In an effort to soften the blow of the expected $400 million budget shortfall for the fiscal year starting 1 July 2010, the Kansas House Taxation Committee will work for two weeks, starting Monday, 8 February 2010, reviewing two bills that would eliminate different state sales tax exemptions.  Between the two bills, some of the proposals would eliminate the exemption for churches and other nonprofit organizations, and another proposal would require the 5.3% state sales tax to be paid on Kansas Lottery tickets, which are currently exempt.

South Dakota Democrats are sponsoring House Bill 1255, which aims to exempt groceries from the state’s 4% food sales tax while increasing the general sales tax to 4.3%.  This tax would not affect locals, which could still tax food and other purchases at 2%.  South Dakota is only one of 14 states to tax unprepared food.

The Missouri Supreme Court ruled that a private jail facility’s purchases, such as meals and clothing for inmates, are subject to sales tax because the municipalities sending the inmates to jail are not eligible for a tax exemption.

On 23 April 2009 Kansas Governor Kathleen Sabelius signed HB 2324 into effect which makes several changes to the law regarding the sales tax exemption associated with enterprise zones. This bill also creates a new law called the Community Improvement District Act, which increases some local sales tax authority by allowing local government the ability to create special districts that can levy up to a 2% sales tax to promote economic development.