Revenues Negative for Month – “What Gives?”
Just when we had grown accustomed to accelerated revenue growth (6.2 percent) for the year and the state was riding a wave of positive developments, and having passed budgets of over $26 billion, March revenues dropped in at minus .5 percent for the month. Individual income taxes were negative at -3.2 percent, corporate taxes at -16 percent, and other categories like alcoholic beverages, -2.4 percent, title ad valorem taxes at -17.9 percent and highway impact fees at -21.1 percent.
Some, Not Many, Positives for the Month
Net sales taxes did increase in March, up 3.6 percent and tobacco taxes were up 4.4 percent. Tag, title and fees were up 20 percent.
Transportation Taxes and Fees Increase
Fuel excise taxes were up 3.5 percent for the month while hotel motel fees were flat at 0.6 percent and highway impact fees were down slightly at -21.1 percent. Altogether the total for transportation was up slightly at 2.7 percent.
Year-to-Date Numbers Slip Slightly
March’s flat slightly negative month lowered most percentages and if no further reduction happens in oncoming months, this will all just be a bad memory. Total revenues for the fiscal year to date come in at 5.4 percent, still a leading number in the Southeast. Individual income taxes are up YTD 8.3 percent and sales taxes are steady at 3.2 percent. Fuel taxes and fees are up 3.1 percent. The 12-month tracking average is at 5.9 percent and the state is about $410 million ahead of budget for the year after nine months with a quarter to go.
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