TOPEKA — Kansas tax collections exceeded revised expectations last fiscal year and in the final month before a rollback of Republican Gov. Sam Brownback’s signature tax cuts.
The state collected $5.82 billion from all tax sources over the course of the fiscal year that ended Friday. That beat the state’s April estimate of $5.74 billion in collections and actual collections in the previous year, which totaled $5.76 billion, according to a release issued Monday by the Kansas Department of Revenue.
The state’s consensus revenue group — composed of legislative researchers, university economists and representatives from the departments of revenue and budget — repeatedly decreased those projections over the course of 2015 and 2016 because of decreased revenue. In November 2014, the group predicted $6.1 billion in total taxes for the fiscal year that ended Friday, nearly $300 million more than the state brought in.
The group slightly upgraded its expectations in April.
June tax collections totaled $608.8 million, coming in $33.3 million over June 2016 collections and $72.2 million over estimates made in April by the consensus revenue group.
Revenue Secretary Sam Williams said in the release that the collections indicate a growth in wages and jobs filled in the state.
A significant rollback of Brownback’s income tax cuts went into effect over the weekend, raising income tax rates. It is expected to bring in an extra $1.2 billion through June 2019.
According to the release, the state collected an extra $55 million in individual income taxes this fiscal year over the previous year. Corporate income taxes also came in higher than expected, according to the release.
July collections will be the first under the tax plan passed last month by the Legislature that increased income tax rates and closed a tax exemption for more than 300,000 Kansas farms and businesses.
For the rest of the year, joint filers making less than $30,000 will pay 2.9 percent. Those making from $30,001 through $60,000 will pay 4.9 percent, and top earners will pay 5.2 percent. Beginning in 2018, the rates will increase again to 3.1, 5.25 and 5.7 percent.