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KANSAS TAXPAYERS NETWORK

Press Release
April 5, 2006
For Immediate Release

GROWTH OF TAX REVENUES IN KANSAS
by Kenneth Daniel

The following graph shows the total tax revenues of the State of Kansas according to "Tax Facts", a publication of the Kansas Legislative Research Division. Tax revenues represent only about half the revenues received by the State.

image

Fiscal
Year
FY1990
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005

Revenue
(Billions)
$2.781
$3.954
$4.199
$4.605
$4.556
$4.881
$5.085
$4.901
$5.138
$5.460
$5.885

On the Kansas Department of Revenue Website there is a spreadsheet entitled "Estimated Effect of Tax Reductions and Increases Enacted since 19951." This information is used constantly by tax increase proponents in attempts to kill tax reduction bills or justify tax increases. A Kansas legislator was quoted recently as saying "the billion dollars a year in tax cuts nearly bankrupted the state."

The reader is challenged to find the billion-dollar late-nineties dip in tax revenues in the above chart. Note that the revenues continued upward every year except 1999. Kansas had enough tax revenues to continue to grow spending mainly because the tax rate cuts stimulated the economy, which in turn ballooned tax revenues. We had our cake and ate it, too.

LOCAL TAX REVENUES

The following graph and figures show only those local taxes that are tracked by the State of Kansas. None of the revenues shown above for the state are duplicated here, although a large portion of those state tax revenues end up going to locals. There are many more local taxes, as will be shown below. Those other taxes are growing even faster than the ones tracked by the state.

image

Fiscal
Year
FY1990
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005

Revenue
(Billions)
$2.088
$2.622
$2.704
$2.724
$2.845
$3.019
$3.221
$3.497
$3.636
$3.862
$4.123

OTHER LOCAL TAXES AND FEES

Following is a partial list of local taxes and fees not tracked by the state. There are many other fees and licenses not listed here. Utility sales are listed because they are usually monopolies. Cities overcharge, then transfer money from the utility fund into the general fund through "payments in lieu of taxes" (PILOTS). Items like swimming pool charges are not listed, since the user gets value and has a choice of whether to use.

Cable/CATV Franchise Fee Receipts
Electricity Franchise Fee Receipts
Natural Gas Franchise Fee Receipts

Telephone Franchise Fee Receipts

Other Franchise Fee Receipts

Business Improvement District Taxes

Special Assessment District Taxes
City Vehicle Taxes
Emergency Phone/911 Taxes
Transient Guest Taxes
Intangibles Taxes
Cable/CATV Sales, Fees, and Services
Electricity Sales, Fees, and Services
Natural Gas Sales, Fees, and Services
Sewer/Wastewater Fees and Services
Water Sales, Fees, and Services
Storm Water Fees and Services
Fines and Forfeitures
Collected Municipal Court Costs
Collected Dog and Cat Licenses
Building and Construction Fees
Building Permit Charges
Contractor License Fees
Contractor Examination Fees
Dangerous Structure Removal Fees
Mobile Home Permits
Building Inspection Charges
Street and Curb Cut Fees
Zoning Amendment Fees
Zoning Board of Appeals Fees
Sign Permit Fees
Special Use Permit Fees
Street Vacation Fees
Zoning Change Permit Fees
Subdivision Plat Fees
Excise Taxes on Building Developments
Excise Taxes on Event Tickets

SUMMARY

From 1990 through 2005, inflation was 54.2%. State taxes were up 111.6%, and local taxes tracked by the state were up 97.5%. The taxes not tracked by the state were up far more. Most of those taxes didn't even exist in 1990.  

Kenneth Daniel (kdaniel@kssmallbiz.com) is a Topeka small business owner and free-lance writer. He is publisher of www.kssmallbiz.com, a website dedicated to Kansas small business.

Media Representatives: Please feel free to republish this article with proper credit. For information, contact Kenneth Daniel, publisher, kdaniel@kssmallbiz.com, or Sharon Dubois, editor, editor@kssmallbiz.com.

Email

KANSAS TAXPAYERS NETWORK
P.O. Box 20050 • Wichita, KS 67208
(316) 684-0082
Fax: (316) 684-7527