Tax revenue receipts fell short of expectations for December 2015.
Withholding payments unexpectedly dropped 3.5 percent below collections from 2014 in the last week of the month pulling down individual income tax receipts to $25.9 million below expectations.
Sales tax receipts also did not meet expectations. Collections for accounts representing half of all state sales tax receipts were down 4.2 percent.
Overall, sales tax receipts, which reflect spending in November, were $14 million below expectations for December.
“It is the first time this fiscal year that individual income tax receipts have not grown compared to the prior fiscal year to date,” said Secretary of Revenue Nick Jordan. “It is too soon to tell if this is a one-time event or not.”
Total receipts for the fiscal year to date, reflecting money collected by the Kansas Department of Revenue and other agencies totaled $2.9 billion.
Revenue from all tax sources was $19.2 million under estimates for the fiscal year-to-date.
Insurance premiums were $7.9 million more than estimates for the month.
Overall revenue receipts collections – which includes corporate franchise fee, insurance premiums, interest, net transfers, agency earnings andmiscellaneous – were $651.6 million for the month, or $28.3 million more than expectations.
The net transfers for December were $56.2 million more than estimates, primarily from an additional $56.9 million in transfers that were authorized from the special allotment authority in HB 2135 and announced in November following the Consensus Revenue Estimating Group’s updated estimates.