August tax collections up over forecasted sum

The state’s coffers continue to grow thanks to stronger-than-anticipated tax collections with General Fund revenues over $1.5 billion, up $128.1 million (9%) from December 2021 projections, according to the latest revenue report.

That sum is $173.3 million (12.6%) above revenue for August 2021 and comes in slightly above tax collections from July.

Growth in individual income taxes, sales taxes and corporate taxes fueled the increase, especially corporate taxes, which totaled $9.9 million, $15.1 million (289.8%) higher than projected. Corporate taxes were still $2 million (17.1%) lower than revenue in August 2021.

Sales tax collections came in at $861.5 million, $28.3 million (3.4%) higher than estimated and $56 million (6.9%) above August 2021 collections – partially fueled by high gas prices which contributed $5.4 million above the monthly estimate or $1.4 million (9.6%) above the previous year.

Individual income taxes saw a $71 million (13.1%) increase over the forecast for a total of $611.9 million, $108.6 million (21.6%) above last year. The analysis created the timing of the automatic taxpayer refund being used to pay down outstanding debt obligations – roughly $72 million of the non-withholdings tax collections. However, $31 million of that money will be paid out to various other agencies, dipping into revenues for September and October. The decrease will be temporarily and shouldn’t impact the year’s totals, according to the monthly revenue commentary.

The passage of Senate Enrolled Act 382 in 2022 dampened tax collections for riverboat wagering, which saw a $4 million (64.4%) drop from the December prediction and brought in $2.4 million. Racino wagering saw a slight increase over projections, bringing in $50,000 (0.5%) more for a total of $10.4 million. Both are below August 2021 collections, $5.2 million (70.5%) for riverboats and $300,000 (3%) for racinos.