MANHATTAN, Kan. (KSNT) – Cities across Kansas saw an increase in sales tax revenue, according to the Kansas Department of Revenue‘s latest report. Due to a delay in sales tax reporting, KDOR’s August 2020 report reflects mostly revenue collected in June.
The city of Manhattan saw an increase in sales tax revenue for the first time since the coronavirus pandemic began. In June, the city collected more than $964,000 in sales tax revenue. This is more than the city collected in June of 2018 and 2019.
This is also the first time since February that the city is seeing more revenue than was budgeted for the year. Mayor Usha Reddi said some of this increase can be attributed to online sales tax revenue.
“More people are going online and are purchasing,” Reddi said. “All of this money that may not have gone to a retail store in person and bought their goods, they’re actually going online and purchasing it.”
Reddi said the city collected $166,000 in online sales tax in June. This is thanks to a law that went into effect in 2019 that forces online retailers to collect local and state sales tax when Kansans shop online.
Although this makes her cautiously optimistic for the future, Mayor Reddi said they are not out of the woods yet.
“There was a revenue shortage already of about three million dollars that we anticipated,” Reddi said. “We were able to take care of staffing, all of the summer employments, seasonal workers we didn’t hire, so we already made drastic cuts.”
This comes as Visit Manhattan reports they are seeing an increase in people wanting more information about visiting Manhattan.