“The positive trend of year-over-year growth continued for a 16th consecutive month in October as total net revenues remained relatively strong,” said Deal. “However, the more recent trend of softening revenues since August only reaffirms our stance of cautious optimism with respect to the overall economic outlook for the state.”
The following changes within the various tax categories led to the overall net revenue increase in October:
Individual Income Tax: Individual income tax collections for October totaled $700 million, up from $637.5 million in October 2010, an increase of $62.5 million or 9.8 percent.
The following notable components within individual income tax account for the increase:
Individual income tax return payments were up $10.5 million or 19.9 percent
Individual withholding payments were up $52.5 million or 8 percent
Individual income tax refunds issued increased $10.5 million or 12.1 percent
All other individual tax categories (including estimated payments) combined for a $10 million increase
Sales and Use Tax: Net sales and use tax collections for October totaled $437 million, up from $427 million in October 2010, for an increase of $10 million or 2.3 percent. The monthly sales tax distribution to local governments totaled $388 million, which was an increase of $27 million or 7.5 percent over last October.
Corporate Income Tax: Corporate income tax collections for October declined $4.25 million or 78.5 percent, marking the third consecutive year in which corporate refund activity outstripped corporate tax collections. Specifically, net corporate collections were $-9.7 million compared to $-5.4 million in FY2011.
The following notable components within corporate income tax make up the decrease:
Corporate tax refunds issued were up $12 million or 47.9 percent
Corporate Estimated Tax payments were up $5.1 million or 55 percent
All other Corporate Tax categories combined for an increase of $2.65 million or 25.3 percent