December tax receipts exceed projectionsScott Rothschild
State taxes collected in December were a whopping 13.1 percent over projections, but state officials said Tuesday the receipts were “artificially inflated” by recent changes in federal tax law.
Some Kansans made estimated tax payments before the end of the calendar year because the recently approved federal tax changes put a $10,000 cap on state and federal local tax deductions, according to Kansas Department of Revenue Secretary Stan Williams.
“This is simply a shift in the timing of tax payments,” Williams said. “We truly will not know the effect of state and federal tax policy until after the filing deadline in April.”
For December, individual income tax collections were 31.5 percent ahead of projections while state sales taxes actually fell just slightly under projections.
For the fiscal year, which started July 1, the state is running 2.7 percent ahead of projections. The state has collected $3.191 billion, which is $83 million above the cumulative estimate $3.108 billion and $368.4 million more than was collected during the same period in 2016.
The December receipts represented the seventh consecutive month of better than expected revenues which may help legislators meet funding needs of schools and other state functions. Legislators are facing a Kansas Supreme Court order that the current school finance system is neither adequate nor equitable and has been given an April 30 deadline to compose a remedy that many think will require additional revenue.