State revenues expected to fall due to coronavirus pandemic

Capitol Bureau

TOPEKA, Kan. (KSNT) – The month of April is usually one of the biggest tax collection months of the year but because of the coronavirus outbreak, that’s not expected to be the case this year.

“This virus has essentially changed everything for everyone” said Department of Revenue Secretary Mark Burghart.

Burghart said the state revenues didn’t suffer too much in March. Revenues were down 1.6 percent compared to projections.

Going forward, those numbers could get worse.

“For April, we’re going to see a significant reduction in receipts,” Burghart said.

He said much of the revenues that would normally be paid by the tax filing deadline in April will be spread throughout the upcoming months until the new deadline in July.

Burghart also said the virus will have Kansas seeing different purchasing patterns. He expects more shopping to be done online, and said there could be more grocery shopping compared to less purchases for big ticket items like cars and TVs.

He said for the next few months, how much the state collects will be determined by how much the economy slows down and how many people lose their job.

“We expect declines in withholding tax and estimated tax payments, which would be made by business owners, it’s tough to make estimated tax payments when you’re not generating income,” Burghart said.

State officials will get a chance to adjust consensus revenue projections due to the coronaviris pandemic later this month. That happens twice a year. It will take place April 20.

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