General Fund Revenue Report - October 2022

By Eric Dice , Assistant Executive Director | 5 months ago

General Fund revenues continue to modestly outperform the official estimate again through four months of the fiscal year. Revenues were $188.8 million more than expected in October, bringing the year-to-date total to $385.1 million above estimate, or 3.1%.

October’s positive result started with the sales and use tax, which generated $94.2 million more than expected. Motor vehicle and non-motor vehicle sales tax collections were better than expected last month. The other major drivers were the final annual payments from both the personal income tax and the corporate net income tax paid this month. PIT final payments were $78.3 million higher than anticipated, while the CNIT final payment side contributed another $16.9 million above estimate.

Several tax types of intermediate size were lower than expected in October, including the cigarette tax, the realty transfer tax, and the inheritance tax. On the flip side, non-tax revenue continued to exceed estimate, attributable to the higher interest rate environment and the larger than normal General Fund balance currently held by the Treasury.

Finally, personal income tax withholdings were slightly above estimate last month by $2.0 million, or 0.2%, but remain about a half-percent or $20.4 million below estimate for the entire fiscal year to date. These revenues, which are tied to salaries, wages, and jobs, are important to keep an eye on as we move deeper into the fiscal year, as many forecasters project that economic conditions will slow.

For October

  • Total General Fund collections were $188.8 million higher than expected (6.4%)
  • General Fund tax revenues were $175.4 million higher than anticipated (6.0%)
  • The corporate net income tax was $16.6 million higher than expected (10.4%)
  • Sales and use tax collections exceeded projections by $94.2 million (8.0%)
    • Non-motor collections were $82.5 million higher than projected (7.8%)
    • Motor vehicle collections came in above estimate by $11.7 million (10.7%)
  • Personal income tax collections were $68.7 million higher than the official estimate (5.6%)
    • Employer withholdings on wages and salaries were $2.0 million higher than anticipated (0.2%)
    • Quarterly estimated payments were $11.5 million below estimate (-10.8%)
    • Final annual payments were $78.3 million more than expected (64.3%)
  • Cigarette taxes were $5.8 million under estimate (-6.7%)
  • Realty transfer tax revenues were $0.7 million below estimate (-1.0%)
  • Inheritance tax collections were $2.1 million lower than estimated (-1.7%)
  • Non-tax revenues were $13.5 million above the official estimate (42.2%)

For the 2022/23 Fiscal Year to Date

  • Cumulative General Fund revenues are $385.1 million higher than expected (3.1%)
  • General Fund tax revenues were $344.1 million higher than projected (2.8%)
  • Corporate net income tax revenues are $216.4 more than expected (17.0%)
  • Sales and use taxes are $137.3 million more than expected (2.9%)
  • Personal income tax collections are on target, just $0.5 million higher than anticipated (0.0%)
  • Cigarette taxes are $25.9 million below estimate (-8.2%)
  • Realty transfer taxes are $12.3 million above estimate (5.2%)
  • Inheritance taxes are $10.5 million below projections (-2.1%)
  • Non-tax revenues are $41.0 million above the estimate (35.9%)
General Fund Revenues - Year-to-Date Performance vs Official Estimate
Through October 2022
  YTD Estimate YTD Revenues Difference
Corporation Taxes
Accelerated Deposits $0.0 −$3.2 −$3.2
Corporate Net Income Tax $1,275.1 $1,491.5 $216.4
Gross Receipts Tax $16.8 $19.4 $2.6
Utility Property Tax $1.1 $3.3 $2.2
Insurance Premiums Taxes $26.5 $25.8 −$0.7
Financial Institutions Taxes $15.0 $12.3 −$2.7
Subtotal - Corporation Taxes $1,334.5 $1,549.1 $214.6
Consumption Taxes
Sales and Use Tax $4,692.8 $4,830.1 $137.3
Cigarette Tax $315.0 $289.1 −$25.9
Other Tobacco Products $53.7 $51.2 −$2.5
Malt Beverage Tax $7.4 $8.1 $0.7
Liquor Tax $140.3 $143.0 $2.7
Subtotal - Consumption Taxes $5,209.2 $5,321.5 $112.3
Other Taxes
Personal Income Tax $5,042.4 $5,042.9 $0.5
Realty Transfer Tax $237.7 $250.0 $12.3
Inheritance Tax $488.9 $478.4 −$10.5
Gaming $91.7 $110.4 $18.7
Minor and Repealed $0.3 −$3.6 −$3.9
Subtotal - Other Taxes $5,861.0 $5,878.1 $17.1
 
Non-Tax Revenue $114.2 $155.2 $41.0
General Fund Total $12,518.9 $12,904.0 $385.1

 

General Fund Revenue Report - October 2022

By Eric Dice , Assistant Executive Director | 5 months ago

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