Kansas collects more in August taxes than projected

On Tuesday, Kansas Gov. Laura Kelly announced that the state has brought in more taxes for August than originally projected.

In the second month of the fiscal year, total tax collections have been performing above estimates, August collections coming in around $543.5 million.

August collections were calculated to be $40.2 million – 8 percent – above projections. Department of Revenue data shows that this is $46.3 million – 9.3 percent – ahead of last August.

“While this news shows that the steps we have taken to protect our economy are working, we have to remain fiscally cautious,” Kelly said in a Tuesday news release. “The state of Kansas is still recovering from COVID-19 and we have to stay vigilant.

For the month of August, individual income tax collections totaled $271.0 million, $31 million more than projected. Corporate income tax collections saw $7.3 million, $2.3 million more than projected. Retail sales tax collected $207.1 million, $5.1 million over, and compensating use tax collections were $45.3 million, $9.3 over its projection.

Overall, Kansas is $35.6 million, or 2.4%, ahead of projections for the year with $1.5 billion in total tax collections for the fiscal year, according to the release.

Although each tax category surpassed estimates by millions, the release did not address why projections had been so low.