Calendar year 2020 got off to a strong start for state revenue, as payments to the state rose once again in January. According to the non-partisan Legislative Services Agency, the state took in $69.9 million more than what was collected in January, 2019. This is a 9.3 percent increase over the previous year’s figure. Through the first seven months of the fiscal year, state revenue has increased 6.9 percent over FY 2019. Revenue collected remains ahead of the Revenue Estimating Conferences projection from its December meeting of 2.1 percent growth for Fiscal Year 2020.
Personal Income Tax receipts increased in January, rising 2.1 percent when compared to January 2019’s figures. Estimate payments and payments with returns were significantly higher than their 2018 levels for the same month, while withholding payments were lower. This is the subcategory which was impacted by the lowering of withholding tables when the tax reform law went into effect last January. For the year, the Revenue Estimating Conference has projected personal income tax collections to increase by 0.1 percent. Through seven months of the fiscal year, personal income tax is up 1.3 percent.
Sales and Use Tax collections continued to grow above their FY 2019 levels. For the month, collections saw an increase of 16.3 percent over last year. For the year, growth in sales and use tax is 8.5 percent which is ahead of the REC projection of 5.9 percent growth.
Corporate Income Tax collections were higher in January, with the state taking in $40.1 million. This was $9.6 million higher than what was collected in January 2019. For the year, corporate income tax is 12.9 percent higher than FY 2019. This is still well ahead of the REC projection, which calls for a 3.2 percent increase in collections.
Tax refund payments were down $3.8 million compared to January 2019. School infrastructure distributions to local districts for the month reversed December’s trend and rose in January, with the amount paid back to school districts rising $3.8 million.
