TOPEKA — The state treasury in Kansas received $13.7 million less in tax revenue from income, sales and other sources from July to November than anticipated by economic and budget experts who revised official estimates last month, officials said.
The Consensus Revenue Estimating Group met Nov. 9 to update projections for the current and upcoming fiscal years so Gov. Laura Kelly and the 2024 Legislature would be on the same page when budget debates began when lawmakers convened in January.
In the initial five months of the fiscal year, the state took in $3.64 billion in tax revenue from all sources. That was 0.4% less than considered likely at this point in the fiscal year, but 1.8% more than received at this juncture last fiscal year.
The Kansas Department of Revenue reported individual income tax receipts of $1.59 billion in the fiscal year. That was $10.6 million, or 0.7%, below the revised year-to-date prognostication. Corporate income tax receipts were above the $414 million July-November estimate by $10.4 million or 2.5%.
In terms of sales tax, receipts from retailers undercut the estimate by $11.3 million or 1% for a total of $1.16 billion from July to November.
“It is important to remember that a comparison of just one month is not a reliable basis upon which to identify a trend for the balance of the fiscal year,” a Kansas Legislative Research Department’s memorandum said. “Receipts in upcoming months will likely be more meaningful in identifying any developing trends regarding how major tax sources are faring relative to the revised estimate done in November.”
The Legislature’s research division said December sales tax receipts would include transactions completed in late November that marked start of the holiday shopping season. December is traditionally an important month for corporate income tax estimated payments. In January, sales tax receipts would include holiday transactions in December and individual income tax estimated payments due in January.
House Republican leaders said the revised revenue projections were an indicator state taxes were too high and ought to be reduced during the legislative session.
“The state continues to bring in a lot more money than it needs and it’s past time for this hard-earned taxpayer money to go back to Kansans in the form of long-term, actual tax relief that folks can rely on long into their futures,” said House Speaker Dan Hawkins, a Wichita Republican.
