TOPEKA — Kansas state government tax revenue beat estimates by $438 million in the just-ended fiscal year to an annual total of $9.75 billion, it was reported Friday. officials.
The Kansas Department of Revenue reported that the state ended the year with tax revenue 4.7% higher than expected by a team of economists and financial analysts. In the prior fiscal year, which ended June 30, 2021, Kansas took in $8.9 billion in tax revenue.
“In June, we brought in more money than expected — reinforcing that our state’s economy continues to build momentum,” said Governor Laura Kelly, who is seeking re-election in 2022.
Kelly said working to be “the most fiscally responsible and business-friendly administration in Kansas history” is turning Kansas into a hub of economic growth.
During the month of June, Kansas received $918 million in tax revenue from sales, income, cigarettes, liquor, oil and gasoline. This exceeded the monthly projection of $20.2 million or 2.2%. This is an improvement of $64.3 million or 7.5% over June 2021.
The state filed $148 million in corporate income tax receipts in June, which amounted to $48 million, nearly 50% above the monthly estimate and 33% higher than what the State received in June 2021.
“Higher-than-expected estimated business payouts send a strong signal that businesses are anticipating stronger profits in 2022,” said Mark Burghart, secretary of the state Department of Revenue.
In June, state personal income tax revenue of $364 million was $40 million or 9.9% lower than projected. The Kelly administration said a one-time refund in June – the taxpayer was not identified – shaped the bottom line.
Had the state not issued that income tax refund check last month, Kansas personal income tax receipts in June would have topped the estimate by 6.7%.
In May, the Kansas Supreme Court resolved a complex legal battle in favor of businessman Gene Bicknell, a Kansan elder who moved to Florida. In 2005 and 2006, Kansas officials claimed Bicknell was a Kansas resident when he sold a business that at one time held a large number of Pizza Hut franchises. Bicknell was forced to pay Kansas income tax on the sale, despite filing a legal challenge.
The state Supreme Court determined that Bicknell was a resident of Florida for tax purposes and owed a refund from Kansas. One estimate put the amount held by Bicknell at more than $60 million.
The June report released by the Department of Revenue shows retail sales tax revenue for the state reached $303 million. This was $6.6 million or 2.2% higher than expected in June. This represented a 10.6% increase from the June 2021 total.