Vermont Business Magazine Vermont tax revenue collections for the month of May 2017 were ahead of targets and the year-to-date numbers have nearly caught up with one month left in the fiscal year. The Corporate tax more than made up for another weak showing from the state's two largest General Fund revenue sources: the Personal Income and Sales taxes. General Fund revenues collected for the month of May totaled $85.10 million, $2.62 million ahead of the consensus revenue targets adopted by the Emergency Board on January 19, 2017, according to Secretary of Administration Susanne Young. That better-than-expected performance was driven by $3.57 million in above-target revenues in the Corporate Income Tax, along with modest gains in the Meals and Rooms, Insurance, Estate and Property Transfer taxes.
These gains were slightly offset by an underperformance in the Personal Income Tax of -$1.81 as well as modest misses in the Sales and Use and Other taxes. May marks the 11th month of FY2017. Through these first 11 months, total receipts for the General Fund are – $0.93 million below projections, $1,322.85 million versus a target of $1,323.78 million.
Fiscal year 2017 ends on June 30.
Young said in a statement released with the results, “We are pleased to see the month of May exceed projections by $2.62 million, this puts us within $0.93 million of being on target through the first 11 months of the year. However, year-to-date results indicate it is not likely the General Fund will generate an above target surplus in fiscal year 2017 that could be used to off-set up to $16 million in extraordinary Corporate Tax refunds that now appear poised for pay out in fiscal year 2018. This is not a new development, but now seems more certain with only 20 days remaining in fiscal year 2017.”
The Transportation Fund collected $24.39 million for the month of May, -$0.30 million below its $24.69 million target. This under performance was driven primarily by a down in the Motor Vehicle Fees. Year to date, receipts in the Transportation Fund are $240.58 million versus a target of $243.85.
The Education Fund collected $15.65 million for the month of May, $0.38 million above its $15.27 million target. Compared to revenues collected at this point in State fiscal year 2016, there is an increase of 3.05%, or +$39.10 million in the General Fund, a 2.16%, or $5.08 million increase in the Transportation Fund, and a 0.62%, or $1.07 million decrease in the Education Fund. vermontbiz.com VBM
Source: Secretary Young. 6.12.2017