Vermont Business Magazine Despite a sluggish performance from the Personal Income tax again, which is the state's most important revenue source, Vermont tax revenues overall were ahead of targets last month. The Corporate tax led the way with nearly $7 million ahead of expectations. The tourism-heavy Rooms & Meals and Gasoline taxes also exceeded expectations, as did the taxes related to motor vehicles, which could reflect the heavy year-end sales by auto dealers. Secretary of Administration Jeb Spaulding released the preliminary December fiscal year (FY) 2015 revenue results today for the General, Transportation, and Education Funds.
Spaulding said, “After several months of disappointing revenue results, we are glad to see all three major funds finish ahead of target for December. The Transportation and Education Funds are now running slightly ahead of budget through the first six months of the fiscal year. The lagging performance in the General Fund has been reduced by $7.6 million, leaving us $11.1 million behind for the year. That is consistent with the $12 million in spending reductions the Administration is already pursuing. I am encouraged that personal income withholding tax receipts, which are closely associated with wages, exceeded target in December, for the first time this fiscal year. I am also pleased that consumption taxes, including Sales, Rooms & Meals, and Motor Vehicle Purchase & Use, are also running well ahead of last year, at +3.8%, +5.5%, and +7.0% respectively. Those results continue to show a growing Vermont economy.”
General Fund (GF) revenues totaled $131.39 million for December 2014, $7.56 million or 6.11% ahead of the monthly target. Year-to-date, GF receipts are $643.95 million, -$11.07 million or –1.69% below the cumulative target. They are $20.06 million or 3.22% above the year-to-date results of the prior fiscal year (FY 2014).
The Personal Income tax, while behind this year's targets, is still running ahead of last year's totals. The Corporate tax, as is the case nationally, is still the strongest performer of all of Vermont's revenue sources.
The Transportation Fund came in slightly higher than projected for the month of December, finishing at $21.67 million, $1.90 mil-lion, or 9.61% higher than the monthly target. On a cumulative basis, TF revenues were $128.20 million, $1.13 million or 0.89% ahead of the cumulative target. Compared to the prior fiscal year (FY 2014), TF revenues were $4.04 million or 3.25% ahead.
The Education Fund (EF) came in higher than budgeted for the month of December, finishing at $14.30 million, $0.14 million, or 1.00%, ahead of its monthly target. Year-to-date EF revenues were $1.25 million or 1.42% ahead of the cumulative target. In addition, EF revenues were $3.09 million or 3.58% higher than the prior fiscal year (FY 2014).
Source: Administration 1.6.2015