Rainy Days in Sight? Sunny Collections for All Major Tax Types, but Clouds Loom

April 15, 2022

On April 13th, the Utah Tax Commission, Legislative Fiscal Analyst (LFA), and Governor’s Office of Planning and Budget (GOPB) released the TC-23 Revenue Summary Report and Monthly State Revenue Snapshot for the month of April.

Through three quarters of the fiscal year, sales tax posted a 20.3 percent increase over the same period in FY 2021. The oil and gas industry continues to rebound, benefitting the General Fund. Specifically, the oil and gas severance tax posted a 331.5% increase, and the oil and gas conservation fees increased by 154.4% year-over-year (YoY). Comparably, the mining severance tax was up 36.6% over FY 2021, and mineral production withholding increased 201.8% YoY.

Similar to General Fund receipts, income tax grew by 20.9 percent through nine months of FY 2022 after accounting for last year’s delayed income tax filing deadline which shifted some income tax collections from FY 2020 to FY 2021. Corporate income tax increased by 34 percent compared to last March, representing an additional $130.1 million in state collections.

Despite increasing fuel prices, motor fuel tax collections are 6.5% higher than in March 2021.

These figures reflect collections that took place in March for sales and wages that were paid in February. Economic impacts of the Ukrainian conflict likely won’t present until the May or June reports. LFA economists expect recent inflation, consumer sentiment, and a tight labor market to slow the record high growth that Utah has experienced since the beginning of the pandemic.

The reports referenced in this post are available at the links below:
April Revenue Snapshot (FY 2022)
Tax Commission Revenue Summary (Period 9, FY 2022)