DALLAS - Kansas tax revenue for April came in $4.4 million below estimates as lawmakers try to make the numbers work for the fiscal year beginning July 1.
Corporate income tax receipts that were $3.3 million below estimates accounted for the bulk of the shortfall, Revenue Secretary Nick Jordan said. Individual income tax receipts were $248,000 below estimates, according to Jordan's report.
With the filing deadline coming in the middle of the month, conclusions about trends had to be hedged, officials said.
"A significant amount of tax-related mail that remains to be opened, in part because of a greater-than-expected surge of mail shortly after April 15," Jordan said.
Compared to the same month in 2014, individual income tax receipts were $4 million higher, records showed.
In a positive sign for the economy, sales tax receipts exceeded expectations by $330,000.
The Kansas Legislature returned from its spring recess on April 29 with budget deficits still unresolved.
Gov. Sam Brownback and top GOP legislators have differing opinions about holding off on an income tax break for business owners enacted by lawmakers three years ago.
Senate President Susan Wagle of Wichita and House Taxation Committee Chairman Marvin Kleeb of Overland Park said Wednesday that a reconsideration of the policy will get a serious look.
A projected $422 million budget shortfall for the fiscal year beginning July 1 must be resolved before the current session ends May 16. The estimate of the deficit came in larger than expected on April 20 after measures had already been taken to close the gap.
The state's budget problems followed personal income tax cuts in 2012 and 2013 at Republican Gov. Sam Brownback's urging. Brownback theorized that lower taxes would result in higher revenues due to a growing economy.
To recover some of the lost revenue, Brownback agreed to raise taxes on alcohol and tobacco, shifting more of the tax burden to lower income groups while preserving tax cuts for the wealthy and middle class.
Top lawmakers in the Kansas House have said they are willing to consider raising taxes, even if that means violating a pledge to Grover Norquist to never raise taxes.