State of Kansas ahead of first-quarter estimates

On Thursday, Kansas Gov. Laura Kelly announced that the closing of the first quarter of Fiscal Year 2021 has brought in $108.4 million ahead of its estimate.

Included is $2.3 billion in total tax collections. Compared to the same time last year, that totals to be about $515.7 million, or 29.7%, more, according to a Thursday news release from the governor’s office.

The large sum is partially due to the change in the filing deadline for income taxes, the release said, and increased revenue in compensating use tax.

“While there is optimism with these projections, we must remain committed to fiscal steadiness, public health, and support our core services like education, infrastructure, and economic development which will enable Kansas to remain on the path to recovery,” Kelly said in the release.

Total tax collections for September were $728.9 million, $72.8 million more than the estimate. Individual income tax and corporate income tax collections performed above expectation, Kansas seeing a seven percent increase of $23.6 million.

The release also reported that corporate income tax collections were $89.7 million, an increase of 49.5% over the estimate.

Retail sales tax collections came out lower that than the estimate with 1.2%, or $2.4 million less. The decline in retail collections are likely attributed to changing consumer habits around the start of school this fall.

Compensating use tax collections continued on an upward trajectory, the release said, with collections at $11.6 million, or 34.1%, over the estimate.

“The impact that the pandemic will have on the economy during the fall and winter months is uncertain at best,” Secretary Mark Burghart said. “That same uncertainty carries over to the anticipated sales and use tax receipts associated with purchases that will be made during the upcoming holiday season.”