Vermont tax revenues continue positive, modest trend

first_imgSecretary of Administration Neale F Lunderville released the November 2010 General Fund Revenues today. November is the fifth month of fiscal year (FY) 2011. General Fund revenues totaled $73.59 million for November 2010, and were +$2.76 million or +3.90% above the $70.83 million consensus revenue forecast for the month. Year-to-date General Fund performance of $447.52 million was +$16.47 million, or +3.82% ahead of year to date target of $431.05 million.The monthly targets reflect the revised Fiscal Year 2011 Consensus Revenue Forecast approved by the Emergency Board at their July 14, 2010 meeting. Statutorily, the State is required to revise the Consensus Revenue Forecast two times per year, in January and July; the Emergency Board may schedule interim revisions if deemed necessary. The next Emergency Board meeting will be scheduled for January 2011.Personal Income Tax (PI) receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds. Personal Income Tax receipts for November were recorded at $33.00 million, or +$1.61 million or +5.12% above the monthly target of $31.40 million. Secretary Lunderville noted that “While Net Personal Income Tax receipts remain above target, the fact that the withholding tax category has underperformed all year is concerning and merits continued review.”Corporate Income Taxes for November are also reported net-of refunds. The November target for Corporate Taxes was a negative -$0.89 million because November generally experiences more refunds than payments and estimated payments. Actual results were negative -$0.42, million with refunds less than anticipated for the month.The consumption taxes experienced mixed results for November; Sales & Use Tax receipts of $16.51 million fell short of the monthly target by -$0.32 million (-1.87%), while Rooms & Meals Tax receipts of $10.65 million exceeded target by +$0.01 million (+0.11%).The year to date results for the four major General Fund categories are as follows: Personal Income Tax, $214.65 million (+0.73%); Sales & Use Tax, $90.24 million (+0.26%); Meals & Rooms Tax, $55.40 million (-0.01%); and Corporate, $26.28 million (+61.74%).The remaining tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and “Other” (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage Tax, Fees, and Other Taxes). The results for the month of November were as follows: Insurance Tax, $7.64 million (+18.54%); Estate Tax, $1.47 million (+19.18%); Property Transfer Tax, $0.63 million (-18.50%); and “Other”, $4.10 million (-6.85%). Year to date results for these categories were: Insurance Tax, $16.13 million (+8.28%); Estate Tax, $5.20 million (-20.60%); Property Transfer Tax, $3.45 million (-12.82%); and “Other”, $36.16 million (+17.11%). The majority of the favorable year to date results in the “Other” category were due to the unanticipated Bank Franchise Taxes settlement that occurred in August.Transportation FundSecretary Lunderville also reported on the results for the non-dedicated Transportation Fund Revenue for November. Total non-dedicated Transportation Fund receipts of $16.49 million for the month were above target by +$1.61 million (+10.83%), against the monthly target of $14.88 million. The year to date non-dedicated Transportation revenue was $89.00 million versus the target of $87.82 million (+$1.18 million, +1.34%).Individual Transportation Fund revenue receipts components for November were: Gasoline Tax, $5.18 million or +5.15% ahead of target; Diesel Tax, $1.37 million or +31.85% above target; Motor Vehicle Purchase & Use Tax, $3.66 million or +10.53% above target; Motor Vehicle Fees, $5.01 million or +8.33% ahead of target; and Other Fees, $1.28 million or +29.77% in excess of the monthly target. The November year to date Transportation Fund revenue results were: Gasoline Tax, $26.84 million or -0.11% short of target, Diesel Tax, $6.17 million or +4.35% above target; Motor Vehicle Purchase & Use Tax, $20.40 million or -0.10% below target; Motor Vehicle Fees, $28.62 million or +3.71% above target; and Other Fees, $6.96 million or -0.76% short of target. Secretary Lunderville noted that November was the first month in this fiscal year that all 5 components of the Transportation Fund exceeded the monthly target.Secretary Lunderville also reported on the results for the Transportation Infrastructure Bond Fund (“TIB”). TIB Fund Gas receipts for November were $1.33 million or +5.71% above target; year to date receipts of $7.10 million were +0.20% above target. TIB Fund Diesel receipts were $0.16 million or +29.97% ahead of target for the month; year to date TIB Diesel receipts were $0.72 million or +1.76% above target. TIB Fund receipts are noted below the following table:Education FundThe “non-Property Tax” Education Fund revenues (which constitute approximately 11.9% of the total Education Fund sources) were released today by Secretary Lunderville. The non-Property Tax Education Fund receipts for November totaled $11.94 million, or -$0.05 million (-0.39%) short of the $11.98 million target for the month. Year to date Education Fund revenues were $63.04 million or -0.37% behind the year to date target of $63.27 million.The individual Education Fund revenue component results for November were: Sales & Use Tax, $8.26 million, or -1.87% below target; Motor Vehicle Purchase & Use Tax, $1.83 million or +10.53%; Lottery Transfer, $1.85 million or -0.64%; and Education Fund Interest, under $0.01 million against a target of $0.05 million (-101.42%). Year-to-date results were: Sales & Use Tax, $45.12 million or +0.26%; Motor Vehicle Purchase & Use Tax, $10.20 million or -0.10%; Lottery Transfer, $7.70 million or -3.46%; and Education Fund Interest, $0.02 against a target of $0.08 million (-75.28%).Conclusion“The economic recovery continues its struggle to gain momentum both nationally and here in Vermont,” said Secretary Lunderville. “While we see signs of stabilization in the economy and the promise of economic policy results from Washington D.C., housing remains weak and the November labor picture nationally was disappointing.”“Our continued increases over the FY 2010 year to date results in the General Fund (+6.5%) are due in large part to the one-time revenue activity, as noted in previous reports,” continued Lunderville. “Of the +$16.5 million in over-target revenue for the General Fund, approximately +$12.1 million is attributable to one-time activity.”“Compared to FY 2009, General Fund results remain -1.8% below fiscal year 2009 and -1.6% below fiscal year 2008 for the same five-month period,” said Lunderville. “The current forecast does not project a return to fiscal year 2008 revenue levels until fiscal year 2013.”“Although we do not foresee any dramatic improvement near term, we are pleased to see slight improvement over our current Consensus Forecast.”Source: Lundverville’s office. 12.17.2010last_img

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