Kansas state government tax collections in June exceeded expectations by $24 million, with total receipts from all tax sources for the fiscal year falling short by $67 million. Despite the overall shortfall for the year, June revenue from various tax sources was higher than projected, totaling $1.027 billion. This marked a 3.9% increase over the previous year.
Governor Laura Kelly emphasized the importance of fiscal responsibility despite the positive revenue numbers, highlighting the need to continue efforts to ensure the state’s financial stability. This comes as the state government faces potential annual revenue declines following the passage of tax reduction bills by the 2024 Kansas Legislature.
Individual income tax collections in June surpassed estimates, driven by higher-than-expected withholding tax and fewer refunds compared to the previous year. However, corporate income tax collections were below projections for the month. Retail sales and compensating use tax receipts also exceeded estimates slightly, while excise tax revenue on cigarettes, liquor, and oil and gas fell short.
With the start of the new fiscal year on July 1, the state will need to navigate potential revenue challenges resulting from the recent tax reduction legislation. Despite the mixed results in tax collections, officials remain optimistic about the state’s financial outlook and the ability to deliver essential services to Kansans.
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Photo credit kansasreflector.com
