Vermont tax revenues slip below targets for January

first_imgSecretary of Administration Jeb Spaulding released the January 2011 General Fund Revenueresults today. January is the seventh month of fiscal year (FY) 2011. General Fund revenuestotaled $137.78 million for January 2011, and were -$1.61 million or -1.16% below the $139.39million consensus revenue forecast for the month. Year to date, January revenues were $687.16million or -0.23% below target. On a year-over-year basis, January 2011 GF results are 9.3%ahead of the same period for the prior year (January 2010), but, are -2.26% below the FY 2008results through January 2008.‘While it is of note that revenues are ahead of where they were a year ago pretty much across theboard, the fact that January revenues in some key areas such as personal income, sales & use,and rooms & meals were below forecast for the month is good reason for caution goingforward,’ Spaulding stated in characterizing the January results.Revenue targets reflect the revised Fiscal Year 2011 Consensus Revenue Forecast approved bythe Emergency Board at their January 14, 2011 meeting. Statutorily, the State is required torevise the Consensus Revenue Forecast two times per year, in January and July; the EmergencyBoard may schedule interim revisions if deemed necessary.Personal Income Tax (PI) receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds. Net Personal Income Tax is comprised of PI Withholding Tax, PIEstimated Payments, PI Refunds Paid, and PI Other. Net Personal Income Tax receipts for Januarywere recorded at $73.61 million, or -$1.52 million or -2.02% below the recently revised monthly targetof $75.12 million.Corporate Income Taxes for January are also reported net-of refunds. The January receipts wererecorded at $3.31 million, or +$0.82 million or +32.88% above the monthly target of $2.49 million.The consumption taxes were below target for January: Sales & Use Tax receipts of $25.30million fell short of the monthly target by -$1.45 million (-5.41%); Rooms & Meals Tax receiptsof $10.54 million fell short of target by -$0.72 million (-6.39%).Secretary Spaulding noted that, ‘Although Corporate Tax receipts were ahead of target, the remainingthree of the four major revenue categories fell noticeably below target for January. Of particularconcern was the below target PI withholding tax sub-category which saw -$3.7 million less than therecently revised target; these categories will be closely monitored throughout the spring tax filingseason.’ The Secretary continued by saying, ‘In addition, the below target results in both consumptiontax categories (Sales & Use, and Rooms & Meals) will be watched closely for the remainder of thewinter tourism season.’The year to date results for the four major General Fund categories are as follows: PersonalIncome Tax, $341.13 million (-0.44%); Sales & Use Tax, $132.53 million (-1.08%); Meals &Rooms Tax, $73.77 million (-0.97%); and Corporate, $47.94 million (+1.74%).The remaining tax components include Insurance, Inheritance & Estate Tax, Real PropertyTransfer Tax, and ‘Other’ (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax,Beverage Tax, Fees, and Other Taxes). The results for the month of January were as follows:Insurance Tax, $0.44 million (-44.71%); Estate Tax, $13.54 million (+11.79%); PropertyTransfer Tax, $1.08 million (+60.65%); and ‘Other’, $9.96 million (-2.22%). Year to dateresults for these categories were: Insurance Tax, $17.89 million (-1.96%); Estate Tax, $19.22million (+8.02%); Property Transfer Tax, $5.21 million (+8.50%); and ‘Other’, $47.18 million(-5.08%). Transportation FundSecretary Spaulding also reported on the results for the non-dedicated Transportation FundRevenue for January. Total non-dedicated Transportation Fund receipts of $16.60 million for themonth were above target by +$0.76 million (+4.83%), against the monthly target of $15.83million. The year to date non-dedicated Transportation revenue was $121.21 million versus thetarget of $120.45 million (+$0.76 million, +0.63%).Individual Transportation Fund revenue receipts components for January were: Gasoline Tax,$5.15 million or -0.66% behind target; Diesel Tax, $1.62 million or +20.08% ahead of target;Motor Vehicle Purchase & Use Tax, $3.54 million or +10.68% above target; Motor VehicleFees, $4.70 million or +0.71% above target; and Other Fees, $1.58 million or +10.72% in excessof the monthly target. The January year to date Transportation Fund revenue results were:Gasoline Tax, $36.77 million or -0.09% short of target, Diesel Tax, $8.99 million or +3.11%above target; Motor Vehicle Purchase & Use Tax, $27.92 million or +1.24% ahead of target;Motor Vehicle Fees, $37.91 million or +0.09% above target; and Other Fees, $9.62 million or+1.62% above target.Secretary Spaulding also reported on the results for the Transportation Infrastructure Bond Fund(’TIB’). TIB Fund Gas receipts for January were $1.32 million or -5.50% below target; year todate receipts of $9.63 million were -0.79% short of target. TIB Fund Diesel receipts were $0.21million or +22.28% above the target for the month; year to date TIB Diesel receipts were $1.08million or 3.62% ahead of the target. TIB Fund receipts are noted below the following table: ConclusionSecretary Spaulding concluded, ‘The national economy continues to improve slowly, whileVermont’s economic picture is mixed, particularly as it relates to slow job growth. The currentmonth’s GF results mean that we will continue to be cautious and closely monitor the upcomingtax filing results; the next eight weeks will be pivotal if the GF revenue is to achieve target in thesecond half of FY 2011.’Source: Spaulding’s office. 2.16.2011 Education FundThe ‘non-Property Tax’ Education Fund revenues (which constitute approximately 11.9% of thetotal Education Fund sources) were released today by Secretary Spaulding. The non-PropertyTax Education Fund receipts for January totaled $15.84 million, or -$1.07 million (-6.34%) shortof the $16.92 million target for the month. Year to date Education Fund revenues were $90.81million or -1.07% behind the year to date target of $91.89 million.The individual Education Fund revenue component results for January were: Sales & Use Tax, $12.65million, or -5.41% below target; Motor Vehicle Purchase & Use Tax, $1.77 million or +10.68%; LotteryTransfer, $1.42 million or -26.22%; and Education Fund Interest, under $0.01 million against a target of$0.02 million (-76.20%). Year-to-date results were: Sales & Use Tax, $66.26 million or -1.08%; MotorVehicle Purchase & Use Tax, $13.96 million or +1.24%; Lottery Transfer, $10.56 million or -4.55%;and Education Fund Interest, $0.03 against a target of $0.05 million (-35.47%).last_img

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