Governor Laura Kelly Announces January Total Tax Collections Continue to Exceed Estimates

TOPEKA – Governor Laura Kelly announced that total tax collections for January were $944.5 million. That is $119.6 million, or 14.5%, more than the monthly estimate. This is also an 18.7% growth over January 2021.

“Over the past three years my administration has taken steps to restore the Kansas economy, and that fiscal responsibility has paved the way to provide direct tax relief to Kansas taxpayers,” Governor Laura Kelly said. “That relief will come specifically through proposals like axing the state’s sales tax on food. I urge the Legislature to send a clean bill to my desk quickly, so we can get this done for Kansas families.”

Individual income tax collections were $542.2 million. That is $82.2 million, or 17.9%, more than the estimate and 18.4% more than the previous January. Wage withholding remains strong going into 2022 reflecting both improved statewide employment and accompanying wage growth.

Retail sales tax collections were $258.2 million for January. This is $18.2 million, or 7.6%, more than the estimate and 14.9% more than January 2021. Compensating use tax collections also exceeded estimates by 5.2%. Those collections are also 30.2% more than the previous January. Both retailer’s sales tax and compensating use tax collections established new monthly collection records in January 2022.

“Individual income tax, corporate income tax, retailer’s sales tax, and compensating use tax all continue to perform well as the state’s primary revenue sources,” Secretary of Revenue Mark Burghart said. “Increased holiday spending in December accounts in large part for the record sales and compensating use tax collections in January.”

View the tax receipts here.

January 28, 2022

The journey of a bill  After a bill is introduced. it is assigned to a committee so that the legislation can be properly vetted.  The chairman can schedule a hearing, allowing people, conferees, to testify.  Legislators can ask questions of conferees, evaluate and propose changes to legislation.  If a majority of committee members vote to advance the legislation, it will then be assigned to the Committee of the Whole.  Committee of the Whole is all of the members of that chamber.  The Majority Leader schedules debate for the Committee of the Whole.  After debate and possible amendments, the Committee of the Whole votes whether to pass the legislation and advance it to final action.  If a bill passes a final action vote, it will advance to the other chamber or it goes to the Governor if it has passed both chambers.  At that point the Governor can sign the bill into law, veto the bill, or do nothing and after 10 days the bill becomes law.

The Senate Tax Committee had hearings on two bills where the conferee was a Kansas resident who would like to have sales tax removed on manufacture coupons, Senate Bill (SB) 354, and sales tax removed on delivery charges, shipping and postage, SB 327.  Most people are not aware they pay sales tax on these items.

SB 347 is on the fast track to who knows where.  There was a major rush to pass SB 347 out of the Senate Commerce Committee and across the Senate floor.  SB 347 would allow the Secretary of Commerce to give sales, income, and property tax incentives, estimated to be over $1 billion to entice a company, very possibly a foreign company, to come to Kansas.  Proponents say it will bring 4,000 jobs to Kansas.  Good, but what company and what Kansas industries will be impacted by the “new” jobs.  When Kansas was trying to entice NASCAR to come to Kansas everything was up front, legislators knew the business and made the decision eyes-wide-open.  With SB 347, only a few legislators know what company the Governor and Secretary of Commerce are willing to give over $1 billion of taxpayer money.  I was able to get an amendment on that would at least stop the company from getting back more income tax than they paid to the state of Kansas.  I could not support this legislation.  With SB 347, the Secretary of Commerce has the authority to give away billions of dollars and there are no caps or restrictions on the number of companies to receive the tax incentives in the bill.  Disappointingly, the bill passed the Senate 32 to 7.  The House will push the bill through the process in an attempt to put it on the Governor’s desk the first week in February.  Hopefully, the House will be able to kill the current bill or make major changes so that it will be a win for Kansas taxpayers.

It is an honor and a privilege to serve as your 12^th District State Senator.

Caryn

SPARK Requests Input from Kansans for American Rescue Plan Investment Ideas

TOPEKA – The Strengthening People and Revitalizing Kansas (SPARK) Executive Committee is inviting Kansans to share their investment ideas for the allocation of federal coronavirus relief funds allocated to Kansas through the American Rescue Plan Act (ARPA) of March 2021.

“This money offers the opportunity to make strategic investments that will have long-term positive impacts on our state,” Governor Laura Kelly said. “It is vital to the recovery efforts that we have input from Kansans across the state – everyone should have a seat at the table.”

This provides a chance for Kansans to make their voice heard as we rebuild our economy and recover from the impacts of COVID-19. The SPARK Executive Committee oversees the development of recommendations for the distribution of ARPA State Fiscal Recovery Funds (SFRF), assisted by the four SPARK Advisory Panels: Health & Education, Economic Revitalization, Connectivity, and Efficiency & Modernization. The SPARK Executive Committee then presents recommendations to the State Finance Council to distribute the SFRF allocated to the State of Kansas.

The online submission form for proposing a SPARK investment idea is available here. Currently, SPARK is requesting proposals for program-level investments. The four Advisory Panels may consider these submissions as part of the process to determine investment priorities and make recommendations to the SPARK Executive Committee. Advisory Panels will begin meeting in the coming weeks.

“This is a historic opportunity for Kansans to have direct input in how these funds are utilized to benefit our state long term,” Senate President Masterson said. “I look forward to reviewing the investments ideas that our citizens submit and working with the Advisory Panels to identify the investments that will best position our state moving forward.”

In making decisions, SPARK will adhere to the following guiding principles:

• Prioritize sustainable programs & investments through one-time use of funds vs. substantial expansion of existing services
• Combine with / leverage local and agency funds to maximize use of discretionary funds
• Foster long-term systemic impact for Kansans
• Consider equitable opportunities and outcomes
• Enable flexibility within investment strategies
• Ensure results are measurable to enable tracking & transparency

“The SPARK Executive Committee heard many great investment ideas from the citizens of Kansas at our regional meetings across the state,” House Speaker Ron Ryckman said. “The investment ideas submitted through this form will allow SPARK to further engage with the citizens of Kansas while determining investment priorities.”

Interested parties are instructed to complete the submission form in its entirety. The submission period will close on February 16, 2022.

Once submitted, investment ideas will be available for review by Advisory Panel members. By submitting an investment idea, interested parties acknowledge that SPARK staff may follow up with them for additional details. Submission does not guarantee assignment to or further consideration by an Advisory Panel and that additional information will not be reviewed unless requested.

Interested parties are also encouraged to familiarize themselves on allowable uses of SFRF. An overview of the Treasury Department’s Final Rule summarizing eligibility provisions for using SFRF can be found here, while the entire Final Rule is available here. Please note that not all investment ideas will fit within the allowable uses of SFRF.

An FAQ document on the submission form is available here. If there are any questions on completing the submission form, please contact [email protected].