TOPEKA — State government in Kansas received $8.3 million more in revenue than analysts anticipated for November to reinforce double-digit percentage growth in collections tied to an income tax hike passed by the Legislature to balance the budget.
The Kansas Department of Revenue said Friday the state treasury drew $458 million in November, which was nearly 2 percent above a projection recently revised upward. It was the sixth consecutive month with higher-than-expected revenues.
Five months into the state’s fiscal year, the government has collected 11.7 percent, or $261 million, more than last fiscal year at this time.
“Sales tax receipts have reached what appears to be stable growth above last year’s collections,” said Sam Williams, the state’s revenue secretary. “Individual income tax collections are also above last year by a wide margin.”
Williams said he wouldn’t be able to distinguish until next spring the increases related to expansion of the state’s economy and increases associated with the two-year, $1.2 billion tax hike approved by the 2017 Legislature over a veto by Gov. Sam Brownback. Legislators removed an income tax exemption given to limited liability companies, partnerships and other businesses in 2012. In addition, lawmakers reimposed the upper-income tax bracket that was dropped five years ago.
More than $176 million of this fiscal year’s revenue increase has come from individual income taxes, which so far total $1.09 billion.
The sales tax, which was increased to 6.5 percent statewide with the governor’s consent in 2015, has generated an extra $41 million this fiscal year. Sales tax receipts total $985 million so far this fiscal year.
Corporate tax collections this fiscal year are up by $30 million to $108 million.