New forecast boosts Kansas tax revenue projections by $1.3B

Capitol Bureau

TOPEKA, Kan. (AP) — A new Kansas fiscal forecast predicts that state government will be awash in cash more than enough to allow big tax cuts that Democratic Gov. Laura Kelly and Republican legislators already planned to pursue.

The new forecast increased the projection for the state’s total tax collections by $1.3 billion for the current 2022 budget year that began July 1. The new projection of $8.9 billion is 17.1% higher than the $7.6 billion predicted previously.

The forecasters also predicted a 3.2% increase in tax collections for the 2023 budget year.

Kelly wants to eliminate the state sales tax on groceries and Republicans like that idea and cutting income taxes as well.

Governor Laura Kelly’s statement on economic health

“Since day one, my administration has prioritized fiscal responsibility to put Kansas back on the right track. The latest revenue numbers show our efforts have worked, and our state’s fiscal health means we can now eliminate Kansas’ Food Sales Tax. However, it does not mean that we should return to the dangerous tax experiments we’ve spent the last three years recovering from. I urge the Legislature to get a clean, standalone, ‘Axe the Food Tax’ bill to my desk as soon as possible.”

Gov. Laura Kelly

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