General Fund Revenue Update - December 2021
By Eric Dice , Assistant Executive Director | 2 years ago
At the halfway point of the 2021/22 fiscal year, General Fund revenues stand $1.47 billion above the official estimate, or 7 percent higher than expected. Revenues are in very good shape approaching the governor’s executive budget release next month in February.
December revenues were strong in almost all tax types, finishing $464.3 million ahead of estimate last month. Corporate net income taxes were $246.6 million higher than anticipated, driven by exceptional quarterly payments.
Sales tax collections were also strong in December, finishing $101.9 million above estimate. Non-motor collections from the holiday shopping season were the prime factor - $95.2 million above estimate or 10 percent. Motor vehicle collections were also solid, adding $6.8 million above estimate or 5.1 percent.
Personal income tax collections were $59.5 million above estimate. Employer withholdings on wages and salaries were $26.0 million above estimate, while non-withheld collections from quarterly and final payments were $33.5 million above estimate.
Some of the intermediate-size taxes bear mentioning. Realty transfer taxes were $24,5 million above estimate or 36.5 percent in December. Similarly, the inheritance tax exceeded projections by $24.9 million, or 21 percent.
Looking Ahead:
In January, many personal income taxpayers will remit their next quarterly estimated payment. Sales tax collections from the balance of the holiday shopping season will also arrive.
The 2022/23 budget cycle will kick off on February 8 with the governor’s budget address. Budget hearings for the House Appropriations Committee will commence the following week.
For December:
- Total General Fund collections were $464.3 million higher than expected (13.7 percent)
- General Fund tax revenues were $453.7 million higher than anticipated (13.5 percent)
- The corporate net income tax was $246.6 million higher than expected (38.4 percent)
- Sales and use tax collections exceeded projections by $101.9 million (9.4 percent)
- Non-motor collections were $95.2 million higher than projected (10.0 percent)
- Motor vehicle collections were $6.8 million above estimate (5.1 percent)
- Personal income tax collections were $59.5 million higher than the official estimate (4.8 percent)
- Employer withholdings on wages and salaries were $26.0 million higher than anticipated (2.3 percent)
- Non-withheld PIT payments were $33.5 million more than expected (30.0 percent)
- Realty transfer tax revenues were $24.5 million above estimate (36.5 percent)
- Inheritance tax collections were $24.9 million higher than estimated (21.0 percent)
- Non-tax revenues were $10.5 million above the official estimate (37.0 percent)
For the 2021/22 Fiscal Year to Date:
- Cumulative General Fund revenues are $1.47 billion higher than expected (7.0 percent)
- General Fund tax revenues were $1.41 million higher than projected (8.3 percent)
- Corporate net income tax revenues are $548.9 million more than expected (30.2 percent)
- Sales and use taxes are $409.1 million more than expected (6.2 percent)
- Personal income tax collections are $308.0 million higher than anticipated (4.7 percent)
- Non-tax revenues are $61.5 above the estimate (1.5 percent)
| General Fund Revenues - Year-to-Date Performance vs Official Estimate |
| Through November 2021 |
| |
YTD Estimate |
YTD Revenues |
Difference |
| Corporation Taxes |
| Accelerated Deposits |
$0.0 |
$7.8 |
$7.8 |
| Corporate Net Income Tax |
$1,819.6 |
$2,368.5 |
$548.9 |
| Gross Receipts Tax |
$20.9 |
$32.9 |
$12.0 |
| Utility Property Tax |
$1.6 |
$1.9 |
$0.3 |
| Insurance Premiums Taxes |
$21.2 |
$20.6 |
−$0.6 |
| Financial Institutions Taxes |
$19.8 |
$28.4 |
$8.6 |
| Subtotal - Corporation Taxes |
$1,883.1 |
$2,460.3 |
$577.2 |
| Consumption Taxes |
| Sales and Use Tax |
$6,545.7 |
$6,954.8 |
$409.1 |
| Cigarette Tax |
$535.1 |
$519.1 |
−$16.0 |
| Other Tobacco Products |
$73.4 |
$75.5 |
$2.1 |
| Malt Beverage Tax |
$12.0 |
$11.5 |
−$0.5 |
| Liquor Tax |
$232.0 |
$231.0 |
−$1.0 |
| Subtotal - Consumption Taxes |
$7,398.2 |
$7,791.9 |
$393.7 |
| Other Taxes |
| Personal Income Tax |
$6,561.8 |
$6,869.8 |
$308.0 |
| Realty Transfer Tax |
$359.1 |
$403.1 |
$44.0 |
| Inheritance Tax |
$704.9 |
$755.1 |
$50.2 |
| Gaming |
$142.2 |
$154.2 |
$12.0 |
| Minor and Repealed |
−$13.0 |
$10.7 |
$23.7 |
| Subtotal - Other Taxes |
$7,755.0 |
$8,192.9 |
$437.9 |
| |
| Non-Tax Revenue |
$4,052.5 |
$4,114.0 |
$61.5 |
| General Fund Total |
$21,088.8 |
$22,559.2 |
$1,470.4 |
