TOPEKA — The state of Kansas received $4.61 billion in tax revenue during the initial six months of the current fiscal year to narrowly surpass collections in the first half of last fiscal year.
The Kansas Department of Revenue reported the July-to-December intake was $31 million more than the same period in 2023, but $50 million less than projected. In the current fiscal year, Kansas’ corporate and personal income tax revenue was $24 million above the comparable six-month period of last year. The state’s sales tax receipts were $38 million above the same period one year ago.
However, Kansas revenue from excise taxes on tobacco, liquor and the oil and gas industry produced $160 million in the initial six months of the fiscal year. That was $31.8 million or 19% less than excise tax collections in the opening six months of last fiscal year.
The Kansas Legislature convenes Monday in Topeka for the annual session and is expected to engage in lengthy debate about possible uses of a surplus in the state treasury of approximately $2.5 billion. The state has a separate rainy day fund of $1.6 billion to be used in budget emergencies.
On Tuesday, the Department of Revenue reported tax collections of $965 million in December, which was $33 million below the monthly estimate issued by Kansas’ economic forecast group. Total state revenue in December was 3.3% under the projection and 3.9% less than in December 2022.
Mark Burghart, secretary of the Department of Revenue, said individual income tax collections of $397 million surpassed the monthly projection by $17 million and amounted to an increase of 5.9% over the comparable period in December 2022.
“Withholding tax, the largest component of the individual income tax receipts, was 9.2% greater than December 2022,” he said. “This comes as no real surprise as the growth is entirely consistent with recent findings of the Bureau of Economic Analysis, which showed that personal income and earnings in Kansas grew during the second and third quarters of 2023 at some of the highest rates in the country.”
Burghart said revenue from corporate income tax collections was $39 million or 14% less than anticipated at $235 million in December. There was one deposit day less last month than in December 2022. More than $34 million was received by the state on that additional day in December 2022, he said.
Revenue related to the statewide sales tax of 6.5% on most purchases and compensating use tax receipts were $302 million in December. That was $5 million less than projected and $5 million less than collected in December 2022. The state also collected $22 million in excise taxes during the month, which was $3 million less than expected.
