Kansas tax collections beat estimate by $162.2 million, indicate growing economy and business profits

Jason Tidd
Topeka Capital-Journal
September total tax receipts in Kansas were $876.5 million, beating the estimate by $162.2 million.

Kansas state officials reported more tax revenue was collected than expected over the past month, indicating a growing economy and improved profit margins for businesses.

September total tax receipts were $876.5 million, beating the estimate by $162.2 million, or 22.7%. The revenues also beat September 2020 collections by $147.6 million, or 20.2%.

"Our tax collection numbers continue to show promising growth," Gov. Laura Kelly said in a Friday news release. "In the months ahead, we must maintain fiscally-responsible policies to strengthen our growing economy."

The additional revenue was primarily due to individual and corporate income tax collections, as well as retail sales taxes.

Income taxes beat estimates by 32.2%, while sales and use taxes beat estimates by 8.3% and other excise taxes brought in 12.8% more than expected.

Individual income taxes brought in $51.8 million above the estimate, a percent change of 14.6%. Corporate income taxes beat estimates by $85.3 million, or 142.1% above the expectation.

Retail sales taxes brought in $15.2 million above the estimate, a percent change of 7.2%.

September corporate income tax receipts are comprised primarily of estimated tax payments, officials said.

"After three quarters, these higher-than-expected estimated payments are a strong indication that corporations anticipate improved profit margins in 2021," secretary of revenue Mark Burghart said in the governor's office news release.

Kansas is now three months into fiscal year 2022, and total taxes are $335.8 million above the estimate, a percent change of 18.9%.