Kansas Total Tax Collections $484.6 Million Ahead of July of Last Fiscal Year
Joe Denoyer - August 4, 2020 10:07 am
TOPEKA—The State of Kansas starts Fiscal Year 2021 by surpassing its total tax-only collections by $484.6 million compared to July of last fiscal year. Total tax collections for the first month of the fiscal year were $980.8 million. That is $4.6 million, or 0.5%, less than the estimate.
“While state revenue collections are more than the beginning of last fiscal year, we must continue to make fiscally sound decisions to minimize the economic impact of the COVID-19 pandemic moving forward,” Governor Laura Kelly said.
The State collected $619.6 million in individual income taxes for the month; an increase of $395.3 million, or 176.3%, compared to the July of Fiscal Year 2020. However, these collections were $30.4 million, or 4.7%, less than the estimate for the month. Corporate income tax collections were $69.8 million; $5.2 million, or 6.9%, less than estimated but an increase of $54.6 million compared to July of FY 2020.
Retail sales tax and compensating use tax collections performed better than both the monthly estimate and in their comparison to July of last fiscal year. Retail sales tax collections were $218.6 million; $16.6 million, or 8.2%, more than the estimate. That is a $14.0 million, or 6.9%, growth compared to July of FY 2020. Compensating use tax collections were 39.8%, or $14.3 million, more than estimated, with $50.3 million collected. That is an increase of $11.3 million, or 29.1%, compared to the same month of FY 2020.
“The state has seen consistent growth in compensating use tax collections as approximately 4,000 out-of-state online retailers have registered with the state under Kansas Department of Revenue Notice 19-04,” Secretary Mark Burghart said. “In addition, changing consumer purchasing patterns, which focus on online purchases during the COVID-19 pandemic, account for some of the increased use tax receipts.”
Kansas Department of Revenue Notice 19-04 was published Aug. 1, 2019, which notified retailers of sales tax requirements for doing business in Kansas.
