Vermont Business Magazine Revenue collections for the month of July, the first month of the new fiscal year, show a continued weakness in the Personal Income and Sales taxes. This under-performance, typical of fiscal 2017, comes despite lowered expectations. General Fund revenues collected for the month totaled $102.32 million, -$0.62 million below the consensus revenue target adopted by the Emergency Board on July 21, 2017, according to Secretary of Administration Susanne Young.
The below target performance was driven by a -$1.38 and -$0.65 million under performance in the Personal Income and Sales and Use Tax respectively, while all other revenue types exceeded expectations. Personal Income is the General Fund's most important revenue sources and the Sales tax is the second. The Corporate tax has been strong in recent months, but tends to be volatile. July marks the first month of fiscal year 2018 and therefore monthly and cumulative totals are the same.
Secretary Young said in a statement, “Overall, the new fiscal year with the General and Education Funds was only slightly below target, while the Transportation Fund is essentially on target.”
The Transportation Fund collected $20.13 million for the month, $0.07 million above its $20.06 million target. The Motor Vehicles Purchase and Use and Other Fees ended slightly below target while all other revenue types finished slightly above target.
The Education Fund collected $15.75 million for the month, -$0.54 million below the target of $16.29 million.
Compared to revenues collected in State fiscal year 2017, July receipts saw a decrease of –5.65%, or -$6.12 million in the General Fund, a 5.45%, or $1.04 million increase in the Transportation Fund, and a 3.81%, or $0.58 million increase in the Education Fund.
Source: Secretary Young 8.14.2017