Kansas sales tax collections exceed expectations

State tax revenue exceeded projection in June but the fiscal year total was less than anticipated.


State News

July 5, 2024 - 2:33 PM

Kansas capitol building. Photo by KANSAS REFLECTOR/SHERMAN SMITH

TOPEKA — Kansas state government tax collections exceeded expectations in June by $24 million, while total receipts from all tax sources during the just-closed fiscal year trailed estimates by $67 million on more than $10.1 billion in revenue.

The Kansas Department of Revenue said June revenue from income, sales, excise and other tax sources tipped the scale at $1.027 billion. That was 2.4% above the projection for the month, and an increase of 3.9% over the total in June 2023.

Tax revenue in June was closer to predictions than in May when collections were $193 million less than forecast and in April when revenue was $101 million more than analysts banked on.

“While the tax revenue collected for June is encouraging, we must remain committed to fiscal responsibility,” said Gov. Laura Kelly said. “By continuing our work to put our state on solid fiscal ground, we can ensure Kansans have the services and quality of life they deserve.”

Overall revenue to the state government in Kansas should decline by hundreds of millions of dollars annually based on the series of tax-reduction bills passed by the 2024 Kansas Legislature during the regular session and a one-day special session and signed into law by the governor. The new fiscal year began July 1.

In June, the state took in $452 million in individual income taxes or $82 million and 4.4% above what had been anticipated by economic and fiscal analysts. Corporate income tax collections settled at $193 million in June, which was $53 million or 21.8% below the monthly estimate.

“Individual income tax receipts exceeded the June estimate because of higher-than-expected withholding tax and individual estimated payments and the fact that fewer refunds were paid than in June 2023,” said Mark Burghart, secretary at the state Department of Revenue.

Kansas’ combined retail sales and compensating use tax receipts were $292 million in June. That was $2.2 million, or 0.7% more than the estimate. In terms of revenue from excise taxes on cigarettes, liquor, and oil and gas, the state took in $21.9 million last month. The total was $1.7 million or 7.3% below the projection.

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