by Timothy McQuiston, Vermont Business Magazine Just as the state economists suggested might happen in regards to personal income tax revenues, April receipts were the largest on record in the state of Vermont at $160.76 million, in data released today. The economists made this prediction in large part because of growing corporate profits in 2014 that did not show up in typical personal income withholding, but had to be accounted for once taxes were filed. Corporate, Sales and Rooms & Meals tax receipts were also ahead of their targets, finally pushing overall tax revenues ahead of expectations.
Overall, preliminary General Fund (GF) revenues totaled $219.06 million for April 2015, +$14.39 million or +7.03% above the projected monthly target. Year-to-date, GF receipts now stand at $1,185.86 million, +$26.45 million or +2.28% above the cumulative target. Year-to-date GF revenue is also +$53.31 million higher than last fiscal year at this time, a sign of a strengthening economy.
Vermont tax revenues disappoint in JanuaryFeb 5, 2015 - Vermont Business Magazine Vermont economists are suggesting that there could be an "April Surprise" in tax revenues. |
Secretary of Administration Justin Johnson released the preliminary April fiscal year (FY) 2015 revenue results for the General, Transportation, and Education Funds. These results are measured against the revenue targets in the Consensus Revenue Forecast adopted by the Vermont Emergency Board on January 20, 2015.
Johnson said, “April's strong showing is good news. The preliminary results show that Vermont had its largest month for Personal Income (PI) Tax receipts ever. Corporate Tax receipts also were strong, and consumption taxes finished ahead of target We know that April is our most important month, driven by the tax filing deadline, and so we now feel comfortable that Vermont will finish this fiscal year in a good position. This solid result shows that Vermont’s economy continues to grow out of the recession."
In addition to very strong PI and Corporate Tax receipts, the consumption taxes (Sales & Use and Rooms & Meals) showed above target result for April by +3.70% and + 10.05%, respectively. April was also pushed further above target by a $5 million one-time settlement payment from Vermont Yankee (VY), booked as "GF Other" in the revenue report.
Despite continued sluggish gasoline tax receipts, as gas prices remain low, the Transportation Fund (TF) generated above target receipts for April, pushing the year-to-date results to +0.07% above target. Preliminary TF revenues finished at $23.24 million, +$0.28 million, or +1.22% ahead of the target for the month. On a cumulative basis, TF revenues were $209.47 million, +$0.15 million or +0.07% ahead of the cumulative target. Compared to the prior fiscal year (FY 2014), TF revenues were +$6.29 million ahead.
The Education Fund (EF) fell slightly below the monthly target for April 2015 due to shortfalls in both Motor Vehicle Purchase & Use Tax and the Lottery Transfer, which was by 26.75 percent. Preliminary EF revenue finished at $15.30 million, -$0.25 million, or –1.64%, below its monthly target. Year-to-date EF revenues were $150.74 million or -0.34% behind the cumulative target. As compared to the prior fiscal year, preliminary April EF results were +$5.18 million higher than the same period for FY 2014.
The Secretary concluded, “While we always must watch monthly returns and keep an eye on further refund activity on both the corporate and person-al side, April has provided a good cushion that will help us meet our fiscal targets for this budget year, which ends on June 30th. This is welcome news as we work to reduce and stabilize the state budget for next fiscal year and beyond."
