Kansas revenues exceed expectations for 18th month in a row
TOPEKA, Kan. (AP) — Tax collections in Kansas exceeded the state’s expectations in January for the 18th month in a row and created a 14.5% surplus for the month.
The state Department of Revenue reported Tuesday that Kansas collected $944.5 million in taxes last month when the official forecast had predicted $824.9 million. The difference was $119.6 million.
Since the current 2022 budget year began July 1, the state’s tax collections have been 4% above expectations, with a surplus of $203 million. The state has collected more than $5.2 billion over the past seven months when it anticipated taking in about $5 billion.
Tax collections continue to be greater than anticipated even though state officials and university economists issued a new, more optimistic fiscal forecast in November.
The surplus revenues have Democratic Gov. Laura Kelly and the Republican-controlled Legislature considering tax cuts.
Kelly has proposed eliminating the state’s 6.5% sales tax on groceries and giving a one-time $250 rebate to Kansas residents who filed state income tax returns last year.
Republicans want to reduce or eliminate the sales tax on groceries but also have talked about lowering the tax on all consumer goods. GOP leaders also have said they’d prefer ongoing income tax cuts to one-time rebates.