Kansas tax revenue, July 2021

For July 2021, Kansas tax revenue was 38.6 percent less than July 2020. There are important caveats to consider.

Tax reports from the State of Kansas for July 2021 show tax revenues falling from the previous month and also lower than the same month the prior year. Comparing July 2021 with July 2020 needs to consider that the income tax deadline for 2020 was changed from April to July. That boosted July 2020 tax collections far above its usual trend.

Fiscal year 2022 starts with July, so there is no need for year-to-date comparisons.

Also, after more than one year of pandemic, we know how it affected tax collections.

When reporting on Kansas tax collections, comparison is usually to the estimated tax collections. Those estimates are revised based on economic conditions affected by the response to the pandemic. To get a feel for the effects of the response to the pandemic, we should compare to the same month the prior year. But with shifting tax deadlines, these comparisons are difficult.

(The estimated revenue figures are still important because the state bases the budget on them. If the actual revenue is much below the estimated revenue, there may not be enough income to pay expenses.)

For July 2021, individual income tax collections were $255.8 million, up by 58.7 percent from the prior July (but remember the 2020 tax deadline shift.) Retail sales tax collections rose by 6.9 percent to $233.6 million from July 2020. Total tax collections were $602.6 million, up 14.8 percent from June 2020. A nearby table summarizes. (Click charts and tables for larger versions.)

My interactive visualization of Kansas tax revenue has been updated with this data. Click here to use it.

The governor’s press release for this data is at Governor Laura Kelly Announces July Tax Receipts. As of this writing the report from Kansas Legislative Research Department is not available, but will be on this page when it is prepared.