For July and August, revenue collections are $68.4 million or 10.5 percent above the amount collected during the same time period last year, according to the monthly revenue report released Friday by the Legislative Budget Committee office.
Total revenue for the two months is $719.2 million.
On social media, Gov. Phil Bryant called the collections “a very good trend.”
The revenue report includes taxes collected by the Department of Revenue, such as the sales tax, personal income tax, casino gambling tax and others. These tax collections account for the bulk of state funds, but the report also includes other sources of revenue, such as earnings on state investments and lawsuit settlement funds from the office of Attorney General.
Most tax collection sources are up for the first two months of the fiscal year with personal income tax collections being particularly strong – up $23.6 million or 9.5 percent.
Sales tax collections, the largest single revenue source for the state, were up $5.3 million or 2.2 percent. The tax on insurance premiums continues to be a strong revenue source – up $14 million or 51.4 percent.
The state garnered $6.6 million or 21.9 percent more in use tax collections than it did during the same time period last year. The use tax is the 7 percent levy on items purchased out of state.
Corporate tax collections continue to be sluggish – down $7.2 million or 22.4 percent from the same time period last year. The Legislature has passed multiple cuts in corporate taxes in recent years – many of which are still being phased in.
Corporate taxes have declined $150 million during the last two years.
In terms of providing funds for the state budget, the key is whether revenue collections met the estimate legislators used in building the budget. For the month of August, revenue collections were $16 million or 4.1 percent above the estimate. For the two month period, collections were $28 million or 4 percent above the estimate.
If revenue collections do not meet the estimate, Bryant could be forced to make budget cuts as he has done multiple times during the past two fiscal years.
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