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ICYMI: State Revenue Collections Above Projections

By Dee Pettack | August 29, 2022

From The Wheeler Report . . .

According to a release from the Department of Revenue, General Purpose Revenue Collections for FY2022 were above the Legislative Fiscal Bureau January estimates by $1.6 billion. Preliminary Collections show $20.5 billion, a 5.0% increase in FY2022; 8.6% more than LFB’s January 2022 estimates.

A new memo from the Legislative Fiscal Bureau says, “Collections were significantly higher than previously estimated for the individual income tax ($1,004.5 million) and the corporate income/franchise ax ($545.5 million). These two taxes comprise $1,550.0 million, or 95.6%, of the higher tax collections for 2021-22…Withholding table changes, as directed by DOR for implementation by January 1, 2022, were expected to result in lower withholding tax collections of 6.4% over the last six months of 2021-22. However, withholding collections were only 4.1% lower during the last six months of 2021-22.”  The memo also highlights that per statutes, half of any excess of actual general fund tax collections in a fiscal year over the amount estimated must be deposited into the budget stabilization fund unless the balance in the budget stabilization fund exceeds 5% of the estimated general fund expenditures. Since the budget stabilization fund currently has a balance that exceeds 5%, no transfer will be made to the fund.

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