General Fund Revenue Update - December 2021

By Eric Dice , Assistant Executive Director | 10 months 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

 

 

 

General Fund Revenue Update - December 2021

By Eric Dice , Assistant Executive Director | 10 months ago

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