State revenue projections rise again

first_imgSecretary of Administration Michael K. Smith Announces August 2004Revenue Results For The State Of VermontGeneral FundSecretary of Administration Michael K. Smith released September 7 General Fund revenue results forthe month of August, the second month of fiscal year 2005. General Fund revenues totaled$68.18 million for August 2004, $4.86 million or 7.7 % more than the $63.32 million consensusrevenue target for the month. August results were also $9.59 million (or 16.4%) more thanGeneral Fund revenues in August 2003. Year to date, General Fund revenues totaled $148.65million.Secretary Smith noted, We are encouraged that after two months, General Fundrevenues are $9.03 million or 6.5% ahead of expectations.The monthly targets reflect the updated fiscal year 2005 Consensus Revenue Forecast that wasagreed to by the Emergency Board on July 15, 2004. The States Consensus Revenue Forecast isupdated two times per year in January and July.Monthly Personal Income Tax receipts, which are reported Net-of-Personal Income Tax refunds,exceeded target by $1.69 million (or 6.5 %) in August. Personal Income Tax Receipts, by far thelargest single state revenue source, were also up 13.9% from August 2003.All personal incometax revenue categories had positive results except refunds, which were higher than expected.Secretary Smith noted results for the other major General Fund revenue categories were alsoencouraging.Receipts in the Sales and Use Tax were substantially ahead of expectations inAugust (+$1.89 million or 12.5 %), reflecting actual purchases in July. Rooms and Meals taxeswere essentially on target. The Corporate Income Tax also surpassed (+$0.28 million or 30.6%)forecast.Among the other General Fund revenue categories, Insurance and Liquor Taxes surpassed thelatest targets. Estate and Property Transfer Taxes fell short of the forecast for August, althoughboth are ahead of expectations for the first two months of the fiscal year.Secretary Smith concluded the discussion of General Fund results by noting that, We areencouraged to continue the broad-based revenue success which started the fiscal year.General Fund By Major Element (In Millions)Tax Component FY04 YTD FY05 YTD % Change Aug-03 Aug-04 % ChangePersonal Income $63.26 $68.71 8.6% $24.23 $27.60 13.9%Sales & Use $37.43 $36.01 -3.8% $17.09 $16.98 -0.6%Corporate $1.27 $2.65 108.3% $0.63 $1.19 89.2%Meals & Room $14.51 $19.05 31.3% $7.76 $9.99 28.7%Insurance Premium $5.04 $6.07 20.5% $4.76 $5.78 21.4%Inheritance & Estate $1.96 $3.90 99.2% $0.70 $0.32 -54.6%Real Property Transfer $1.78 $2.17 21.9% $0.61 $0.98 60.2%Other $6.53 $10.08 54.5%* $2.81 $5.34 90.1%Total $131.78 $148.65 12.8% $58.59 $68.18 16.4%*Please note that comparisons from prior year are difficult, given the change in tax componentdistribution from FY04 to FY05.Transportation FundSecretary Smith also announced revenue results for the Transportation Fund. TransportationFund receipts for the month were $18.98 million, which surpassed the revenue target by $0.25million or 1.35 %. Total Transportation Fund revenues surpassed August 2003 receipts by $1.01million or 5.6 %. Revenues surpassed projections in Gasoline, Motor Vehicle Fees, and theOther Fees category. Diesel Taxes substantially lagged expectations, while Motor VehiclePurchase and Use Tax revenues were slightly below projections for the month.Transportation Fund By Major Element (In Millions)FY2004 FY2005 % Change August-03 August-04 % ChangeTax Component Y-T-D Y-T-DGasoline $8.79 $11.44 30.1% $4.24 $6.21 46.3%Diesel Fuel $1.85 $1.98 7.0% $1.08 $1.11 3.4%MV Purchase & Use $11.18 $9.34 -16.5% $6.72 $5.25 -21.9%Motor Vehicle Fees $8.22 $9.47 15.2% $4.65 $4.73 1.7%Other $2.50 $3.20 27.9%* $1.27 $1.67 31.5%Total $32.54 $35.42 8.8% $17.97 $18.98 5.6%*Please note that comparisons from prior year are difficult, given the change in tax componentdistribution from FY04 to FY05.Education FundIn announcing the Education Fund results for August, Secretary Smith reported that collectionstotaled $12.84 million in August, up substantially from last year. Due to Act 68 EducationFinance Reform Legislation passed in 2003, the Education Fund now receives two percentagepoints (1/3 of the 6% tax) from the Vermont Sales Tax, and the motor vehicle purchase and usetax.Although Sales and Use taxes were ahead of projections, the motor vehicle purchase anduse tax performed below projections for August, said Secretary Smith.ConclusionThe State of Vermont continued fiscal 2005 ahead of forecast for the General Fund,Transportation Fund and Education Fund, concluded Secretary Smith.last_img

Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *