Vermont Business Magazine Personal Income Tax revenues for last month surged and are running ahead of projections. General Fund revenues collected for the month of December totaled $139.62 million, $8.19 million above the consensus cash flow expectation for the month. The monthly consensus cash flow targets were established by the Emergency Board on July 21, 2017 and reflect the General Fund receipts estimated to be collected each month. December marks the sixth month and the halfway point of fiscal year 2018.
Actual December collections exceeded expectations most significantly in the Personal and the Corporate Income Tax categories, by $6.18 million and $3.86 million respectively. All other components of the General Fund were either slightly ahead, or only slightly behind, their monthly targets. At this midpoint in fiscal year 2018, the General Fund is $13.43 million ahead of the con-sensus forecast for the first half of the year. Of note, Personal Income Tax collections have exceeded year to date expectations by $9.85 million.
“December’s results put the General Fund deeper into positive territory. It is a development that again underscores the volatility in personal income tax collections that we have experienced this year,” stated Secretary of Administration Susanne Young. “The increase may reflect expedited payments in December that might not have been made until later in the fiscal year due to Vermont taxpayers planning for changes in the tax deductibility of State and Local Taxes in tax year 2018. We look forward to the analysis and recommendation from our state and legislative economists that will be offered at this week’s Emergency Board meeting.”
The Transportation Fund collected $22.29 million for the month of December, +$0.86 million ahead of its $21.44 million tar-get. All components of the Transportation Fund were modestly above target for the month, except for the Gasoline Tax which was down slightly by -$0.73 million. Year to date, the Transportation Fund is ahead of its cumulative target by +$2.36 million.
The Education Fund collected $14.58 million for the month, -$0.67 million below the consensus target of $15.25 million. Year to date, the Education Fund is ahead of its cumulative target by $0.19 million.
The consensus revenue forecast for fiscal year 2018 is currently being reviewed by the state and legislative economists, as is usu-ally done this time of the year. Their recommendation whether to adjust the forecast for the second half of this budget year and for fiscal years 2019 and 2020 will be presented to the Emergency Board on January 18, 2018, 10:00 a.m., Governor’s Ceremonial Office, State House, 115 State Street, Montpelier, Vermont.
