Vermont Business Magazine Secretary of Administration Susanne Young remains cautious despite tax revenues exceeding expectations for the month and the year-to-date. The Personal Income tax, the single most important revenue source, was nearly $18 million ahead of its target for the month (more than double). She revealed the numbers today but noted that positive news at this same time last year soured by the next month. She also said there is still uncertainty regarding how Corporate taxes will ultimately play out.
General Fund and Education Funds exceeded projections while Transportation fell just short for the month. March marks the ninth month of fiscal year 2018. Monthly and cumulative targets are measured against the revised consensus forecast for this fiscal year adopted by the Emergency Board on January 18, 2018.
General Fund revenues collected for the month of March totaled $103.78 million, $21.62 million above the consensus cash flow expectation for the month. Most of the surplus revenue, $17.62
million, was Personal Income tax collected as the tax deadline of April 17 approaches.
The Transportation Fund collected $23.48 million -$0.32 million below its $23.80 million target while the Education Fund collected $14.96 million for the month, $0.59 million ahead of the consensus target of $14.86 million. Corporate Income Tax remains an area of uncertainty as the extra ordinary corporate tax refunds from last tax year continue to be adjudicated.
Compared to this time in FY 2017, the General Fund revenues are up by $42.64 million ($1,079.19 million vs. $1,036.55 million). The Transportation and Education Funds are both slightly ahead of last fiscal year by $6.65 million and $7.89 million, respectively.
“Although General Fund performance in March was very positive, we experienced a similar high this time last year followed by a miss in the cumulative target for April,” stated Secretary Young. The April 2018 revenues will provide a better perspective after the majority of refunds are issued, as to whether the March bump is a reflection of collection and refund activity with the new VTax technology or greater than expected performance in the General Fund.”
Source: Young 4.13.2018