The final official analysis of Kansas’ fiscal 2011 general revenue shows collections of $5.88 billion in the year that ended June 30, up from $5.19 billion in fiscal 2010.
The $689.6 million increase in general fund revenues topped fiscal 2010 collections by 13.3%, and beat the final adjusted estimate from May by $107.2 million.
The final report by the Kansas Legislative Research Department of fiscal 2011 collections said tax revenues totaled $5.69 billion. Interest earnings on state deposits and fee income provided another $190 million.
Tax revenues were $707 million more than in fiscal 2010, an increase of 14.2%, and $99 million above expectations.
Retail sales tax collections of $1.956 billion were 19% higher than in fiscal 2010 but $24.6 million below the official estimate.
The state sales tax rate went to 6.3% from 5.3% at the beginning of fiscal 2011. The increase brought in an additional $395 million.
The official May estimate calls for a 4.5% increase in sales tax collections in fiscal 2012.
Income tax receipts were strong in fiscal 2011, the legislative report said, with total receipts of $2.96 billion, up $109 million from 2010 collections.
The state individual income tax generated $2.71 billion in fiscal 2011, up from $2.42 billion in fiscal 2010 and $114 million more than expected.
However, officials said the individual receipts are skewed because two wealthy Kansans redeemed investments to avoid an expected increase in federal capital gains tax rates. Those transactions brought in an additional $40 million to $100 million in income tax receipts.
The report said withholding taxes on salaried taxpayers were up 4.9% from 2010, with estimated tax payments from self-employed individuals up 6.8%. Balance-due payments in 2011 were up $122 million from 2010.
The latest official estimate predicts the state will collect $6.05 billion of total general revenues in fiscal 2012?. The expected total includes projections of $2.97 billion of income tax collections and $2.1 billion of sales tax revenues.
The legislative budget group adjusted the outlook for fiscal 2012 revenues in late May after the Legislature adjourned. The Consensus Estimating Group in April had predicted fiscal 2012 revenues of $5.79 billion, but the May estimate considered legislation passed after mid-April.
The state redeemed a $700 million certificate of obligation issue on June 27 that it used to balance the revenue flow with expenses in fiscal 2011. In early July, the Kansas State Finance Commission approved the budget office’s request for a $600 million certificate of indebtedness for cash-flow needs in fiscal 2012 for the 13th straight year.