“While this revenue growth is encouraging, we must continue practicing fiscal responsibility – particularly as we’re getting a clearer picture of how federal and state tax legislation could impact the state’s ending balance,” Governor Kelly said. “We cannot risk passing any tax bill that would put Kansas back into a self-inflicted budget crisis, and jeopardize our COVID-19 recovery efforts.”
With the late start of tax season and refunds going out in March, individual income tax collections were lower than the estimate by $4.8 million, or 1.9%, with $255.2 million collected. Corporate income tax collections were $25.3 million, beating the estimate by 26.7%, or $5.3 million.
Consumer spending has not slowed down as both retail sales tax and compensating use tax collections were more than estimated. Retail sales tax collections were up $19.2 million for the month, with $194.2 million collected. Compensating use sales tax was $2.6 million more than the estimate with $42.6 million collected.
The Consensus Revenue Estimating Group will meet later this month to reassess future estimates and consider the impact COVID-19 related federal legislation has on revenue numbers.