18:51
News Story
Kansas’ annual revenue hits $9.75 billion on rising income, sales tax collections
Revenue report in final month of fiscal year influenced by huge refund
The Kansas Department of Revenue said state income and sales tax revenue during August surpassed expectations by $11 million to record the 25th consecutive month in which revenue topped the official projection. (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.
Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. Please see our republishing guidelines for use of photos and graphics.
Related News
