MO wages increasing, KS grocery taxes dropping: These new laws take effect on Jan. 1

It’s almost 2024, and with the new year come new laws in Missouri and Kansas.

While many policies in both states take effect during the summer months, Jan. 1 will mark a decrease to Kansas’ sales tax on grocery items, a small increase to Missouri’s minimum wage and a few other developments.

Here’s what to know about the upcoming changes

Missouri’s minimum wage to rise on Jan. 1

Missouri’s minimum wage is set to rise slightly on Monday, Jan. 1 to $12.30 per hour, up from 2023’s minimum wage of $12.

Tipped employee wages, which are half of the state’s minimum wage, will rise from $6 per hour to $6.15, plus any additional pay needed after tips to bring their full hourly rate to $12.30.

In 2018, voters approved gradual increases to Missouri’s minimum wage that culminated in the rise to $12 per hour last year. Subsequent increases, the first of which will happen on Monday, are indexed to match changes to the cost of living.

Employers with an annual gross income below $500,000 are not required to pay their employees Missouri’s minimum wage — but they must still pay the federal minimum wage of $7.25 per hour.

If you think you’re being paid incorrectly, you can file a minimum wage complaint on the state Department of Labor’s website.

Kansas’ sales tax on groceries will drop on Jan. 1

Kansas is set to cut its state sales tax on food items in half starting on Monday, reducing them from 4% to 2%. Kansas Gov. Laura Kelly’s office estimates that the change will save Kansans around $150 million in the coming year.

The step is the second of three reductions laid out in legislation last year. The third and final reduction will remove Kansas’ sales tax on groceries entirely on the first day of 2025.

The food tax law applies to many grocery and bakery items, bottled drinks, vending machine snacks and dietary supplements. It does not apply to ready-to-eat prepared foods, tobacco, alcohol or non-food grocery store items like kitchen supplies.

While the state’s sales tax on food is on its way out, local sales taxes will still apply. Johnson County’s sales tax is 1.475%, while Wyandotte County’s starts at 1%.

Specific towns and cities within each county also have their own sales taxes that can make cumulative sales tax rates even higher.

What other changes are going into effect on Jan. 1 in Missouri and Kansas?

In Missouri, a new law will offer tax breaks to private employers in the state who sponsor their employees’ training for professional credentials like licenses and certifications needed to advance in their field.

In Kansas, one section of a new law will let residents challenge a school district’s decision to close a school building by requesting a review of the decision by the state board of education. Following this review, the school district must hold a public hearing to reconsider the decision, taking the state’s advice into account.

Starting on Jan. 1, Kansas drivers can also apply for three new decorative license plate designs:

• A “Buffalo Soldier” design commemorating all-Black regiments of U.S. soldiers that fought indigenous armies on the nation’s western frontier following the Civil War

• A “Back the Blue” design benefitting the Kansas chapter of the nonprofit Concerns of Police Survivors (COPS), Inc.

• A “City of Topeka” design featuring the city’s flag, available to any Kansas resident including those outside of Topeka

The Star’s Katie Bernard and Jonathan Shorman contributed reporting to this piece.

Do you have more questions about how Missouri or Kansas legislation will impact you? Ask the Service Journalism team at kcq@kcstar.com.