TOPEKA — Gov. Laura Kelly said state government tax revenues in August were nearly $23 million above projections, reflecting collections of personal income tax and retail sales tax greater than last year’s.

Kelly, a Topeka Democrat, said total state revenue for the month hit $665 million, which exceeded the estimate developed in April by state budget and economic analysts by $22.8 million, or 3.5%. Tax collections by the Kansas Department of Revenue during August were 4% higher than in August 2023.

The revenue stream to state government hasn’t been fully modified by a tax cut that Kelly and the Legislature approved during a special session. In June, the governor signed a bill reducing state taxes by $1.2 billion over three years that was approved with bipartisan support of legislators.

The focus of that compromise law was changing the state income tax rate, but a statewide sales tax on groceries will be fully repealed Jan. 1.

“While we are seeing collections higher than the estimate, we likely won’t see the impact of the income tax cuts from Senate Bill 1 on monthly collections until the beginning of next year,” Kelly said. “Because of that timing, we must continue to be fiscally responsible for our long-term outlook.”

Individual income tax collections for Kansas were $329 million, or $19.4 million, more than the August estimate. That represented a 10.1% surge from August one year ago. In terms of corporate income tax collections, the state took in $20.2 million during the month. That meant the state received $9.8 million and 32% less than the official projection for August. Kansas corporate tax revenue was 19% higher in August 2023.

Combined retail sales tax receipts grew to $294 million in August. That was $12.6 million or 4.5% more than the estimate and up $2.2 million or 0.7% from August 2023.

House Speaker Dan Hawkins, a Wichita Republican, said the revenue report demonstrated the “state continues to take in more taxpayers’ dollars than needed.”

He said the Legislature should work on property tax reform when the 2025 session opened in January. The entire state House and Senate are up for election in November.

The special session tax bill was endorsed 121-2 in the House and 34-4 in the Senate in June, but there was bipartisan disappointment that the final compromise didn’t do much to moderate state property taxes.

“To help get Kansans’ taxpayer money back in their hands where it belongs, House Republicans are already working on legislation for the 2025 session that would help ease the burden of rising property taxes,” Hawkins said. “These revenue numbers (for August) provide even more proof that additional tax relief, especially property tax relief, is not only needed but can be implemented responsibly.”

• Tim Carpenter is a reporter for the Kansas Reflector, a nonprofit news service that covers the Kansas Statehouse.