Kansas Laws Taking Effect January 1, 2025: What You Need to Know

Kansas passed numerous laws that the Republican-controlled legislature hopes will ease tax burdens, trash fees and improve school funding. They each go into effect on New Year’s Day, 2025.

1. No More Food Tax
   Your grocery bills are about to get cheaper. After a gradual phase-out that started in 2022, Kansas is joining 38 other states that don’t tax food. The state’s 2% sales tax on groceries drops to zero on New Year’s Day, which means real savings at the checkout counter in an era that has seen prices on many items jump upwards of 40 percent since 2020.

2. A Break for Drivers with Unpaid Tickets
   Getting your license suspended over unpaid traffic tickets has been a huge headache for many Kansans. That’s changing. The new law gives people a second chance by allowing restricted licenses for work, school, and medical appointments. Instead of getting stuck in a cycle of mounting fines, you’ll pay a flat $100 fee for a restricted license while you sort out your tickets. The law, passed by the Republican-controlled state legislature, aims to help the working poor across the Sunflower State.

3. Banking Goes Modern
   The financial world is changing, and Kansas is keeping up. A major overhaul modernizes how money moves around the state. The new law covers everything from digital payments to earned wage access – that means some workers can get their pay before payday through approved providers. It’s a big deal for gig workers and anyone living paycheck to paycheck.

4. Credit Card Fees Get Real
   Here’s one you might not like, but should know about: Starting January 1, stores can legally charge you extra for using your credit card. The good news? They have to tell you about it upfront. The bad news? You might want to carry cash more often.

5. School Enrollment Changes
   Starting January 2025, Kansas schools are implementing a significant change to their enrollment policies. According to KSDE, school districts must accept non-resident student applications from January 1 to June 15 for enrollment in the next school year. This is part of the state’s new open enrollment initiative, which has already seen about 1,500 students transfer to new districts in its initial phase. The law gives Kansas families more freedom to choose their children’s schools while ensuring districts can maintain appropriate class sizes.

6. Tax Changes
   The most significant tax change for 2025 is the complete elimination of the state sales tax on groceries, dropping from 2% to 0%. Additionally, Kansas joins the growing list of states that won’t tax Social Security benefits in 2025, providing relief for retirees. The Kansas Department of Revenue will also implement various local tax rate updates effective January 1, 2025, though these changes will vary by jurisdiction

7. A New Way to Get Paid Early
   Kansas is becoming the fourth state to regulate earned wage access services. Think of it like this: if you’ve earned the money but payday isn’t until next week, there’s now a legal way to get some of your earnings early. The law makes sure these services play fair and don’t take advantage of workers.

8. Money Transfer Rules Get an Update
   The old Money Transmitter Act is getting replaced with something more suited for Venmo and Cash App era. The new Money Transmission Act brings Kansas into the digital age while making sure your money stays safe when you send it electronically.

–Metro Voice