Personal Income up, but tax revenue down overall

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Personal Income up, but tax revenue down overall

Wed, 01/11/2017 - 4:40pm -- tim

by Timothy McQuiston Vermont Business Magazine Personal Income taxes surged, but could not completely make up for declines in other key revenue sources as all three major funds finished below targets for the month of December 2016 and for fiscal year 2017 to date. Corporate Income taxes alone were off by more than half or nearly $9 million.

PI revenues finished $5.71 million (8.25 percent) ahead of targets set by economists. This set the state's most important revenue source finally ahead of projections for the fiscal year which began July 1. However, total General Fund revenues were down $2.78 million (-2.14 percent) for the month and off $4 million (-0.58 percent) for the fiscal year.

General Fund revenues collected for the month of December totaled $127.33 million. The revenue targets were adopted by the Emergency Board on July 21, 2016.

December marks the half way point in the state’s fiscal year. Year to date receipts in the General Fund are $684.54 million, versus a target of $688.54 million.

“The shortfall in Corporate Revenue in the first half of this fiscal year is a concern and that revenue source is not likely to rebound in the second half of this fiscal year,” said Secretary of Administration Susanne Young in a statement. “I expect this trend will be reflected in the updated consensus revenue forecast that will be presented to the Emergency Board next week.”

Corporate taxes are well off not only for the month and fiscal year, but also compared to this time last year of $12.8 million or -25.27 percent.

The Transportation Fund collected $21.25 million for the month of December, -$0.06 million below target of $21.31 million. This slight under performance was driven primarily by lower than expected results in the Gasoline Tax of $0.61 million. Year to date, receipts in the Transportation Fund are down $2.33 million (-1.73 percent) compared to target.

The Education Fund collected $14.77 million for the month of December, missing its target by $0.16 million (-1.05 percent).

Compared to revenues collected at this point in fiscal year 2016, there is a slight increase of 2.49 percent or $16.66 million in the General Fund, 1.41 percent or $1.83 million in the Transportation Fund, and 0.66 percent or $0.61 million in the Education Fund.

Source: Secretary of Administration 7.11.2017