Kansas $108.4 million ahead of first-quarter projections
TOPEKA, Kan. (WIBW) - Kansas is $108.4 million ahead of first-quarter projections for the new fiscal year.
Governor Laura Kelly says closing out the first quarter of the 2021 fiscal year, Kansas is $108.4 million ahead of its estimate, with $2.3 billion in total tax collections for the fiscal year. She said that is $55.7 million more than the same time last fiscal year quarter.
According to Gov. Kelly, the increase is due in part to the change in the filing deadline for income taxes because of the COVID-19 pandemic and the increased revenue seen in compensating use tax collections.
“Since I took office, my administration has returned to responsible fiscal practices that have allowed Kansas to successfully remain financially healthy, even as we respond to the COVID-19 pandemic,” Governor Laura Kelly said. “While there is optimism with these projections, we must remain committed to fiscal steadiness, public health, and support our core services like education, infrastructure, and economic development which will enable Kansas to remain on the path to recovery.”
Gov. Kelly said September’s tax collections totaled $728.9 million, an increase of $72.8 million over the estimate. She said that is a $15.2 million decrease from the same month of the last fiscal year.
According to the Kansas Governor, individual income tax and corporate income tax collections performed better than expected. She said the state saw a $23.6 million increase in individual income tax collections with $358.6 million collected. She said the increase could be due to estimated tax payments and economic optimism.
Gov. Kelly said corporate income tax collections were $89.7 million, an increase of $29.7 million over the estimate.
Gov. Kelly said retail sales tax collections were $2.4 million less than the estimate with $195.6 million collected. She said the decline could be due to some temporary changes in consumer habits as the school year began. However, she said compensating use tax collections continue the growth as those collections were $11.6 million over the estimate with $45.6 million collected. She said the trend is the effect of changing consumer purchasing habits and increased registrations of out of state retailers to collect and remit taxes to the state.
“The impact that the pandemic will have on the economy during the fall and winter months is uncertain at best,” Secretary Mark Burghart said. “That same uncertainty carries over to the anticipated sales and use tax receipts associated with purchases that will be made during the upcoming holiday season.”
According to Gov. Kelly, the Consensus Revenue Estimating Group will be meeting to determine the stability of the Kansas economy and look at the estimates for the rest of the fiscal year. She said the group is made up of representatives of the Division fo the Budget, Department of Revenue, Legislative Research Department and one consulting economist each from the University of Kansas, Kansas State University and Wichita State University.
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