March total tax collections at $523.4 million; 1.6% below the estimate
TOPEKA - The State of Kansas closed March with total tax collections at $523.4 million; 1.6% or $8.6 million below the estimate. That is 0.3% or $1.4 million more than March of Fiscal Year 2019.
Individual income tax collections were $247.3 million; $4.3 million more than the estimate and 7.1% more than last March. Corporate income tax collections were $18.4 million; $8.6 million below estimate and 24.5% below March FY 2019.
Retail sales tax collections were $179.4 million; $3.4 million more than the estimate. That's an increase of $2.9 million compared to the same month last fiscal year. Compensating use tax collections were $34.7 million; 8.5% or $2.7 million more than the estimate and 8.7% more than last March.
"We expect the uncertain business and employment landscape to negatively affect withholding and estimated income taxes,” Secretary Mark Burghart said.
“As consumer spending patterns change, retail sales tax and compensating use tax collections could experience a major decline in the months to come.”
"While seeing a slight increase in total tax collection revenues compared to last fiscal year, we must continue to be cautious as we evaluate the financial impact of COVID-19," Governor Laura Kelly said.
“Later this month, we should see a clearer picture moving forward as the Consensus Revenue Estimating group evaluates fall projections.”
The Consensus Revenue Estimating Group, comprised of the Department of Revenue, Division of Budget, Legislative Research Department, and economists from the University of Kansas, Kansas State University, and Wichita State University, will meet on April 20. The group will review the fall estimate and make any revisions it may consider necessary.