The state of Kansas didn’t collect as much in taxes as expected last month.
However, the state is still ahead for the current fiscal year.
The Department of Revenue reported that the state collected nearly $425 million in taxes in March.
Total tax collections were nearly $12 million below expectations for the month. State sales tax receipts were $2.3 million more than anticipated while individual income tax receipts were $11.1 million below expectations for March.
The shortfall ends the state’s four-month streak of tax collections that exceeded expectations.
Even with the drop in March, the state's tax collections are still nearly $57 million ahead of expectations for the current fiscal year that began in July 2016.
“Although withholding receipts grew $7.6 million compared to the prior year, that was offset by $12.3 million more in refunds paid out this month compared to March 2016, pulling individual income tax receipts below estimates,” said Revenue Secretary Sam Williams. “The March revenue receipts continue the trends we have seen over the last few months - withholding and state sales tax collections continue to improve, reflecting an encouraging job and consumer environment for Kansans.”
Earlier this year, the Internal Revenue Service announced it was holding all refunds for taxpayers claiming Earned Income Tax Credits and Additional Child Tax Credits until mid-February for extra scrutiny as a fraud prevention measure. The delay also pushed back when Kansas received many of those returns, so refunds typically paid in late-January or February are being paid out in March.
Lawmakers are considering raising taxes to fix the state's budget problems.
Kansas is facing budget shortfalls totaling more than $1 billion through June 2019.
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