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State budget director reports General Fund receipts rose 7.6 percent in November compared to 2108

State Budget Director John Chilton has reported that General Fund receipts rose 7.6 percent in November compared to last year.

Total revenues for the month were $1,046.1 million, compared to $972.6 million during November 2018, an increase of $73.5 million. Receipts have now risen 4.4 percent for the first five months of the fiscal year, and can decrease 1.9 percent over the final seven months of FY20 and still achieve the current official revenue estimate of $11,462.0 million.

Income and property taxes experienced the strongest growth in the month and helped offset declines in natural resources and nontax receipts.

Chilton noted that General Fund revenue continued to increase at an impressive pace in the second quarter as collections for November reinforced gains made in October.

“After increasing only 1.1 percent in the first quarter of the fiscal year, revenues have accelerated in the past two months, increasing an impressive 9.4 percent when combining October and November receipts,” Chilton said. “As a group, the income, sales and use, and property taxes increased by $81.4 million over November 2018 levels. In contrast, the natural resources taxes continued to struggle, falling 33.0 percent for the month as coal severance revenue came in at an all-time low of $3.6 million.

“The income taxes, in particular, showed above-trend growth, climbing a combined 18.5 percent in November, driven primarily by increases in the corporate income and limited liability entity taxes. The Consensus Forecasting Group will consider the latest revenue and economic conditions when they convene on Dec. 17 to render official budget estimates that will provide the basis for budgeting for the next biennium.”

Among the major accounts:

• Corporation income tax receipts rose 121.5 percent to $20.9 million in November. Receipts year-to-date have declined 2.6 percent.

• Individual income tax collections grew 14.1 percent in November on the strength of withholding collections. Through the first five months of FY20, receipts of this tax have increased 4.5 percent.

• Sales and use tax receipts increased 3.1 percent in November. Year-to-date, this account has grown 7.1 percent.

• Property tax collections rose 7.2 percent for the month and have increased 3.6 percent year-to-date.

• Cigarette tax receipts fell 19.8 percent in November and are down 1.8 percent for the first five months of the fiscal year.

• Coal severance tax receipts declined 43.8 percent in November and are down 21.2 percent year-to-date.

• Lottery revenues fell 12.8 percent for the month but are up 14.5 percent for the year.

Road Fund receipts for November totaled $123.8 million, a 7.1 percent decrease from November 2018 levels. Year-to-date Road Fund receipts have increased 0.5 percent. Based on collections through the first five months, Road Fund receipts can fall 6.6 percent over the balance of the fiscal year to meet the official FY20 estimate of $1,509.8 million.

Motor fuels tax receipts fell 5.3 percent in November and have increased 0.5 percent for the year. Motor vehicle usage tax collections declined 0.8 percent in November but have grown 3.9 percent through the first five months of the fiscal year. License and privilege receipts fell 19.1 percent for the month and have fallen 7.8 percent for the year.

From Office of State Budget Director

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