Gov. Kelly Calling on Congress to pass economic relief package
TOPEKA, Kan. (WIBW) - Governor Laura Kelly is warning Kansans that without federal support, future revenue growth -- and the state’s ability to slow the spread of COVID-19 -- could be compromised.
In November, tax collections in the state totaled $556.8 million, which was $6 million more than estimated. However, Kelly is warning that this growth is not enough to sustain the state without some form of relief package from Congress. “Without economic relief from Washington, there is a growing concern of a national recession in the foreseeable future,” Governor Kelly said. “My administration renews its requests to Congress to prioritize and pass economic relief as the COVID-19 pandemic continues impacting Kansas households and the economic outlook of the state.”
Collections on both individual and corporate taxes were higher than original estimates, but they were still down 51 percent compared to November of last year. The decrease can be attributed to refunds paid to corporations during the COVID-19 pandemic.
The pandemic has hit Kansas businesses hard; Retail tax collections were down $22,770 from the estimate, with $201.7 million collected. “We have seen that with the COVID-19 pandemic, there has been an accelerated change in consumer behavior favoring online purchases,” Secretary of Revenue Mark Burghart said. “This coming legislative session, we will be taking a closer look at the structure of the Kansas tax base. In the interim, the pandemic continues to negatively impact many Kansas-based brick and mortar stores which still need financial relief from the federal level.”
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