The Kansas Department of Revenue reported state tax revenue during the just-completed fiscal year was $9.75 billion or $438 million more than anticipated. (Tim Carpenter/Kansas Reflector)
TOPEKA — Tax receipts for state government in Kansas surpassed estimates by $438 million in the just-completed fiscal year to reach an annual total of $9.75 billion, officials said Friday.
The Kansas Department of Revenue reported the state closed out the year with 4.7% more in tax revenue that anticipated by a team of economists and financial analysts. In the previous fiscal year, which ended June 30, 2021, Kansas took in $8.9 billion in tax revenue.
Gov. Laura Kelly, who is seeking reelection in 2022, said work to be the “most fiscally responsible and pro-business administration in Kansas history” was transforming Kansas into a hub for economic growth.
During the month of June, Kansas received $918 million in sales, income, cigarette, liquor, oil and gas tax revenue. That surpassed the monthly projection by $20.2 million or 2.2%.
“In June, we brought in more money than was estimated — re-enforcing that our state’s economy is continuing its forward momentum,” Kelly said.
The state deposited $148 million in corporate income tax revenue in June, which amounted to $48 million or nearly 50% more than the monthly estimate and 33% more than the state received in June 2021.
“The higher-than-expected corporate estimated payments send a strong signal that corporations anticipate greater profits in 2022,” said Mark Burghart, secretary of the state Department of Revenue.
In June, the state’s individual income tax revenue of $364 million was $40 million or 9.9% below the projection. The Kelly administration said a one-time refund in June — the taxpayer wasn’t identified — shaped the bottom line.
If the state hadn’t issued that income tax repayment check last month, Kansas individual income tax receipts in June would have topped the estimate by 6.7%.
In May, the Kansas Supreme Court resolved a complex legal battle in favor of businessman Gene Bicknell, a former Kansan who moved to Florida. In 2005 and 2006, Kansas officials claimed Bicknell was a Kansas resident when he sold a company that at one point held a large number of Pizza Hut franchises. Bicknell was compelled to pay income tax to Kansas on the sale, despite filing a legal challenge.
The state Supreme Court determined Bicknell was a Florida resident for tax purposes and due a refund from Kansas. One estimate placed the amount owned Bicknell at more than $60 million.
The June report released by the revenue department said retail sales tax receipts for the state reached $303 million. That was $6.6 million or 2.2% higher than anticipated in June. That represented an increase of 10.6% over the total in June 2021.
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