Vermont tax revenues fall short in January

General Fund revenues totaled $149.62 million for January 2014, -$2.14 million or ‘1.41% behind the monthly target, as the vital Personal Income Tax was below expectations. Year to date, General Fund receipts are $773.52 million, -$2.14 million or -0.28% below the cumulative target. Year to date revenue is +$23.03 million (+3.07%) ahead of the same period for the prior fiscal year (FY 2013). Secretary of Administration Jeb Spaulding released the January 2014 General Fund (GF) revenue results Thursday. January is the seventh month of fiscal year (FY) 2014.
Spaulding said, ‘January revenue collections were mixed, with some components ahead of target and some behind. Overall, our three major funds were below target for the month, but remain essentially on target for the year. Rooms and Meals Tax collections were strong in January, as were receipts from the Corporate Tax, but these were offset by lagging Personal Income Tax revenues and weaker than expected receipts from the Sales and Use Tax.’
Regarding collections in the Transportation Fund, Spaulding said, ‘Though the January Transportation Fund results were down versus expectation, it was not a significant deviation. Gas prices are volatile and have pulled back a little more than anticipated, which affects revenue collections. We are pleased by the continuing strong performance in the Purchase and Use Tax, 10.8% ahead of last year, reflecting increased automobile sales during this fiscal year.’
Secretary Spaulding concluded, ‘It is not wise to read too much into a single month’s results, but the Shumlin Administration will be keeping a close eye on the various revenue components, especially the Personal Income Tax, to detect any longer term trends away from projections. Right now the General Fund is on target for the year and running a little more than 3% ahead of last year. That is positive.’
The Transportation Fund and Education (SEETABLESBELOW) were also behind both expectations for the month and for Year to Date. The gasoline tax has been elusive the last couple of years as a combination of people driving less and driving more fuel-efficient vehicles has now combined with lower gasoline prices. Higher taxes imposed on gasoline by the Legislature last year have not been able to keep up with the falling demand/prices.
Meanwhile, just as with the General Fund, the Education Fund was hurt by lower revenues from the Sales Tax. Lottery sales were also down.
Source: Secretary of Administration 2.6.2014