Kansas revenue drops in June; income tax cut to blame
06/28/2013 4:50 PM
06/28/2013 4:51 PM
Despite the economic recovery in other states, total revenue in Kansas dropped 6.2 percent in June compared with June 2012, state figures released Friday show.
State revenue in some categories was up. But income tax revenue plunged more than 17 percent from the previous June, accounting for the shortfall.
Overall, the state took in $51.3 million less in income taxes this June than last June, the figures show. Sales tax revenue also dropped, although use taxes — on catalog sales — were up more than 10 percent.
The 2012 tax cut bill went into effect January 1. It broadly cut income tax rates.
The Kansas revenue picture was better in May. Overall state revenues were 3.4 percent higher in Mayo 2013 compared with from May 2012, although income revenue dropped that month too.
For the entire fiscal year, state revenue grew 2.7 percent, led by increases in sales, use, and corporate taxes. Income taxes grew by less than one percent, again because of individual tax reductions in the last six months of the fiscal year, which reduced the flow of taxes to the government.
Income tax revenue in June was higher than projections, just lower — much lower — than a year ago.
“We are heading into fiscal year 2014 on firm financial footing and I’m pleased to see that Kansas’ economy continues to improve,” said Revenue SecretaryNick Jordan in a statement.
Join the Discussion
The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.