State’s tax collections come in under expectations

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Published: May 5,2013

Tags: appropriations, budget, economics, tax, tax collections

ACROSS MISSISSIPPI —  Mississippi tax collections were $46 million, or 8.2 percent, below the estimate for the month of April.

Kathy Waterbury, a spokeswoman for the state Department of Revenue, said the majority of drop may be due to timing of receipts and processing.

“We won’t know for certain until all of the income tax mail is opened and processed, which should occur this month,” Waterbury told the Northeast Mississippi Daily Journal.

Waterbury said individual income tax collections came in $65.7 million, or nearly 27 percent, below the estimate for the month. The loss was offset in part because of better-than-anticipated collections of corporate income taxes, sales taxes and insurance premium taxes during the month of April.

The estimate — made by legislative leaders upon advice of the state’s financial experts — is important because it represents the amount of money available for the Legislature to appropriate. If collections for the year fall below the estimate, the governor could be forced to make cuts or to dip into the state’s reserves.

While revenue collections for April were below the estimate, collections are $92.5 million above the estimate for the fiscal year, which ends June 30. The $92.5 million includes a one-time collection of $35.2 million from the settlement of lawsuits against pharmaceutical companies by Attorney General Jim Hood.

Tax collections, excluding the $35.2 million in lawsuit settlement funds, are $50.2 million, or 1.32 percent, above what was collected during the same period a year ago.

 

— Northeast Mississippi Daily Journal

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2 Responses to “State’s tax collections come in under expectations”

  1. Barbara Correro Says:

    It is going to be really interesting to see what is going to happen when the utility rate increase is in full swing. The 9.3% increased rate for Kemper County and 15%> for the rest of the Mississippi counties and all is thanks to the Mississippi Public Service Commission. We are paying for the Liberty Coal Mine in Kemper county…built on the backs of the ratepayers.

  2. Bobby Kearan Says:

    Wonder how much they are liking the Wal-Mart economy they’ve created?

    They’ve cut tax rates and let companies pay workers less than enough to live on – what do they expect when companies don’t pay taxes and don’t pay their workers enough for them to pay taxes and all the profit goes out of the state (or out of the country).

    The Republican Way is the Highway to Welfare. Its something like we pay $1.00 in federal taxes for every $4.00 in federal funds we get. We are the third least happy state.

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