TOPEKA — Kansas’ individual income tax collections beat expectations by $165 million in January, the Kansas Department of Revenue announced Thursday.
The state’s income, sales and other tax collections are 6.8 percent ahead of estimates for the fiscal year that started in July.
In a release, KDOR said Congressional tax reform passed late last year influenced state tax receipts, “artificially bumping collections” above expectations. Individual income tax collections more than doubled the state’s estimates.
“The bottom line is, we need to temper our expectations for the remaining months in the fiscal year,” Revenue Secretary Sam Williams said. “While the report is positive, considering state and federal tax law changes, we cannot assume that the state genuinely will have more revenue by fiscal year end. This is not a windfall.”
Tax collections have continually beat expectations since the 2017 Legislature overrode former Gov. Sam Brownback’s veto to pass a tax increase. Individual collections for the fiscal year that started in July are 15.8 percent ahead of estimates.
KDOR has repeatedly cautioned it won’t know the true effects until filers complete their taxes in April.
Gov. Jeff Colyer said the announcement was still good news.
Legislators would likely welcome extra funds in their budget. They have to add funds to K-12 schools by April 30 because of a Supreme Court ruling that found the Legislature’s school finance plan unconstitutional.
The Kansas Legislative Research Department also warned a large portion of the monthly growth was likely driven by federal policy.