Individual and LLC Income Tax Analysis for Fiscal Year 2018
$400 Million More Collected over Original Projections
The State just closed out its Fiscal Year for 2018, (FY-18). FY-18 ended on June 30, 2018. Original tax estimators projected that Kansas would bring in $600 million more in Individual and LLC-Pass through corporation taxes.
As can be seen in the chart above, Kansas collected $1.071 billion in Individual and LLC-Pass through corporation taxes. $471 million more than the original projections. The breakdown appears to be as follows; $84 million more in individual, $235 million more in LLC non-wage income, and $152 million in capital gains. The LLC non-wage income is the biggest outlier, being under projected by 100%. The legislature has made major tax and budget decisions working under the assumption the LLC non-wage income was in the $230 million range when it appears to be in the $465 million range. Capital gains are the direct result of a 25% return in the stock market in 2017. Those capital gain taxes were paid in 2018. It is doubtful the capital gains will repeat in the future. However, a large portion of the LLC Non-Wage income should, less any over payment of quarterly estimates.
It will not really be known until June of 2019 what collections will be for FY-19. The estimators will have difficult task in November of 2018 and April of 2019 when they produce official forecasts for the legislators to use in budgeting.