Kansas April tax collections fall short in nearly all brackets

TOPEKA, Kan. (WIBW) - The Sunflower State’s tax collections totals for April fell short of estimates and previous amounts in nearly all areas.

The Kansas Department of Revenue announced on Monday, May 1, that tax collections for April 2023 totaled $1.3 billion - about 2.3% or $30.1 million below the estimate. The number also marks a 14.7% fall from April 2022.

KDOR indicated that individual income tax collections totaled $593.5 million, which is about 11.4% or $76 million below the estimate. The number is also about 41.7% or $425.3 million less than what was collected in 2022. Part of the decrease can be attributed to fewer processing days after the April 18 due date.

Officials noted that corporate income tax collections were $354.2 million, which is about 16.5% more or $50.2 million more than what was estimated. This is also about 150.4% more than what was collected last year.

“The lower individual income tax receipts and higher corporate income tax receipts reflect the impact of the SALT Parity Act, which allows owners of pass-through entities to elect to have the pass-through income taxed at the entity level rather than at the entity owner level,” Secretary of Revenue Mark Burghart said.

The Department said combined sales and compensating use tax receipts totaled $308.6 million, which is about 0.7% or $2.2 million below the estimate. The number is also 0.4% or $1.4 million less than what was collected last April.

Officials noted that the continued impact of reducing food sales tax can be seen in the year-over-year decrease in combined sales and compensating use tax collections.