June tax collections were up by $135.6 million or 22.3 percent more than estimated, according to figures released Thursday by the Kansas governor’s office.
The state collected $744.4 million in total tax collections in June, according to the Kansas Department of Revenue figures. Compared to June 2019, last month’s collections were down by 4.8 percent.
For fiscal year 2020, total tax collections were up by $163.7 million or 2.4 percent more tan estimated, with collections of $7 billion, a 5.7 percent decrease from last year.
“Kansans have faced many challenges since the beginning of the COVID-19 outbreak – emotionally, physically, and financially,” Gov. Laura Kelly said in a news release. “While these numbers are encouraging, we must continue to make decisions that will keep our state on sound economic footing as we enter the next fiscal year.”
The economic impact of the COVID-19 pandemic began to be seen in April as the state was entering its fourth quarter. In addition, tax extensions were announced in March which moves money from FY 2020 to the next fiscal year. Approximately 300,000 individual income tax returns are still to be filed and paid by the July 15, 2020, deadline.
Individual income taxes were 13.2 percent or $41.1 million more than projected with $353.1 million collected. Those numbers are down 9.0 percent compared to the same month last year. Corporate income tax collections in June were $54.7 million; $33.7 million or 160.4 percent more than projected. These collections are down 19.4 percent compared to June of last fiscal year.
Retail sales and compensating use tax collections were both more than projected for the month and more than June of last fiscal year, according to the revenue figures from the Kansas Department of Revenue.
Retail sales tax collections in June were $203.0 million; 21.5 percent or $36.0 million more than estimated. That’s an increase of 1.9 percent over last June.
Compensating use taxes were $43.4 million; $10.4 million or 31.6 percent more than projected and an increase of 6.5 percent over last June. For FY 2020, retail sales tax collections performed 2.3 percent higher than expected with $2.4 billion collected; an increase of 0.7 percent over last fiscal year.
Compensating use taxes for the fiscal year also performed 4.1 percent higher than expected with $479.1 million collected; a 10.9 percent increase from FY 2019.
The local sales tax distributions report for June in Wyandotte County showed a drop of 10.6 percent for June 2020 as compared to June 2019, from $2.036 million in 2019 to $1.818 million in 2020, according to KDOR figures. For fiscal year 2020, there was a 2.6 percent increase in sales tax revenues in Wyandotte County compared to fiscal year 2019.
The May rate, comparing May 2019 to May 2020, was minus 10.2 percent for Wyandotte County.
According to local officials, the sales tax distribution figures for the counties typically run a few months after they were collected.
The sales tax distribution figures are at https://www.ksrevenue.org/prsalesreports.html#city.