State tax revenues in August exceed projectionsScott Rothschild
State tax revenue in August exceeded estimates by $40.2 million, or 8 percent, and also exceeded revenue collections from last August in the pre-COVID-era by $46.3 million, or 9.3 percent, it was reported Tuesday.
“While this news shows that the steps we have taken to protect our economy are working, we have to remain fiscally cautious,” Gov. Laura Kelly said. “The state of Kansas is still recovering from COVID-19 and we have to stay vigilant. That means all Kansans should wear a mask, practice social distancing and avoid mass gatherings so we can keep our schools and our businesses open.”
For the fiscal year, which started July 1, revenue to the state has exceeded expectations by $35.6 million, or 2.4 percent, and $531 million, or 54 percent more than last July-August. That fiscal-year-to-date figure is an anomaly, however, because Kelly moved the deadline in paying 2019 income taxes to July 15 because of the pandemic.
For August, individual and corporate income taxes, sales taxes and compensating use taxes were above estimates.
“The year-over-year increase in compensating use tax collections demonstrates the importance of increasing the number of registrations by remote sellers,” Kansas Department of Revenue Secretary Mark Burghart said. “By increasing the number of out-of-state retailer registrations, we create fairness between out-of-state online retailers and main street Kansas,” he said.
Because of the pandemic and partial shutdown of the state’s economy from March through May, revenue experts have said the state will face a $700 million shortfall. In June, Kelly announced several budget moves that protects school funding while addressing the deficit. Approximately 50 percent of the state budget goes to K-12 funding.