Kansas Department of Revenue Press Release
TOPEKA – Kansas families and businesses continue to reap the benefits of pro-growth tax relief, keeping $174.7 million more in their pockets so far in fiscal year 2014 compared to the first four months of the last fiscal year.
In October alone, Kansans saved $39 million in individual income taxes compared to October 2012.
“Kansas families and businesses have been given real tax relief for the first time in decades,” said Revenue Secretary Nick Jordan. “And lower income tax rates are allowing people across Kansas to spend more of their hard-earned dollars as they see fit in the private sector rather than sending them to Topeka."
In other tax categories in October, corporate income tax revenues beat estimates by 41 percent, or $6.2 million. Sales and use taxes also were higher than anticipated, with use taxes 8.8 percent higher, even with the sales tax rate cut that took effect July 1.
More than $15 million in refunds to small businesses resulted in October revenue receipts falling short of predictions as these businesses took funds they previously would have held for future estimated tax payments.
“We believe this is money that will be spent in the Kansas economy through business and personal purchases,” Jordan said.
A significant portion of the reduction in individual income tax receipts in October is attributable to small businesses receiving refunds for money that typically would be kept in escrow to cover future tax liabilities. Those funds are now available for job growth and capital reinvestment.