Kansas tax collections for 2021 exceeded expectations

'Our efforts to rebuild our state's economic foundation and strengthen our economy are paying off,' says Gov. Laura Kelly

By

State News

July 2, 2021 - 4:13 PM

Governor Laura Kelly joins officials at the June 23 opening of Hill's Pet Nutrition Small Paws Innovation Center in Topeka, a $20 million investment that focuses on the needs of small dogs.

TOPEKA, Kan. (AP) — Kansas reported Friday that tax collections for its just-concluded 2021 budget year were 9.3% more than anticipated, giving the state its healthiest cash reserves in more than 40 years as the U.S. economy recovers from COVID-19.

The state Department of Revenue’s report was certain to spark a push next year in the Republican-controlled Legislature to cut taxes again after GOP lawmakers enacted income tax reductions earlier this year over Democratic Gov. Laura Kelly’s veto. As a sign of a solid economy, the numbers also are likely to spur more pressure from Republicans and business groups on Kelly to end the $300 a week in extra unemployment benefits allowed by the latest federal COVID-19 relief law.

But a solid economy also could help Kelly as she seeks re-election next year. She won the office in 2018 after making a key issue of the persistent budget problems that followed a nationally notorious experiment in 2012 and 2013 in slashing income taxes under former Republican Gov. Sam Brownback. In the four years since most Brownback-era cuts were repealed, the state has exceeded tax-collection targets in all but three months. 

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