Despite Income Tax Drop Revenue Numbers Above Forecast
State revenue numbers released Friday show income tax revenue down by over $100 million but gross general revenue is above forecast. Economist John Shellnut with the Department of Finance and Administration said the dip in income tax collection was expected.
“We correctly anticipated a significant decline in individual income tax revenues off the peak recorded last year from tax payer strategy to avoid higher federal tax rates. This is essentially a return to normal levels of collections with the economic recovery as a secondary story at least for now,” said Shellnut.
According to Shellnut at this juncture the state’s revenue is in a good position.
“Year to date after 10 months into fiscal year 2014 net available revenue is above forecast by $76 million, or 1.9 percent, and above year ago levels by 0.5 percent. Since we have now moved past the significant story of April income tax collections I think we’re in good shape for the final two months of the fiscal year,” said Shellnut.
The Department of Finance reports gross general revenue is 1 percent above last fiscal year, and above forecast, at $5.2 billion dollars.