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Kansas Tax Collections Down…Again
The shortfall is 2.3 percent.
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Personal income tax (PIT) revenue in August was $893.7 million, $18.2 million below estimate.
The state Department of Revenue reported Thursday that the state collected about $427 million in taxes last month, when a fiscal forecast made in April predicted that the state would take in more than $437 million.
Kansas tax revenue fell $10.5 million below estimates in August, continuing a rough start to the fiscal year.
The state had expected to bring in $10 million in corporate income tax revenue for the month, but took in less than $304,000, a miss of almost 97 percent.
Figures released by the state Department of Revenue show general objective revenue tax collections were up 3.8 percent during the 2015-16 fiscal year, which ended in June.
The revenue agency pointed to strains on the economy that it suggested is contributing to the weak tax collections.
A spokesman stated retail sales and corporate income tax receipt shortfalls pulled revenue collections for August below expectations.
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Kansas repeatedly has missed monthly revenue targets and struggled to balance its budget since GOP legislators heeded Brownback’s call to slash personal income taxes in 2012 and 2013 as an economic stimulus. Each month that falls below expectations increases pressure on the remaining months to produce positive revenue figures in order to maintain a balanced budget. Brownback’s administration has already begun laying the groundwork for potential future reductions as well. Fiscal year-to-date General Fund collections total $4 billion, which is $73.6 million, or 1.8 percent, below estimate. Fourteen conservative incumbent Republicans were ousted in last month’s primary election. Many successful challengers sought to tie their opponents to Brownback and the state’s ongoing budget troubles.