On Wednesday, June 15th the Tax Commission released the TC-23 Revenue Summary Report for 11 months of FY 2022. This report, coupled with the Revenue Snapshot produced by the Office of the Legislative Fiscal Analyst and Governor’s Office of Planning and Budget indicated strong growth in collections to the General and Education Funds, and stable growth in taxes supporting the Transportation Fund.
General Fund collections were up 8.7% over FY 2021, with above-target performance from non-sales tax contributors such as severance tax. Oil and Gas Severance Tax is up 247% year-over-year (YoY), posting $75.7 million through the end of May. Sales Tax collections have moderated slightly since March, likely attributable to high inflation, a shift away from taxable goods and toward services that are less often taxed, and declining consumer confidence.
The Education Fund grew 14.8% YoY. Readers may recall the two income tax filing delays: in 2020, which were collected in early FY 2021; and 2021, which were collected a month late in May of 2021. This is the first time that we can compare FY 2022’s income tax to FY 2021 with relative clarity. Additionally, when adjusting for the 2020 filing delay that added a significant portion of FY 2020’s collections to FY 2021, the growth rate for the current fiscal year’s income tax was 31.3%.
This month’s report reflects collections that happened in April for sales and wages that took place in March. It may not be until Fiscal Year closeout that the impacts of fuel being over $5 per gallon are reflected. Economists warn of other headwinds that may impact collections through the end of the year including sustained high inflation, interest rate hikes, stock market performance, and recent sanctions in Europe for importing Russian oil.
The reports referenced in this post are available at the links below:
June Revenue Snapshot (FY 2022)
Tax Commission Revenue Summary (Period 11, FY 2022)
Revenue Publications Archive