Local Sales Tax Overview
The Kansas state sales tax dates to 1937, but local units of government did not receive authority to impose sales taxes until 1970. While this authority was briefly repealed in 1972, taxes enacted under the 1970 law were grandfathered into continuing existence and broad authority was reinstated in 1973.
[Note: Any local government imposing a sales tax also automatically imposes a compensating use tax for transactions that would have been subject to the sales tax if the transaction were made entirely in Kansas. For purposes of this article, use tax is treated as a component of sales tax.]
As of 2025, local sales taxes are imposed by 94 counties and 329 cities throughout the state with local collections totaling $1.73 billion in FY 2025.
While tax rates for local sales taxes are determined locally, the tax is administered at the state level on a uniform statewide tax base, which generally mirrors the tax base for the state sales tax, with limited exceptions, most notably food and food ingredients and certain residential and agricultural utilities.
All local sales taxes require the approval of the tax at an election prior to being imposed. Unless the ballot language or statutory authority for the tax specifies an expiration of the tax, the tax continues indefinitely, and the rate may only be changed by a future election. However, the repeal of a tax may be accomplished by either an election or the adoption of an ordinance.
Authority of Local Units to Impose Tax
Cities
Cities are authorized to levy sales taxes up to 2.0 percent for general purposes and 1.0 percent for special purposes. The purpose of special purpose taxes must be specified by the city prior to the imposition of the tax, and special purpose taxes expire 10 years after the date the tax is first collected. However, special purpose taxes may be replaced or extended with an additional election. City sales tax rates are required to be fixed in increments of 0.05 percent.
Counties
Counties are generally authorized to levy a sales tax of up to 1.0 percent for general purposes and an additional 1.0 percent for the provision of health care services. However, numerous exceptions to this limit are provided in statute, typically for specific purposes. As of 2025, there are 64 instances of specific counties being granted authority in excess of the 1.0 percent of general authority and 1.0 percent of health care services authority. Countywide sales tax rates are generally required to be fixed in increments of 0.25 percent. However, some special purpose county taxing authority permits rates that do not correspond to quarter percentage points.
Special Taxing Districts
In addition to sales taxes imposed by cities and counties directly, municipalities may create special taxing districts that are permitted to levy additional taxes within the bounds of the district.
Community improvement districts may levy taxes of up to 2.0 percent to pay debt service costs associated with community improvement economic development projects within the district or to directly pay such project costs on an ongoing basis. Such project costs are generally limited to those within the district.
Transportation development districts may levy taxes of up to 1.0 percent to pay debt service associated with projects to improve transportation infrastructure within or outside of the district for economic development purposes.
Both community improvement districts and transportation development districts are established through a petition process of the owners of the land within the district.
Other Named Entities with Taxing Authority
In addition to cities, counties, and special taxing districts, state law provides for sales tax authority of up to 0.65 percent for Washburn University, 0.5 percent for the Gage Park Improvement District, 0.25 percent for the HorseThief Reservoir Benefit District, and 0.2 percent for the Johnson County Education Research Triangle Authority.
Apportionment of Countywide Sales Tax Revenue
While cities retain all revenue from proceeds of city-imposed taxes, revenue from general countywide sales taxes is apportioned between the county imposing the tax and the cities located within the county using a two-factor formula where half of the distribution is based on the proportion of property taxes levied by each entity to the total property taxes levied by all entities, and half of the distribution is based on proportion to the population of each city and the population of the unincorporated area of the county in proportion to the total population of the county.
Countywide sales taxes adopted pursuant to exceptions for specific purposes may be excluded from apportionment providing for the entirety of the revenue from the tax to be applied to the specific object of the tax.
Revenue From Local Sales Taxes
As of 2025, local sales taxes totaled $1.73 billion, which represented 19.5 percent of total local tax revenue and 8.2 percent of combined state and local tax revenue for the year. The share of total taxes coming from local sales taxes has increased in recent years as revenue from local sales taxes has grown faster than local tax revenue or combined state and local tax revenue.
The graph on the previous page shows the change in local sales taxes from 1995 to the present.
Recent Legislation
In recent years, the Legislature has regularly considered and passed bills expanding specific county authority for special purpose taxes.
Additionally, legislation proposed in 2019 would have authorized universal countywide special purpose authority up to 1.25 percent and would have generally treated countywide special purpose authority comparably to city special purpose authority.
The 2025 Legislature considered legislation that would have replaced the half of the countywide sales tax apportionment formula based on property taxes levied with assessed value located within each taxing district. While this legislation was not enacted, the Legislature did enact a freeze on the apportionment ratios from July 1, 2025, through December 31, 2026, resulting in changes to ratios attributable to property taxes levied for tax year 2025 having no effect on the apportionment of such taxes.
By Edward Penner and Eric Adell.
See Taxation for more.
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