January tax revenue much higher than projectedScott Rothschild
For the eighth straight month, Kansas tax collections surpassed projections, which may be good news for legislators trying to increase school funding.
But state tax officials warned the higher than expected tax revenue in January was due to federal and state tax changes that caused many people to pay state taxes early.
Kansas collected $165 million more in taxes in January than estimated, which is a whopping 28 percent surplus for the month.
For the fiscal year that started July 1, Kansas has collected $3.9 billion in taxes, which is nearly $250 million more than expected, or 6.7 percent more.
The Kansas Supreme Court has given the Legislature until April 30 to come up with a new school finance plan after ruling that the current system is inadequate and inequitable. Legislators last year increased taxes by $600 million to stabilize the budget and increase school funding.