Kansas Sees Substantial Gains in Total Tax Collections Over Projections for June and Close of FY 2020
Tax collections down less than 5.0% compared to June FY 2019 and down less than 6.0% from close of last fiscal year
TOPEKA –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.