Kansas tax collections down compared to last year but beating new projections

Capitol Bureau

TOPEKA, Kan. (KSNT) – The state of Kansas has taken a hit in tax collections because of the coronavirus outbreak.

For the month of May, the state reported it is down $114 million in collections compared to last year.

Revenue Secretary, Mark Burghart, said in addition to a slowed economy, collections are down after the governor moved the filing deadline to July 15.

In April, the state took into account the effects of the coronavirus pandemic when it revised its projections. The May numbers beat the new projections by six percent, but still down 20 percent compared to 2019.

“It was extremely difficult to get any information at that point and time as to what was going to transpire going into the future,” Burghart said. “Unemployment, nobody knew what it was going to be like, so from the perspective of the estimate that was done, the May estimate, we came very close to that number,” Burghart said.

Retail sales tax collection brought in $173 million in May, but still down 13 percent compared to last year.

“We expected a drop in sales tax and that’s why we lowered the estimate,” Burghart said.

However, one area that is actually performing better than last year is online sales tax collections, which is more than $1 million higher than last year.

“More individuals are using e-commerce for their purchases, and just the fact that we have more out of state retailers registered with us,” Burghart said.

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