State tax income is about on target to finance programs and services at budgeted levels. But the budget expectations have been modest to begin with.
State income for the first quarter is almost right on the money. The state has collected $1.78-billion in all kinds of taxes in July, August and September, 1.9 percent more than in the first quarter last year. Forecasters had anticipated a two-percent growth for the full fiscal year.
Budget director Linda Luebbering says income tax collections are not as strong as she had hoped but sales tax collections are good. The biggest concern is a 21 percent drop in corporate tax collections.
She says there’s reason to be nervous as the national economy remains nervous. But it’s not time to start considering more withholdings of funds from programs. “We will monitor things every month,” she says.
One thing that helps the picture is that the state has paid out 23 percent less in tax refunds than it did last year, meaning the state is 40-million dollars more to the good than it was at this time in 2010.
TAX COLLECTIONS THROUGH FIRST QUARTER OF FISCAL 2011-2012
Net general revenue collections increased 1.9 percent compared to 2011, from $1.75 billion last year to $1.78 billion this year.
Net general revenue collections for September 2011 decreased by 1.5 percent compared to those for September 2010, from $707.7 million to $697.3 million.
Individual income tax collections
Increased 2.2 percent for the year, from $1.22 billion last year to $1.25 billion this year.
Sales and use tax collections
Increased 3.1 percent for the year, from $453.1 million last year to $467.1 million this year.
Corporate income and corporate franchise tax collections
Decreased 20.6 percent for the year, from $130.5 million last year to $103.5 million this year.
All other collections
Decreased 16.3 percent for the year, from $126.6 million last year to $106.0 million this year.
Decreased 22.1 percent for the year, from $179.3 million last year to $139.7 million this year.