While November tax collections again exceeded estimations, Governor Laura Kelly today warned that without federal support, future revenue growth – and our state’s ability to mitigate the spread of the COVID-19 pandemic – may be compromised.
The State of Kansas saw November total tax collections at $556.8 million; 1.1%, or $6.0 million, more than the estimate. Compared to the same month of last fiscal year, this is a modest growth of 4.3%, or $22.9 million.
“Without economic relief from Washington, there is a growing concern of a national recession in the foreseeable future,” Governor Kelly said. “My administration renews its requests to Congress to prioritize and pass economic relief as the COVID-19 pandemic continues impacting Kansas households and the economic outlook of the state.”
Individual income tax collections were $275.4 million. That’s an increase of 0.4%, or $1.2 million, over the estimate. Compared to the same month of Fiscal Year 2020, that is an increase of 9.1%, or $22.9 million. Corporate income tax collections were $5.2 million, calculating to 5.7%, or $277,504, more than the estimate. These collections were down $5.4 million, or 51.0%, compared to November of last fiscal year. That decrease is attributable to refunds paid to corporations.
Retail sales tax collections were down $22,770 from the estimate with $201.7 million collected. However, this is $204,966, or 0.1%, more than collected in November of Fiscal Year 2020. Compensating use taxes, which are collected and remitted by online retailers, was $4.1 million, or 9.2%, more than the estimate with $49.2 million collected. That is $7.8 million more than collected last November.
“We have seen that with the COVID-19 pandemic, there has been an accelerated change in consumer behavior favoring online purchases,” Secretary of Revenue Mark Burghart said. “This coming legislative session, we will be taking a closer look at the structure of the Kansas tax base. In the interim, the pandemic continues to negatively impact many Kansas-based brick and mortar stores which still need financial relief from the federal level.”