Dept. of Revenue: KS will lose $360M in tax revenue over next three years
TOPEKA, Kan. (WIBW) - The state of Kansas expects to lose a total of $360 million in tax revenue over three years due to a change in federal policies on COVID-19 relief for businesses.
The development complicates legislative debates over state spending and cutting income taxes and puts a damper on an otherwise promising fiscal year, with tax collections exceeding expectations.
The expected loss was outlined in a short memo to six legislative leaders this week from the State Department of Revenue’s top administrator and Governor Laura Kelly’s Budget Director.
The memo said relief legislation approved by Congress in December created a new federal income tax deduction for some businesses.
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