Personal income tax strength pushes Vermont tax revenues

Led by the vital personal income tax, General Fund revenues totaled $118.52 million for December 2013, +$4.10 million or +3.58% ahead of the monthly target. Year to date, General Fund receipts were $623.90 million, +$3.01 million or +0.48% above the cumulative target, and +$22.33 million (+3.71%) ahead of the same period for the prior fiscal year (FY 2013). Secretary of Administration Jeb Spaulding released the December 2013 General Fund (GF) revenue results today. December is the sixth month of fiscal year (FY) 2014.
Secretary Spaulding commented, ‘We are pleased by the strong performance of personal income tax collections, especially in both with-holding and estimated payments components. The first indicates that the labor market recovery remains on course and the second is a possible positive indicator for the spring income tax filing season. Corporate collections continue to lag expectations, but may actually be a good sign for job creation, as companies begin to plow profits back into hiring workers. The 6.3% increase in Rooms & Meals Tax collections over the first six months of last year is a great sign for the travel and recreation industry in Vermont.’
Regarding collections in the Transportation Fund, Spaulding said, ‘December results from the Purchase and Use Tax on vehicles pur-chased were very encouraging, but we saw some slippage in gasoline receipts due to late filing at the end of November and some mod-eration in fuel prices in recent months. The restructuring of the gas tax in the last legislative session made collections a little more sensi-tive to gas prices, not just gallons sold.’
Secretary Spaulding concluded, ‘To be on target, or a little ahead, in all three major funds halfway through the budget year is good news, especially given the stormy weather we have encountered here and in Washington, DC. We look forward to the consensus reve-nue forecast update due on January 16 for additional insight on the performance of specific revenue components.’
Detailed charts by fund, for the month, year to date and prior year are shown below.