Kansas ended calendar year 2024 with good news on revenues.
The Department of Revenue says Kansas had $1.1 billion in total tax collections last month, beating estimates by over 6 percent and December 2023 by over 8 percent.
Individual and corporate tax collections both did well. Individual tax revenues were 7.5 percent above estimates and almost 14 percent of December 2023 numbers. Corporate tax collections were almost 20 percent above projections and nearly 17 percent ahead of the prior year.
Revenues from both categories more than offset declines in combined retail sales and compensating use tax receipts, which were 4.5 percent below estimates and almost 6 percent down from a year ago.
Separately, Governor Laura Kelly says residents could save over $150 million on their groceries with the state’s food sales tax going from 2 percent to zero earlier this week. The Department of Revenue says the final step in phasing out the tax, originally at 6.5 percent, will save shoppers across Kansas $13 million a month and families of four around $500 per year on groceries. Kelly and Kansas lawmakers reached a tentative compromise on eliminating the sales tax during the 2022 legislative session.
