How do states in the Midwest handle sales taxes on food?
The Midwestern region has generally avoided taxing food, and those states that do so either tax food at a lower rate or offer refunds to lower-income households. According to the Federation of Tax Administrators (FTA), as of early 2008, eight of the 11 states in the region exempt food purchases, but not restaurant food, from sales taxes. Of the three Midwestern states that tax food, two of them, Kansas and South Dakota, offer rebates for poorer households. According to the FTA, a dozen states outside of the Midwest also tax food, although most at a lower level than the standard sales tax. In Kansas, qualified individuals apply for a refund on their individual income tax return. To qualify for a refund, applicants must have an income of $30,300 or less and must also be 55 or older, blind or disabled, or have a dependent child under 18. Kansans earning $15,150 or less annually get a food sales tax refund of $80 for each dependent. Those earning above $15,150 up to the maximum of $30,300
