Corporate and sales tax receipts fell short of expectations for September, according to state officials.
Corporate income taxes, the rate of which has not changed, were down for the month $17.5 million, Kansas Department of Revenue officials announced. State sales tax rates, which were increased July 1, 2015, were down for September by $34.3 million.
A KDOR spokesman stated weaker than expected quarterly estimated payments related to capital gains and the stock market caused individual income tax receipts to fall short for the month by $14.2 million.
Despite being lower than expected for September, individual income tax receipts, the rates of which were lowered for all Kansas taxpayers, were up year-to-year for the first quarter of the fiscal year by $25.4 million, the spokesman said.
Corporate and sales tax receipts, which have both been weaker than expected since the start of the tax year, were lower than expected following a regional trend. As of July 31, only Oklahoma collected more than expected on corporate income taxes, according to the spokesman.
Kansas’ rural counties that are dependent on agriculture and oil revenues have continued to underperform by double digits, pulling down overall state sales tax receipts, the spokesman said.
“The significant contributors to less-than-expected September receipts were individual estimated payments related to capital gains and the stock market; a continued regional trend of low corporate tax receipts and sales tax receipts,” said Revenue Secretary Nick Jordan. “Withholding tax receipts, which are an indicator of jobs and income, continues to perform above the previous year.”
The state collected $521 million in September total tax revenue receipts or $44.9 million less than expected. Total state general fund collections for the fiscal year to date were $1.3 billion, $67 million less than estimated.
