Revenue remains robust as tax proposals swirl
Feb. 3, 2021
The Kansas Legislative session is underway, and lawmakers are busy making decisions about the state’s needs and how to fund them. This month’s revenue numbers show the state is exceeding expectations once again.
Total taxes brought in so far this fiscal year are $4.97 billion, slightly above the estimate of $4.81 billion. Total receipts brought in for this fiscal year are $4.94 billion, slightly above the estimate of $4.77 billion. For January 2021, total taxes were $796 million, above the estimate of $706 million, while the total receipts were $797 million compared with the anticipated $703 million.
This week, the Senate Tax committee will have a hearing on a bill that collect sales tax from marketplace facilitators, which capture a sustainable and renewable source of revenue that our state needs. Unfortunately, the bill has a provision that still gives an advantage to out-of-state marketplace facilitators. We hope lawmakers address the proposed provision to make sure the playing field is truly level for Kansas businesses. Read our testimony here.
One benefit to a bill like this is it would increase compensating use tax for the state. So far this year, Kansas has collected $358 million from compensating use, which is 6.2% above estimates.
Kansas Action for Children will continue to monitor bills that would affect the state’s revenue stream to ensure lawmakers make financially responsible decisions to meet the state’s many needs.
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