Kansas’ April revenue in line with estimates

Kansas tax collections in April essentially matched estimates, the state’s revenue agency said Monday.

The monthly report from the Department of Revenue marked the first since a revised, slightly more optimistic long-term revenue forecast was issued in April.

The state collected $639 million in taxes in April — about 00.28 percent above estimates. Kansas took in $3.3 million more in individual income taxes than expected, or 1.05 percent above estimates.

“I’m pleased to see that withholding tax receipts have grown for the fifth straight month compared to the year prior helping bolster individual income tax receipts overall,” Revenue Secretary Sam Williams said in a statement. “Withholding taxes are a good barometer of the state’s economic health because the tax is directly linked to more people working or people working more hours or for higher wages.”

Retail sales taxes fell a little more than $1 million below estimates, or 0.56 percent.

Lawmakers passed a bill last month closing a $291 million budget shortfall for the fiscal year that ends June 30. The report did little to change the financial situation for the current year.

The Legislature still faces a nearly $900 million projected budget shortfall over the next two fiscal year. Lawmakers return to the statehouse on Monday, and passing a balanced budget is one of several tasks.

Most lawmakers appear set on passing legislation that raises taxes to help close the gap. What taxes are raised and by how much — and whether spending is cut – remain open questions.

One potential plan under development last week by Senate Republican leaders would raise income tax rates and implement a third tax bracket. It would also again tax certain kinds of business income that had been exempt under the policy championed by Gov. Sam Brownback in 2012.

The proposal is similar to a bill Brownback vetoed earlier in the session. The Legislature was unable to override the veto, but Republican leaders hope that by making some changes to the bill, particularly by eliminating a provision that would have retroactively increased taxes, they can gain the votes needed.

This story was originally published May 1, 2017 at 9:21 AM with the headline "Kansas’ April revenue in line with estimates."