Kansas tax revenue lags November projection

Economists and fiscal analysts increased by more than $750 million the state’s projected revenue for the current fiscal year, reasoning inflation would continue to stimulate expansion in tax collections.

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State News

December 2, 2022 - 5:41 PM

Gov. Laura Kelly and Senate President Ty Masterson had less to applaud after of the November report on state tax revenue fell 5.3% below projections. (Tim Carpenter/Kansas Reflector)

TOPEKA — The revised Kansas tax revenue projections proved too bullish in November as the state government collected 5.3% less than anticipated during the month.

Economists and fiscal analysts increased by more than $750 million the state’s projected revenue for the current fiscal year, reasoning inflation would continue to stimulate expansion in tax collections. The adjustment was made prior to Gov. Laura Kelly completing budget recommendations for presentation in January to the 2023 Legislature.

Kansas sits on a $1 billion rainy day fund, but predictions of large state budget surpluses fueled expectations the Legislature could cut income tax rates and accelerate the planned three-year phase out of the state’s 6.5% sales tax on groceries. Kelly vowed to include in her budget an immediate end to the state’s food sales tax.

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