Local economist explains drop in sales tax revenue

Local News

TOPEKA, Kan. (KSNT) – A local economist explained why sales tax revenue is down across Kansas.

City leaders in Kansas are dealing with the impacts of declining sales tax revenue. Washburn University economics professor Paul Byrne said the decline doesn’t mean people have less money to spend.

Byrne said the data in Shawnee County shows there’s no drop in employment or in wages. Instead, people are just spending their money differently than before.

“It could be just a general decline in consumer confidence. People may be saving their money a little bit more, not spending it. It could be a change in the sectoral shift of the economy, people are spending the money, but they’re spending in areas either online or locally that aren’t subject to the sales tax,” Byrne said.

He said the numbers show that Shawnee County and Topeka saw fewer sales tax money in July than in August. The city’s sales tax drop was even bigger than the county’s overall.

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