spend a lot more time in Kansas buying food than in Missouri.”.
Grocery store operators are paying close attention to what happens when the Kansas sales tax goes away.
“It’s important to shop in Missouri, to support your state and support your stores, but I also think the store needs to do their job too to keep the customers shopping," said Moe Muslet, who oversees Farm Fresh Market in south Kansas City. "I mean they're looking for value, so we need to offer them value or they're going to go somewhere else."
Muslet knows his customers want the best deals.
“Us opening this store, we knew it was going to happen and we planned on it already, he said. "Our prices are aggressive, offering good products at good prices, nice customer service, and a store. They’ll continue shopping here.”
One couple said it's not likely they will change where they shop.
“Where you used to go the store for $35, now it's $60 or $65," said Louise and Jimmy Clossick as they shopped Tuesday night. "Grocery prices are going up, so you do watch for bargains or sales. Does it make a difference in where we shop? Probably not that much; it’s more of a convenience for us."
Gas prices will keep one Missouri shopper in the state.
“It costs more in gas to get over there and back," Jeremy Coleson said. "And time. Time is probably the most valuable.”
Kansas officials estimate the elimination of the tax will save about $500 a year for a family of four.
Muslet says he has a plan to stay competitive at his store.
“Lowering margins, lower our margins so we are losing a little bit here, but we will gain it with increased sales we are hoping,” he said. “I don’t think the sales tax will compete with our store much, but I think their stores will.”