On Thursday, June 15th, the Tax Commission released their Revenue Summary report, detailing collections through 11 months of FY 2023. Through June 7th, Sales and Use Tax in total is up 6.7% year-over-year (YoY) and up 5.5% YoY excluding Sales and Use Tax Set-Asides. Individual Income Tax is down, (5.6%) when compared to the same time in FY 2022. The Legislative Fiscal Analyst, along with the Governor’s Office, released their monthly Revenue Snapshot which details collections in comparison to revenue forecasts. When measured up to the annual forecast finalized in February, total collections from all sources are nearly identical YoY to FY 2022, amounting to a rate 1.4 percentage points below the full year forecast.
General Fund performance has continued to gradually moderate over the fiscal year, still posting more than 10% growth when compared to the report from June 2022. As noted by Legislative economists, growth in total taxable sales has slowed in recent months as consumers shift their focus away from goods and towards services. Similar to last month, the largest contributors to General Fund growth besides Sales and Use Tax were Investment Income (up almost 1,200% YoY) and Oil and Gas Severance Tax (up 64% YoY).
Final payments on Individual Income Tax are down, (57.1%) over FY 2022. However, when factoring in the payments that came in ‘early’ due to statutory changes (discussed in this post) final payments are only reduced (28.7%), YoY. A combination of factors underly final payments performance, including capital gains and tax changes at the federal level which likely positively influenced last year’s collections. In total, the Income Tax Fund collections are short (5.4%) compared to the same period last year.
While not large contributors to the state’s overall revenues, a few observations from the Tax Commission’s reporting:
- In Local Option and Use Taxes, the TRCC (Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax) RV and OHV Leasing Tax is up 309.9%.
- Motor vehicle registration fees are up 15%, perhaps an indication that vehicles are becoming more available for purchase.
- Snowmobile registration fees are up 11.5% (thank you, snow).
The reports referenced in this post are available at the links below:
June Revenue Snapshot (FY 23)
Tax Commission Revenue Summary (Period 11, FY 2023)
Revenue Publications Archive