Kansas tax collections in October came in more than $100 million above the official estimate. The news was good, but caution was urged as the state’s economy recovers from the COVID-19 pandemic.
TOPEKA — Gov. Laura Kelly said the state’s tax collections in October surged to more than $100 million above the official estimate of revenue growth for the month.
On Monday, the governor said lawmakers should remain cautious as the state’s economy recovered from the COVID-19 economic spike.
“As I’ve said before, though our state’s revenue numbers continue to outpace estimates, we must keep practicing fiscal responsibility,” she said. “That’s how we’ll continue to grow our economy and protect our fiscal health.”
The state reported total tax collections of $662 million in October, which was $104 million or 18.7% greater than anticipated when the most recent revenue projections were issued earlier this year. The total for last month was $66 million or 11.1% greater than in October 2020.
The October revenue report was strengthened by robust income tax collections of $301 million, which surpassed the anticipated collections by $46 million or 18.3%.
The state’s corporate income tax receipts were $40 million for the month. That was $25 million, or 166.8%, more than the estimate.
Retail sales tax collections in October were $227 million, which was 8.4% higher than projections. It was $16 million or 7.9% more than the latest estimate.
The Consensus Revenue Estimating Group, comprised of the Kansas Department of Revenue, state Division of Budget and the Kansas Legislative Research Department, and economists from the University of Kansas, Kansas State University and Wichita State University, are responsible for issuing revenue projections.
The group of financial analysts are scheduled to meet Nov. 10 to update tax revenue predictions in advance of the 2022 legislative session in January.
The last time the state had tax collections below the monthly estimate was July 2020.
“The difficult steps taken early on in the COVID-19 pandemic have helped the state’s economy not only rebound quicker than expected but has also moved the state towards a sustainable and healthy economic future,” said Mark Burghart, secretary of the revenue department.
