|
Table 4. Performance of Major Tax Categories |
|
State |
Comments |
|
Alabama |
The personal income tax is $23 million (1.9%) above the revised estimate; the corporate income tax is $3 million (2%) less than the revised estimate; and the general sales tax is $25 million (4%) above the revised estimate. All these taxes go the Education Trust Fund. Oil and gas severance taxes, which go to the general fund, are $28 million (137%) ahead of the revised estimate. |
|
Alaska |
Severance taxes are included in the revised forecast. The corporate income tax is likely to be above the budgeted amount, but no specific information is yet available, and the amount is small relative to the impact of oil revenue. |
|
Arizona |
There is strong growth across all categories. |
|
Arkansas |
Personal income tax revenues are 5.2% above forecast for the first eight months of FY 2006, corporate income tax revenues are 22.4% above forecast, and gross receipts tax revenues are 6.1% above forecast for the same time period. All are performing above expectations. All other taxes are not performing significantly above expectations. |
|
California |
Personal and corporate income taxes are very strong. Sales taxes are in line with the forecast. |
|
Colorado |
Severance and corporate income taxes are strong. Excise taxes are okay. |
|
Connecticut |
Officials anticipate increases in the personal income tax ($344 million), corporate income tax ($123.7 million), oil companies tax ($75.2 million), public services companies tax ($32.9 million), and real estate conveyance tax ($32.5 million). They anticipate a decrease in the sales and use tax ($48.4 million). |
|
Delaware |
All major tax categories are performing well. |
|
Florida |
General revenue is over estimates: the sales tax by $39.7 million; the corporate income tax by $48.3 million; the documentary stamp tax by $31.2 million; and the intangibles tax by $24.9 million. |
|
Georgia |
All major tax categories are performing above estimate. |
|
Hawaii |
All categories are ahead of previous year collections. |
|
Idaho |
All categories are performing well and are coming in above revised revenue projections. |
|
Illinois |
All of the economically related sources have performed very well this fiscal year. |
|
Indiana |
All categories are on target. |
|
Iowa |
The personal income tax has decreased, but that was anticipated because of withholding table changes implemented last April. The sales and use tax and corporate income tax both are running 2% to 3% ahead of projections. Other tax receipts are on target with the estimate. |
|
Kansas |
The corporate income tax is up $41.9 million (35%); the personal income tax is up $22.2 million (1.7%); and the retail sales tax is up $10.7 million (0.9%). |
|
Kentucky |
The sales tax is up 6.7%, the corporate income tax is up 98%, the coal severance tax is up 25.3% and the personal income tax is up 1.5%. |
|
Louisiana |
Performance is as expected after the Feb. 17, 2006, revisions. |
|
Maine |
The sales tax has increased 5.3% over FY 2005 collections (but FY 2005 growth was very slow). The individual income tax is 7.9% less than FY 2005 for the same period. This decline is due to a change of the budgetary treatment of two major property tax reimbursement programs. Adjusting for those effects, the individual income tax has increased 2.4% over the same period last year. The corporate income tax is up by 42.8% over FY 2005 (when growth also was very strong). The insurance premium tax has declined 20.4% from FY 2005 levels. The estate tax has increased 184.3% over the same period in FY 2005 (several unusually large estate tax settlements have occurred this year). The cigarette tax rate, which was doubled from $1 to $2 per pack effective September 2005, is performing ahead of the revised estimate (variance for current year is +2.9%). The fuel tax (highway fund revenue) is down 0.3% compared to same period in FY 2005, despite indexing of fuel tax rates for inflation. |
|
Maryland |
Two-thirds of the over-attainment is attributable to the personal income tax and the estate tax. Revenues from the sales tax, the lottery and interest earnings are running ahead of the December estimate. The only weak areas are the corporate income tax (due to refunds) and revenues from the clerks of court, which relates mainly to the real estate market. The March revision increased the estimates for the personal income tax, the sales tax, estate tax, District court revenues and interest earnings. The estimates for the corporate income tax and revenues from the clerks of court were revised downward. |
|
Massachusetts |
The personal income tax is generally on target. General sales taxes are running below expectations, but the corporate income tax is taking up the slack. |
|
Michigan |
Performance is at estimated levels. |
|
Minnesota |
The personal income tax is below forecast, the general sales tax is at forecast, and corporate taxes are up substantially. |
|
Mississippi |
All categories are above estimates with the exception of the corporate income tax, insurance premiums and gaming taxes. |
|
Missouri |
Growth is very strong in personal income and corporate income taxes. |
|
Montana |
Personal and corporate income taxes and oil and natural gas production taxes, which are performing well above the 2005 regular session estimate, account for nearly all of the 8.1% increase above original projections. |
|
Nebraska |
Relative to budgeted estimate, the sales tax is up $6.2 million (0.8%); the individual income tax is up $27.1 million (2.9%); the corporate income tax is up $49.9 million (56.4%); and miscellaneous taxes are up $58.5 million (49.4%). The total for the first eight months of the fiscal year compared to the estimate is up $141.7 million (7.2%). The February 2006 forecast is $185.7 million higher than the budgeted forecast, thus year-to-date collections have achieved 76% of the higher forecast, with the remainder forecast for the remaining four months of the fiscal year. |
|
Nevada |
Sales tax collections for the first six months of FY 2006 are 11.3% higher than the same period one year ago. Gaming percentage fee collections for the first eight months of FY 2006 are 12% higher than the same period one year ago. |
|
New Hampshire |
Business taxes are ahead of plan by $42.4 million (18.9%). |
|
New Jersey |
Personal and corporate income tax revenues are above targets. Sales tax revenue is below. |
|
New Mexico |
Both personal and corporate income taxes are showing unexpected strength. Energy-related revenues are much higher than previous years, but are down from expectations in the fall because of changes in prices. |
|
New York |
The biggest growth in business taxes is due to activity and audit. The personal income tax has registered growth in non-wage portions. Real estate transfer taxes have grown by 30%. |
|
North Carolina |
Withholding taxes, after a sub par recovery, have grown at an 8% annual rate since early 2005 and show no signs of slowing. Sales tax receipts continue in the same range of 8% to 10% growth since late 2003. There is no slowing in retail sales as a result of higher interest rates or fuel prices. Corporate collections are up at strong double digit rates. |
|
North Dakota |
All categories are above budgeted estimates. |
|
Ohio |
The corporate franchise tax is above estimate by $73.9 million (22.9%), the public utility excise tax is above estimate by $12.9 million (13.7%), the kilowatt hour tax is above estimate by $12.2 million (5.5%), and the cigarette tax is above estimate by $10.9 million (1.7%). The new commercial activity tax is above estimate by $25.5 million (29%). The personal income tax is below estimate by $10.8 million (0.2%), the auto sales tax is below estimate by $15.2 million (2.4%), and the non-auto sales tax is below estimate by $57.3 million (1.3%). |
|
Oklahoma |
The personal income tax is 8.1% above the estimate. The corporate income tax is 37.6% above the estimate. Gross production taxes on gas are 6.5% above the estimate. |
|
Oregon |
Personal and corporate income taxes are running well over projections. Personal income tax revenue is now projected to increase 8.9% for FY 2006. Corporate income tax collections are projected to increase 31.7% in the current fiscal year. |
|
Pennsylvania |
The personal income tax is $99 million (1.8%) over estimate through February because of a $110 million overage in nonwithholding (e.g., estimated payments), which offsets a $10 million shortfall in employer withholding. The sales tax is nearly on target; collections exceed estimate by just $5.6 million (0.1%). Note that a $59 million overage in non-motor vehicle sales tax receipts is offsetting a $53 million shortfall in motor vehicle sales tax receipts. Corporation taxes (both the corporate net income tax and the capital stock/franchise tax) are about $144 million (9.5%) over estimate for the year, including $46.5 million of one-time revenue that the state received in October under the multi-state tax settlement with MCI-WorldCom. |
|
Rhode Island |
Sales and use taxes and the personal income tax are down. Corporate income taxes and lottery revenue are up. |
|
South Carolina |
Year-to-date increases over same period last year are as follows: the personal income tax is up 7.7%, the sales tax is up 5.2%, and the corporate income tax is up 34.4%. |
|
South Dakota |
With the exception of the bank franchise and insurance company taxes, which are 16% and 5% below their respective estimates, most other taxes are meeting the estimates. Bank franchise tax collections are expected to rebound by the end of the fiscal year. |
|
Tennessee |
The sales tax is currently $50.2 million over estimate. Franchise and excise taxes are currently $12.6 million under the estimate. |
|
Texas |
Sales, natural gas and oil production tax collections have exceeded estimates. Franchise taxes are submitted in May; therefore, no collection data is available. |
|
Utah |
All major tax categories for the first eight months of FY 2006 are performing on target. |
|
Vermont |
Compared to revised January 2006 forecast, most of the major general fund categories are on target. The surplus is being generated by the estate tax and a few small miscellaneous categories. In the transportation fund, all sources are down slightly. |
|
Virginia |
Corporate taxes are substantially above estimate. The income tax is in line with estimate (slightly below). Officials are seeing some decline in tobacco taxes, consistent with the nationwide decline in cigarette sales. Officials also anticipate that the state might see the Participating Manufacturers under the Tobacco Master Settlement Agreement withhold about $25 million from their April escrow payment. |
|
Washington |
All categories are up. |
|
West Virginia |
All categories are performing on target. |
|
Wisconsin |
Major tax categories are performing on target. |
|
Wyoming |
Major tax categories are performing slightly above projections. |
|
Source: National Conference of State Legislatures, March 2006. |
