January tax collections exceed estimates
Governor Laura Kelly announced that total tax collections for January were $944.5 million. That is $119.6 million, or 14.5 percent, more than the monthly estimate. This also is an 18.7 percent growth over January 2021.
“Over the past three years, my administration has taken steps to restore the Kansas economy, and that fiscal responsibility has paved the way to provide direct tax relief to Kansas taxpayers,” Governor Kelly said. “That relief will come specifically through proposals like axing the state’s sales tax on food. I urge the Legislature to send a clean bill to my desk quickly, so we can get this done for Kansas families.”
Individual income tax collections were $542.2 million. That is $82.2 million, or 17.9 percent, more than the estimate and 18.4 percent more than the previous January. Wage withholding remains strong going into 2022 reflecting both improved statewide employment and accompanying wage growth.
Retail sales tax collections were $258.2 million for January. This is $18.2 million, or 7.6 percent, more than the estimate and 14.9 percent more than January 2021. Compensating use tax collections also exceeded estimates by 5.2 percent. Those collections also are 30.2 percent more than the previous January. Both retailer’s sales tax and compensating use tax collections established new monthly collection records in January 2022.
“Individual income tax, corporate income tax, retailer’s sales tax and compensating use tax all continue to perform well as the state’s primary revenue sources,” said Secretary of Revenue Mark Burghart. “Increased holiday spending in December accounts in large part for the record sales and compensating use tax collections in January.”