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Saturday, January 23, 2021

Kansas Total Tax Collections $484.6 Million Ahead of July of Last Fiscal Year

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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.

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.

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