By Tim Carpenter, Kansas Reflector
TOPEKA, Kan. — Tax revenue to the state of Kansas in October exceeded projections of analysts for the 27th consecutive month by adding $704 million to the government treasury — more than $70 million greater than forecast.
The Kansas Department of Revenue said deposits were 11% or $73.2 million above the projection last revised in April. Much of the unanticipated gain was in the form of individual income taxes that hit $357 million for the month. That was 17% or $52.5 million above expectations.
Retail sales tax collections of $250 million were 9.4% or $21 million above the level thought likely, the revenue department said.
Corporate income tax collections in Kansas didn’t follow the October trend. Revenue from that source was $32.5 million, which was 1.6% or $500,000 below the target. Overall, the revenue department said, corporate tax receipts through four months of the current fiscal year have been 7.6% greater than in the same period in 2021.
“We laid the groundwork for what we’re seeing now,” said Gov. Laura Kelly. “Nearly 30 months of strong revenues that have allowed us to responsibly cut 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 more and for a slow recovery from business slowdowns during the COVID-19 pandemic.
“For four years, my administration has worked relentlessly to help businesses grow and succeed, create quality jobs, and get our state back on track,” Kelly said.
Economists and analysts with the University of Kansas, Kansas State University and Wichita State University as well as the state Department of Revenue, the state budget division and the Kansas Legislative Research Department are scheduled to convene Nov. 9 to update tax revenue projections for the fiscal year ending June 30, 2023.
Mark Burghart, secretary of the revenue department, said the consensus revenue estimating group had persistently raised revenue forecasts during the past two years in anticipation of growth.
“We keep setting the bar higher and higher and clearing it every time — a real indication that the Kansas economy is strong,” he said.