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Saturday, October 31, 2020

Kansas Sees Substantial Gains in Total Tax Collections Over Projections for June and Close of FY 2020

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Derek Nester
Derek Nester was born and raised in Blue Rapids, and graduated from Valley Heights High School in May of 2000. He attended Cowley College in Arkansas City and Johnson County Community College in Overland Park studying Journalism & Media Communications.After stops at KFRM and KCLY radio in Clay Center, he joined KNDY in 2002 as a board operator and play by play announcer. Derek is now responsible for the digital content of Dierking Communications, Inc. six radio stations.In 2005 Derek joined the staff of KCFX radio in Kansas City as a production coordinator for the Kansas City Chiefs Radio Network, which airs on over 94 radio stations across 12 Midwest states and growing. In 2018 he became the Studio Coordinator at the Cumulus Kansas City broadcast center for Kansas City Chiefs Football.

The State of Kansas saw a better-than-predicted close to Fiscal Year 2020. In June, the state’s total tax collections were up by $135.6 million or 22.3% more than estimated with $744.4 million collected. Compared to the same month last fiscal year, June tax collections were down by 4.8%. For FY 2020, total tax collections were up by $163.7 million or 2.4% more than estimated with collections of $7.0 billion; a 5.7% decrease from last year.

“Kansans have faced many challenges since the beginning of the COVID-19 outbreak – emotionally, physically, and financially,” Governor Laura Kelly said. “While these numbers are encouraging, we must continue to make decisions that will keep our state on sound economic footing as we enter the next fiscal year.”

The economic impact of the COVID-19 pandemic began to be seen in April as the state was entering its fourth quarter. In addition, tax extensions were announced in March which moves money from FY 2020 to the next fiscal year. Approximately 300,000 individual income tax returns are still to be filed and paid by the July 15, 2020 deadline.

Individual income taxes were 13.2% or $41.1 million more than projected with $353.1 million collected. Those numbers are down 9.0% compared to the same month last year. Corporate income tax collections in June were $54.7 million; $33.7 million or 160.4% more than projected. These collections are down 19.4% compared to June of last fiscal year.

Retail sales and compensating use tax collections were both more than projected for the month and more than June of last fiscal year. Retail sales tax collections in June were $203.0 million; 21.5% or $36.0 million more than estimated. That’s an increase of 1.9% over last June. Compensating use taxes were $43.4 million; $10.4 million or 31.6% more than projected and an increase of 6.5% over last June. For FY 2020, retail sales tax collections performed 2.3% higher than expected with $2.4 billion collected; an increase of 0.7% over last fiscal year. Compensating use taxes for the fiscal year also performed 4.1% higher than expected with $479.1 million collected; a 10.9% increase from FY 2019.

Details found here.

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