The Utah State Tax Commission published its revenue summary for the first half of FY 2023 on the first day of Legislative General Session. As shown in the accompanying Revenue Snapshot from the Office of the Legislative Fiscal Analyst (LFA) and Governor’s Office of Planning and Budget (GOPB), General and Income Tax Fund collections remain strong. In fact, income tax payments jumped dramatically in December as tax planners took advantage of new laws on payment of state and local taxes for pass-through entities.
Through December, the total collections across all state funds came in at a 16.7% year-over-year (YoY) growth rate compared to the same period in the previous fiscal year. Contributing to this, Income Tax Fund collections showed high growth at 21.7% YoY, while Transportation Fund collections were again relatively moderate, at just 3.6% YoY.
Individual Income Tax collections this month were unusually high at 25.3% YoY. This high growth was largely the result of payments that have, in the past, come in during March and April shifting into December as a result of changes to how pass-through entities may file their returns. The effect of this timing shift was large this month, but the overall impact will diminish over the remainder of the fiscal year.
The reports referenced in this post are available at the links below:
January Revenue Snapshot (FY 23)
Tax Commission Revenue Summary (Period 6, FY 2023)
Revenue Publications Archive