Kansas tax collections soar past 2020 fiscal year
TOPEKA, Kan. (WIBW) - Kansas’ total tax collections are $484.6 million ahead of July of the 2020 fiscal year.
Governor Laura Kelly says the state is starting the 2021 fiscal year by soaring past its total tax-only collections by $484.6 million compared to July of the 2020 fiscal year. It says total tax collections for the first month of the fiscal year were $980.8 million, which is $4.6 million, or 0.5%, less than the estimate.
“While state revenue collections are more than the beginning of last fiscal year, we must continue to make fiscally sound decisions to minimize the economic impact of the COVID-19 pandemic moving forward,” Governor Laura Kelly said.
Kelly’s Office says Kansas collected $619.6 million in individual income taxes for the month which is an increase of $395.3 million, or 176.3% compared to the July of the 2020 fiscal year. However, it says, the collections were $30.4 million, or 4.7% less than the estimate for the month. It says corporate income tax collections were $69.8 million, which is $5.2 million, or 6.9%, less than estimated, but an increase of $54.6 million compared to July of the 2020 fiscal year.
The Governor’s Office says retail sales tax and compensating use tax collections also performed better than both the monthly estimate and in their comparison to July of the fiscal year of 2020. It says retail sales tax collections were $218.6 million, which is $16.6 million, or 8.2% more than the estimate. It says this is a $14 million, or 6.9% growth compared to July of the 2020 fiscal year. It says compensating use tax collections were 39.8%, or $14.3 million, more than estimated, with $50.3 million collected. It says this is an increase of $11.3 million, or 29.1%, compared to the same month of the 2020 fiscal year.
“The state has seen consistent growth in compensating use tax collections as approximately 4,000 out-of-state online retailers have registered with the state under Kansas Department of Revenue Notice 19-04,” Secretary Mark Burghart said. “In addition, changing consumer purchasing patterns, which focus on online purchases during the COVID-19 pandemic, account for some of the increased use tax receipts.”
The Governor’s Office says the Kansas Department of Revenue Notice 19-045 was published Aug. 1 of 2019 and notified retailers of sales tax requirements for doing business in Kansas.
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