Kansas topped revenue estimates by more than $8 million in August, according to a report released Friday by the Kansas Department of Revenue.
Individual income tax collections were more than $9 million below the August estimate, according to Friday’s revenue report. But retail sales tax revenue and corporate income tax collections both outpaced expectations for the month.
The tax revenue report follows the GOP-dominated Kansas Legislature’s June decision to raise taxes in an effort to help the state’s fiscal health after budget issues in recent years.
In doing so, lawmakers overrode Gov. Sam Brownback’s veto of a bill that essentially rolled back his earlier tax cuts.
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The changes in the new bill raised individual income tax rates and ended a tax exemption for certain business owners.
“We are still observing the effect of the tax increase and how it’s playing out in businesses and with individuals across the state,” Revenue Secretary Sam Williams said in a statement. “It’s still too early to distinguish genuine growth with increased revenue from the tax increase.”