Vermont Business Magazine The Personal Income and Rooms & Meals taxes continue to out-perform targets and were joined in March by the Corporate Income tax in pushing total General Fund revenues ahead of expectations for the month and the year-to-date. The Corporate numbers had been running below targets and are still behind last year's total. The Sales tax, however, has under-performed for many months, which is largely blamed on Internet sales. Personal Income is by far the state's most important revenue source, with Sales second. The Transportation and Education Funds fell below targets in part because of sluggish motor vehicle sales.
Revenue collections for the month of March 2017 were compiled per Secretary of Administration Susanne Young.
General Fund revenues collected for the month of March totaled $81.71 million, +$3.67 million above the consensus revenue targets adopted by the Emergency Board on January 19, 2017. The positive performance in March was driven primarily by better than ex-pected results in Personal Income Tax of +$4.86 million and Corporate Income Tax of +3.31 million. These positive performances were offset by under performance in both the Sales and Use and Inheritance taxes. March marks the 9th month of FY2017. Through these first 9 months, total receipts for the General Fund are $18.10 million ahead of projections, $1,036.66 million vs. a target of $1,018.56 million.
Secretary Young stated, “At this point, we are in the same position as we were at the end of February. It is too early to tell if the positive Personal and Corporate Income results are anything more than timing that may simply even out by the end of the fiscal year. We will have a much better understanding at the end of April when there will be enough information to more accurately assess the status of receipts and refunds.”
The Transportation Fund collected $23.22 million for the month of March, -$0.71 million below its $23.94 million target. This under performance was driven by a down in the Gasoline Tax, Motor Vehicle Purchase and Use Tax and Motor Vehicle Fees of -$0.19 million, -$0.52 million and -$0.12 million respectively. Year to date, receipts in the Transportation Fund are $193.28 million vs. a target of $194.78.
The Education Fund collected $13.78 million for the month of March, -$0.88 million below its $14.66 million target.
Compared to revenues collected at this point in State fiscal year 2016, there is an increase of 4.09%, or +$40.77 million in the Gen-eral Fund, a 1.52%, or $2.90 million increase in the Transportation Fund, and a –0.49%, or -$0.69 million decrease in the Education Fund.
