Kansas records 27th consecutive month of excess tax revenue collection
TOPEKA — Kansas state tax revenue in October beat analysts’ forecasts for the 27th straight month by adding $704 million to the state treasury, more than $70 million more than expected.
The Kansas Department of Revenue said filings were 11% or $73.2 million higher than the revised projection last seen in April. Much of the windfall gain came in the form of personal income taxes which reached $357 million for the month. It was 17% or $52.5 million above expectations.
Retail sales tax collections of $250 million were 9.4% or $21 million above the level deemed likely, the revenue department said.
Corporate income tax collections in Kansas did not follow the October trend. Revenue from this source was $32.5 million, 1.6% or $500,000 below target. Overall, the revenue department said, corporate tax revenue in the four months of the current fiscal year was 7.6% higher than in the same period in 2021.
“We laid the groundwork for what we see now,” Governor Laura Kelly said. “Nearly 30 months of strong income that have enabled us to responsibly reduce taxes, pay off debts, fully fund schools, invest in our law enforcement, and improve our roads and bridges.
She is running for reelection for a second term against Attorney General Derek Schmidt, a Republican who has criticized her for not cutting taxes further and for a slow recovery from the downturn in business during the COVID-19 pandemic.
“For four years, my administration has worked tirelessly to help businesses grow and succeed, create good jobs, and get our state back on track,” Kelly said.
Economists and analysts from the University of Kansas, Kansas State University and Wichita State University as well as the State Department of Revenue, Budget Division of the State and Kansas’ Department of Legislative Research are scheduled to meet Nov. 9 to update tax revenue projections for the fiscal year ending June 30, 2023.
Mark Burghart, secretary of the revenue department, said the revenue estimation consensus group has consistently raised revenue forecasts over the past two years in anticipation of growth.
“We continue to set the bar higher and higher and break through it every time – a real indication that the Kansas economy is strong,” he said.