Why Missouri has a sales tax holiday, and Kansas doesn't
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A lot of Kansans reading this sign this weekend. Photo: Michael Siluk/UCG/Universal Images Group via Getty Images
Missouri is ditching sales tax this weekend on back-to-school items — but Kansas isn't.
Why it matters: The same computer, binder or pair of jeans will be cheaper in Missouri on Friday through Sunday, no matter which state you live in.
Catch up quick: Missouri's sales tax holiday has been used as a tool for savings as well as spending since its inception 24 years ago.
- Legislators touted savings for families and encouraged city governments to pass their own reprieves for even lower costs.
- And Missouri leaders have used the tax holiday to encourage hopping the state line.
- As of 2023, local sales taxes in Missouri are also waived this weekend.
Zoom out: Illinois, Iowa, Oklahoma, Arkansas and Tennessee all have sales tax holidays, while Missouri's other border states — Kansas, Nebraska and Kentucky — do not.
Zoom in: Bipartisan efforts in Kansas have tried passing its own version in 2022, 2023 and 2024, but broader tax debates and contentious omnibus bills stalled the efforts.
- Legislators have acknowledged hesitation over a tax holiday and said it's not a priority for some.
- Sen. Virgil Peck (R-Havana), a proponent in 2022, said he wants to "see Kansans do their shopping in Kansas," per The Beacon.
- No tax holiday bills were filed in Kansas this year or last.
Reality check: Families expect to spend roughly $864 on back-to-school items this year, per the National Retail Federation.
- Subtracting KCMO's local and state sales tax (roughly 9%) would save $78.
How it works: The Missouri Department of Revenue keeps a list of applicable items, including clothing, technology and typical school supplies.
- All personal uses qualify, including teachers prepping their classrooms and Joe Schmo who just wants a new hat.
Yes, but: There are spending limits and items that don't apply, meaning you can't get a new pair of Ray-Bans or a $2,000 laptop without paying sales tax.
- Any qualifying item that exceeds the spending limits will incur sales tax on the full cost.
What we're watching: The lines at the checkout counter with dismay.