Kansas Revenues Down In September
Joe Denoyer - October 3, 2016 4:29 pm
Following a regional trend, corporate and sales tax receipts fell short of expectations for September.
Weaker than expected quarterly estimated payments related to capital gains and the stock market also caused individual income tax receipts to fall short for the month by $14.2 million.
While estimated payments were less than expected, first quarter withholding showed a 3.5 percent growth over last year’s first quarter, which is stronger than it has been in recent history. This indicates that either more people are working, or those working are getting paid more.
Despite being lower than expected for September, individual income tax receipts, the rates of which have been lowered for all Kansas taxpayers, were up year-to-year for the first quarter of the fiscal year by $25.4 million.
Corporate and sales tax receipts, which have both been weaker than expected since the start of the tax year, were lower than expected following a regional trend. As of July 31, only Oklahoma collected more than expected on corporate income taxes.
Corporate income taxes, the rate of which has not changed, was down for the month $17.5 million. State sales tax rates which were increased July 1, 2015, were down for September by $34.3 million.
Kansas’ rural counties that are dependent on agriculture and oil revenues have continued to underperform by double digits, pulling down overall state sales tax receipts.
“The significant contributors to less-than-expected September receipts were individual estimated payments related to capital gains and the stock market; a continued regional trend of low corporate tax receipts and sales tax receipts,” said Revenue Secretary Nick Jordan. “Withholding tax receipts, which are an indicator of jobs and income, continues to perform above the previous year.”
The state collected $521 million in September total tax revenue receipts or $44.9 million less than expected. Total state general fund collections for the fiscal year to date were $1.3 billion, $67 million less than estimated.