Kansas officials optimistic about September’s 40% surge in corporate tax revenue

Oct 03, 2022 | 3:02 pm ET

By Tim Carpenter

Kansas officials optimistic about Septemberâs 40% surge in corporate tax revenue

The Kansas Department of Revenue reported the state took in $96 million or 11% more in state tax revenue in September than anticipated. State officials said a 40% surge in corporate income tax revenue was a sign of business optimism for the rest of 2022. (Tim Carpenter/Kansas Reflector)

TOPEKA — The Kansas Department of Revenue said Monday a 40% surge in state corporate income tax collections in September could signal companies anticipated solid return on investments through the remainder of 2022.

Overall, the revenue department took in $96.2 million, or 11.1%, more than anticipated for the month with total state tax receipts hitting $961 million. The figure was $84.5 million greater than tax receipts in September 2021.

Corporate income tax collections in Kansas last month reached $170.2 million, which was $49.2 million or 40.6% above the official projection. This category of tax revenue is comprised primarily of estimated tax payments by corporations.

“The higher-than-expected corporate estimated payments suggests that corporations again anticipate favorable profit margins in 2022,” said Mark Burghart, secretary of the state Department of Revenue.

In September, Kansas individual income tax collections climbed $31.3 million, or 7.6%, for the month with $441.3 million taken in. That was $34.5 million, or 8.5%, greater than in September 2021.

Combined retail sales tax and compensating use collections in the state treasury were $309.6 million last month, which was $23.7 million more than last September.

Gov. Laura Kelly, who is seeking reelection against GOP Attorney General Derek Schmidt in November, said her administration’s emphasis on creating jobs and attracting businesses had resulted in 26 months of revenue surpluses.

“That has enabled us to provide tax credits for teachers and cut taxes for seniors, veterans, homeowners and businesses, all while paying off debts and fully funding our schools,” she said.