DALLAS – After a one month reprieve, Kansas revenues again fell below projections in December, according to state Revenue Secretary Nick Jordan.
Combined receipts of income tax, sales tax and other revenues fell $27 million below the forecast, which was lowered in November after four months of shortfalls.
Withholding payments unexpectedly dropped 3.5% below collections from 2014 in the last week of the month, pulling down individual income tax receipts to $25.9 million below expectations, Jordan said.
Sales tax receipts also did not meet expectations. Collections for accounts representing half of all state sales tax receipts were down 4.2%. Overall, sales tax receipts, which reflect spending in November, were $14 million below expectations for December.
"It is the first time this fiscal year that individual income tax receipts have not grown compared to the prior fiscal year to date," Jordan said. "It is too soon to tell if this is a one-time event or not."
Total receipts for the fiscal year to date, reflecting money collected by the Kansas Department of Revenue and other agencies totaled $2.9 billion. Revenue from all tax sources was $19.2 million under estimates for the fiscal year-to-date.
Insurance premiums were $7.9 million more than estimates for the month. Overall revenue receipts collections – which includes corporate franchise fee, insurance premiums, interest, net transfers, agency earnings and miscellaneous – were $651.6 million for the month, or $28.3 million more than expectations.
The figures came as Gov. Sam Brownback prepared to address the opening session of the Kansas Legislature Jan. 12. In November, the state surpassed revenue expectations by about $8 million. Jordan said the November figures were "a good sign."
