Kansas income tax collections are ahead of estimates by 7.2 percent for the first fiscal quarter under a new income tax increase, the Kansas Department of Revenue announced Thursday.
Between July 1 and Sept. 30, the state collected $756.4 million in income taxes, putting it more ahead of last years’ estimates by 19 percent. July 1 marked the beginning of the new fiscal year and a tax plan expected to boost revenue by $1.2billion in two years.
The state has collected $1.5 billion in total taxes in that time frame, putting it 10.4 percent ahead of estimates.
Large revenue gains were seen in income and corporate income taxes, but consumption taxes for cigarettes and tobacco products and liquor gallons also increased.
“I’m pleased to see continued strength in sales tax and corporate income tax revenue,” Revenue Secretary Sam Williams said in a news release.
Income tax collections also beat estimates for the month of September. The state collected $346.6 million in September, putting it 15.7 percent ahead of estimates and 24.6 percent ahead of September 2016 collections.
Lawmakers overrode Gov. Sam Brownback’s veto in June to roll back his controversial income tax cuts.
According to the release, filers who hold pass-through businesses, such as LLCs, do not have to make payments under the new tax law as long as they pay by Tax Day in April. The release also says employers are showing variability implementing withholding tables. It says that will complicate estimates for the fiscal year.