The Office of State Budget Director reported today that January’s General Fund receipts grew 6.6 percent compared to January of last year, an increase of $68.4 million. The sales, income, business and property taxes all had significant increases and helped boost total collections.
Revenues for the month were $1,076.3 million, the highest ever recorded for the month of January and sales tax collections were the largest monthly amount ever. Receipts have now grown 5.7 percent for the first seven months of FY21.
The official revenue estimate calls for 1.4 percent growth in revenues over FY20 totals. Collections for the remainder of the year can fall 4.7 percent, or $223.7 million, and still meet the official estimate.
Road Fund receipts for January totaled $127.4 million, a 3.2 percent decrease compared to January 2020 levels. Year-to-date receipts have grown 0.7 percent.
John Hicks
State Budget Director John Hicks noted that the 6.6 percent growth in General Fund receipts in January was broadly based.
“Most of the major accounts in the General Fund increased in January 2021 compared to January 2020, which is welcomed news since last January showed strength with 9.2 percent growth and presented a high comparable hurdle for this month. When combined with December receipts, the General Fund has grown 11.5 percent over the two-month span, showing a nominal gain of $241.0 million. This revenue growth has occurred in spite of the fact that almost all of the previously existing federal relief had expired months ago. For the first seven months of the fiscal year, General Fund growth now stands at $386.1 million but was estimated to only grow $162.4 million in FY21 to hit the consensus estimate of $11,729.0 million. The prospects of seeing revenues in excess of the consensus estimate seem highly probable at this point.”
Among the major accounts:
• Individual income tax collections grew 3.5 percent for the month as declarations and withholding receipts increased. Revenues have grown 4.8 percent through the first seven months of FY21.
• Sales and use tax receipts continue to surge, setting a new single-month record of $449.5 million, an increase of 4.5 percent. Revenues have grown 5.7 percent year-to date.
• Combined corporation income tax and Limited Liability Entity Tax (LLET) receipts totaled $22.3 million in January, an increase of 222.5 percent. Year-to-date collections have increased 21.5 percent.
• Property tax collections rose 13.4 percent in January and have increased 5.6 percent year-to-date.
• Cigarette tax receipts decreased 20.3 percent for the month following a 13.6 percent surge in December. Year-to-date receipts from the sale of cigarette stamps have now fallen 1.9 percent.
• Coal severance tax receipts fell 6.4 percent in January. Collections are down 10.5 percent through the first seven months of the fiscal year.
Road Fund receipts decreased 3.2 percent in January to $127.4 million as both motor vehicle usage and motor fuels tax receipts declined. Year-to-date collections have increased 0.7 percent. The official Road Fund revenue estimate calls for revenues to grow 5.8 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase 13.8 percent for the remainder of the fiscal year to meet the official forecast.
Among the accounts, motor fuels collections fell 4.1 percent, motor vehicle usage revenue declined 6.3 percent, and license and privilege receipts rose 9.2 percent.
Office of State Budget Director
