Earlier this week, the Tax Commission released their Revenue Summary (TC-23) for March, detailing collections through March 7th, 2023. The Office of the Legislative Fiscal Analyst and Governor’s Office of Planning and Budget jointly released their revenue snapshot, summarizing monthly revenue in contrast to yearly forecasts. Through the first eight months of the fiscal year, collections to all state funds totaled 14.0 percent year-over-year (YoY) growth when compared to March of 2022.
General Fund collections totaled just over $2.25 billion, representing a 12.9 percent increase YoY. Oil and Gas collections continue their upward trajectory, with Oil and Gas Severance Tax posting a nearly $38 million or 74.0 percent increase over FY 2022 (a year which was already substantially higher than FY 2021). While not represented on the Revenue Summary or the Snapshot, “All Other Sources” to the General Fund have been bolstered by the state’s investment income (fund balances invested by the treasurer), which through the end of February were 1,100 percent higher than the same time last year.
Income Tax remains elevated due to a timing change for certain filings being advanced from the usually April filing deadline to the end of calendar year 2021. Corporate tax collections were down $47 million over the previous year, representing a 11.2 percent decrease. However, it’s worth noting that this contraction is on top of two years of exceptional growth in corporate earnings (February 2022 and February 2021).
Income to the Transportation Fund was bolstered by the annual recalculating of fuel tax, which increased four and a half cents per gallon on January 1st. Aviation Fuel tax also increased by 13.7 percent YoY, likely an indicator that post-pandemic travel demand is continuing to run its course.
The reports referenced in this post are available at the links below:
March Revenue Snapshot (FY 23)
Tax Commission Revenue Summary (Period 8, FY 2023)
Revenue Publications Archive